Annual Report (Shashadenim) 2019

Joining hands together aiming
for a sustainable world
w w w. s h a s h a de n i m s .c o m
JOINING HANDS
TOGETHER AIMING FOR A
SUSTAINABLE WORLD
In order to exist persistently, people should run contribute to a brighter future for all. And we
with the process through maintaining change in know we can draw on our legacy of stewardship
a balanced environment which is called to forge new paths to that future, where people
sustainability. Starting with only as a blue denim are healthy, well nourished, and happy.
producer; Shasha Denims has now emerged as
Keeping that in mind, we always concentrate
the trusted source for the world renowned
our efforts in bringing happiness to people by
buyers for manufacturing and exporting top
fostering them achieving their dreams through
class denims in diverse shade, quality, color,
supplying great products and services and
weight, and style as its buyers demand.
taking initiatives to contribute towards health,
Since inception, SDL has been a story of education and environment sectors.
success and progression. The foundation of
We believe that ensuring sustainability for our
reaching such heights is built on the trust of our
organization and society is an elemental part
stakeholders through demonstrating ethical
for our existence. To continue our actions in
business practices, delivering quality products
spreading happiness, we want to step ahead
and services, good governance, transparency
as well as engaging and empowering Joining hands together aiming for a
communities. sustainable world.
Shasha Denims embraces its responsibility-as a

Company, as a leader, and as an innovator-to
Blue Is The New Green...
Blue Stands for Denim and Green is Sustainability.
The natural world is the greatest source of excitement, visual beauty and
also the intellectual interest. It is the greatest source of so much in life that
makes our life worth living.
Blue is the new Green is a part of Shasha’s philosophy and unique

trademark that sets it apart from the global and local industry leaders. More
than policy-it’s a step towards the future promises improvement and
innovation with a thought to consumers, the world and its resources.
Since start, Shasha Denims Ltd. (SDL) is highly conscious on sustainability.

As such, it leads the way ‘Blue is the New Green’ through extensive
research, where in every level of the denim making process, we think of the
direct and indirect effect on nature our activities may lead to.
Going a step further than using organic cotton, reused cotton and
environment friendly fabrics such as Tencel, our chemical treatment
methods, reducing the percentage of water loss by 60 - 80% are truly a
breakthrough in garments manufacturing and also carrying out the slogan
‘blue is the new green’ in an utmost weight of it.
Realizing the importance of a living friendly planet, the Company is

continuously making its efforts to harmonize green preservation and
pollution control through some green endeavors.
SDL strictly complies with environment-related laws and regulations in each

& every step of its green business operations. As such, Shasha’s ‘Blue Is
The New Green’.
Shasha Denims Limited
11 Annual Report 2019
Contents
 Letter of Transmittal 06
 Corporate Profile 07
 Company Overview 08-09
 Award and Recognition 10-11
 Credit Rating 12
 Membership Affiliation 13
 Notice of the 22nd Annual General Meeting 14
 Vision, Mission & Objectives 16-17
 Code of Conduct and Ethics 18-20
 Main Focus & Strategies 21
 Corporate Chronicle 22-23
BOARD OF DIRECTORS & MANAGEMENT 25

 Directors’ Profile 26-28
 Management Profile 29-30
 Chairman’s Statement 32-37
 Strategic Review of the Managing Director 38-43
 Financial Highlights 44-46
 Directors’ Report 47-62
RISK MANAGEMENT 65
 Risk Management and Sustainability Analysis 66-68
 Value Added Statement 69
 Market Value Added Statement 70
 Economic Value Added Statement 71
 Contribution to the National Exchequer & Economy 72-73
 Forward Looking Statement 74-75
 Future Prospects 76
w w w. sh a s h a de n i m s .c o m
Annual Report 2019 219
HUMAN RESOURCES 77
 Corporate Culture 78-79
 Report on Human Capital Management 80-81
 Report on Human Resources Management 82-85
SUSTAINABILITY REPORTING 86
 Corporate Social Responsibility Initiatives 87-89
 Environmental and Social Obligations 90-91
 Sustainability Reporting 92-93
 Environment Related Initiatives 94
 Integrated Reporting 95
 Occupational Health and Safety 96
 Report on Going Concern 97-99
 Corporate Organogram 100
 Report on Corporate Governance Guidelines 101-106
 Shasha CG Report 2018 - 2019 107-115
 Evaluation of Quarterly Financial Statements 116
 Compliance Report on BAS and BFRS 117-118
 Report of the Audit Committee 119-120
 MD and CFO’s Declaration 121
 Capital Structure of the Company 122
 Integrated Reporting Checklist 123-126
AUDITORS’ REPORT AND FINANCIAL STATEMENTS 127

 Shasha Denims Ltd. and its Subsidiaries 128-164
 Shasha Denims Ltd. 165-205
 Energis Power Corporation Ltd. 206-221
 Shasha Garments Ltd. 222-237
 Shasha Textiles Ltd. 238-247
 Proxy Form
Letter of
Transmittal
28 November, 2019
All Shareholders,
Bangladesh Securities and Exchange Commission
Bangladesh Textile Mills Association (BTMA)
Registrar of Joint Stock Companies and Firms,
Bangladesh Securities and Exchange Commission,
Dhaka Stock Exchange Limited, and
Chittagong Stock Exchange Limited
Dear Sir (s),
Annual Report for the year ended June 30, 2019.
Enclosed please find a copy of the Annual Report together with the Audited Financial Statements
including Statement of Financial Position and Statement of Comprehensive Income, Statements
of Cash Flows for the year ended June 30, 2019 along with notes thereon of Shasha Denims
Limited and its subsidiary companies for kind information and record.
Best Regards,
Sincerely Yours,
Aslam Ahmed Khan FCA

Company Secretary
Corporate Profile
Registered Name : Shasha Denims Ltd.
Legal Status : Public Limited Company
Date of Incorporation : October 28, 1996 & C-31649 (770)/96
Commencement of Commercial Operation : July 2000
Business : Denim Fabrics Manufacturer
Present Production Capacity : 21.60 Million Yards Per Year
Chairman : Barrister Anisul Islam Mahmud

Chairman Audit Committee : NKA Mobin FCA, FCS, CFC
Chairman Nomination and Remuneration : Sayed Mayeenul Huq
Managing Director : Shams Mahmud
Director (Operation) : Mohammad Jamal Abdun Naser
Director (Finance) : Md. Ahasanul Haque
Company Secretary : Aslam Ahmed Khan FCA
Chief Financial Officer : Sarwar Hossain FCA
Authorized Capital (Ordinary Share Capital) : BDT. 2000 million

Paid up Capital : BDT. 1279 million
Date of Approval for IPO : November 05, 2014
Date of Listing with DSE : February 18, 2015
Date of Listing with CSE : January 17, 2015
Auditors : M/S S F Ahmed & Co.

Chartered Accountants
House # 51 (2nd & 3rd floors)
Road # 09, Block # F
Banani, Dhaka-1213.
Rating Agency : Credit Rating Agency of Bangladesh
Registered Office : House # 7, Road # 117, Gulshan, Dhaka.

Tel: 88- 02-9881862,
Fax: 88-02-8823842
Corporate Office : House # 23, Road # 129, Gulshan-1,

Dhaka-1212.
Phone: – 88-02-9850548, 9855263,
9854679, 9856328
Fax:-88-02-9851698
Factory Address : Plot # 184-193 & 277, DEPZ (Ext.)

Savar, Dhaka.
Tel: 88-02-7789188, 7789302-05
Fax: 88-02-7789307
Web Address : www.shashadenims.com
Email Address : info@shashabd.com
LEAD BANKERS : The Premier Bank Ltd., Bank Asia Ltd.
The Company has scored first position and

won the glorious ‘National Export Trophy
(Gold)’ for the three consecutive years
Company (financial years 2011-12, 2012-13 & 2013-14)

and also acquired ‘National Export Trophy
Overview (Silver)’ for the financial year (2016-17) for its

remarkable contribution in denim exporting as
well as earning outstanding amount of foreign
currency.
We hope to make every effort to upholding this
standard in future.
Since commencement in 1996, Shasha Denims Limited Our Products & Renowned Buyers
(SDL) has been marching forward and now has
SDL is a trusted source for the world renowned buyers;
positioned itself as one of the leading 100% export and in many cases, it is the only nominated supplier for a
based denim manufacturers in Bangladesh. number of eminent buyers. Currently, SDL manufactures
fabrics for the world famous brands i.e, H&M, O’STIN,
From an effort of producing and delivering superior
Esprit, Debenhams, Marks & Spencer, LPP, Pull & bear,
quality denim clothes, SDL is currently capable enough
S. oliver, Zara, Bestseller, River island etc.
to compete with any denim companies of Bangladesh.
The Company produces denim fabrics weighing from Its premium design and enriched diversified product
4oz/yd2 to 15oz/yd2 for denim jeans. portfolio have made the Company special and
distinctive to its customers. Again many such new and
Keeping up with the current denim craze, the Company unique products are still in its plan to introduce shortly.
is manufacturing and exporting top class denims in The Company exports its products through export
diverse shade, quality, color, weight, and style as oriented RMG. The final destination of the products is
buyers demand. EU, Australia and many more.
Subsidiary Companies Current Production Capacity

Shasha Denims Ltd. belongs two subsidiary Present production capacity of the Company is 21.6
companies-Energies Power Corporation Ltd. (EPCL) million yards per year. Now the Company is running
and Shasha Textiles Limited. Last year Shasha under its maximum capacity.
Garments Ltd. became an associate Company from
SDL’s subsidiary Company. Throughout its journey, the
Social Causes Programs
Company continued to stride the path of persistent For ensuring maximum security to the lives of common
growth and maintained its flagship position in the people; since inception, Shasha Denims has been
nation’s denim industry. trying to enrich economic and social indicators of the
society by supporting the following sectors: Education, We hope to make every effort to upholding this
Poverty Elimination, Standard of Living, Healthcare, standard in future.
Environment Related Issue and also Various Community
Development Programs through its charitable Shasha Again the Company was awarded with the Silver Award
Foundation which is formed only for the wellbeing of the of ICSB National Award-2016 for Corporate Governance
nation’s underprivileged people. Excellence.
The Company also contributes in health care support A splendid accreditation as the 'Gold Supplier-2017' is
through providing financial assistance to the society’s also received in favor of the Shasha Denims Ltd. from
poor people and also critical medical treatment to its the world renowned brand H&M.
staff, workers and other patients who are financially
Besides, the Company has had its great recognition as
challenged.
the excellent performer client and achieved the Gold
On the whole, SDL is contributing towards sustainable Award from the Premier Bank Ltd. and Sonali Bank
development through its persistent endeavors and Ltd. also the same from Agrani Bank Ltd.
active CSR initiatives.
Credit Rating
Award & Recognition
Considering the audited financial statements, bank
Since beginning, SDL has been awarded and achieved liability position and other available information, the
a lot of prestigious awards several times including Credit Rating Agency of Bangladesh (CRAB) has rated
national award and recognition from different govt. and Shasha Denims as AA3 (long term credit rating) and as
private sectors as well as organizations. ST2 (short term credit rating) up to the date of rating
declaration.
The Company has scored first position and won the
glorious ‘National Export Trophy (Gold)’ for the three The report also stated that Shasha Denims has a stable
consecutive years (financial years 2011-12, 2012-13 & outlook from the industrial point of view for overall
2013-14) and also acquired ‘National Export Trophy industry growth and policy regulations implicated by the
(Silver)’ for the financial year (2016-17) for its regulatory authority.
remarkable contribution in denim exporting as well as
earning outstanding amount of foreign currency.
Award and
Recognition
National Export Trophy (Gold) 2011-2012
National Export Trophy (Silver) 2016-2017
ICSB National Award 2016 (Silver)
Shasha Denims Limited has been rated as AA3 (pronounced as Double

A Three) long term credit rating and ST-2 short term credit rating by
Credit Rating Agency of Bangladesh (CRAB) based on audited financial
statements up to 30th June, 2018, un audited financial statements up
Credit
to 31 March, 2019 and Bank liability position as on 25 June, 2019 and
other available information up to the date of rating declaration. The date
of rating was on 16 July, 2019. The outlook on the rating is Stable.
Rating CRAB considered financial performance, revenue, export,

receivable, payable, capital base, asset quality, liquidity position,
management experience and prospect of the industry while
assigning the rating reflects the strengths of the company which is
long operating history, moderate to high revenue growth, robust
order book and track record of good repayment despite moderate
to high leverage.
Long term Short term Date of

Outlook
Rating Rating Validity
AA3 ST2 Stable 29 June, 2020
Membership Affiliation
Shasha Denims Ltd. is affiliated with the following Chambers and Associations
BTMA
Dutch-Bangla Chamber of
Bangladesh Textile Mills Association Commerce & Industry
Metropolitan Chamber of International Chamber of

Commerce and Industry, Dhaka (MCCI) Commerce
Dhaka Chamber of Federation of Bangladesh Chamber

Commerce & Industry of Commerce and Industry
Bangladesh Philippines Chamber of

Entrepreneurs' Organization (EO)
Commerce and Industry
Notice of the 22nd

Annual General Meeting
Notice is hereby given that the 22nd Annual General Meeting of the Shareholders of Shasha Denims Limited will be
held on 19 December, 2019, Thursday, at 10:30 am at Trust Milonayaton’ Old Airport Road, Dhaka Cantonment,
Dhaka to transact the following business:
• To consider and adopt the Audited Financial Statements of the Company for the year ended on June 30, 2019
together with the reports of Directors and the Auditors thereon.
• To declare dividend as recommended by the Board of Directors.
• To elect Directors as per Articles of Association of the Company.
• To appoint auditors and fix their remuneration.
• To transact any other business with permission of the Chair.
For and on behalf of the Board
Date: 28 November, 2019 Aslam Ahmed Khan FCA

Company Secretary
Notes
• Annual Report–2019 is available in http://shashadenims.com/investors/documents/annual-reports/annual-report-2019.
• Record date is 21 November, 2019. The Shareholders whose names would appear in the Register as members
of the Company on the Record Date will be entitled for Dividend and eligible to attend and vote at the 22nd AGM.
• A member entitled to attend and vote at the Annual General Meeting may appoint a Proxy to attend and vote in
his/her behalf. Proxy form, must be affixed with requisite revenue stamp and must be submitted at the Head
Office of the Company, not later than 48 hours before the time fixed for the meeting.
• Admission to the meeting room will be strictly on production of the attendance slip sent with the notice as well
as verification of signature of Member(s) and/or Proxy holder(s).
• Shareholders are requested to update their BO account with ETIN in their respective Brokerage House to
avoid deduction of Tax @15% instead tax 10% for individual as per section 54 of the amended Income Tax
Ordinance 1984.
• No gift or benefit in cash or kind shall be paid to the holders of equity securities in terms of clause (c) of the
Notification No. SEC/SRMI/2000-953/1950 dated 24 October 2000 for attending the AGM of the Company.
To resonate our philosophy ‘Blue is the New Green’,
we emphasize using organic cotton which is produced 100%
naturally in its every level-spinning, dyeing even finishing of
the yarn, all carried out using ecological procedures.
We also use branded fibers from Lenzing Modal® and TENCEL®

is just a natural fiber without applying the most pesticide and
water intensive crop and accordingly makes our products
exceptionally comfortable and sustainable.
VISION
To be a prime denim manufacturer
in the Country through maintaining the
best quality and commitment.
MISSION
To continue endeavors for the development
towards satisfaction of existing customers
through quality denim products with
innovations.
To expand business by increasing capacity

of production using IPO fund and become
premier denim producer of the country.
OBJECTIVES
 To give emphasis on continuous
development endeavors and value addition
to become a leading denim producer and
holding its position in the country.
 To focus on regular expansion of the project

with advanced technology.
 To protect shareholders’ interest as well as

maximize the wealth of the organization.
 To maintain a congenial working

environment and sustainable resources.
 To practice good governance in every

sphere of activities covering full disclosures
and reporting to shareholders.
 To fulfill the responsibility to the nation

through regulatory compliance.
Since inception, Shasha Denims Ltd.

(SDL) has been governed by integrity,
CODE OF honesty, fair dealing and fulfilment
with all applicable laws. SDL believes
CONDUCT that everyone can be benefited from

practicing and promoting ethical
AND ETHICS
behavior. Honesty and integrity foster
a positive working environment that
strengthens the confidence of all our
stakeholders.
Our Code of Ethics and Business Conduct addresses The Code explains the standards of behaviour that
moral handling in our working environment, business Shasha Denims expects of its employees in their daily
practices and relationships with external stakeholders. We activities and dealing with others. It also identifies
believe that as a result of consistently practicing our code guiding principles to help them make decisions
of business conduct, SDL has registered sustainable consistent with Shasha’s values and reputation.
growth and continuous development in every year.
THE CODE OF ETHICS AND BUSINESS CONDUCT OF THE COMPANY
1 Compliance with Laws, Rules and Regulations
Shasha Denims Ltd. always respects the relevant laws and regulations associated
with its business and others. Compliance with all applicable laws and regulations
must never be compromised. Moreover employees are adhere to internal rules and
regulations. All officials of SDL are instructed to abide by all applicable laws and
regulation without creating any obstacle.
2 Confidential Information
SDL values and protects confidential information and respects the confidential
information of others. Confidential information consists of any information that is not
or not yet public information. It includes innovations, ideas, trade secrets, business,
marketing and service plans, engineering and manufacturing ideas, product
recipes, designs, databases, records, salary information and any non-published
financial or other data. Continued success of SDL depends on the use of its
confidential information and its nondisclosure to third parties. SDL may provide all
confidential information as per requirement of regulatory authority with permission
of the Board.
3 Accuracy of Records and Reporting
All of our books, records, accounts and financial statements are being maintained
in reasonable details, appropriately reflecting our Company’s transactions and
conforming to all applicable legal requirements. SDL believes that accurate
information and reports helps the management to take accurate decision. To keep
and maintain maximum accuracy, SDL introduced effective internal control system.
Official of the Company are instructed to report in time to DSE/CSE/BSEC as per
their requirement.
4 Equal Employment Opportunity
Shasha Denims Ltd. creates equal opportunity of the employee in the organization.
The Board of SDL ensures safe and secured working environment. The company
also provides dormitory facilities for the workers. Health Insurance, Incentive Bonus,
Provident Funds, Gratuity, Production Bonus and other facilities are also provided to
the employees of Shasha Denims Ltd. The Company doesn’t allow discrimination
against any person on the basis of race, religion, color, gender, age, citizenship in
recruiting, hiring, placement, promotion or any other condition of employment.
5 Corporate Opportunities
We are committed to advance Shasha’s business. Employees shall not compete

with the Company. Employees shall not take personal advantage of business
opportunities that they discover during the course of their employment. Employees
are prohibited from using corporate property, information or position for personal
gain and/or benefits.
6 Insider Trading
We respect and follow the Insider Trading Rules when buying or selling SDL’s
securities. Shasha prohibits the purchase and sale of its shares or securities on the
basis of potential share prices and relevant information which is not yet public.
Shasha aware its employees regarding the insider trading rules.
7 Antitrust and Fair Dealing
Employees of Shasha Denims shall behave decently and ethically with other
people. They are conscious and vigilant with respect to deceive, undue preference,
illegal activities committed within the office. Employees of Shasha Denims are
prohibited to take any advantage or benefits through manipulation, concealment,
abuse of privileged informationand any other unfair practices. The company does
not allow taking any benefits and advantage from others through discriminatory
dealings.
8 Conflict of Interest
A Conflict of Interest occurs when personal interests of an employee or the

interests of a third party compete with the interests of the Company. If a conflict of
interest situation occurs or if an employee faces a situation that may involve or lead
to a conflict of interest, then the employee discloses it to his or her reporting
Manager and/or the HR or the Legal or Compliance Function to resolve the
situation in a fair and transparent manner.
Main Focus Be the leader

in the country’s
denim industry
and Strategies through quality
production
and innovative
ideas
Responsible
business practices
through complying
with all regulatory
requirements
Maintain
Making a
sustainable
difference
business
through
growth with
transparency and
innovation and
accountability
diversity
Focus on Create
Apply relentless
Satisfy the buyers corporate social employment and
efforts to keep
and earn foreign responsibility ensure good
the environment
remittance in a responsible corporate
green
manner governance
Corporate
Chronicle 2014
Received approval
for IPO
(5 November, 2014)
1991 2003
Incorporation of Incorporation of
Shasha Textiles Ltd.
2008
Shasha Garments Ltd. Incorporation of
(18 November, 1991) (18 September, 2003)
Energis Power
Corporation Ltd. (EPCL)
(28 December, 2008)
1997
SDL’s conversion into
Public Limited Company
(3 August, 1997)
1996
Incorporation of
Shasha Denims Ltd. (SDL)
(28 October, 1996) 2009
2000 EPCL’s conversion into
Public Limited Company
Commencement of
(20 April, 2009)
commercial operation
(July, 2000)
2018
1st MOU signed between
SDL and EOS Textile Mills Ltd.
for the acquisition of
EOS Textile Mills Ltd.
(24 February, 2018)
Managing Director
2015 is recognized as CIP
(August, 2018)
Enlisted with
Chittagong
Stock Exchange Ltd.
(17 January, 2015)
Enlisted with Dhaka
Stock Exchange Ltd.
(18 February, 2015)
Debut trading day
(5 March, 2015)
2019
Decision regarding
2016 acquisition of 80% shares
of EOS Textile Mills Ltd.
Received National (14 February, 2019)
Export Trophy (Gold)
for (FY 2011-2012 & 2017 Received National
Export Trophy (Silver)
2012-2013) Received National for the year (2016-2017)
(28 August, 2016) Export Trophy (Gold)
(1 September, 2019)
for (FY 2013-2014)
(1 January, 2017)
Received ICSB
National Award-2016 (Silver)
for Corporate
Governance Excellence
(30 November, 2017)
SDL has installed the
most modern and standard
indigo dyeing machine in
its extended project in
DEPZ area which is the
first time ever in Asia that
saves 60% water and 40%
chemicals in process
compared to anyother
conventional indigo
dyeing machines.
Board of
Directors &
Management
Directors’ Profile
Barrister Anisul Islam Mahmud

Chairman
Mr. Anisul Islam Mahmud is the Chairman of the Board of Directors
of Shasha Denims Ltd. He is the Sponsor Director of Shasha
Denims, Shasha Garments Ltd., Shasha Textiles Ltd. and other
companies of Shasha Group. In his versatile business career, he
expands his business from textile to power sector.
Mr. Mahmud came from a noble Muslim family. The family legacy
and his own inherent qualities gave him a great sense of value and
direction which made him successful in every sphere of his life.
Mr. Mahmud, an Ex Faujian was educated at the University of Dhaka

(BA Economics, 1969), Quaide Azam University in Karachi (MSc
Economics) and the University of Essex (MA Economics, 1972).
He was called to the Bar at Lincoln's Inn in 1975. He was a

Lecturer of Economics at the University of Dhaka from 1969 to
1970, a Senior Research Associate in Economics at the University
of East Anglia from 1972 to 1973, and lecturer of economics at the
University of Hertfordshire from 1973 to 1977.
He was elected to the parliament of Gov’t of the People’s Republic

of Bangladesh (Jatiya Sangsad) in 1979, 1986, 1988 and 2008 and
held the position of the Hon’ble Minister of Ministry of Foreign
Affairs, Ministry of Environment and Forest, Ministry of Water
Resources and other important ministries in different courses of
time under the Gov’t of the People’s Republic of Bangladesh.
Barrister Mahmud is a licensed pilot who had also served as the

President of Bangladesh Flying Club Ltd. from 1987 to 1990.
Again he served as the President of the Bangladesh Cricket
Control Board from 1989 to 1990.
Shams Mahmud
Managing Director
Mr. Shams Mahmud, Managing Director of Shasha Denims Ltd. is a prolific
and successful entrepreneur in the field of fashion and apparels. He has
completed LLB from the University of Herefordshire in the UK and a
certification in International Business and Finance from New York University,
USA. He is also a Capstone Fellow of the National Defense College (NDC).
Mr. Shams Mahmud has brought in innovative production management,

incentive system and marketing approach towards the company. The
Government of the Federal Democratic Republic of Ethiopia has appointed
Mr. Mahmud as the Honorary Consul of its country (Ethiopia) to Bangladesh.
He is the Secretary General of Consular Corps in Bangladesh (CCB).
In addition, he holds the exalted positions of a number of chambers and

associations. At present, Mr. Mahmud is the Board of Director of Dutch
Bangla Chamber of Commerce & Industry (DBCCI), Bangladesh Philippines
Chamber of Commerce & Industry (BPCCI) and Bangladesh Textile Mills
Association (BTMA). He is also the Vice President of BPCCI for the year
2019-20. Recently, he has been elected as the President (2020) of Dhaka
Chamber of Commerce & Industry (DCCI). Mr. Shams Mahmud was
recognized as a CIP (Export-2015) by the Government of the People’s
Republic of Bangladesh.
Zareen Mahmud CPA, FCA

Director
Ms. Zareen Mahmud is a Founding Partner of Snehasish Mahmud & Co.,
Chartered Accountants. She has a BA in Economics from Smith College and
an MPA in Public Finance from New York University, USA. She qualified as a
Certified Public Accountant from the Delaware Board of Accountancy in the
USA. She is also a Fellow Chartered Accountant of the Institute of Chartered
Accountants of Bangladesh (ICAB).
Ms. Mahmud had started her career in New York where she worked as a
Senior Associate at KPMG in the Corporate Tax Division. She also served as
a supervising analyst at the New York City Mayor’s Office of Management
and Budget. She served as a consultant for the United Nations Capital
Development Fund (UNCDF) in New York. Before founding her Audit Firm,
Ms. Mahmud served as the Vice President of Newton International Limited,
a start-up education and training business. Prior to joining Newton, she was
Manager of Audit & Consulting at ACNABIN & Co., Chartered Accountants.
She had also served as a Financial Management Consultant for the World
Bank in Bangladesh. Ms. Mahmud is a Director of Shasha Denims Limited,
Shasha Garments Limited and Energis Power Corporation Limited (EPCL).
Currently, she is on the Board of Aga Khan Foundation Bangladesh. She is
also the Managing Director of Form Icon Limited as well as the Founder and
Executive Director of HerStory Foundation. Ms. Zareen Mahmud is one of
the trustees of Ghasful (NGO).
N K A Mobin FCA, FCS, CFC

Independent Director
Mr. N K A Mobin is the Independent Director of Shasha Denims Ltd. and also
the Chairman of the Audit Committee of the Company. He is one of the
Sponsor Directors of the Emerging Credit Rating Ltd. (ECRL) and also the
Managing Director and Chief Executive Officer of the Company. He is a
Chartered Accountant by profession as well as a fellow member of the
Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of
Chartered Secretaries of Bangladesh (ICSB). He completed his BBA and
MBA in Finance from the University of Dhaka during 1977-1982.
Mr. Mobin has vast experiences in the field of Finance, Accounting, Taxation,
System Design, ERP System and Company Secretarial Practices. He has
international training and management program in Stockholm Business
School in Sweden, National University of Singapore, INSEAD in France and
also AOTS/HIDA in Japan.
Prior to Joining ECRL, he worked at Grameenphone Ltd. for 11+ years in his
various capacities as Director Finance, Director Administration, Director
Projects and Company Secretary. Before joining Grameenphone in 1998, he
worked in the swiss pharmaceuticals Co. named Novartis Bangladesh Ltd.
for 3 years as the Director Finance and Company Secretary, in multinational
fertilizer company named Karnaphuli Fertilizer Co. Ltd. (KAFCO) for 5 years as
Manager Finance & IT and in Dhaka Match Industries Co. Ltd. for 5 years as
Chief Accountant. Mr. Mobin is currently the Govt. nominated Director in
BIMAN Bangladesh Airlines Limited. He is also the independent Director in
MJL Bangladesh Ltd.
Syed Mayeenul Huq

Mr. Syed Mayeenul Huq is the Independent Director of Shasha Denims
Ltd. Mr. Huq, is an advocate of the Supreme Court of Bangladesh. He
completed his M.A in Economics from University of Karachi in Pakistan
and B.A (Honors) in Economics from the University of Dhaka. He
completed his LLB from Central Law College in Dhaka. He is the
Chairperson of the Disciplinary Committee of Central Women’s
University and also a trustee of the Central Women’s University.
Advocate Huq was born in 1946 in an illustrious family of Barisal.
Management Profile
Mohammad Jamal Abdun Naser

Director (Operation)
Mr. Mohammad Jamal Abdun Naser is the Director (Operation) of
Shasha Denims Ltd., has nineteen years experience in textile
industry. He had obtained degree in Textile Engineering and
Technology from DUTEX in 1998. Mr. Jamal started his
professional career in 1999. Before joining in Shasha Denims Ltd.,
he worked with many renowned textile companies like Alltex,
Sinha textile, Nassa Taipei Denim etc. He also worked with
reputed foreign and local textile experts at home and abroad. Mr.
Jamal Abdun Naser is a good speaker. He participated and
delivered his valuable speeches in many different textile fairs,
programs and seminars. He writes articles on textile which are
regularly published in differnt magazines and journals. He visited
many countries i.e, USA, Brazil, Turkey, Italy, Germany, UK,
Indonesia, Australia, Japan, China and many more.
Md. Ahasanul Haque

Director (Finance)
Mr. Md. Ahasanul Haque joined in Shasha Denims Ltd. in 1996. He is
an MBA. In his career, he obtained vast professional experiences.
Since start with Shasha Denims Ltd. he holds different position of the
organization in different capacity. He visited many countries i.e, USA,
Germany, France, Indonesia, Australia, Italy, Switzerland, Turkey,
UAE, Ethiopia, Singapore, Malaysia, Thailand and India.
Aslam Ahmed Khan FCA

Company Secretary
Mr. Aslam Ahmed Khan FCA joined Shasha Denims Ltd. as the
Company Secretary in March 2015. He is a fellow member of the
Institute of Chartered Accountants of Bangladesh (ICAB). Before
joining Shasha Denims Ltd., along with Bank, he worked in different
Financial Institutions. He also served in MIDAS Financing Ltd. as GM
(F&A) and the Company Secretary for 5 years.
Md. Sarwar Hossain FCA

Chief Financial Officer (CFO)
Mr. Md. Sarwar Hossain is a young and enthusiastic Chartered
Accountant serving in Shasha Denims Ltd. since January 2015 as
the Chief Financial Officer (CFO) of the Company. Before joining
Shasha Denims Ltd., he worked with many reputed companies in
different senior management positions i.e, Rangs Group, M&J Group
etc. He completed his Chartered Accountancy Course from KPMG-
Rahman Rahman Huq Chartered Accountants in 2011.
Lt. Col. Md. Quaderuzzaman (Rtd.)

General Manager
A veteran freedom fighter Lt. Col. Md. Quaderuzzaman (Rtd.) has
been serving as General Manager (Admin & HR) in Shasha Denims
Ltd. since 2010. He has twenty eight years experiences of
leadership, administration, security, HR, crisis management and
staff job. He passed out from BMA as a Second Lieutenant in 1976.
He got his BA in 1995. After his retirement from Bangladesh Army,
he served Meghna Group of Industry, Senakalyan Sangstha etc.
SDL has installed a fine
technology environment friendly
machine which allows to produce
any kind of indigo
shades in terms of tones
and depth of colors is
a unique one.
Chairman’s
Statement
In the name of Allah, the most Merciful,

the most Graceful!
Distinguished Shareowners,
Assalamu Aalaikum!
Growing with the values and vision set more than two decades ago;
stepping ahead gradually, your company Shasha Denims Ltd. now has
made itself a solider and resilient one than before and with the passage of
time also flourished the denim landscape of Bangladesh through its
integrity, dynamism and modernization.
At this happy moment, I feel proud and privileged to Bangladesh growth prospect remains solid with
welcome you all to the 22nd Annual General Meeting of progress in both domestic demand and external sector
Shasha Denims Ltd. (SDL) and present the financial amid all sorts of uncertainties with its resilient mindset
performances and achievements of the Company for and everlasting aspiration.
the year ended on 30 June, 2019.
In the fiscal year 2018-19, Bangladesh’s overall
On behalf of the Board of Directors, my heartiest merchandise export earnings registered a 10.55%
gratitude goes to you for reposing your trust on Shasha growth to $40.53 billion compared to $36.66 billion in
Denims Ltd. which encouraged the company to make the previous year. (Source: EPB data). In the last fiscal
the success of its every endeavor. year, the country was able to cross the export target of
$39 billion, earning $40.53 billion. By 2021, Bangladesh
Our Financial Footings, Strong Brand Portfolio and wants to export goods worth $60 billion, of which $50
Long Lasting Customers’ Support will be continuing as billion would come from apparel sector.
the key drivers for holding the stewardship in the denim
industry of Bangladesh. The growth could also be registered for outstanding
success in the agriculture sector along with good
Business Environment progress in the industrial and power sectors as well.
Economic scenario of a country is highly dependent on
its overall domestic situation, financial strength, Though the government is hoping a better performance
geo-political pressure, foreign investment and so on. in the current fiscal year, major big export earners
including leathers, jute and frozen and live fish sector
The business year 2018-19 brought to us with diversified registered negative growth.
experiences of challenges in regard of global and
domestic market condition-offering both opportunities to The World Bank has painted a brighter picture for
thrive and at the same time confront to instability. Bangladesh's economy for the next two fiscal years,
pinning hopes on strong domestic demand, exports, consolidated profit after tax was BDT. 555.75 million
investment and remittance. which showed consolidated profit after tax decreased
by 31.74%. Consolidated earnings per share of the
Our Business Journey during the Audited Year company registered BDT. 3.05 during the year against
Our business result for the year 2018-2019 couldn’t BDT. 4.33 in the last year.
fulfill our target. We had to meet different types of
challenges which were not faced earlier. During the Consolidated total asset has reached to BDT. 12,426
reporting year, we crossed our consolidated revenue million as on 30 June, 2019 from BDT. 12,077 million as
record but its affect didn’t keep contribution in on 30 June, 2018 showing 2.89% growth year-on-year
consolidated profit target of the company. basis.
Cost of raw material, direct production expenses like For the period of the year 2018-2019, consolidated long
labor wages, utility bills etc. were increased excessively term liabilities of the company increased by BDT.
which were beyond our control. World cotton market 199.49 million which was one of the reasons for
volatility affect the raw material price adversely. During increasing interest expenses from last year. Stock of
the year we didn’t revise our selling price according to raw materials was increased as a proactive measure
increased production cost as world market was not in considering price hike of raw materials and increasing
favorable momentum. Company took a policy to trend of dollar rate. We hope that benefit of over import
continue its production and sales with a minimum profit of raw materials will come from the next year.
margin to achieve buyers’ confidence in such unfavorable
situation. We expect our endeavor and commitment to As the Company is highly concerned about its
the buyers will bring better to us in the coming days. shareholders’ interest, we proactively and thoroughly
assess risk and accordingly reward to provide
We all are aware that Shasha Denims Ltd. took huge sustainable returns to our shareholders over time.
expansion during the last two years. Company installed
new machineries and constructed two multi-storied Continuation with successful existence in the market for
building in its factory premises. Charging depreciation more than two decades, I am proud to announce that
was started during the year on these assets. During the we have positioned ourselves nationally and globally as
year consolidated depreciation charge was increased one of the leading Denim manufacturers and exporters
by BDT. 92 million compared to last year which also in the industry by maintaining every bit of passion,
affect the cost of production of Shasha Denims Ltd. persistence and rigorousness throughout our entire
Gross Profit Margin, Operating Profit Margin and Net journey.
Income of the company decreased drastically during
the year compared to last year. Financial Expenses of
Strategic Investments
Shasha Denims Ltd. increased by BDT. 7.6 million from Strategic endeavors are ongoing process to deal with
corresponding year. Overall performance of SDL was ever-changing market trends and business demands.
not as good as earlier. Energis Power Corporation Ltd. We always remain proactive on that call. In order to
(EPCL) and Shasha Garments Ltd. (SGL) kept meet the commitment of delivering long term value to
contribution to earn consolidated EPS to BDT. 3.05 our shareholders, the company has invested in the
which was registered BDT. 4.33 in the last year. capacity enhancement of our production facilities,
Earning from capital gain of BDT. 97 million by Shasha safety to our people and machinery as per the need of
Garments Ltd. made a good contribution to business which will ensure sustainable future growth.
consolidated EPS. During the reporting year, EPCL was
Our actions need to match our words. That’s why, we
able to generate electricity from its 6 generators and
believe in continuous market vigilance and improvement
production was continuing through out the year.
for the sake of our stakeholders. In addition to exigency
Consolidated profit after tax of BDT. 379.34 million was plans, the management persistently aims to perform
earned during the year but during the last year some routine tasks which include but not limited to:
 Maintaining quality investment to generate greater Already we have got nod from Bangladesh Bank and
value through enhancing product portfolio BEPZA to take the ownership of EOS Textile Mills Ltd.
 Ensuring better service within stipulated time We hope that share transfer will be completed shortly
 Encouraging workforce through providing various after fulfilling the agreed requirements.
facilities, incentives, recognition, job security and so on
Currently EOS’s sales are BDT. 150 crore (Approx.). We
 Identification of growth driver and cost optimization
are optimistic to make the figure double InShaa Allah
 Maintaining secrecy of all individual customers/ within next couple of years and as the owner of 80%
clients and stakeholders
shares, Shasha Denims would enjoy the additional profit
 Ensuring highest level of compliance to the regulatory of the same proportionately.
body and transparency to our stakeholders
 Introducing world class products to cope up with We will continue to widen our reach through extended
international trend business arena at major townships and industrial hubs
 Meeting up additional demand through expanding of the country in the approaching days.
business arena
Risk Management
Dividend As we know, a strong risk management framework is the
Shasha Denims Ltd. took various initiatives to expand prerequisite to continue as an efficient manufacturing
and diversify its business. Already production capacity organization.
of Shasha Denims Ltd. has been increased. Some loom
machines are replacing to enhance production In addition, to keep a clear focus on customers and
efficiency. Acquisition of EOS Textile Mills Ltd. is under clients, we have developed our growth strategy which
process. Considering all the prospects in mind, The includes rising within a clear risk framework to ensure
Board of Directors of the Company in its meeting held on and maintain a balanced, stable and secured financial
28th October, 2019 recommended 5% Cash dividend platform so that we may proceed a smooth business
and 5% stock dividend for the year 2018-2019. operation.
‘EOS Textile Mills Ltd.’- A New Addition in I can proudly say that Shasha Denims has strong risk
Shasha Group management architecture not only to identify but also
As we dream to become the world leader in the denim monitor, report and review various risks inherent to the
industry, we always try to move on keeping pace with business in order to handle the situation even a single
time & situation. crisis when occurs and also ensure sustainable asset
To grow our business and reach out to more customers quality during the time of economic disaster or other
by various means, we made another amazing difficulties.
achievement in the first quarter of 2018 through signing
Shasha Denims is committed to manage those risks
a MOU as well as Share-Sale and Purchase Agreement
(SSPA) with EOS Textile Mills Ltd. for acquiring the that arise through different courses of the business to
Company (EOS Textile Mills Ltd.) investing US $ 12 an acceptable level so it could maximize the
million from which Shasha Denims will be the owner of opportunities and minimize the impact.
80% shares of EOS Textiles.
Good Governance
EOS Textile Mills Limited, a sister concern of world
We have always been transparent supporting and
reputed Italian Company Berto E.G. Industria Tessile
abiding by all the business laws & regulations of the
S.r.L is 100% export based textile company located at
country. I would like to restate that our Board all the
plot # 1-6 &17-22 DEPZ (Extn), Ganak Bari, Savar,
Dhaka was established on 08 June, 1998 by foreign time maintains its effective role in policy formulation and
Companies. discharging best possible Corporate Governance.
The Board always keeps focusing on maximizing education, healthcare and environment to improve the
shareholders’ value through formulating policies and social and economic conditions of the country through
guidelines, ensuring sustainable profitability, minimizing its charitable ‘Shasha Foundation’.
risks and establishing good governance in all spheres of
As the country’s leading denim exporter, we are proud
company’s operation. The Corporate Governance is also
to contribute to a sustainable society and also play our
highly prioritized by the Management of the Company.
part in shaping the future of corporate best practices in
In Compliance with Bangladesh Securities and Bangladesh with the idea of delivering value for
Exchange Commission’s (BSEC) regulations and to shareholders today while investing for tomorrow.
further strengthen our corporate governance system,
Future Prospects
two (2) Independent Directors have been inducted into
the Board. We are working hard for the continuous improvement of
our business and excited about the opportunity for
Contribution to National Exchequer further progress in the year ahead.
In our way to participate in the nation building activities;
We anticipate new challenges in 2019-2020. Electricity
since start, Shasha Denims has been making its
generation of Energis Power Corporation Ltd. has been
significant contribution by paying Government’s Tax,
suspended. We are still waiting for BPDB response
VAT, Stamp duty etc. within the time frame.
regarding our prayer for time extension for further
electricity generation.
During the year 2018-19, the company contributed
BDT. 89 million to the National Exchequer as against
Now we focused on our textile business. Accordingly
BDT. 46 million in 2017-18. we have taken initiatives to expand our business. We
hope that acquisition of EOS Textile Mills Ltd. will be
Best HR Practices
another milestone of the company.
Shasha Denims Ltd. recognizes its people are its
greatest asset. Hence, brilliantly arrange the right Nevertheless, we firmly believe that the diverse
people on the right place for extracting excellent results. challenges of tomorrow open up new opportunities. We
are confident to overcome the challenges through
We duly acknowledge their contribution and tireless dynamism, market leading innovations and
efforts in bringing fantastic outcomes for the company. establishment of sensible regulations in our business.
To value their contributions, we have adopted various
policies to reward our people accordingly. I pledge that we will continue to add value for the
stakeholders through formulation and execution of
I believe that in the coming days, our employees prudent business strategies and practices whilst ensuring
directed by our efficient Management Team will set a that we contribute for accomplishment of Government’s
benchmark for the whole denim industry ensuring world continuous journey towards newly assigned Sustainable
class denim production to compete the globe. Development Goals (SDG) and vision.
A Generous Supporter of Community Having relentless support and assistance from our
Development Initiatives workforce, business partners and the stakeholders, we will
As success of a company is directly associated with the continue navigating our business towards the excellence
success of the communities, we see corporate to present our shareholders another successful year.
responsibility is a strategic action and an opportunity to
Note of Appreciation
work for the betterment of people.
In line with community building initiative, for ensuring

Respected Shareholders,
maximum security of the lives of common people; since In closing, looking back to our previous records, I would
inception, Shasha Denims has been contributing in like to convey my sincere thanks and indebtedness to
our shareholders and valued clients whose commitment I believe, the year 2018-19 has brought countless
is a sign of appreciation and trust. opportunities to us to invest for future and our
dedication; love and enthusiasm for the company will be
Further, my gratitude goes for all of the Suppliers, the key drivers to grow us even bigger.
Distributors and the Regulatory Authorities-National
Board of Revenue (NBR), Registrar of Joint Stock We will do everything within our capacity to ensure that
Companies and Firms (RJSC), Dhaka Stock Exchange Shasha Denims Ltd. stays an attractive investment and a
(DSE), Chittagong Stock Exchange (CSE), Bangladesh reliable future-oriented company that justifies your trust.
Textile Mills Association (BTMA), Bangladesh Export
Our journey towards excellence will be continuing only if
Processing Zone Authority (BEPZA) and finally all
your collaborative effort remains persistent with us like a
concerned of Shasha Family for their respective
shadow.
involvements and co-operation.
May the Almighty, the possessor of great bounty shower
I am also grateful to all the judicious members of the us all always with his mercy, peace and blessings,
Board for their ceaseless support and guidance to Ameen.
make effective decisions to address any challenges we
faced during the year. Wishing you much happiness!
My heartiest thanks to the Management team and the

entire workforce of Shasha Denims Ltd. for their
vigorous effort, commitment and devotion to the Anisul Islam Mahmud
company to make it a success. Chairman
Strategic
Review of the
Managing
Director
Having experienced amidst a grossly

uneven and fiercely competitive market,
2018-19 was a defensible journey for
the Company.
Shasha Denims Ltd. (SDL) made a justifiable business However, the company has handled tactically through
year in its archive in terms of business volume, harmonizing a sustainable business momentum during
products’ innovation & reinforcement though the reporting period in terms of business volume but
company’s profit margin marked slipping. The couldn’t able to maximize its profit. Although SDL has
operating results of the company were not satisfactory managed to increase its export earnings compared to
highly as it couldn’t meet our aspiration. last year but its profit margin was not increased
compared to export earnings due to unable to adjust
However, at this blissful moment, I am delighted to
with increased selling price according to cost of
share with you that by adhering viable financing and
production.
prudent strategies; the talented and diligent team of
Shasha Denims Ltd. with over 1069 employees gave an Main causes were ascertained that cost of raw materials
ultimate effort to grasp its position and to hold buyers’ and utility expenses increased adversely but the
satisfaction as one of the leading denim exporters in company couldn’t have been able to increase its selling
Bangladesh. price accordingly since it was previously negotiated with
the buyers. As a result, inspite of revenue growth, profit
Financial Performance Overview of 2018-19 margin was not increased.
compared to previous year
FY 2018-2019 brings a patchy experience for the However, by this way, we have been able to create a
company. A number of multifaceted events including positive vibes into the mind of our buyers. We hope this
rising of yarn price, utility expenses, wages, interest situation will be changed and we will be able to make a
rates and also stiff competition amongst the remarkable profit margin from our clienteles in the
competitors made the year more challenging. coming days.
A comparative analysis of the Company’s performance at a glance:

Amount in million
Particulars 2018-2019 2017-2018 Growth Amount Growth (%)

Revenue 5,326 5,141 185 3.59%
Cost of Goods Sold 4,631 4,263 368 8.63%
Operating Profit 509 707 (198) (28.00%)
Profit Before Tax 212 497 (285) (57.34%)
Profit After Tax 161 423 (262) (61.94%)
Business Results for 2018-19 Non current assets of the Company increased by BDT.
The Management is pleased to report defensible year in 53 million over the last year to BDT. 3,235 million as on
terms of business volume, export earnings despite a 30 June, 2019. Current assets decreased by BDT. 232
very challenging competitive environment. million over last year closing date to BDT. 5,175 million
as on 30 June, 2019 mainly due to reduce of inventory.
The company was unable to maintain a satisfactory SDL stored remarkable inventory in the previous year of
business performance during the audited financial year the reporting year so company could use inventory from
2018-2019. The business results of the company stocks. SDL also deposited share money deposit of
couldn’t make us satisfied excessively in terms of
BDT. 300 million to EOS Textile Mills Ltd. to acquire
profitability. Volatility in the international yarn market,
80% shares of EOS Textile Mills Ltd. This amount was
constant rising of production cost, decrease of sellers
still kept as share money deposit in the financial
demand, increase of financial expenses, charging
statement. Total assets of the company as on 30 June,
incremental depreciation on new investment everything
2019 was BDT. 8,411 million which was BDT. 8,589
badly affected on the profitability of the company.
million as on 30 June, 2018.
Our Export grew by 3.59% to BDT. 5,326 despite
On the other hand, company could reduce accounts
margin pressures but cost of goods sold grew by
payable but short term loan was increased due to
8.63% due to increase of yarn price, electricity bill,
gas bill and lease rent of BEPZA plot and increase of payment of accounts payable and met for import
depreciation charging on new machines and payment. Total current liabilities was recorded BDT.
buildings. It is revealed that cost of goods sold was 4,008 million as on 30 June, 2019 which was BDT.
increased more than revenue earnings. Revenue 4,193 million as on 30 June, 2018.
increased due to volume of sales increase despite
Since inception, Shasha Denims has been moving
price increase. The Company is trying to increase its
forward keeping excellence in its entire business
selling price. We hope selling price will be adjusted in
arena. The company is very concerned on sustainability
the year coming.
and as such holding the environment balanced
Financial expenses increased by BDT. 75.94 million i.e. through reasonably consuming water, electricity, gas,
33.33% higher than last year. Financial expenses chemicals etc.
increased due to increase of bank liability against
procurement of current and fixed assets. The adverse To meet up additional market demand and serve
effect of financial expenses finally pulled down its pre customers in a better way; in line with introducing new
tax profit. Profit before tax stood at BDT. 212. million in and unique denim products, we have also upgraded &
2018-2019 which was BDT. 497 million in 2017-2018. strengthened our internal systems & procedures that
Profit before tax registered 57.34% lower than last year. added value to all our stakeholders.
Finally Earnings Per Share (EPS) of Shasha Denims Ltd.
stood BDT. 1.26 in 2018-2019 which was recorded We are going to add a new feature in our milestone
BDT. 3.31 in the last year. through acquisition of ‘EOS Textile Mills Ltd.’.
‘EOS Textile Mills Ltd.’- A New Milestone The Company exports its products through export
of Shasha Group oriented RMG mostly in EU countries. We have started
expanding our business arena. Recently, SDL has
Shasha Denims Ltd. is going to complete its acquisition
grabbed the market of Australia and Japan which
of EOS Textile Mills Ltd. SDL will be the owner of 80%
operation is going to be initiated shortly.
shares of EOS Textile Mills. The company already
obtained Bangladesh Bank and BEPZA approval. The To fulfill customers’ demand and carry out their fashion
company also deposited most of the acquisition cost in cravings, we have installed new machineries and
escrow account. We hope the share transfer will be expanded our factory in DEPZ area and already started
completed within December 2019. manufacturing there.
As there are available spaces inside the factory of EOS Our honesty, sincerity and enthusiasm have made the
Textile Mills Ltd., we see further chance to set up company a renowned one in the industry and built a solid
additional machinery there in future to have more foundation into the mind of our valued clients upon where
production. If everything is okay, we hope income from we strive to take SDL to ever the peak of our dream.
EOS Textile Mills will be added to the SDL consolidation
from the 3rd Quarter of 2019-2020. New Technology Incorporation-Harmonizing
the Changes
Our Approach towards Sustainability Shasha Denims Ltd. always endeavors to make a
As we still believe that we have to go a long way through positive change within and around its business
achieving product excellence and best corporate operations through introducing new technology,
practices, we have made strategy to deliver growth with diversified products portfolio, new sales teams and
integrity through generating sufficient funds along with channels etc.
keeping pace with current market demand to invest for
Installation of the most modern indigo dyeing machine
a sustainable future.
saves 60% water and 40% chemicals in its process first
I am confident that we have the right brands, right time ever in Asia shows Company’s dynamism towards
people and right focus on efficiency to ensure the modern changes.
sustainable value for the shareholders.
We are always ready to face challenges of the situation.
Our presence in the market is reaching stronger with From Factory to Head Office, the Company is well set
everywhere using environment friendly high tech
time; we have solidified our existence through
technology to ensure maximum productions as well as
improving in all areas of growth, productivity, winning
safety and security also to conserve resources through
organization and sustainability and also committed to
reducing wastage & cost under its sustainable program.
carry on the same.
To increase the efficiency and productivity of the
Responses to Clients’ Demand
machines, recently we have installed 84 new loom
As we know, our success depends on ability to driving machines replacing the old ones.
the growth, meeting the market needs as well as
bringing diversification in products that satisfy our To enrich our array of the products with diversified and
customers and make them trustworthy. innovative items, the Company already made a good
investment in research and development (R&D) sector
By working with integrity and conducting a sustainable and accordingly established a laboratory equipped with
business operation; during the audited year modern machineries so that it could easily cope up with
2018-2019, SDL has been able to produce an utmost the demand of time.
quality finest products and also high-end segment
items and deliver the same successfully to its brand The R&D personnel are continuously giving their untiring
customers. efforts for serving the clients in a better way. Now the
company is confident to compete with intensifying Accolades & Appreciation

market drives through applying high graded R&D.
The above accomplishments are all material
achievement, I am proud to announce that for the last
Our People-Our Strength
couple of years, the Company has been bestowed with
Employing more than 1,050 people in Factory & Head
a number of ‘Image Building’ awards and recognition at
Office, we take great pride in saying that Shasha home and abroad. It reflects our conformity in
Denims is one of the preferred employers in the country. compliance regulation, governance & transparency we
personify.
Today, where we are in; our achievement, our success
all have been possible only for the enthusiastic support Shasha Denims is the winner of prestigious national
and untiring cooperation received from our valued award-‘National Export Trophy’ (Gold) three times for
customers, tenacious and efficient staff, sensible three consecutive years (financial years 2011-12,
guidance of our Board of Directors, professionally 2012-13 & 2013-14) for outstandingly contribution in
qualified Management team and finally an excellent denim exporting as well as earning foreign currencies.
team work. Again we achieved the same trophy (Silver) for the
financial year 2016-17.
As the company always recognizes its people are the
most valuable assets, we cherish our devoted As a token of transparency, we stood 2nd position and
workforce practicing top HR practices and rewarding won the glorious ‘ICSB National Award’ (Silver) for
them always. Corporate Governance Excellence-2016. We had
another accreditation as the ‘Gold Supplier-2017’ of
In order to create opportunities and attractiveness for
H&M (one of the world leading fashion companies). It’s
the new hires also retain the existing personnel; the
an acknowledgment of our remarkable contribution into
company follows excellent HR policies which includes
their good business. These made us gratified and
Congenial Working Environment, Safe and Healthy
inspired to move ahead towards greater heights.
Organization, Equal Employment Opportunity,
Employee Development Program, Health and Group Future Prospects
Insurance Policies, Recognition of Achievements and a
We are working for continuous improvement of our
number of financial facilities i.e, provident fund, gratuity,
business that will release funds to invest in our
production bonus, incentive bonus etc. The Company is business, help us to grow and deliver higher returns for
committed to create a workforce that will not only bring shareholders.
success for the company but also bring about a positive
change to the society at large. With the economic growth in progress, we have shown
a consistent ability to improve shareholders’ return and
Our Commitment increase our market share. However, we see challenges
We set our goal not only to maximize profit; we have in 2019-2020 and we are confident to overcome the
some commitments to the society and the economy challenges through our strong brand portfolio,
too. As one of the leading denim exporters and market-leading innovations and the array of world class
appropriate tax payers, we are committed to creating products.
sustainable value for all our shareholders, partners and
Regardless of the uncertainties that lay ahead, as a
the community we operate in while an exemplary ethical
company, we will continue to focus on meeting
practice across the business value chain with our world
consumer expectations through our strengthened
class reputed clients.
brand portfolio. And we are optimistic that our new
All our endeavors are crafting foot marks on the acquisition-EOS Textile Mills Ltd. will be a
Government’s continuous journey towards groundbreaking for us to move forward the company up
Sustainable Development Goals (SDG) and the vision to the summit and upholding our standard in the future
for the nation. though uncertainties exist about the operation of EPCL.
Again we are committed to our communities where we I express my heartfelt gratefulness towards the regulatory
operate and enhancing their livelihoods through a authorities-Bangladesh Textile Mills Association (BTMA),
number of philanthropic actions and deeds. Bangladesh Export Processing Zone Authority (BEPZA)
also other regulatory bodies and everyone in Shasha
We are confident that the underlying resources and Family.
strengths of the Company, prudent business
approaches, strong financial footing, diversified product Also, we are grateful to millions of our customers who
portfolio, creativity and capability through bringing have been with us, along with their choices and
innovation in products and markets will surely pave the dedication towards the company and of course the
way to reach our goals and establish ourselves as the investors, all other stakeholders and shareholders who
‘Institution of Excellence’. have reposed their confidence unwaveringly in Shasha
Denims.
Our Gratitude
In closing, I must say that the sensible guidance of our Despite there are so many opportunities and challenges
vigilant Board of Directors has always been instrumental in the year ahead, still we are confident knowing that the
in shaping the Company a successful one. company we so proudly serve, not only embraces the
future, but defines what the future will be. I look forward
I also acknowledge that our objectives have been to having a remarkable business year in 2019-20.
achieved through a team effort where everyone-from
the members of the Board to the newest recruits have Wishing You My Best!
their enthusiastic contribution for implementing the
strategies and achieving the targets without
compromising the qualities and values that mirrors the Shams Mahmud
vision and mission of the company. Managing Director
FINANCIAL HIGHLIGHTS
SHASHA DENIMS LIMITED
And its Subsidiary Financial Highlights on Consolidated Financial Position
Amount in million except ratios and per share data
Particulars 2018-2019 2017-2018 2016-2017 2015-2016 2015 2014 2013
Total Assets 12,426 12,077 10,879 9,701 9,208 13,840 7,402

Paid up Capital 1,279 1,196 1,128 1,128 1,128 481 401
Number of Shares 128 120 113 113 113 48 40
Sharehoders' Equity 5,945 5,940 5,527 5,059 4,777 2,852 2,995
Long Term Loan 520 721 888 1,024 1,050 1,147 1,271
Total Debts 3,779 3,879 4,259 3,889 3,910 4,052 3,989
Total Revenue 7,923 7,511 6,257 5,635 5,145 4,180 3,824
Gross Profit 986 1,239 1,208 1,095 1,105 796 798
Operating Profit 732 1,005 1,010 940 965 695 712
Profit before Tax 441 636 665 662 660 238 193
Profit after Tax 379 556 592 563 561 176 149
Liquidity Ratio
Current Ratio 1.33 1.33 1.41 1.52 1.68 1.04 1.07

Time Inerest Earned Ratio 2.97 3.68 3.75 3.66 3.37 2.57 2.46
Debt Equity Ratio 0.64 0.65 0.77 0.77 0.82 1.42 1.33
Operating Ratio
Inventory Turnover Ratio 3.12 2.76 2.78 4.69 5.79 4.67 4.06
Assets Turnover Ratio 0.64 0.62 0.58 0.58 0.56 0.30 0.52
Profitability Ratio
Gross Margin Ratio 12.45 16.50 19.30 19.42 21.48 19.05 20.86
Operating Income Ratio 9.97 14.10 16.88 17.37 18.76 16.64 18.62
Return on Assets (ROA) 3.19 4.83 5.74 5.95 4.87 1.66 1.96
Return on Equity (ROE) 7.70 11.41 13.35 13.92 19.08 8.60 7.29
Return on Investment (ROI) 6.86 9.79 11.01 11.12 13.89 5.41 4.32
Basic Earning Per Share 3.05 4.64 5.23 4.99 4.97 3.67 3.73
Fully Diluted Eearning Per Share 3.05 4.33 4.61 4.40 4.39 1.38 1.17
Net Assets Value Per Share 46.47 49.69 49.00 44.86 42.35 59.32 74.76
Fully Diluted Net Assets Value per Share 46.47 46.44 43.21 39.55 37.34 22.29 23.41
C-5% B -5% C-15% B -7% C-25% B-6% C-25% C-20% B-15% -
FINANCIAL HIGHLIGHTS
Financial Highlights on Financial Position of Shasha Denims Ltd.
Particulars 2018-2019 2017-2018 2016-2017 2015-2016 2015 2014 2013
Total Assets 8,411 8,589 7,112 6,615 6,345 11,004 4,043

Paid up Capital 1,279 1,196 1,128 1,128 1,128 481 401
Number of Shares 128 120 113 113 113 48 40
Sharehoders' Equity 4,310 4,328 4,046 3,896 3,647 1,747 1,431
Long Term Loan - - - 34 49 89 62
Total Debts 2,816 2,694 2,702 2,416 2,410 2,553 2,426
Total Revenue 5,326 5,141 4,333 4,412 4,078 3,382 3,007
Gross Profit 695 878 834 804 777 720 623
Operating Profit 509 707 681 680 636 618 548
Profit before Tax 212 497 526 578 556 375 244
Profit after Tax 161 423 459 483 460 317 204
Liquidity Ratio
Current Ratio 1.29 1.29 1.42 1.48 1.63 0.99 0.99
Time Inerest Earned Ratio 2.83 4.31 4.80 4.72 4.25 3.55 2.91
Debt Equity Ratio 0.65 0.62 0.67 0.62 0.66 1.46 1.70
Operating Ratio
Inventory Turnover Ratio 2.45 2.28 2.84 4.48 5.13 3.74 3.23
Assets Turnover Ratio 0.63 0.60 0.61 0.67 0.64 0.31 0.74
Profitability Ratio
Gross Margin Ratio 13.04 17.09 19.24 18.23 19.05 21.28 20.73
Operating Income Ratio 9.56 13.75 15.72 15.42 15.60 18.27 18.23
Return on Assets (ROA) 1.90 5.39 6.69 7.45 5.30 4.21 5.07
Return on Equity (ROE) 3.74 10.10 11.57 12.80 17.05 19.93 15.39
Return on Investment (ROI) 3.74 10.10 11.57 12.77 16.87 19.28 14.91
Basic Earning Per Share 1.26 3.75 4.16 4.28 4.08 6.59 5.10
Fully Diluted Eearning Per Share 1.26 3.31 3.59 3.77 3.60 2.48 1.60
Net Assets Value Per Share 33.69 36.20 35.87 34.55 32.34 36.35 35.72
Fully Diluted Net Assets Value per Share 33.69 33.83 31.62 30.46 28.51 13.66 11.19
Shareholders' Equity
5000
4000
3000
2000 Sharehoders' Equity
1000
0
2018-2019 2017-2018 2017-2016 2016-2015 2015
Comparision of Revenue, Cost of Goods Sold and Gross Profit
6000
5000
4000
3000
Total Revenue
2000 Cost of Goods Sold

Gross Profit
1000
0
2018-2019 2017-2018 2017-2016 2016-2015 2015
Operational Result
1000
800
Gross Profit
600 Operating Profit
Profit before Tax
400
Profit after Tax
200
0
2018-2019 2017-2018 2017-2016 2016-2015 2015
Directors’ Report
Bismillahir Rahmanir Rahim
Honourable Shareholders,
Assalamu Aalaikum!
It’s an absolute delight and privilege on the part of the Moreover, the Directors are pleased to explain and
Board of Directors to present the Directors’ Report, disclose some issues what they consider relevant to
the Auditors’ Report together with the Audited ensure transparency as well as good governance
Financial Statements of your Company Shasha practices. Accordingly, the Board of the Directors also
Denims Ltd. (SDL) and its subsidiary companies for
believes that report will provide captivating insights of
the year ended June 2019 in its 22nd Annual General
the Company’s performance during the year under
Meeting (AGM).
review. This is a humble presentation for consideration
A snapshot of the world economic trend with the and endorsement of our valued Shareholders.
performance of Bangladesh economy along with the
World Economy
economic prospect of the country have also been
incorporated in compliance with the Companies Act Operating policy, quantity of production and revenue
1994, SEC’s notification dated February 20, 2006 and generation system of a company specially
listing regulations of Dhaka Stock Exchange Ltd. and manufacturing goods exporters are highly affected by
Chittagong Stock Exchange Ltd. and other applicable country’s domestic economic and the global economic
rules and regulations. condition.
After strong growth in 2017 and early 2018, global

Key Strategic Pillars of Business
economic activity notably slowed in the second half of
Shasha Denims Ltd. had yet another positive year in last year, reflecting a confluence of factors affecting
2018-19. The Company has managed to originate major economies. Global economic growth remained at
sound investments and turn financial uncertainties into steady 3.7 percent in 2018 which was 3.8 percent in
lucrative opportunities during the year despite previous year. IMF forecasted that weakness in the
economic and regulatory challenges. The challenges second half of 2018 will carry over to coming quarters
this year were from different heads-operational, with global growth which is expected to be slightly
regulatory and above all from an uneven competitive decreased to 3.3 percent in 2019, before returning to
platform. 3.6 percent in 2020.
But your Company ended an undaunted voyage and
Growth in global industrial production and merchandise
brought you good result for the year together with value
trade volumes has been tapering since the beginning of
heightening for the stakeholders.
2018, especially in trade-intensive capital and
A review of this report would reveal consolidation of intermediate goods sectors.
growth of the Company amid a very challenging
This growth pattern reflects a persistent decline in the
environment that ultimately leads the Company towards
growth rate of advanced economies.
sustainability.
Advanced economies expanded at a steady pace of 2.3 energy supply and political calmness also supported
percent in 2018, and growth rates in many have risen economic activities.
close to their potential, while unemployment rates in
In terms of sectorial performance, monthly industrial
several developed economies have dropped to
production indices suggest strong growth in first half of
historical lows.
2019. The service and agricultural sector activities to
From the trend levels reflected above it appears that remain buoyant in 2019 supported with relatively
downtrend occurring more rapidly than previously political stability.
anticipated-together with a temporary decline in the
growth rate for emerging market and developing Based on the recent economic trends and econometric
economies in 2019, suggesting contractions in few estimates, Bangladesh Bank projected GDP growth in
countries like Argentina and Turkey, as well as the the range of 7.5 - 8.2 for FY 2019 assuming continued
impact of trade actions on China and other Asian political stability and no external shocks.
economies. Specifically, growth in advanced economies
Despite a number of financial, economic and
is projected to slow from an estimated 2.3 percent in
environmental challenges in the last fiscal year including
2018 to 2.0 percent in 2019 and 1.7 percent in 2020.
Rohingyas entry into Bangladesh, increased food
Amongst the developing economies, the regions of inflation, instability in money market, double digit interest
South Asia remained on a relatively strong growth rates, price hiking of global fuel, pressure on foreign
trajectory, expanding by 5.6 percent in 2018. Many exchange volatility; the outlook also remains steady for
commodity exporting countries, notably fuel exporters the coming fiscal year 2019. Country’s current account
are continuing a gradual recovery, although they remain balance is under a slight pressure caused by growth in
exposed to volatile prices. total imports resulting from the increased imports of food
grains & capital machinery. Country’s foreign exchange
Bangladesh Economy (2019)
reserve also reflects a robust outlook with USD 32.02
Bangladesh economy has been able to maintain billion at the end of 2018.
sustained economic growth in the year 2018-19 due to
many reasons. The country’s aim to make substantial Industry Outlook
progress in growing its economy, lifting people out of The market based economy of Bangladesh is one of the
poverty, and improving the lives of its people was well fastest growing economies in the world. Bangladesh
on target last year. Employment has increased specially RMG sector plays an important role in changing the
in IT sector, more people have access to health and economy of the country.
education, and basic structure has also been improved.
Bangladesh, the second largest exporters of apparel
Bangladesh reached lower-middle-income status on goods, has taken lead in the global denim export
the strength of an annual economic growth rate of 6 markets by grabbing more market and securing a
percent and above during last five years and more. The double-digit growth.
consistent growth was achieved mainly by a rise in
readymade garment exports, overseas workers’ As of now, Bangladesh is the number one exporter of
remittances, and domestic consumption. Economic denim goods to the European Union, while the third
growth in 2018 was mainly driven by strong domestic largest in the United States driven by its large-scale
demand with support from robust credit growth, export manufacturing capacity and lower production cost and
and remittance inflows, Government expenditure has established its strong footage in the US market after
supported by domestic consumption and investments. China and Mexico with a gradual rise in market share
and occupied 14.68% in 2018.
Buyers’ confidence in the RMG industry underpinned by
improving workplace safety conditions and external According to eurostat, statistics directorate of the
demand including strong US growth momentum and European Commission, Bangladesh in 2018 exported
diversification of RMG orders away from China aided denim products worth $1.65 billion, up by 11.46% from
exports can be attributed for the trend. Improved $1.47 billion in 2017.
However, Bangladesh’s closest competitor Turkey has According to Export Promotion Bureau (EPB) data,
posted an 8.18% negative growth to $1.16 billion, Bangladesh’s export earnings from the RMG sector
which was $1.26 billion in 2017. stood at $30.61billion, posting 8.76% growth in the last
fiscal year. The figure is 1.51% higher than the target of
Secrets behind the Success
$30.16 million for FY18.
New investment in updating technology, branding to the
retailers, increased capacity in fabrics manufacturing Challenges in the Industry
made the denim makers more competitive in the global Along with opportunities, the industry has some
markets. On top of that, prices and quality of products challenges too. Infrastructure is a major challenge.
were other factors to bring the buyers to source denim Inefficiency in ports, inadequate rail and road networks,
good from here. gas and electricity crisis, forward moving production
cost and the urgent need of a deep sea port are some
The local mills are enrobing enormously making huge
of the major challenges for Bangladesh denim industry.
investment on state-of-the-art technology and imported
machinery especially on the weaving and processing The cost of production for the sector has been
side and setting up large plants in the country and thus increasing at 18 percent annually, but at the same time,
by increasing production capacity and meeting up the the prices of apparel items are not increasing globally,
growing demand of International market. and even in some cases the prices of clothing items
declined due to rising price of yarn market as well as it
Manufacturers are also taking less time for the
is vastly stocking by China.
production as they are sourcing the fabrics from local
mills instead of importing. As a result, now they are The garment sector has been witnessing a little above
getting more orders from their buyers. 13 percent growth over the last 10 years, but the growth
declined to less than 3 percent in recent months due to
Currently, there are 32 denim mills with a capacity of
the global instability.
450 million meters of fabrics per annum, as per the
Bangladesh Textile Mill Association (BTMA) data. How to Overcome the Challenges and Grab
Bangladesh can meet over 50% of denim fabrics with More Shares
local capacity. The industry has great prospect to overcome the
On top of that, the makers of denim are producing challenges and become the world leader. In this regard,
different types of denim products, while value-added Bangladesh government should prioritize denim products
products area is developing gradually here. and provide all out support to the entrepreneurs.
‘Bangladesh Status’ in the world’s denim industry at a According to Cotton Incorporated, consumers in the
glance: US, buy approximately 450 million pairs of jeans every
year, while on average, US consumers have seven pairs
• the largest Exporter in EU with a 27% market share of jeans in their wardrobe.
• the third largest exporter in the US with a 14.68%
On the other hand, 71% of people in Europe and Latin
market share in 2018.
America enjoy wearing denim, followed by 70% in the
• exported products worth $1.65 billion to EU US, 58% in China, and 57% in Japan.
markets in 2018
In the US market, there is more space to grow as
• exported products worth $566.39 million to US
Bangladesh is still the third largest exporters. While in
markets in 2018
the EU markets, Bangladesh enlarged its markets
• 32 manufacturing mills producing over 450 million
beating the competitors.
meters of denim per year
According to Zion Market Research, the report, the
Bangladesh’s export earnings from the apparel sector
global denim jeans market was valued at around $66.02
registered a growth of 8.76% reaching $30.61 billion in
billion in 2018 and it is expected to reach approximately
FY2018.
$85.4 billion by 2025, at a CAGR of around 3.7% Switzerland, Germany, Belgium and USA which allow us
between 2019 and 2025. to produce a kind of indigo shades in terms of tone and
depth of the colors.
In the US market, there are lots of opportunities for
Bangladesh as it has more capacity. But, Imports duties We currently have a capacity of 2.10 million yards per
in the US market are higher for Bangladesh comparing month to produce different types of denim fabrics. We
to our competitors. have perfected the art of producing all types of denim
fabrics from 4.50 oz to 15.00 oz that enabled us to
In coming up with effective solutions through product supply our global customers with a range of colors from
innovation, developing apparel diplomacy and the lightest shades of indigo to the darkest hue as well
increasing negotiation capacity to avail trade facilities as as a range of effects and textures such as the smooth
well as sustain the growth. indigo surface and the salt effect in denim.
Shasha Denims Ltd. Our efforts to stand apart in the global arena for denim
With a vision to build a green and sustainable denim manufacturing has led us to an installation of the most
manufacturer through maintaining a global standard; high tech indigo dyeing machine in the extended
after formation in 1996, Shasha Denims Ltd. started its project of DEPZ area. For the first time in Asia, the
commercial operations in 2000. innovation allows us to save 60% water and 40%
chemical usage through our denim manufacturing
Progressively moving forward, the Company has now
processes in comparison to conventional indigo
positioned itself as one of the leading 100% export
dyeing machines used across the continent and the
based denim producers in Bangladesh while we
globe as well.
continuously develop and refine environmental friendly
techniques and procedures emphasizing more on Our continuously improving production processes are
human consideration in creating products. supported by engaging skilled human resources at
The Company is suitably located in Dhaka Export every level that create world class denim at competitive
Processing Zone (DEPZ) with the best available prices. We produce high quality denim wears for people
infrastructural facility. Through the support of highly of all ages keeping functionality, aesthetics and
professional and most modern computerized SLASHER renewability in mind. Now SDL is capable enough to
DYEING TECHNOLOGY, currently, SDL is such a take challenges to compete with other denim
well-managed and technically sound an organization manufacturers in Bangladesh.
which is able to make a grade in harmonizing the
Shasha Denims is a trusted source of the world
current craze to deliver the world class products to its
renowned buyers, and in most cases, it is the only
valued customers.
nominated supplier for its valued buyers. Currently, the
Over the years, the company has been investing in Company manufactures fabrics for a number of world
research and development (R&D) unit for having the reputed brands i.e, H&M, O’STIN, Esprit, Debenhams,
highest environment friendly technology to ensure the Marks & Spencer, LPP, Pull & Bear, S. Oliver, Zara,
production of the best quality denim which is Bestseller, River Island etc.
incomparable to any other denim manufacturers in
At present, the Company exports the products in
Bangladesh.
Europe market through export oriented RMG and also
In Shasha Denims, our team focuses on developing a heading towards Japan, Australia and other giants to
perfect balance between fashion and sustainability grab their markets.
through treatment and fabric. Without compromising
quality, we have eliminated many harmful practices in Performance of Shasha Denims Ltd. in
our processes to develop high quality denim fabric and 2018-2019
as such became a staple in world class denim wear. Though there were a number of challenges posed by
various internal-external economic, political and
Our factories are equipped with state of the art
technology and environment friendly machineries from natural environments; utilizing the maximum capacity
and the quality of driving with momentum, Shasha charging of depreciation on newly installed machine.
Denims Ltd. made a sustainable performance during Administrative expenses increased compared to last
the year 2018-2019. Considering volume of business year due to annual increment of executives and staffs of
in terms of production and revenue were increased but head office and factory.
gross profit margin and net profit were decreased
Financial expenses of the company during the reported
remarkably due to various challenged faced in the
year was BDT. 304 million which was BDT. 228 million in
reported year.
the last year. That means financial expenses increased
Production and Revenue of the Company increased by BDT. 76 million compared to last year. Financial
and the Total Revenue stood at BDT. 5,326 million in expenses increased due to increase of interest rate and
2018-2019 from BDT. 5,141 million in 2017-2018. increase of outstanding bank borrowing . Increased
financial expenses finally pulled down profitability of the
Revenue growth recorded 3.60% compared to last company.
year. Cost of the Production registered at BDT. 4,631
million in 2018-2019 as against BDT. 4,263 million in Profit before tax stood at BDT. 212 million in 2018-2019
2017-2018. which was BDT. 497 during the last year. Pre tax profit
decreased by BDT. 285 million i.e. 57.34% decreased
This indicates that cost of production is increased by compared to last year. The pre-tax profit decreased
8.63% compared to last year. Cost of production considerably due to increase of yarn price and other
increased due to increase of yarn price and other utility direct operating cost & depreciation and increase of
expenses. financial expenses & other indirect expenses.
During the year gross profit margin was registered Profit after Tax of the company stood at 30 June, 2019
13.05% but it was 17.08 % in the last year. Gross profit at BDT. 161 million which was registered BDT. 423
margin decreased largely because of selling price of million in the corresponding period. After tax profit
product were not adjusted in relation to increase of yarn decareased by BDT. 262 million during this year. As a
price. On the other hand depreciation charge increased result SDL EPS during the year stood at BDT. 1.26
by BDT. 97 million compared to last year due to which was BDT. 3.31
Analysis of Key Operating and Financial Data for last five years
Key operating and financial data for the last five years
Particulars 2018-2019 2017-2018 2016-2017 2015-2016 2015 2014
Total Assets 8,411 8,589 7,112 6,615 6,345 11,004
Paid up Capital 1,279 1,196 1,128 1,128 1,128 481
Number of Shares 128 120 113 113 113 48
Shareholders' Equity 4,310 4,328 4,046 3,896 3,647 1,747
Long Term Loan - - - 34 49 89
Total Debts 2,816 2,694 2,702 2,416 2,410 2,553
Total Revenue 5,326 5,141 4,333 4,412 4,078 3,382
Gross Profit 695 878 834 804 777 720
Operating Profit 509 707 681 680 636 618
Profit before Tax 212 497 526 578 556 375
Profit after Tax 161 423 459 483 460 317
From the above, it is revealed that total assets of the to the paid up capital. Shareholders’ equity was
company decreased slightly due to decrease of decreased due to dividend paid during the year from the
inventory. Paid up capital increased due to 7% stock last year profit but current year profit was decreased
dividend was issued for the last year which was added compared to last year.
Key Performance Ratio
Particulars 2018-2019 2017-2018 2016-2017 2015-2016 2015 2014

Gross Margin Ratio 13.04 17.09 19.24 18.23 19.05 21.28
Operating Income Ratio 9.56 13.75 15.72 15.42 15.60 18.27
Return on Assets (ROA) 1.90 5.39 6.69 7.45 5.30 4.21
Return on Equity (ROE) 3.74 10.10 11.57 12.80 17.05 19.93
Return on Investment (ROI) 3.74 10.10 11.57 12.77 16.87 19.28
Basic Earning Per Share 1.26 3.75 4.16 4.28 4.08 6.59
Net Assets Value Per Share 33.69 36.20 35.87 34.55 32.34 36.35
All the profitability ratios registered decreasing earned BDT. 126.38 million as capital gain from sale of
compared to last year as company profitability share which contributed to the consolidated EPS of 3rd
decreased considerably compared to last year. quarter of the company.
Explanation on significant variance that occurs between Financial Result and Proposed Dividend and
Quarterly Financial Performance and Annual Financial Appropriation of Profit
Performance
The Company posted profit before tax for the year
During the year, the financial performance of Shasha ended on 30 June, 2019 amounting to Tk.211.76
Denims Ltd. and its subsidiary was not good compared million indicating decrease in growth of (57.36)% from
to last year. Financial Performance for the quarter one Tk 496.69 million in 2018-2019 while net profit after tax
was far better than subsequent three quarters. decreased by 62% from Tk. 423.00 million of
Subsequently performances of the shasha denims Ltd. 2017-2018 to 161 million in 2018-2019.
were deteriorated. Market demand of the product of the Considering the negative profit margin growth, it doesn’t
company was reduced. Selling price of products could need to say 2018-2019 was not a successful year of the
not increase as increased cost of production. One the Company. Considering, present business position and
other hand company had to bear good amount of future business prospect-based plan, the Board in its
interest expenses which incurred for making raw meeting held on 28 October, 2019 recommended 5%
material stock. Consolidated EPS of Q1 was BDT. 1.73 cash dividend and 5% stock dividend for the year
which was reduced to 0.43 in Q2. Consolidated EPS of 2018-2019. The Directors are pleased to report the
Q3 was recorded at BDT. 1.63. During the 3rd quarter, financial results for the year 2018-2019 and
Shasha Garments Ltd. one of the subsidiary company recommended the following appropriation.
Particulars 2018-2019 2017-2018
Net Profit after Tax for the year 161,382,545 423,003,997

Retained Earning brought forward 1,882,028,758 1,667,681,869
Profit available for appropriation 2,043,411,303 2,090,685,866
Less: Dividend Paid: 263,020,751 208,657,108
Profit available for declaration of dividend 1,780,390,552 1,882,028,758
Dividend Shasha Garments Ltd. (SGL) was another subsidiary

Shasha Denims Ltd. aims to declare commendable and company of Shasha Denims Limited Shasha Garments
sustainable rate of dividend to its shareholders. SDL Limited produces ready made garments products and
has taken various steps to expand its business to export its to mainly in Europe. To expand its existing
overcome upcoming challenges. Accordingly SDL is business, Shasha Garments Limited offers new shares
going to acquire 80% stake of EOS Textile Mills Limited. to its existing shareholders. But due to Shasha Denims
For this purpose SDL has to spend significant amount. Limited’s own expansion opportunity and opportunity to
On the other hand some loom machine are replaced invest in EOS Textile Mills Limited. Shasha Denims
during the year to bring better production efficiency. Limited didn’t avail new shares offered by SGL. Shasha
Considering the present and future position, the Board Denims Limited existing shareholding position in
of Directors of Shasha Denims Ltd. in its meeting held Shasha Garments Ltd. is 42.19% with effect from 4
on 28th October, 2019 recommended 5% cash April, 2019.
dividend and 5% stock dividend for the year
Extraordinary Gain or Loss
2018-2019.
Extraordinary gain or loss of a company refers to
Segment Information infrequent and unusual gain or loss by the company
Shasha Denims Ltd. manufactures a single product which is not a part of the Company’s ordinary/day to
‘denim fabric’ of varied specifications, compositions, day operations. During the year Shasha Garments Ltd.
colors and qualities. Hence, Company’s 100% revenue one of the Subsidiary Company of Shasha Denims
is generated from its only product ‘denim fabric’. As per Limited earned a capital gain of BDT. 96.77 million from
customers’ requirements SDL manufactures products sale of shares which in included in the income from
and accordingly supplies the same to its respective associate company.
customers’ destination.
Capital Expenditure
The Company has also remarkable investment in its
During the reporting year, the Company spent BDT.
subsidiary and its associate companies that
149.08 million for purchasing capital machinery and
manufacture separate products and services.
fixed assets. The total amount was spent from
Amongst the subsidiaries, Energis Power
Company’s own source and borrowing from
Corporation Ltd. (EPCL) generated electricity and
supplies to Bangladesh Power Development Board commercial banks. Total written down value of fixed
(BPDB) and Shasha Garments, manufactures assets of the Company as on 30 June, 2019 stood at
garments items for Gents, Ladies and Kids and BDT. 2,046 million which was BDT. 2,082 million as on
exports the products to Europe and America. On the 30 June, 2018.
other hand, Shasha Textile has been established for
The details note on acquisition of Property, Plant and
producing fabrics and the business operation will
Equipment is given under the note no. 4 of the Financial
start shortly.
statements in the page no. 184.
After expiration of contract of Energies Power
Capital Infusion
Corporation 55 MW Rental Power Plant, Bangladesh
Power Generation Board (BPDB) vide memo no. During the year, there was an equity capital infusion of
27.11.0000.101.14.020.19-2969 dated 23/06/2019 BDT. 8.37 million which resulted from issuance of 7%
instructed to suspend electricity generation from bonus shares for the year 2017-2018. As a result, paid
11/07/2019. Since then electricity generation of EPCL up capital of the Company stood at BDT. 127.92 million.
has been shut down. It may be mentioned that EPCL
Capital structure of the Company is given at page # 122
applied to extend electricity generation for further two
year. Investment in EOS Textile Mills Ltd.:
Financial Position of the Company shown separately After getting approval from Shareholders in the 20th
from page 206 to page 221. AGM, the Board of Directors of Shasha Denims Ltd.
decided to acquire 40% shares of EOS Textile Mills  Energis Power Corporation Limited (EPCL)
Limited. Total acquisition cost was fixed US$ 15 million.  Shasha Garments Limited
Accordingly Share Sale and Purchase Agreement
 Shasha Textiles Limited
(SSPA) was signed with the Directors of EOS Textile
Mills Limited on 29 March, 2018. Subsequently the Energies Power Corporation Ltd. (EPCL)
Board of Directors of Shasha Denims Limited in its
Board Meeting held on 14 February, 2019 decided to Incorporation
acquire 80% shares of EOS Textile Mills Ltd. Energies Power Corporation Ltd. (EPCL) was
incorporated as a Private Limited Company on
Bangladesh Bank vide letter no. ‰egywe/701(1)/weI‡k/1942/
December 28, 2008. Within only four months; on April
2019 ZvwiL- 21/10/2019 approved BDT. 1210,738,253 to
20, 2009, it was registered as a Public Limited
transfer of shares and to repatriate sale proceeds of
Company under the Companies Act, 1994.
share in favor of existing non-resident shareholders
instead of agreed price in Share sale and purchase Shareholding Status of EPCL
agreement. The Authorized and Paid up capital of EPCL is Tk.150
As per Bangladesh Bank approval, SDL deposited crore and Tk. 98.37 crore respectively. Investment of
required amount in Escrow Account maintained with Shasha Denims Ltd. in capital of EPCL is Tk. 98.34
Commercial Bank of Ceylon to acquire 80% shares of crore i.e., Shasha Denims Ltd. holds 99.97% shares of
EOS Textile Mills Limited#. SDL used BDT. 300 million EPCL.
from IPO fund to acquire the new company. Operation
Share Transfer will be made within stipulated time after The electricity generation of EPCL is now remain
completion of all formalities. closed. After expiration of contract of Energies Power
Corporation 55 MW Rental Power Plant, Bangladesh
EOS Textile Mills Ltd.
Power Generation Board (BPDB) vide memo no.
EOS Textiles Mills Limited, sister concern of world 27.11.0000.101.14.020.19-2969 dated 23/06/2019
reputed Italian company Berto E.G. industria Tessile instructed to suspend electricity generation from
S.R.L is 100% export based textile company located at 11/07/2019. Since then electricity generation of EPCL
plot # 1-6 & 17-22 DEPZ (Ext.), Ganak Bari, Savar, has been suspended.
Dhaka was established on 08 June, 1998 by foreign
companies. The principal job of EPCL was generating power and
supplying the electricity to National Grid. Its plant
As there are available spaces inside the factory of EOS capacity is 55MW/hour at Sikalbaha, Chittagong. The
Textiles, we see further chance to set up additional Company had 6 (six) electric generator set for
machinery there in future to have more production. producing electricity as well as supplying it to BPDB.
Currently, EOS’s sales are BDT. 1500 million (approx.) Power Purchase Agreement
We are optimistic to make the figure double inShaa
To supply electricity to the Bangladesh Power
Allah within few years and as the owner of 80% shares,
Development Board (BPDB), the Company signed an
we hope, Shasha Denims Limited would enjoy the
agreement on power supply with BPDB. Initially the
additional profit proportionately.
Company signed the contract with BPDB on 28
Subsidiary and Associates December, 2008 for a term of 3 years subsequently the
agreement was extended for next 5 years from 9th
Shasha Denims Ltd. has remarkable investment in its
February, 2014 vide contract No. 09932 with BPDB.
sister concerns. The investment was made in power
sector, garments and textile companies etc. Among the The contract includes the supply of Net Energy Output
companies, some of these are subsidiary company and by the Company to BPDB and to make available
some other as associate company. Major subsidiary capacity and BPDB agrees to accept and pay for the
and associate companies information are given below: Dependable Capacity and Net Energy Output under the
terms and conditions provided herein (Contract No: Nature and Capital Structure of the
09711) and Contract No. 09932). It also includes cost Company
of electricity generation and procedure, cost of
Shasha Garments Limited is a private limited Company
maintenance, effect of short/excess of generation of
incorporated on 18th November, 1991 under the
electricity, payment system etc.
Companies Act. 1993, the authorized and paid up
Energis Power Corporation Ltd. submitted an capital of the Company is Tk. 50.00 million and Tk.
application to BPDB on 30 August, 2018 for extension, 35.55 million respectively.
relocation and conversion to IPP of contract pertaining
Financial Results of Shasha Garments Ltd.
to Energis Power Corporation’s 55 MW Rental Power
Station at Shitalbaha, Chittagong. But decision of Shasha Garments Ltd. earned revenue BDT. 1,041.73
BPDB is yet to be received. million. during the year 2018-19 by exporting garments
wear to Europe. Basically, Shasha Garments Ltd.
Financial Result of Energis Power manufactures denim made products like denim long
Corporation Ltd. (EPCL) pants for Gents, jeans pant, skirt, shirt for women and
During the year under review, EPCL earned revenue of kids etc.
BDT. 1,558 by generating and supplying 55 mw
During the year 2018-19, including capital gain BDT. 97
electricity to BPDB. The Company registered net profit
million, Shasha Garments registered net profit afer Tax
after tax of BDT. 98.43 million against BDT. 97.11 million
of BDT. 120.59 million which was BDT. 36.18 million
over the corresponding period of last year. Throughout
during the corresponding year. Total assets of the
the year, the Company was able to have had an
Company stood at BDT. 574 million as at 30 June, 2019
uninterrupted production.
from the assets at BDT. 367.38. as on 30 June, 2018.
Financial Statement of EPCL has been given from page
Subsidiary of Shasha Denims Ltd. didn’t declare any
206 to page 221
dividend during the year.
Shasha Garments Limited
Shasha Textiles Limited (Subsidiary Company)
Incorporation Shasha Textile Ltd. was incorporated as a Public
Shasha Garments Ltd. (SGL) was a subsidiary company Limited Company on 18th September 2003. Shasha
of Shasha Denims Limited (SDL). SDL held 96.40% Denims Limited holds 99.57% shares of the Company.
shares of Shasha Garments Ltd. Subsequently the Authorized Capital and Paid up capital of Shasha
Board of Directors of SGL offered new allotment of Textiles Ltd. is Tk. 500 million and Tk.70 million
shares to its existing shareholders. But due to better respectively. Total assets of the Company as on 30
investment opportunity available in Shasha Denims June, 2019 was BDT. 1195.56 million. Commercial
Ltd., the board of SDL regretted to avail the new share Operation of the Company is yet to be started. Due to
allotment. Therefore, SDL’s shareholdings in SGL delay of gas connection, the Company could not start
reduced to 42.19%. Accordingly SGL converted from its business operation till date.
subsidiary company to associate of company of SDL.
The new allotment was effective from 4 April, 2019.
Going Concern
The Board of Directors has reviewed the Company’s
Shasha Garments Ltd. is a 100% Export Oriented
present and potential business growth, performance,
Garments Industry located at Hashem Plaza (4th Floor),
extension progress, liquidity, financial arrangement as
Ganakbari, Ashulia, Savar, Dhaka. Yearly production
well as overall business plans, strategies & become
capacity of Five line Shasha garments Ltd. is 12,00,000
highly satisfied to see that the Company has adequate
pieces per year. The Company is expanded with a floor
resources to continue its operation in the foreseeable
area of 30,000 sqft. Its total manpower is engaged
future.
within the factory. The Head Office of Shasha Garments
Ltd. is placed at House #23, Road # 129, Gulshan, They are also pleased to find that the Directors’ fee is
Dhaka. appropriate to adopt going concern assumption and
there is no material uncertainty in preparing the Financial beginning with the help of steering risk strategies,
Statements. And also there are no significant doubts or models and parameters
threats upon the Company’s ability to continue as a • Creating maximum value for the shareholders,
going concern. depositors and employees in the long term
A separate report highlighting key financial track record, • Being capable to meet up the current market’s need
good practices in business and operations indicating to by delivering the world class products also having a
continuity as a going concern has been set out with this strong financial footing and establishing business
Annual Report. relations amongst customers & the stakeholders
that will last for many years through creating a brand
A report on the going concern is given from page 97 to 99. image of SDL within the industry & help keeping
sustainability in business growth.
Risk Management
• Besides, efficiently managing of inventories, proper
Risk management refers to the practice of identifying
sourcing & timing, economic order quantity and
potential risks in advance, analyzing those and taking
handling credit facilities with the most organized
precautionary steps to reduce/curb the risk. In the textile
way reducing SDL’s cost of procurement. For power
industries, various risks are encompassed around it.
and electricity, Shasha is totally independent
The risks may have adverse effect in the Company’s enabling itself to ensure low cost energy and
sales and profit. Mostly, the risk arises from falling uninterrupted production process.
demand for the product, shortage of power, workers’ • Greatly complying with the guiding principles of
unrest, raw material shortage along with other relevant Bangladesh Textile Mills Association (BTMA)
situation such as interest rate risk, foreign exchange
risk, technological risk, market risk, political risk and Human Resources Development
other regulatory risks as well. Always giving the maximum focus on the right
placement of right people, we strongly believe that the
The Company is aware of its risks concern and well
efficient management & skilled workers are our greatest
prepared to meet those by systematic control. The
assets as their efforts and performances are truly
denim industry of Bangladesh is hovering to enter a new
priceless and as such, they are recognized as the
era with massive expansion and significant
‘Building Blocks’ of the Company.
up-gradation buoyed by confidence of global buyers
and also troubles in China and Turkey. We continue investing in our people to enhance and
upgrade their skills sets through conducting research
Over the years, SDL became one of the biggest giants and development and on-the-job training programs.
in denim business of the country. A great deal of
marketing and modifications in production and a We have found that sensitivity to the needs and
dynamic administration of management have led SDL aspirations of individual employees is as conducive to
to create a customer base of around 131 local buyers. successful human resource management as an
To produce quality denim, SDL imported and installed accurate assessment of employee capabilities,
world class machineries in its factory. potentials and attitudes.
Fundamental principles of risk management philosophy We value the contributions of what each employee
of Shasha Denims are: exerts towards the organization and adopt policy to
reward them accordingly through providing various
• Effectively managing & monitoring credit, interest
financial and non-financial benefits.
rate, liquidity, market & operational risk and
providing for appropriate allocation of capital among Corporate Governance
the types of risk Corporate Governance is the system through which
• Managing risk in a forward-looking manner and companies are directed, guided and controlled by the
identifying & analyzing those risks from the Board, keeping in view its accountability to the
shareholders. The Board of SDL always focuses on After receiving Bangladesh Bank permission dated 18
ethics, innovation and transparency. August, 2019, SDL deposited rest of the required
amount in escrow account to acquire 80% shares of of
The establishment of well-founded corporate
EOS Textile Mills Limited
governance within the Company would be continued in
order to ensure a continuous profitable return to its Management
shareholders and uphold a solid reputation amongst The Management of SDL always tries to improve the
clients & partners. production process and human resources by conducting
Shasha Denims strives to maintain full compliance with R&D and on the job training programs. SDL’s
the laws, rules and regulations that govern its business Management is led by its Chairman who has inherent
and keep pace with the highest standards. qualities and a great sense of value and direction in
business policy formulation and strategic management
The main objective of SDL’s corporate governance is to that made him successful in every sphere of his life.
develop a strong, sustainable and competitive
Company in the best interest of its shareholders, Managing Director proves the track records in leading
employees, business associates, other stakeholders the team as well as the company throughout his tenure
and the society at large. from the beginning till now and is responsible to oversee
the day to day operations of the business.
SDL believes that a successful value added business
could be achieved by developing a conspicuous Director (Operation) is the Head of the Factory. Including
reputation based on clients’ satisfaction, business day to day operations of the business, he is directly
practices and communication with the market of course involved in the company’s merchandising, procurement,
with due care on transparency and ethical standards. production and whole procedures and also responsible
to report to the Managing Director.
A separate report on Corporate Governance is attached
Director (Finance) is the Head of Head Office. He is the
with this Annual Report.
reporting authority of Company’s Accounts
Related Party Transaction Department, Commercial Department and Treasury
Department. He is also responsible to report to the
Compliant steps have been taken by the Board to avoid
Managing Director.
any conflict of interests that may arise, in transacting
with related parties as per the definitions of BAS & There are different departments under the Company to
BFRS. A statement of related party transaction has perform different activities. Departments’ Heads have
been presented in note 34 on page no. 204 with this significant experiences in relevant business areas and
report. are liable to monitor respective departments’
operations. The company is managed by a team of
Shasha Denims Ltd. has investment in its associated
qualified and experienced professionals in consonance
companies maximum which is non operative. Details of
with the strategy of the Board of Directors.
investment in associates Companies are shown in page
no. 204 of Financial Statements of the Company. The company has formed various committees to
oversee the different internal issues. SDL has around
Events Occurring After the Reporting Date
781 workers in its factory and 288 officers and staff in
As at the date of this report, the directors are not aware head office & factory as on 30 June, 2019. Including
of any matter or circumstance that has arisen since the different fringe benefits; the company also provides
end of the year 2018-2019 that has significantly transportation facility, festival bonus, profit sharing,
affected or may significantly affect the operations of the production bonus etc. to its employees.
company.
Appointment of Auditors
The results of its operations or its state of affairs are not
M/S S F Ahmed & Company, Chartered Accountants,
already reflected in this report other than dividend
House # 51, Road # 9, Block # F, Banani, Dhaka-1213
declaration.
was appointed as the External Auditor of the Company The report as well as certificate regarding compliance
by the shareholders in 21st AGM held on 19 December, conditions of this Code as required under condition no.
2018. S F Ahmed & Company, Chartered Accountants 9 is hereby disclosed as per Annexure-B and
carried out the audit for the year 2017-2018 and Annexure-C, which are given in page 101.
2018-2019 credibly. This is their second year Audit for
Shasha Denims Ltd. and the firm is eligible for Composition of the Board of Directors
re-appointment and accordingly expressed their The Board is comprised five Directors including
willingness to be re-appointed for the year 2019-2020. Managing Director and two independent directors. Mr.
Anisul Islam Mahmud is one of the sponsor director. Ms.
The Audit Committee reviewed the proposals for
Zareen Mahmud is shareholder director of the company.
re-appointment and conducted a formal assessment
Mr. Shams Mahmud is the Managing Director and Mr. N
and recommended to the Board for appointment of S F
K A Mobin and Mr. Syed Mayeenul are independent
Ahmed & Co. Chartered Accountants as the statutory
directors.
auditor the year 2019-2020.
Mr. Aftabur Rahman Jafree and Ms. Nishat Nahrin Hamid
Upon the recommendation of the Audit Committee, the
are the nominated Directors from Shasha Garments Ltd.
Board of Directors is proposing the appointment of M/s
S F Ahmed & Company, Chartered Accountants, House Both of the nominated directors resigned on 11/11/2018
# 51, Road #9, Block # 9, Banani, Dhaka-1213 as the as per decision of Shasha Garments Ltd. During the year
statutory Auditor to the Shareholders in the 22nd AGM Ms. Parveen Mahmud resigned on 29/01/2019 from the
for approval and fixed their fees. It may be mentioned post of Chairman and Director on her personal ground.
that Audit fee has been fixed for the year 2018-2019 at Mr. Anisul Islam Mahmud was appointed as Director and
BDT. 3 lac only. Chairman of the company in its board meeting held on
29/01/2019.
Independence of External Auditor
To comply with BSEC Notification No. BSEC/CMRRCD/
The Company’s external auditors are prohibited from
2006-158/207/Admin/80 dated 03 June, 2018, Mr. N K
non-audit as prescribed by the Bangladesh Securities
A Mobin FCA, FCS and Mr. Syed Mayeenul Huq were
and Exchange notification dated 07 August, 2015. The
external auditor didn’t engage to conduct other services appointed on 5 May, 2016 and 15 November, 2017
like Taxation Service, Actuarial Service, Internal Audit respectively as the independent directors of the
Service, Broker-Dealer Services etc. company for three years term.
SDL’s Taxation matters are performed by its own staff, The Board of Directors embodies a range of talents,
legal matter is performed by M/s Satter & Co. and M/s skills and expertise to provide prudent guidance with
Mazumder Sikder and Associates, Cost & Management respect to the operations of the company.
Accountants has conducted the corporate governance
Directors’ Re-Election
audit of the company.
In accordance with the provision 124 of the Articles of
Appointment of audit or/firm to issue a report on Association of the Company, one-third of the number of
compliance on Corporate Governance Code existing Directors will retire by rotation in the Annual
M/s Mazumder Sikder and Associates, Cost & General Meeting according to seniority. Accordingly the
Management Accountants has conducted audit on following Directors representing one-third of the number
corporate governance code for more than three years. of existing Directors will retire in the 22nd Annual
Now the Board has decided to change the compliance General Meeting.
auditor for more transparency. Accordingly, M.M. Yasin
Mr. Shams Mahmud
& Co. Chartered Accountants have been proposed to
conduct Corporate Governance Audit. The proposal Re-appointment of Independent Director
has been submitted to the 22nd AGM for shareholders’ Mr. N K A Mobin FCA was appointed as Independent
approval. Director on 05/05/2016 for three years term. Present
term was expired on 04/05/2019. The Board of Directors Directors’ Fee & Remuneration
appointed him for further three years as independent
The Director who engaged in the Company’s day to day
director. This appointment was placed in the 22nd AGM
operations are receiving remuneration and other benefits
for shareholder approval and confirmation.
from the company as disclosed in the Financial
Board Meetings Statement at Note 24 & page 196. Non Executive
Directors including Independent Directors are paid only
The Board of Directors met five times during the year to
attendance fee of Tk.10,000/- for attending per meeting.
discuss various issues regarding the business
expansion, production, sales, efficiency of machineries, Audit Committee
review matters relating to the operation and review of
As required by the BSEC, the Board constituted its
quarterly/half yearly/yearly financial result of the
Audit Committee. The Committee was formed with 3
Company.
(three) members of the Board and headed by Mr. N K A
In order to accelerate the performance of the Mobin FCA, FCS Independent Director of the Company.
Company-both operational and financial; the Board The details of the Audit Committee including
took a number of important decisions. The Board responsibility, qualifications and their report on the
formed a Sub Committees named the Audit Committee. financial statements are given separately.
During the year, Audit Committee Meetings were held in
A separate report on the Audit Committee is given in the
different time to assist the Board to take decisions on
page # 119 to 120.
respective issues.
Board Meetings and Attendance

During the year, total 7 nos of Board Meetings were held. Two directors retired/resigned and two directors were
appointed during the year.
Name of the Director Position Attended Remarks
Anisul Islam Mahmud Chairman 3 Appointed on 29/01/2019
Parveen Mahmud Ex-Chairman 3 Resigned on 29/01/2019
Shams Mahmud Managing Director 6 -
Zareen Mahmud Director 7 -
Aftabur Rahman Jafree Rep. Director 3 Resigned on 11/11/2018
Nishat Nahrin Hamid Rep. Director 3 Resigned on 11/11/2018
N K A Mobin Ind. Director 7 -
Syed Mayeenul Huq Ind. Director 7 -
Statement of Directors on Financial Reports These statements present fairly the Company’s state of
affairs, the result of its operation, cash flows and
The Directors in accordance with BSEC Notification No.
statement of changes in shareholder/equity.
BSEC/CMRRCD/2006-158/207Admn/80 dated June
03, 2018 confirms compliance with the financial b) Proper books of accounts of the Company have
reporting framework for the followings: been maintained.
a) The financial statements together with the notes c) Appropriate Accounting Policies have been
thereon have been drawn up in conformity with the consistently applied in preparation of the financial
Companies Act, 1994, Financial Institutions Act, statements and that the accounting estimates are
1993 and the Securities & Exchange Commission based on reasonable and prudent judgment.
Rules, 1987, the rules and regulations issued by the d) The International Accounting standards, as
Bangladesh Bank from time to time and other applicable in Bangladesh have been followed in
applicable laws and regulations. preparation of the financial statements.
e) Internal Control System is sound in design and has the following matters and make report with
been effectively implemented and monitored. recommendation to the Board:
f) There are no significant doubts upon the ability of i) Formulating the criteria for determining
the Company to continue as a going concern. qualifications, positive attributes and independence
g) Minority shareholders’ interests have been protected. of a director and recommend a policy to the Board ,
relating to the remuneration of the directors, top
Shareholding Pattern level executive, considering the followings:
The shareholding pattern as on June 30, 2019 BSEC a) The level and composition of remuneration is
Notification No. BSEC/CMRRCD/2006-158/207Admn/ reasonable and sufficient to attract, retain and
80 dated June 03, 2018 is shown at annexure-1. motivate suitable directors to run the Company
Status of Compliance on Corporate Governance successfully;
Status of compliance with the conditions imposed by b) The relationship of remuneration to perform is clear
the Bangladesh Securities and Exchange Commission’s and meets appropriate performance benchmarks; and
Notification BSEC Notification No. BSEC/CMRRCD/ c) Remuneration to directors, top level executive
2006-158/207Admn/80 dated June 03, 2018 issued involves a balance between fixed and incentive pay
under section 2CC of the Bangladesh Securities and reflecting short and long-term performance
Exchange Ordinance, 1969 is presented on page no. objectives appropriate to the working of the
107 to 115. company and its goals;
Nomination and Remuneration Committee ii) Devising a policy on Board’s diversity taking into
In terms of provision of 6 of Bangladesh Securities and consideration age, gender, experience, ethnicity,
Exchange Commission notification dated 3 June, 2018, educational background and nationality;
the company in its 86th Board Meeting held on 27 iii) Identifying persons who are qualified to become
October, 2018 formed Nomination and Remuneration directors and who may be appointed in top level
Committee headed by Company’s Independednt executive position in accordance with the criteria
Director Mr. Syed Mayeenul Huq. In pursuance to the laid down, and recommend their appointment and
company’s policy to consider human resources as its removal to the Board;
invaluable assets, to pay equitable remuneration all
iv) Formulating the criteria for evaluation of performance
Directors, key managerial personnel and employees of
the Company, to harmonize the aspirations of human of independent directors and the Board;
resources consistent with the goals of the company. v) Identifying the company’s needs for employees at
different levels and determine their selection,
Constitution Of Committee
transfer or replacement and promotion criteria; and
The Board of Directors of Shasha Denims Limited
vi) Developing, recommending and reviewing annually the
constituted “Nomination and Remuneration
company’s human resources and training policies:
Committee” (NRC) consisting of three Non-Executive
Directors of which majority are Independent Directors in Corporate Social Responsibility
accordance with the provision of Section 6 Bangladesh
As the days progress, Corporate Social Responsibilities
Securities and Exchange Commission Gadget
(CSR) are becoming an elemental part to attain long
Notification dated: 3 June, 2018. The Committee is
term sustainability and business growth for a large
composed of Mr. Syed Mayeenul Huq. Chairman, Mr. N
number of companies around this competitive
K A Mobin and Ms Parveen Mahmud.
corporate world. CSR is the dedication whereby
Objective companies contribute towards a better society through
NRC shall be independent and responsible or its business activities & social investments.
accountable to the Board and to the shareholders. As
SDL is highly desirous to be seen itself as a Company
per notification, NRC shall oversee, amongst others,
that is making a positive contribution to the society. We
acknowledge our responsibilities towards the society as These approaches also reduce threats on the business
a whole where we live. protecting our shareholders’ interests and so on.
As one of the leading denim manufacturers of Bangladesh, Business Ethics

Shasha Denims is excessively aware about CSR and acts SDL has now become a reputed brand in denims for
upon accordingly through a broadened sphere.
delivering innovation, performance and fashion craze to
We have considered our CSR touching in every sensible its clients. The key element of long-term success is
arena. We are concerned about ethical business integrity and sincerity through performing the business
operation, employees’ right and welfare, underprivileged fairly-a factor that contributes greatly in keeping the
human beings of the society-their health & education long-standing affiliations with our valued clients.
condition, environment related issues etc.
All of our employees are instructed to behave decently
SDL feels proud through its strong participation in CSR
during delivering their words & performing deeds based
activities, accordingly the Company established
on Shasha’s ethical principles.
‘SHASHA FOUNDATION’ to help the nation’s poor and
deprived people. The Foundation provides monetary We have designed our policy to hold our reputation of
assistance to the financially challenged meritorious an excellent Company all the way through a fantastic
students of different sectors & also health care support client servicing and ethical business dealings. This is
to the poor people of the country. how we manage our business and maintain high
standard all the time.
We realize that sustainable development is a continuous
procedure. We are well positioned & prepared to work Our motto is to grow with our esteemed clients and
for the society compliant with our responsibilities stakeholders harmonizing a good acquaintance as well
through the short, medium and long-term. as provide them nothing less than the best.
A separate report on Corporate Social Responsibility Our Board, Management and the employees strictly
has been attached herewith in the annual report. follow & support the regulatory guidelines, instructions
and all applicable laws, rules and regulations of the
Health & Safety
concerned Authorities.
Shasha Denims provides the best Health & Safety
Policy to its employees/workers based on SDL’s Outlook 2019-2020
Corporate Business Principles and the Management Global Market for Denim is forecast to reach USD 64.1
and Leadership Principles which is maintained by the billion by 2020. In 2013-2014, export of denim products
whole Shasha Group and also committed to continual to the USA and EU markets rose by roughly 25 percent
improvement the standards of the policy. and gradually it is increasing. The total denim productions
The Company ensures utmost safety in the whole of the whole world are approximate 7 billion meters and
business operations that meets or exceeds the within these total 70% fabric is produced in Asia.
requirements in which all activities are operated The future of Bangladesh’s denim industry is promising.
considering the highest security and safety from all The main challenges are building confidence to the
types of possible accidents as well as the protection of global buyers ensuring political stability and making
the people at work place.
quality product with competitive price. The shift of
For ensuring maximum safety, while working in the orders from China and the rise in production cost in
factory inside with machineries, it is mandatory for every competitors’ countries will help Bangladesh in boosting
staff to be dressed up properly having necessary the denim industry to grab more market share.
uniform i.e, aprons, gloves, mask, helmet, shoes etc.
To meet the growing demand of International market,
We commit to identify systematic hazards and manage the local mills are investing hugely on state-of-the-art
them with appropriate risk assessments and imported machineries especially on the weaving &
subsequent actions to minimize the possible dangers. processing and setting up large plants in the country.
The denim sector in comparison to other giant sectors take the opportunity to thank my Board colleagues for
in Asia is still evolving in Bangladesh. However due to their worthy guidance and inspiration in moving the
competitive price, the denim industry over here is Company to the right direction.
flourishing day by day.
Shasha Denims observed 22nd Anniversary. We are
Considering the additional requirements of our buyers, grateful to our Customers for the continued trust they
current market scenario and other relevant issues, bestowed upon us.
Shasha denims has expanded its factory area side by
I express my gratitude to the Ministry of Commerce,
side replace its old existing loom machines to increase
Government of the Peoples’ Republic of Bangladesh,
production efficiency and better quality product.
Bangladesh Securities & Exchange Commission
Again we invested to acquire 80% shares of EOS Textile (BSEC), National Board of Revenue (NBR), Registrar of
Mills Ltd. The acquisition procedure is under the route Joint Stock Companies & Firms (RJSC), Dhaka Stock
which is expected to be done within very short span of Exchange (DSE), Chittagong Stock Exchange (CSE),
time. the regulatory authority-Bangladesh Textile Mills
Association (BTMA), Bangladesh Export Processing
We are highly optimized to have a remarkable profit
Zone Authority (BEPZA) also other regulatory bodies
jointly from newly expanded manufacturing unit and
who were the partners in the growth of our Company
also from EOS Textiles Ltd.
and a number of Commercial Banks of Bangladesh i.e,
Our existing initiatives illustrates that the year 2019-20 Bank Asia Ltd., Premier Bank Ltd., United Commercial
will be a positive year for Shasha Denims Ltd. and the Bank Ltd., Dutch-Bangla Bank Ltd., the City Bank Ltd.,
Company will maximize its revenue by using 100% Dhaka Bank Ltd., Sonali Bank Ltd., Agrani Bank Ltd,
capacity for manufacturing quality products. Janata Bank Ltd, and others for extending their
cooperation and everyone in the Shasha Family for their
Coping up with the current demand and situation, I untiring support & assistance.
assure you that the prudent policy of expansion your
company has taken will make it able to deliver the The Board would like to put on record its appreciation of
highest amount of dividends to its shareholders and hard work, patience and proactive approach of the
accordingly grab the more market share which is an Shasha’s people who generously contributed to its growth
indication to become the leader of the industry. over the past 22 years towards service excellence.
Acknowledgement I conclude conveying my sincere thanks and

gratefulness to our respected shareholders, valued
Shasha Denims Ltd. ended the financial year 2018-19
customers/clients, patrons, well-wishers and external
recording a satisfactory performance in all core areas of
auditors for their cooperation, patronage and finally trust
its business operation. All of these advancements were
placed on us and continued to facilitate our path
made possible by the combined effort of the more than
towards the glory achieved so far by the Company.
900 Teammates of Shasha Denims Ltd. Continued
endeavors of the Management and staff of the We are proud of you all and look forward to sailing
Company- valuable supported by the Board of together again to make Shasha Denims an institution of
Directors, above all sincere cooperation of all excellence.
concerned have significantly contributed to reach the
Company to the newer height of success. May Allah SWT bless us all.
Our diverse and experienced Board of Directors has On Behalf of the Board of Directors
also provided independent oversight to ensure diversity
and strength; and monitor corporate governance so
that we always adopt the best practices in the industry
and make improvement when necessary.
My deep appreciation goes to the Management team Anisul Islam Mahmud

for their prudent action and dedicated services. Again I Chairman
Annexure-1
Shareholding Pattern of Shasha Denims Ltd. showing Parent/Subsidiary/Associated companies and
other related parties as on 30-06-2019.
Particulars Positiona No. of shares held %
Directors and Sponsor
Mr. Anisul Islam Mahmud Chairman & Sponsor 30,990,880 24.2261%
Mr. N K A Mobin, FCA, FCS, CFC Independent Director -
Mr. Shams Mahmud Managing Director 13,632,335 10.6566%
Ms. Zareen Mahmud FCA Director 3,430,126 2.6814%
Mr. Sayed Mayeenul Huq Independent Director 7,042 0.0055%
Ms. Parveen Mahmud Family Member of Sponsor Director 87,749,694 6.8398%
Shasha Garments Ltd. Associate Company 339,006 0.2650%
Mr. Aslam Ahmed Khan FCA Company Secretary - -
Mr. Sarwar Hossain FCA Chief Financial Officer - -
Ms. Khondoker Shamrita Tabassum Head of Internal Audit - -
Mr. Mohammad Jamal Abdun Naser Director, Operation 732,598 0.5727%
Mr. Md. Ahasanul Haque Director, Finance - -
Mr. Rafiqul Alam DGM 77,011 0.0602%
Mr.Syed Mohammad Hassan DGM 58,953 0.0461%
Mr. Mazharul Islam Bhuiyan DGM 1,01,780 0.0796%
Shareholders Holding 10% or more Nil

voting interest in the Company
Annexure-2
Involvement of Directors in other organizations
Sl Particulars Directorship Position in the Company
1 Mr. Anisul Islam Mahmud Energis Power Corporation Ltd. Chairman
Chairman Shasha Garments Ltd. Chairman
Shasha Textiles Limited Chairman
Shasha Spinnings Limited Shareholder
2 Ms. Zareen Mahmud FCA Shasha Textiles Ltd. Director
Director Shasha Spinnings Ltd. Director
Shasha Apparels Ltd. Director
Energis Power Corporation Ltd. Director
Shasha Garments Ltd. Director
Shasha Telecom Ltd. Director
Form Icon Ltd. Managing Director
Shasha Denims Ltd. (unit-2) Director (Nominated)
HerStory Foundation Executive Director
Aga Khan Foundation Bangladesh National Committee Member
Ghashful Member
3 Mr. Shams Mahmud Shasha Textiles Ltd. Managing Director
Managing Director Shasha Spinnings Ltd. Director
Shasha Apparels Ltd. Director
Shasha Garments Ltd. Managing Director
Shasha Telecom Ltd. Director
Form Icon Ltd. Director
Shasha Denims Ltd. (unit-2) Managing Director
Trade Matrix Bangladesh Ltd. Managing Director
4 Mr. N K A Mobin Emerging Credit Rating Ltd. (ECRL) MD/CEO
Independent Director Biman Bangladesh Airlines Ltd. Director
MJL Bangladesh Ltd. Independent Director
5 Mr. Sayed Mayeenul Huq CARSA Board Member
RISK
MANAGEMENT
Risk Management and

Sustainability Analysis
SDL has some key experts in this field who have academic and practical
knowledge and also highly trained. We have also a system of on-job training
facilities so that the employees can have the opportunity to reshape their
skills. Most importantly, SDL has procured latest technology and world
famous brand machinery for its plant to ensure smooth operation of the
production process. Finally, our research team is dedicated to continuous
developments of our products to satisfy the customers demand perfectly.
As a textile Company, Shasha Denims Ltd. is business to an acceptable level so that it could
undergone through a variety of risks that are inherent in maximize the opportunities and minimize the impact.
carrying out the business activities. Effective
management of risks enhances the Company’s ability The Board of Directors of Shasha Denims Ltd. has overall
to achieve business, market, procurement, financials responsibility of managing risks. Whilst the Board
and social goal and to meet its legal and compliance approves and reviews risk management policies and
requirement, thereby protecting and enhancing the strategies of the company, the management establishes
shareholders value. Shasha’s risk management the procedures to implement the policies and strategies.
process enables management to identify, manage and
prepare for risks in an informed, controlled and The risks which encompass with Shasha Denims Ltd. is
transparent manner. Shasha Denims Ltd. is committed exposed to and how the company manages them is
to manage those risks that arise in the course of the discussed in the following:
RISK FACTORS
MARKET AND
INDUSTRY INTEREST EXCHANGE OPERATIONAL REPUTATIONAL
TECHNOLOGY
RISK RATE RISK RATE RISK RISK RISK
RELATED RISK
(A) INDUSTRY RISK AND CONCENTRATION 3) Raw Materials and Energy Costs
OF INDUSTRY RISK Instability in raw materials and energy costs may
hamper the profitability of the Company significantly. A
1) Market Demand recent government decision regarding escalation of
Market Risk is the Risk which may happen when market electricity prices will put a huge pressure on the product
demand is fallen. Company’s sales and revenues are cost of the local businesses.
dependent on the aggregate demand of its products.
Any economic recession, changes in requirements, Management Perception
national income and other related factors may cause to Our management believe that efficient management of
decline the market demand of the Company products. inventories, proper sourcing & timing, economic order
quantity and efficient handling of credit facilities can
Management Perception
reduce the cost of procurement. For power and
Strong brand loyalty of the Company’s products to its electricity, SDL is totally independent, enabling itself to
customers has enabled the Company to capture ensure low cost energy and uninterrupted production
significant market share in the sector. Additionally, the process.
Company is continuously penetrating into the market
and upgrading the quality of the products to minimize B) Market and Technology Related Risks
the market risks.
1) Market risks refer to the risk of adverse market
2) Competition and globalization effects conditions affecting the sales and profitability of the
Company. Such as, shortage in raw material supplies,
SDL is operating in a free market economy regime. The
inefficient labor supplies, fall in product demand, etc.
Company might have to face stiff competition from its
which signifies the adverse external and internal
competitors. Easily availability of global products in the
business environment. Those types of risks may
local markets adds to the competition, challenging the
impede the success of the business.
profitability of the business.
Management perception
The Company operates in the back-ward linkage
Bangladesh is the prime source of cheapest labor in the
industry of Garments sector in Bangladesh. The
world, gaining comparative advantages for its industries
product of the Company (denim fabric) is ultimately
over their global competitors. Other overhead costs are
also low in Bangladesh. As a result, the Company has consumed by the garment manufacturers, who finally
been able to maintain its cost of products most export their finished goods to the foreign markets.
competitive. Moreover, over the last few years the Examples of SDL’s ultimate consumers include such
Company has built a trustworthy relationship with its world renowned brand name as H&M, O’STIN, Esprit,
customers, which helps the Company avoid Debenhams, Marks & Spencer, LPP, Pull & Bear, S.
competition with others. Oliver, Zara, Bestseller, River Island etc.
It is notable that Bangladesh has recently been one of the a potential loss arising from fluctuation of foreign
prime denim producers in the world because of its low currency rates. The loss may be aggravated due to
cost and superior quality. Therefore, aggregate demands consistently downwards trends of Bangladesh Taka
of the Company products remain always at high. against other foreign currencies.
2) Technology risks stems from the contemporary Management Perception

changes in the technology which make the existing SDL settles its foreign transaction through US Dollars
technology obsolete or reduces its cost efficiency in cases of both export and import. While the value of
compared to that of the competitors. New entrant may functional currency fluctuates, the loss or gain arising
come forward with a more sophisticated technology which from currency fluctuation for export automatically
can give a threat to the cost efficiency of the company. sets off against the loss or gain arising currency
fluctuation for import. As the value of export is always
Management perception
greater than the value of import, some balance is
The plant and machinery implanted in the company’s created in the foreign currency transaction.
manufacturing plant, which are imported from world Furthermore, the Company is contemplating about
renowned brand name, are efficient and cost effective in setting a system of hedging on foreign currency
its kind. The management of the company is aware of transactions in the future.
any technological changes in the future.
E) Operational Risks
C) Interest Rate Risks
Possible failure of human resources, failure of the
The company is exposed to volatility of market-wide production systems, inefficient internal control
interest rates of bank loans. Due to several procedures and most importantly, being a first mover in
macroeconomic and market driven factors, interest rates the industry may cause for the Company to make it a
on short term and long term bank loans may fluctuate total unsuccessful venture.
over time. Inflationary pressure, increased demand for
bank loan, increased volatility in money market, restrictive Management perception
monetary policy, increased Government borrowing from SDL has some key experts in this field who have
banking sector, etc. may compel the company’s loan academic and practical knowledge and also highly
giving institutions to increase their interest rates. If the trained. We have also a system of on-job training
interest rates are increased beyond what the Company facilities so that the employees can have the opportunity
expects, then its cash flow and profitability will be affected to reshape their skills. Most importantly, SDL has
adversely. This would also affect its value of shares. procured latest technology and world famous brand
machinery for its plant to ensure smooth operation of
the production process. Finally, our research team is
The management of SDL always emphasizes on the dedicated to continuous developments of our products
management of its finance to maintain an optimum to satisfy the customers demand perfectly.
capital structure of the Company, so that the cost of
capital remains minimum. The management prefers F) Other Risk Factors
procuring the long-term fund with minimum fixed The company may face by other risk factors i.e. a)
interest rate and the short-term fund with reasonable Potential or existing government regulations b) Potential
competitive rate. In addition, the management of the changes in global or national policies c) Political unrest
Company has decided to liquidate a part of its d) Natural Climates and e) Possible slowdown in
outstanding bank loan with the IPO proceeds to reduce economic growth in Bangladesh etc.
the interest burden of the Company and to keep the
Gearing Ratio at a satisfactory level. The significant risks in the Company’s business were
reviewed, monitored and reported and mitigating
D) Exchange Rate Risks measures were evaluated by the Board and Management
A business involved in overseas transactions may face on a regular basis.
Value Added
Statement
For the year ended on
30 June, 2019
Value Added Statement is a financial statement
that shows wealth created by an organization
and how is that wealth distributed amongst
various stakeholders. Value added statement
can also be defined as the difference between
the value that the customers are willing to pay
for the finished goods and the cost of materials.
2018-19 2017-18
in Mn BDT in Mn BDT
Export Revenue 7,923 7,511

Total Operating expenses 7,700 6,983
Depreciation Expenses (325) (232)
Staff Cost (631) (587)
Operating expenses excluding staff cost & Depreciation 6,744 6,164
Value Addedd 1,179 1,347
Distribution of Value Addition

Employees as salaries & Allowances 631 587
Government as tax on income 81 46
Shareholders as dividend 263 209
975 842
Retained for expansion & future Growth
Value retained in business (121) 273
Depreciation 325 232
Amount Distributed 1,179 1,347
Number of employees at the end of the year 1069 998

value created per employees in Mn BDT. 1.11 1.35
Number of Shares 128 120
Value created per share 8.81 11.23
Market Value
Added
Statement

30 June, 2019
Market Value Added (MVA) reveals the Company’s Companies with a higher MVA are attractive and a good
external performance evaluated by the market through indication. It shows that the company has created
the share price of the Company. substantial wealth for their shareholders. A negative
MVA means that the value of management’s actions
Market value added (MVA) is a calculation that shows
and investments are less than the value of the capital
the difference between the market value of a
contributed to the company by the capital market (or
company and the capital contributed by all the
that wealth and value have been destroyed).
investors, both the bondholders and the
shareholders. In other words, it is the sum of all The following statement illustrates how the MVA has
capital claims held against the company plus the been calculated for the year ended June 30, 2019 and
market value of debt and equity. June 30, 2018.
2018-19 2017-18
in Mn BDT in Mn BDT
Market Price Per Share 46.3 57

Number of Shares 127,923,729 119,554,887
Market Value of the Company 5,922,868,653 6,814,628,559
Economic
Value Added
Statement

30 June, 2019
Economic value added (EVA) is an estimate of an The idea is that value is created when the return on the
entity’s economic profit, or the value created in excess of entity’s economic capital employed exceeds the cost of
the required return of the company’s shareholders. EVA that capital. The EVA of Shasha Denims Ltd. hence
is the net profit less the equity cost of the entity’s capital. resulted as below:
2018-19 2017-18
in Mn BDT in Mn BDT
Net operating profit 441 636

Provision for taxes (62) (80)
Net profit after tax 379 556
Charges for Capital

Capital employed 5,945 5,940
Cost of Equity 11% 9%
Economic Value added 654 535
Contribution to the National

Exchequer and Economy
SDL contributes to the economy by paying due corporate
income tax and value added tax, as per prevailing laws and
regulations. During the year 2018-2019, SDL and its subsidiaries
paid income tax of BDT.80.88 million. The Company is also
responsible for the deduction and collection of VAT/Tax at
source on payment against various supplies.
A Corporate House is presumed to have some inherent customers, shareholders, employees, government and
involvement with the people, the nation or the economy community where we do business.
as a whole while performs business. It has some certain
As a shareholder, you would be proud to have your
responsibilities towards the society, the government on
Company’s contribution towards the Country. The
ruling, stockholders directly or indirectly attached with
Company is now all set to contribute more to the
the organization.
national economy in the years to come.
Those may be performed responsibly through Our Priorities:

contributing as payment tax, VAT, levy, excise duty,
surcharge, savings development, creating employment, • Paying fair share of taxes to the Government
donation to the government fund, contribution in CSR, • Creating employment
implementation of government policies, contribution to • Maximizing shareholders’ value
the national yearly budget etc. • Taking environmental initiatives
We aspire to be known as an organization that builds • Supporting community
enduring relationship with and delivers value to our • Financial aid for the insolvent students
• Healthcare assistance to the underprivileged people Tax Payment:

• Providing strong returns to the shareholders The Company is also responsible for the deduction and
collection of VAT/Tax at source on payment against
In our way to participate in the nation building activities;
various supplies.
since inception, Shasha Denims has been making its
significant contribution by paying Government’s Tax, Payment of Dividend:
VAT, Stamp duty etc. and always on time.
We recognize our fiduciary duty to our shareholders and
The company pays Tax at 15% rate and also seek to establish constructive relationships. We focus on
VAT/Custom duty on its products. SDL is also maximizing long-term & sustainable shareholders’ value
responsible for deducting Tax and VAT on various through strong financial performance and returns.
payment and depositing it to the Government
exchequer within the stipulated time. During the year, SDL paid cash dividend BDT. 179.33
to its shareholders for the year 2017-2018. Besides, the
During the year 2018-2019, SDL and its subsidiaries
Company also declared stock dividend at 7% for the
contributed BDT. 80.08 million to the National
year 2017-2018 which was already credited to the
Exchequer as Advance Income Tax as against BDT.
shareholders’ BO Account.
46.37 million in 2017-2018. The company also
deducted AIT from dividend and deposited to Gov’t Market Capitalization:
Exchequer amounting BDT 22.65 million in 2018-2019.
Shasha started its journey with a capital of Tk. 200
Employment: million in the year 1996. At the end of the year 2019, its
Through creating employment opportunity and a well total size of paid up capital is BDT1195 million
trained workforce, we are trying to solve the country’s equivalent to market capitalization of BDT. 5923 million.
big crisis of unemployment problem slightly & make an
economic bang in the nation building endeavors. SDL always gives its utmost priority to the valued
shareholders. Over the past few years, Shasha has
SDL and its subsidiaries employed as many as 2000
been paying a satisfactory dividend to its shareholders
above employees as on June 30, 2019. During the year
and as such holding the exalted position of one of the
2018-2019, the Company paid total BDT.615.88 million
top ranking companies in the industry.
as salary and wages to its employees.
Forward Looking
Statement
Forward Looking Statement

The Forward Looking Statements and information 3. Any increase in market volatility, deterioration in
included in the Annual Report are related to future, not the capital markets, decline in the conditions for
any past events. This declaration comprises data of the the credit business, uncertainty related to the
Company’s financial projections and estimates and financial market and liquidity crisis.
their underlying assumptions, statements regarding 4. Changes in law or in supervisory regulations and
plans, objectives and expectations or forecasts and guidelines from the regulatory authority-Bangladesh
therefore, subject to certain risks and uncertainties. Textile Mills Association (BTMA).
These statements include reports regarding our 5. Any uncertain changes in the contract with the
intention, belief or current expectations concerning our buyers.
customer base, estimates on future growth through our 6. The effect of and changes in fiscal, monetary and
different business lines and overall business, market tax policies.
share, financial result and other aspects of our activity
7. The effect of changes in accounting policies and
and situation involving in the manufacturing company.
practices.
These statements in this document could be identified by 8. Changes caused due to natural calamities and
words such as ‘expects’, ‘looks forward to’, ‘anticipates’, general political environment.
‘intends’, ‘plans’, ‘believes’, ‘seeks’, estimates’, ‘will’,
9. Changes to our credit rating.
‘project’ or other relevant words of similar meaning.
10. Risks and uncertainties in connection with:
Such forward looking statements, by their nature, are disposing of business activities, certain strategic
not guarantees of future results or outcome as there are reorientation measures and technological
diversified factors, many of which are beyond control of changes.
Shasha Denims, affect the company’s operations, 11. The risk that new products or services will not be
performance, business strategy could cause the actual accepted by new customers or business
results, performances or achievements of the company partners.
to be materially different from any future results,
12. Degree of competitions in the business areas in
performance or achievements that may be expressed
which we operate.
or implied by such forward-looking statements.
13. The ability to retain and recruit qualified personnel.
Some of the factors that may affect the business
environment include the following but not limited to: Finally, we caution that the aforementioned list of crucial
factors that may affect future results is not final. When
1. Changes in general economic and market relying on any future oriented statement, to make any
conditions of Bangladesh as these directly impact decision with respect to the export based
the company’s business processes. manufacturing company, investors and other should
2. Developments in the financial markets, including carefully consider the previous all risk factors and other
fluctuations in interest and exchange rates. uncertainties and potential events as well.
When relying on any future oriented statement, to make any decision

with respect to the export based manufacturing company, investors
and other should carefully consider the previous all risk factors and
other uncertainties and potential events as well.
To keep pace with the current customers’ demand, SDL

has already expanded its existing factory in DEPZ area.
Future
Again we have signed a MOU & Share Sales Purchase
Agreement with EOS Textile Mills Ltd. for acquiring 80%
Prospects shares of EOS Textile Mills in favor of SDL and rest 20%
shares will be acquired by Shasha Spinnings Ltd. We
hope to have remarkable revenue jointly from this
expanded project and acquisition of new factory.
The competitive price of denim has built Bangladesh a positive vibes for Bangladesh through boosting up the
major sourcing hub of trendy denim products for the denim industry to grab more market share.
global buyers. Their amazing response shows the heights
of progress the country has made in the denim sector. The global denim market will cross $65 billion in the next
four to five years. It is expected that by 2020, every four
Amongst the new textile items; denim fabrics and its of five denim products in Europe would be sourced
diversified design & quality is gradually becoming the from Bangladesh.
flagship product for the local exporters. The ability to
supply denim fabrics at a competitive price has helped The Bangladesh aims at fetching $7bn by exporting
the country to gain the great global market access. The denim products which would help the RMG sector to
growth of denim in terms of production, export and achieve $50bn export target by 2021. The denim sector
investment marked a 30%-35% rise in the local market. in comparison to other giant sectors in Asia is still evolving
in Bangladesh. However due to competitive price, the
To meet up the domestic demand, the local denim denim industry over here are flourishing day by day.
factories need to import denim from China, India,
Pakistan and Indonesia. It is expected that an additional To keep pace with the current customers’ demand, SDL
denim fabric will come locally as a good number of has already expanded its existing factory in DEPZ area.
denim manufacturing factories are supposed to start Again we have signed a MOU & Share Sales Purchase
production very shortly. Agreement with EOS Textile Mills Ltd. for acquiring 80%
shares of EOS Textiles in favor of SDL and rest 20%
Bangladesh has made strong progress over recent shares will be acquired by Shasha Spinnings Ltd. We
years, halving poverty and growing the economy by hope to have remarkable revenue jointly from this
about 6 percent each year. But like every sectors, expanded project and acquisition of new factory.
challenges remain here too.
We are optimistic to utilize optimum of our current
Including high investment cost, lack of adequate R&D, capacity; we will be able to maximize our profits through
inadequate local yarn supply as well as dependency on delivering classy products to our valued customers and
imported chemical; the main challenges are building make exponential growth each year breaking the
confidence into the mind of global buyers ensuring previous records.
political stability and supplying quality product with
competitive price. Again, we hope SDL’s prudent policy of factory
expansion and acquisition of new factory would make
We hope that the shift of orders from China and rise in its shareholders benefited all the way providing their
production cost in competitors’ countries may bring a highest dividends in future and ahead.
HUMAN
RESOURCES
Corporate Culture, a cumulative trait of the corporate people

that develop organically over time and through it, a
company's employees and management interact and handle
within the Company and also the outside business
transactions. Corporate culture is rooted in an organization's
goals, strategies, structure, and approaches to labor,
customers, investors and the greater community.
Corporate We have a culture where success is celebrated, no matter
Culture
how big or small it is. Our professionalism inspires us to trust
each other and value the openness and honesty exist in our
working relationship.
SDL brings everyone opportunities to express their hidden talent

and cherishes them in exploring and harnessing that unique
strength through their work. Maintaining such culture and
developing it in a sustainable manner is one of our greatest
responsibilities.
INFORMAL
VALUES Interactions with people
CODES OF
TEAM
CONDUCT
ACQUAINTANCE
We always try to build and maintain a harmonious
relationship and network with all of our stakeholders that
ETHICAL
ISSUES
lead to trust. Gradually, human interactions turn into
FORMAL
CODES OF good results of balance decision-making, fruitful accord
CONDUCT as well as evolve the culture for productive collaboration.
LONG-STANDING Through ongoing collaboration as well as socialization
RELATIONSHIP
and monitoring, the idea revolves into a viable solution to
ADOPTED
GOALS address a new market opportunity, re-engineer a core
INTERACTIONS process, solve a problem or create business value.
WITH PEOPL RITES &
RITUALS
Long-Standing Relationship To run the business keeping ourselves transparent;

since inception, we encompass some code of ethics in
The harmonious relationship that we build with our
our business policy regulating conduct to leveraging a
esteemed clients not only for the time being, Shasha
values-based code that inspires principled performance
Denims continues and turn it into a long standing
among employees, management and executives.
affiliation providing a broad range of finest products and
services and fulfill their demands as ‘Client Satisfaction’ Informal Codes of Conduct
is our ultimate goal. Throughout the way gradually, they
We recognize that our employees have their respective
become our loyal customers.
commitments away from the workplace and encourage
We are confident, if our knowledge base gets proper the working pattern that keeps a balance between the
coordination and consolidation, we would be able to family life and the career.
holding our strength to persistently deliver such
We also aim to attract and maintain a diverse employee
excellent products and tremendous services to our
base with a wide variety of individual characteristics,
valued clienteles.
perspectives and experiences in every part of our
Team Acquaintance business and integrate those systematically which help
to building and reinforcing a common bond amongst
Effective team interaction is one of the core keys for
the organizational members.
taking a business to its meaningful heights. In SDL, we
always believe that the results of our united efforts make Values
a stronger contribution towards the overall goals, vision,
To support the vision, shape it to corporate culture and
mission and values of our Company.
have a valid reflection of the Company’s principles; we
emphasize the importance of corporate values and
Building effective team and establishing their clear roles
ethical responsibilities approaching the continual
and responsibilities is essential for any organization. Our
success of our organization.
business runs by an effective team endeavors
comprising of its dedicated employees where trust and As a responsible business entity, we demonstrate our
cooperation exist amongst the members. values and principles through our diversified policies on
employment, human rights, environment as well as in
They consider and respect every member's thoughts &
the manners what we uphold and expect from others.
ideas as highly valuable, share information to each
other, facilitate communication, find out the creative Rites & Rituals
solutions together and thus by, ensure greater
What’s more important to long-term prosperity is the
productivity in the workplace.
Company’s culture-the inner values, rites and rituals that
Adopted Goals strongly influence its success, from top management to
the bottom pool. We set up explicit guidelines for
Our goal is to widen our customer base and make them
diagnosing the state of one’s own corporate culture and
loyal through maintaining direct communication and
for using the power of culture to wield significant
adopting varied marketing strategy for different
influence on how the business gets done.
individuals. We are always highly responsive to our
clients’ affair and working relentlessly to provide them Ethical Issues
our top-notch products and services which they always
We have utilized our time and resources for formulating
deserve and demand.
and maintaining an active and robust ethics program
which greatly impacts our corporate culture.
Formal Codes of Conduct
An ethical code of conduct is the foundation to get Whenever we take decision, we remain very careful not
succeed in a business. An organization’s solid code of to exceed our company’s ethical standards. As a
ethics can help the company to have competitive business organization, our success depends on the
advantages, a positive reputation in the market place; success of our people. So we make sure that we create
can be enough to secure a sizable market share from its an environment where all of our employees feel involved
larger competitors. and able to perform their best.
Report on Human Capital

Management
Human Capital Management (HCM) is an approach to
employee staffing that perceives people as assets (human
capital) whose current value can be measured and future
value could be enhanced through investment.
It is a set of practices related to people resource challenge for companies, and company leaders now
management. These practices are focused on the want to align people and systems with overall
organizational need to provide specific competencies organisational goals.
and are implemented in three categories: Workforce
Acquisition, Workforce Management and Workforce In order to secure the durability and its culture; an
Optimization. organization focuses on strategic talent planning and

supports HCM through rating, rewarding and holding
Core HR is changing, moving from being about employees accountable for achieving specific business
information storage to a more strategic process that goals, creating innovation and al
syncs with business goals.
Shasha Denims considers its Human Resources as
Today we find ourselves in a landscape where the job Human Capital. To ensure long-term sustainability, the
market is employee-led, and core HR functions are Company is relentlessly pursuing its vision to transform
increasingly combining with talent management. the human resources into human capital through
focusing the following areas specifically and
Attracting and retaining talent is becoming a major strategically.
Strategy Translation retain real talent in the Company, there is no alternative

but attractive and competitive compensation policy.
In reality, employees at grassroots level are often unable
SDL always ensures the best compensation practices in
to relate what the vision and strategy is, and therefore
the industry.
they cannot identify the right ways in which their efforts
would contribute to the overall business strategy. Career Planning
[To execute organizational goals and measurements, it One of the major requirements or desires of an
needs to translate the vision and strategy to every employee from the employer is career plan. Shasha
employee of the organization separately and also clearly Denims clearly defines the career plan for its
set and aware them about their individual target and employees. A good number of employees started
contribution. their career with Shasha Denims Ltd. since long ago
and they have been duly recognized and prompted
Fundamentally, the process of aligning individual goals by the organization.
with the business strategy serves to focus every
employee’s attention and efforts on work as well as Performance Management
improves the ability to prioritize their tasks as per To appraise good performers and inspire their best
importance, increases clarity, team work and performances, competency based performance
communication that has an identifiable influence on management system is highly required for any
business success. organization. Considering this, SDL practices
Competency based Performance Management Model
This ultimately ensures that human capital is optimally
to recognize and reward them accordingly and thus by
deployed throughout the organization.
ensures their continuance of such performances.
Workforce Planning
Learning Management
Planned Human Resource set up can make a significant
Every employee has to spend a major part of their day
difference in organizational performance. Planning
time in their respective organization. So the
strategically and ensuring the right number of people for
development of an employee highly depends on the
the right place in the right time, SDL’s HR experts play key
environment of his/her workplace. As such, SDL
roles to have an excellent organizational performance as
provides an excellent learning environment and ensures
well as achieve its strategic goal accordingly.
the maximum growth of its employees. Like training, on
Compensation Management the job training, management meeting, one to one
instruction, JIT, counseling etc.
For any organization, ‘compensation and benefit’ is one
of the major motivators for its employees. To attract and
Report on Human Resources

Management
Unless not fully sentient with the significant role of the
HR; an organization cannot attain evolution through its
human capital.
Always recognizes its people as the valuable assets,

SDL ensures long-term sustainability through
PERFORMANCE persistently pursuing the vision to transform the
human resources into human capital. For a
RECRUITING
continual success, a Company should attract,
TRAINING
develop and retain its qualified skilled people.
HUMAN SDL has an exigent working environment where
LEADERSHIP RESOURCES merit and performance help the individual to explore

their true potential. SDL’s employees get the benefit
RESEARCH
from its strong business principles, fast-moving and

entrepreneurial spirit and the broad opportunity for
individual and team success.
POTENTIAL
SKILL
We value the contributions an employee exerts in
EMPLOYEE the organization and adopt policy to reward their
efforts accordingly.
Human Resource Strategy They form a community in which people’s potential and
talents are cultivated to reach to the organization’s
 Attracting qualified personnel through creating a objective and also ensures them a safe and secured life.
secured workplace High quality employees are trained and fostered with
 Retaining competent employees by creating a the goal to become the tomorrow’s leaders.
motivated workspace
SDL consistently seeks to recruit who can strengthen
 Encouraging employees to express professional
this diversity, but still support its corporate culture.
skills and give them the opportunity to develop and
Likewise, as the Company has grown and extended its
grow accordingly
operations, the increased number of applications from
 Maintaining a spirit of ambition, efficient decision highly qualified people indicates interest towards the
making, flexibility and quick responses to changes Company for its ideology & distinct position in the
 Creating a strong management team industry.
 Upholding an environment that supports a balance Shasha Denims places a special emphasis on ensuring
between work and life that new positions are filled by the most proficient
 Ensuring equal opportunities with regard to candidates; in terms of their education, experiences
employment, work facilities, assignments, training, and capacity.
job development, salaries and other financial and
non-financial benefits SDL recruitment strategy is based on attracting highly
skilled and experienced candidates through employee
 Aligning the interests of employees with the
networks, selective head hunting and advertisement.
interests of the organization
Human Resource Department assists the Management
Staffing Committee to recruit diverse talent for the organization.
In absence of a good staffing system, no organization Company’s Contribution towards the Staff Applying the
can exist for a long or reach its final destination. In Best HR Practices
every organization, all the resources like money,
material, machine etc. are controlled and utilized We carry out one of the best HR practices in our
properly by its man power. Hence it is excessively organization which leads creating opportunity and
important that all the personnel in an organization attractiveness for the new hires and also the retention of
should be appointed at the job according to their competent personnel upholding their wholehearted
ability, talent, aptitude and expertise which can only be effort and loyalty towards the organization. The
possible through a good staffing system. parameters of our best HR practices are as follows:
A good staffing system ensures an organization Congenial Working Environment

maximum and efficient utilization of its resources, In SDL, we believe that sustainable success can be
reduces cost of production by appointing the right reached only through our people. No other asset in the
persons at the right places, makes sure receiving best company is as important as the people that contribute
from the employees through creating their job with their endeavors to our culture and our business
satisfaction and helps maintaining co-ordination results. Therefore, we engage all the necessary energy
amongst the employees. and attention to protect our staff, employees,
customers and any other people involved in the
SDL comprises a group of enterprising men and women
company and accordingly make a congenial working
who are distinguished by their initiative, diligence,
environment for all of them.
imagination & ambition. The Company’s work is driven
by a sense of teamwork and solidarity that exceeds Safe and Healthy Organization
Company’s hierarchy. The people of SDL belongs a
From the concept ‘Safety is Non-Negotiable’, Shasha
culture of integrity and leadership that leads towards
Denims provides the utmost Health and Safety Policy to
creativity and innovation.
its people based on SDL’s Corporate Business Personal & Professional Life Balancing
Principles and the Management and Leadership
We maintain the exact time schedule so that the
Principles which are mandatory for the whole SDL
employees could enjoy the opportunity to staying
Group.
happily with their family members after the office hour.
We integrate Safety and Health issues in managing our As a result, a balance between their personal life and
business in such way that exceeds and meets the professional life is maintained peacefully.
requirements of the health and safety issues in which all
We never disagree to take people leave when it is
activities are considered with a perspective of
required. Sometimes, we arrange social events where
prevention of all types of accidents and protection of the
employees’ family members are also invited.
people at workplace.
Job Satisfaction
For ensuring maximum safety; the factory staffs are
always dressed up properly wearing necessary aprons, Encouraged by the organization, SDL’s people are
mask, helmet, gloves, boots etc. & that is compulsory always engaged in synergetic teamwork and their
while working in the factory inside. every effort is made to facilitate communication and
the flow of information. So a complete job satisfaction
We commit people to work with us through seeking out exists in the mind of its people. Employee initiative and
systematic identification of hazards and manage them responsibility are promoted through challenging
with appropriate risk assessments and subsequent assignments where rewards are determined by
actions to minimize danger. We establish emergency results.
and contingency plans to deal with residual risks. This
approach also minimizes threats to the business, Employee Retention
protecting our shareholders’ interests. SDL believes that the loyal and dedicated employees
are the main source of its success and achievements.
Equal Employment Opportunity To keep up a long lasting harmonious relationship with
SDL creates equal opportunity for all of its employees its dedicated employees, the Management of SDL
and doesn’t allow any discrimination against any person maintains the following strategies: Career Progression
on the basis of race, religion, color, gender, age, or Opportunity, Provident Fund, Gratuity, Health
citizenship in recruiting, hiring, placement, promotion or Insurance, Festival Bonus, Incentive Bonus, Production
any other conditions of employment. Bonus, Pick up and Drop Off Transportation Facility etc.
Employee Development Employee Turnover

A strategic skills-improvement plan is a key factor to Employee Turnover rate at SDL is very nominal
ensure Company’s success in a rapidly changing world. compared to other companies. There are a good
We make sure each employee’s development number of employees who are continuing with Shasha
opportunities and willingness to keep pace with these Denims since its start.
changes maintaining a competitive working
environment and management approaches that The real challenge is to keep unwanted turnovers
prioritizes these factors. (resignation) at a lowest level and we may state that we
could meet this challenge with a big success.
Recognition of Achievements
We acknowledge the achievements of employees in
Incentive & Rewards
terms of monetary and non-monetary values. In As per the recognition of the contributions towards the
recognition to their performances, we practice not only Company, the employees who perform greatly in
to appreciate the deserving candidates formally, achieving organizational goals are always rewarded
subsequently recognize their good deeds by giving differently through financial, non-financial benefits,
them promotion, up gradation, incentives etc. incentives etc.
Employee Welfare Activities To give the best comfort, free transportation service is
also allotted for the other employees of SDL through the
To reward our employees’ excellent performances and
Company’s own vehicle during office hour with picking
motivate them for better more, we promote their great
up and dropping off services from home to office and
deeds through the following adequate number of our
office to home.
welfare facilities and measures:
Provident Fund Hospitalization & Medical Check-Up Benefit

SDL affords hospitalization benefit for all its employees.
SDL’s employees enjoy the contributory provident fund
Amount is spent to share the cost of hospitalization of
facility at 10% of basic salary equivalent to their
employees and also medical check-up benefit for
(employees’) contribution.
his/her dependent family members.
Gratuity
Maternity Benefit
As per the rule of BEPZA, every staff of SDL is cherished
At SDL, female employees are entitled to enjoy this
with the gratuity benefit and enjoys a tension free
benefit of maternity leave.
happy life.
Production Bonus Health Insurance

The Company offers health insurance facility for its
All the employees of SDL have the facility of enjoying
entire staff and has an arrangement with most of the
production bonus depends on the production of its
renowned hospitals in Dhaka for their free medical
premium quality elite items.
check-up once in every year.
Dormitory Facility
Annual Picnic
The Company also provides dormitory facility for its
To get rid of daily monotonous life, SDL organizes
factory workers and also some head office staff and
annual picnic for all of its employees.
ensures them a secured life.
Transportation Facility
Top executives of Shasha Denims get the pleasure of
having full time car facility provided by the Company.
SUSTAINABILITY
REPORTING
Corporate Social
Responsibility Initiatives
CSR is the dedication and approaches of a Company whereby
companies contribute towards a better society through some
sustainable business operations and social investments.
As the days progress, Corporate Social Responsibilities  Customers

(CSR) are becoming an elemental part to attain long
 Employees; and
term sustainability and business growth for a large
number of companies around the world.  Social Development
CSR has had an increasing impact on shaping the Being a responsible business entity, to ensure
relationship between business and societies. The key maximum comfort as well as security to the lives of
areas of CSR are environmental protection, the common people; from its inception, Shasha Denims
wellbeing of employees, the community and the has been trying to enrich economic and social
society-both for now and for the future. indicators of the society through supporting and
developing the following sectors:
From the belief that success is measured by actions more
than financial results; to make an integration between  Education,
social responsibility and SDL core business strategy,
 Poverty Alleviation,
Shasha Denims always try to come up with special
initiatives of CSR at every strides of its business process.  Standard of Living,
 Healthcare; and
We always carry forward with some socially responsible
initiatives prioritizing the following three main areas:  Environment
Customers Financial Aid for Students:

To meet up the demand of time, Shasha Denims has Realizing the necessity of education to have an
taken various initiatives including factory expansion and enlightened society, SDL always focuses on education
significant up gradation of products for its valued of all types; general, vocational and technical,
customers. encourages students in achieving special
diploma/degree to glorify their lives and society and as
In line with producing and delivering the finest products
such provides need based financial support to the
for its brand customers, SDL is also manufacturing
meritorious students of different sectors of the society.
special items for the high end segment and thus
fostering to develop a healthy diversified denim market.
Currently, 200 students are receiving monthly
Employees scholarships from Shasha Foundation, a welfare trust of
Shasha Denims Ltd. The Foundation provides
As our work forces are vital part for our success, we
scholarships and stipends to the students of ICAB
strive to create a working environment that promotes
(Female), Acid Survivors Foundation,
them team spirit, passion, engagement and achievement
UCEP-Bangladesh, Ghasful KG Educare School,
ensuring proper safety and security as well.
Chittagong as well as a good number of children of
Apart from delivering various financial and non-financial SDL’s employees.
benefits for their encouragement and motivation, the
Company also provides the following facilities for their Through receiving financial aid from the Foundation, 17
people: students have already completed their education and
become doctors, executives in different organizations
• Picking up and dropping off service by company’s and also self-contingent.
own vehicles
The Company has its plan to increase the volume of the
• Dormitory facilities for office assistants
endowment in near future to facilitate a bright and
• Providing free lunch for the head office employees
ornamented future for the financially challenged brilliant
Besides, we continue investing in our people for students of Bangladesh.
enhancing and upgrading their skills sets through
Healthcare Assistance
conducting research and development and on-the-job
training programs. In order to build a healthy nation, SDL is highly
concerned about Healthcare issues of the society’s
The Company creates equal employment opportunity underprivileged people.
for all of its employees and doesn’t allow any
discrimination against any person on the basis of race, Shasha Foundation extends its kind hand for critical
religion, color, gender, age, or citizenship in recruiting, medical treatment of its staff, workers and other
hiring, placement, promotion or any other condition of patients who are financially in challenged situation. The
employment. Company also sponsors eye camps through Ghasful.
Social Development Apart from contributing through Shasha Foundation, in

Believing in sustainable development for all, Shasha response to humanity, the Management of Shasha
Denims is committed and concerned to make generous Denims regularly donates to a number of philanthropic
contributions for social development through Corporate areas.
Social Responsibility (CSR) Initiatives; specially
Education, Healthcare, Environment, Arts and Culture, They help and provide all out supports to some cancer
Community Development etc. patients bearing all of their medical expenses including
the cost of chemotherapy. Also help some old
Project and policies are initiated on long term basis distressed couples who have no children to look after
accompanied with sustainability and advancement. themselves.
To alleviate the thirsty people on roads from scarcity In continuation of our endeavor, we patronize Paglapir
and sufferings of pure drinking water, sometimes Shangeet Bidyaloy, Rangpur where destitute children are
Shasha’s Management sets up purified water dispenser having an opportunity to learn music mostly Bhawaiya,
so that they can have pure drinking water and keep Baul and folk songs in line with their regular education.
themselves healthy.
We wish to build a culturally enriched Bangladesh for
Disaster Management our next generation.
In a country like Bangladesh, it is extremely important to
Sports Indulgence
come up with due assistance to face against adverse
effect of disaster. Winter comes with a massive havoc Shasha Denims indulges sports. To promote sports
of cold and extreme sufferings for the helpless poor and bring the glories for the Country, the Company
people specially northern areas of Bangladesh. Those often sponsors different sports and encourage them.
people are in need of essential and immediate aid and
Recently, the Company sponsored a team under the
clothing for saving their lives. Moreover, flood is a
leadership of Ms. Nishat Mozumder for expedition of
common phenomenon in our country. It sweeps away
the Mount Elbrous, highest pick of Europe. The whole
locality and makes people homeless.
voyage was amazingly victorious and the team
For the last couple of years, during every winter and successfully conquered the top pick of Europe.
flood, some of our Management team members have
Socio-Economic Development
been contributing generously with proper clothing,
blankets, dry food and other necessary stuffs as relief Besides focusing on those mentioned sectors, SDL
and as such giving comfort to the lives of winter stricken provides its financial assistance to various social causes
and flood affected people of our country. and also contributes there in different ways through the
welfare trust ‘Shasha Foundation’.
They also contribute when sudden necessary arises,
i.e, Rohinga crisis and so on. SDL is also concerned for its deceased employees’
family and as such has taken responsibility of their
Fostering Art & Culture orphans for completing their education by providing
Art and Culture is an artistic trend to demonstrate the financial aids. In the approaching years, we have our
intellectual essence of a country. From that believe, plan to expand our CSR activities in more areas. We will
SDL always supports the young and promising talents explore and undertake a lot of new and unique CSR
of Bangladesh to explore the Country’s rich cultural initiatives in different ground keeping education,
heritage. environment and health at the core.
Environmental and
Social Obligations
Today, our planet is running out of steam because
it doesn't have any longer its own natural means to
compensate men's ecological print.
Every business has an impact on the environment.

To keep free the environment from any awful effect,
there are some legal obligations that need to be
followed. The requirements are relatively simple for
any business even for a workplace.
It helps through minimizing the likelihood of any

environmental problems, costs of unnecessary
waste and damage of the business rather
strengthens the Company image and helps us to
win business from our competitors.
Environmental protection legislation is consistently

being reviewed locally and internationally. To cope
up with the reviewed legislation, we always
maintain the following environmental obligations:
Reduction of Natural Resources Consumption: We servicing and dismantling of refrigerators, freezers,

minimize using energy and water within our premises air-conditioning equipments and heat pumps as well as
and processes in order to conserve supplies and decommissioning of fire protection equipment and
reduce the consumption of natural resources. extinguishers.
Water Treatment Plant Usage: To keep away from Environmental compliance is now a fact of life for
causing any environmental hazard, the factory uses business and training of risk management is a good way
water treatment plant to purify the wastage water and to learn everything about environmental compliance. As
stays vigilant about any type of green pollution. such, SDL organizes several Training and certification
program on Risk Management.
Goods Purchase: We always purchase preferable
products and services for all our daily operational needs Exceeding environmental obligations not only means
that do the least damage of our environment. avoid the penalties for breaches but it also brings
opportunities to make substantial savings. Shasha
Pollution Prevention Practice: We conserve natural Denims understands one such saving through reusing,
resources by adopting pollution prevention practices. recycling and reprocessing materials that would
otherwise be discarded as waste.
Equipment’s Life Expansion: In order to extend the life
of equipments, we take some initiatives through However, towards strengthening our brand as being a
preventive maintenance scheduling, purchasing and responsible corporate, we have ensured that our
reworking of used equipment etc. headquarters, factory and other subsidiary companies
are operated keeping all the environmental guidelines in
Sensitive Equipment Records: We regularly inhibit
mind.
including prevention and repair of leaks, checking for
leakages and keeping records of the most sensitive Moving forward, we are determined and will continue
equipments. upholding the highest environmental and social
standards to build Shasha Denims a green leader in the
We regulate work includes disposing, maintaining,
industry.
servicing and dismantling the disposal, maintenance,
Sustainability
Reporting
Sustainability is a balancing act, the quality of not being development of sustainability activities and progress to
harmful to the environment or depleting natural get them updated about such essentials.
resources, and thereby supporting long-term ecological
balance. "Sustainable development is a dynamic We recognize the significance of our role in creating
process which enables people to realize their potential truly sustainable products. We embrace our
and improve their quality of life in ways which responsibility-as a Company, as a leader, and as an
simultaneously protect and enhance the earth's life innovator-to contribute to a brighter future for all. And
support systems" we know we can draw on our legacy of stewardship to
forge new paths to that future, where people are
Shasha Denims views sustainability as a continuous healthy and well nourished, and where ecosystems are
improvement process with positive effects for the leveraged responsively to support global needs for
perception of the Company in the public field and the energy, chemicals and others resources. Although
development of financial results. The Company is there is much more to do, we believe we are already
committed to providing information to the interested contributing to that future.
stakeholders and the general public regarding the
Shasha
Denims Environment
We Act
Responsively Employees
Society
Associates
Products
Shasha Denims: Based on our sustainability Products: To comply with the highest expectations of
management system, we are dedicated to transparent consumers; Shasha Denims manufactures and ensures
reporting on our own activities and goals to create value for its customers world class top quality, design, and
for both the stakeholders and the Company as well. harmless products and accordingly holds sustainability.
Environment: As Shasha Denims always remains very Society: By taking social responsibility as a commitment
ethical in its every operation; to hold excellence in within the community and accordingly to contribute in
environmental protection, the Company believes & acts social development largely, Shasha Denims extends its
in applying some intelligent concepts and environment all-out supports to the society’s vulnerable area.
friendly technologies which reduces environmental
impacts and preserves biodiversity. As the Company is highly concerned on sustainability
issues, it has developed the following sustainability
Employees: Shasha Denims provides equal strategies on-
employment opportunity to its all levels of employees
and recruits who are well-qualified and committed to • Risk Management
the Company and as such creates a congenial working • Personnel Development,
environment for them where every individual can be • Environmental Protection,
ideally integrated and make the most of their potential to
• Occupational Safety,
achieve success. Shasha Denims’ code of conduct
• Social Causes Program,
includes the framework for this.
• Health Protection and Stakeholders’ Interest.
Associates: To protect human rights, Shasha Denims
is committed to maintain an international accredited SDL regularly cherishes to execute those strategies
employment and social standards to all of its through the following sustainability management initiatives.
associates complying with local and national
1. Corporate Social Responsibilities (CSR)
environmental laws to make an active contribution to
2. Environment Related Initiatives
protect the environment. We believe it is in our
3. Environmental and Social Obligations
collective best interest to support their capacity
development to contribute to a sustainable future. 4. Integrated Reporting
Environment
Related Initiatives
Modern World is changing frequently. With the passage of time,
we are getting more dependent on technology which has both
positive and negative impacts to our life.
Though every day we are coming up with new ideas Encouraging Laptop Usage: SDL encourages its
technologies for the benefit of mankind; but sometimes, employees using laptop computers instead of standard
we, the human being, do some inhuman activities which desktop computers in order to consume 90% less energy.
cause a great harm to our ecological systems,
Switching Off Electronics Devices After Work: The
atmosphere even our health.
employees of the Company are very careful to turn off
Realizing the importance of a living friendly planet, SDL computers, monitors, printers, copiers and lights and
is continuously making its efforts to harmonize the green also main switch off at the end of daily works and that
preservation and pollution control through the following practice is strictly maintained.
green endeavors:
Email Correspondence: We usually prefer using email
Environmental Priority: SDL integrates and considers the instead of sending memos and faxing documents for
environmental concerns and its impacts during the time of reducing time and papers.
decision making and executing the activities as well.
Recycling Papers: To reduce the use of papers, we
Environment-Friendly Office: We provide environment- print both sides of a paper and also re-use the fresh side
friendly office equipment, information and solutions which of a rough paper for drafting or taking internal print out
are supported by our clients as well as our employees to that always saves a handsome amount of money.
preserve the eco-system.
LCD Monitor: LCD monitors are used here for lesser
Laws and Regulation Compliant: We strictly comply power consumption.
with environment-related laws and regulations.
Paperless Office: We are trying to set up a paperless
Minimizing Energy and Water Usage: We are office.
determined to fulfill our social responsibilities through
minimizing use of energy and water within our own CNG Converted Vehicles: All the cars of the Company
premises and also in the factories in order to conserve even the pool’s cars for transportation are CNG
the resources and reduce the wastage & cost as well. converted to reduce air pollution and cost as well.
Educating Staff on Environmental Principles: We place Auto Temperature Regulated Air Coolers: All the air
high priority on educating thoroughly our staff on a coolers are being operated on auto temperature basis
routine basis about our environmental principles to which helps limited running of compressor unit and
ensure that they conform to these principles in the subsequently saving electricity.
performance of their work. Energy Savings Bulbs: Energy savings bulbs are always
Eco-Friendly Office Equipment: We usually purchase being used everywhere in the office premises. We have
computers, monitors, printers, fax machines, copiers our plan to use LED lights all over the places of our head
and other office equipment keeping in mind that those office, factory and subsidiary companies for the least
are functional, cost effective & eco-friendly. consumption of power.
Integrated Reporting
An integrated report is a concise communication about how an organization’s
strategy, governance, performance and prospects lead to the creation of value in the
short, medium and long term in the context of its external environment. It enhances
the way of an organization’s thinking, planning and reporting the story of its business.
Integrated Reporting can be a Game Changer. Many organizations are getting that a
fundamental change in reporting requires much more than a focus on the end report.
It requires a deeper understanding of all the building blocks of the business value
creation process.
We have presented our Annual Report-2019 as an  Bangladesh Accounting Standards (BASs) and
‘Integrated Report’, using the Global Reporting Initiative Bangladesh Financial Reporting Standards (BFRSs);
(GRI) Standard, the GRI Sustainability Reporting Standards  ompanies Act 1994;
(GRI Standards) are the first and most widely adopted  Securities and Exchange Rules 1987;
global standards for sustainability reporting. The cycle of  The Income Tax Ordinance 1984;
integrated reporting will act as a force for financial stability
 The Income Tax Rules 1984;
and sustainability by focusing on value creation over time.
 And other applicable laws & regulations of the Country.
It helps businesses to think holistically about the ultimate
The non-financial information provided in our 2019 report
plans and strategy as well as manage key risks to build
has been published from internally maintained records.
investors and stakeholders’ confidence and accordingly
improve future performance to drive a global evolution in Our corporate governance practices report has been
corporate reporting. drawn in reference from the revised Corporate Governance
Guidelines (CGG) issued by Bangladesh Securities and
An integrated report aims to provide insight about the
Exchange Commission (BSEC).
resources and relationships used and affected by an
organization. External Assurance
Scope of the Report Shasha Denims obtains external assurance from the
following two firms during the period under consideration,
Our report highlights fiscal year financial performance in
the outcomes of which are duly published in this report:
accordance with the Bangladesh Accounting Standards
(BASs) and Bangladesh Financial Reporting Standards Sl.
(BFRSs) issued by the Institute of Chartered Accountants Description of Report External Assurance
No.
of Bangladesh (ICAB). 1. Financial Statements SF Ahmed & Co.,
Audit Report Chartered Accountants
In preparation of our 2019 report, we have referred to the
2. Corporate Governance Mazumdar Sikder and
‘Annual Report Review Checklist’ issued by both Institute Associates
of Chartered Accountants of Bangladesh (ICAB) and South
Asian Federation of Accountants (SAFA) and the
Availability of the Annual Report
‘Integrated Reporting Checklist’ which is in line with the
integrated reporting elements issued by the International The printed hard copy of the Annual Report is distributed to
Integrated Reporting Council (IIRC). all the shareholders, prior to holding the Annual General
Meeting, giving required period of notice. For extended use
The financial statements and other disclosures for the year of the report by our stakeholders, soft copy of the report is
of 2019 are in accordance with the requirements of available in our website.
Occupational Health and Safety

To ensure occupational health and safety, Shasha Denims  Automatic Sprinkler System
has introduced a policy that deals with all the issues relating  Water Drums & Buckets
to both sustainability and safety. The policy covers each and  Gong Bells
every department of the Company and its staff making sure
 Emergency Lights
their utmost safety, security through maintaining an
 Lock Cutters
up-dated environmental standard. This policy reveals that
we are acting globally and not just thinking it.  Safety Equipment
Along with initiating the policy, we also preserve data to Electrical Safety
locate the root cause of the workers’ any vulnerable issue  Top quality cabling and accessories for electrical system
if occurs and accordingly solve it.
 Trained team of technicians for maintenance
The reporting year (2018-2019), there were about 32  International safety features for equipments
workers injured by different minor accidents happened  Maintain maintenance and risk analysis records
during working hours. This is about 21.95% less than what
was recorded last year (2017-2018), the figure stood at 41. Building Safety
To protect our workers from inevitable dust causing from  Structural assessments for all units
rolling of machines, we have wonderful arrangement of  Following Bangladesh National Building Code (BNBC)
dust absorber. For ensuring maximum safety and security, during construction
the workers are also compelled to wear essential mask,  Building certification with Architectural and Structural
apron, helmet, boot, gloves etc. while work inside the Design Standard
factory. Finally, in order to combat the heat, there are  Scaled as-built drawings
cooling pads on all the floors.
Chemical Safety
Furthermore, as our factory is located in DEPZ area, the
workers always have direct medical facility from BEPZA  Careful Assessment of All Chemicals
medical unit in case of any emergency.  Chemical Management
 Chemical Usage Policy
Following safety measures we render for our people:
 Material Safety Data Sheet (MSDS)
Fire Safety  Personal Protective Equipment (PPE)
 Fire Extinguisher  Regular Trainings
 Alarms  Chemical Inventory Management
 Smoke Detectors
Report on Going Concern

Day to day, businesses are becoming competitive as well as
challenging. Every company requires assessing its ability to
continue as a Going Concern.
Going concern is a fundamental accounting concept that underlies
the preparation of financial statements of companies. It’s an
assumption that a Company will continue in operation and that
there is neither the intent nor the need to either liquidate it or to
cease trading.
It implies for a business the basic declaration of intention financial statement for the year ended June’ 2019 is
to keep running its activities at least for the next year prepared based on the going concern assumption.
which leads the Company to prepare financial
statements. FINANCIAL INDICATIONS
Positive Net Current Assets
The purpose of this going concern statement is to bring
together the requirements of Company law, accounting SDL and its subsidiaries has positive net current assets
standards and listing rules on going concern. of Tk.1,844 million as on 30 June 2019. It signifies
Company's ability to meet up its short-term obligations
The Board of Directors of Shasha Denims Ltd. has using the short-term assets.
made an evaluation if there exists any material
uncertainty that may cast significant doubt upon the Fixed Term Debt with Realistic Renewal or
company’s ability to continue as going concern. Repayment
At the close of financial year 2018-2019, total
The Directors’ assessment of whether the Company
consolidated borrowing from other banks and financial
evolves as a going concern entity making appropriate
institutions was about BDT 520.47 million. Based on
inquiries including review of budget and future outcome
our past experience, it can be said that there is every
of inherent risks involved in the business.
possibility that a major part of the debt would be
Considering the following major indicators, SDL’s renewed further or can be repaid from our existing
Board members have reached the conclusion that the cash flow.
Less Reliance on Short Term Borrowing/ OPERATING INDICATIONS

Current Liabilities No Key Management Turnover
At the end of the financial year 2018-2019, total During the year 2018-2019, the Company has not
consolidated short term borrowing (current liabilities) experienced any event of turnover in key management
of the company were Tk.3,258.84 million, representing position. Employees have long-term communication
only 26.22% of total liabilities and equities that and loyalty to the Company. Average length of services
indicates the company has least reliance on short term of a management level of employees at Shasha Denims
borrowings. Ltd. is 11 years (approx).
Continuous Financial Support by Lenders/ World Class Product

Valued Investors Now, SDL has become a trusted source for the buyers
The Company carries a very good track record and over the years for continuous product development
and coping up with the current craze through its
reputation in the settlement of its obligation with the
premium quality world class products. Its exclusive
lenders, investors, and clients. So, we enjoy easy and
design and specification made SDL unique to the
fair access to the funding sources to meet our
international buyers.
increasing need for growth.
Good Business Expansion
Positive Key Financial Ratios
With continuance of such operational excellence,
The Company’s financial ratios indicate its sound
Shasha Denims has built a new manufacturing unit in
financial strength and good prospects which is evident DEPZ extension area with top of the line latest
from the financial synopsis given in this Annual Report. technology that saves 60% water and 40%
chemicals.
Consistent Payment of Dividends
The Company has been paying dividend consistently to The installation work of the machineries is done and
its shareholders over many years. Financial highlights operation has already been started. These represent
are incorporated in this Annual Report shows company's goal towards perpetuity.
company's stability and long-term vision in dividend
Good Market Reputation and Clients’
payment records.
Satisfaction
Every year since listing, the Company has been Gradually, the Company has been building up good
continuously paying stock dividend that reflects market reputation and clients’ satisfaction through
Company's long-term viability in operational existence. introducing a varied specifications, compositions, color
The company has been started to pay cash dividend to and finest quality of denims and also delivering it to its
valued clients in a professional and expert manner as
its shareholders from the year ended June’ 2016.
well as fulfilling their fashion craving and as such able to
Credibility in Payment of Obligations hold an exalted position in the list of top 5 in denim
manufacturing industries of Bangladesh.
SDL has strong credibility in terms of payment of its
obligation to the lenders/investors. The Company is Corporate Environment and Employee
very particular in fulfilling the terms of loan agreements Satisfaction
without any exception and has never defaulted.
There exists a very good corporate environment in SDL.
It’s an excellent workstation having a friendly
Performance Growth
environment that leads the employees to maintain an
Total consolidated profit after tax was Tk.379.34 million easy and comfortable communication amongst all.
in the year 2018-2019 and other indicators support Thus, employees are always in happy mood when stay
Company’s continuance in foreseeable periods. in their workplace.
The Company endeavors to be honest and practices The above stated situation also indicates its ability and
fair treatment to all employees which ensures good intention to continue for the foreseeable future and long
corporate environment. The Company pays a very term vision.
competitive compensation package that includes a
good number of employees benefits like provident fund, Satisfactory Credit Rating
gratuity, employees welfare fund, incentive bonus, Shasha Denims Ltd. has been rated as AA3 long term
production bonus, transportation facility to the entitled credit rating and ST-2 Short term credit rating by
employees, health insurance, group insurance etc. Credit Rating Agency of Bangladesh (CRAB) based on
audited financials statement, Bank liability position and
Pay scales are regularly revised to give effect of inflation other available information up to the date of rating
as well as align with the industry level that escorts to declaration.
clutch the employees’ satisfaction.
Changes in Government Policy
OTHER INDICATIONS
Management anticipates no significant change in
Maintenance of Sufficient Capital base as legislation or government policy, which may materially
required by law affect the business of the company. Based on the
As on 30 June 2019, the Company's consolidated above indication, directors feel it appropriate to adopt
equity fund stands at Tk.5,945 million as against Tk. going concern assumption and there is no material
5,940 million as on 30 June 2018. On the other hand, uncertainty in preparing the financial statements.
as on the date of the reporting, the paid up capital of the Adequate disclosures have been made in the financial
company is Tk.1279.24 million. statements and different sections of the annual report to
understand the appropriateness of going concern basis
The Board has recommended 5% cash dividend and in preparing financial statements.
5% stock dividend for the year 2018-19.
Corporate Board of
Directors
Organogram
Chairman
Board Board
Secretariat Audit
Committee
Managing
Director
Internal
Audit
Director Director
Operation Finance
Co-Ordination CFO
Production Servicing Finance & Commercial

Department Department Accounts Accounts
Commercial
Weaving Treasury Accounts Import Export
Operation
Admin
Preparatory
& HR
Finishing Store
Marketing Civil
Utility Accounts
Report on Corporate
Governance Guideline
The Board of Directors of Shasha Denims Ltd. has Chairman of the Company elected by the Board of
adopted these Corporate Governance Guidelines to Directors in the Board Meeting. Amongst the total
assist the Board in the exercise of its responsibilities. directors Mr. N K A Mobin FCA, FCS, CFC and Mr.
These Guidelines reflect the Board’s commitment to Syed Mayeenul Huq are the independent directors of
observe corporate governance processes that best the Company. Other three Directors are shareholder
serve the interests of the Company and its stockholders. director of the Company. All of the Board Directors of
The Board formulates the vision, objectives and strategic the Company are highly educated in finance &
goals of the Company. The dynamism, guidance and accounts, laws and other educational background and
stewardship of the Board drives the company towards they have optimum level of knowledge, composure and
sustainable growth. The management‘s role is to execute technical outstanding.
those directives in a professional, proactive and, at the
same time, ethical manner. APPOINTMENT OF INDEPENDENT
DIRECTOR
Board of Directors As per Bangladesh Securities and Exchange
The Board of Shasha Denims Ltd. consists of 5 (five) Commission notification dated June 03, 2018, the
directors including Managing Director and Managing Board of Directors of Shasha Denims Ltd. appointed
Director is playing the role of ex-officio directors as per two Independent Directors in the Company. Mr. N K
Articles of Association of the Company. The Board Mobin FCA, FCS, CFC was appointed as Independent
ensures that the company achieves superior financial Director in its Board Meeting held on 5 May, 2016
results and stewards its leadership position in the which was confirmed and approved by the
industry. The Board Members include persons of high Shareholders in the 19th Annual General Meeting held
caliber, with academic and professional qualification in on 17 August, 2016. The 1st term of Mr. N K Mobin as
the field of business and profession. The dynamism, independent director was expired on 04 May, 2019.
foresightedness and wisdom of Board Directors deliver The Board proposed to reappoint him for further one
the appropriate policies, strategies and guideline to the term which will be placed in the 22th AGM for
run the company smoothly to achieve the Company shareholders’ approval. Mr. Syed Mayeenul Huq was
goal. The Board discharges its responsibility and duty appointed as Independent directors on 8 November,
properly with view to achieve Company’s objective. 2014. Subsequently the appointment of Mr. Syed
Mayeenul Huq was confirmed in the 18th Annual
The Board reviews the financial result, production, General Meeting by the Shareholders. Mr. Syed
quality, export, import, market, product and gives Mayeenul Huq was appointed as independent director
appropriate direction as per changing economic and for 2nd term by the shareholders in its 20th Annual
market environment. The Board reviews the policies General Meeting held on 15 November, 2017.
and manuals of the various segments of business in
order to establish effective management systems. Mr. N K A Mobin FCA, FCS, CFC is one of the sponsor
Directors of the Emerging Credit Rating Ltd. (ECRL).
BOARD SIZE AND COMPOSITION OF Currently he is the Managing Director and Chief
THE BOARD Executive Officer of the company. Professionally a
The Board of Shasha is comprised of 5 (five) directors chartered Accountant and the fellow member of the
including the Chairman and Managing Director. The Institute of Chartered Accountants of Bangladesh
(ICAB) since 1992 and completed his Article ship from Director is for three years and upon completion of the
KPMG-Rahman Rahman Huq. Chartered Accountants term they are eligible for re-appointment by the
during 1982-1986. He is also the fellow member of the shareholders for another one term for three years.
Institute of Chartered Secretaries of Bangladesh
(ICSB) and a member of the Institute of Financial MEETING OF THE BOARD
Consultants (IFC) of USA. He did complete his BBA The Company plans and prepares the schedule of the
and MBA in Finance from University of Dhaka during Board and Board Committee meeting in advance to
1977-1982. assist the Directors in scheduling their program. The
schedule of meeting and agenda for meeting is finalized
Mr. Syed Mayeenul Huq is an advocate of Supreme in consultation with the Chairman of the Company. The
court of Bangladesh. He obtained M.A in Economics agenda of the meeting is pre-circulated with detailed
from University of karachi in Pakistan and B.A (Hon’s) in notes and supporting documents.
Economics from University of Dhaka. Mr. Syed
Mayeenul Huq doest hold any shares more than one As per laws, the Board of Directors must meet at least
percent shares of the total paid-up shares of the four times a year. The Company held a minimum of one
company. Board meeting in each quarter as required under the
Companies Act. 1994. During the year under review the
Mr. N K A Mobin and Mr. Syed Mayeenul Huq do not Board met times on the following dates:
have any other relationship with Company and other
directors of the company. They don’t have any other i) 13 July-2018, 27-October-2018, 11-November-2018,
connection with other parties as prohibited in the BSEC 29-January-2019, 14-February-2019, 06-March,
notifications. 2019 and 30-April, 2019
TERM OF BOARD MEETING ATTENDENCE OF DIRECTORS

As per the provisions of the Companies Act, 1994 and All Directors pays the best effort to attend the Board
Articles of Association, one-third of the Board members Meeting on time. The directors who cannot attend the
who are subjectto retire by rotation, retire every year meeting are granted leave of absence by the Board
and approval of shareholders is sought for the since they have applied for leave of absence.
re-appointment of such retiring members, if eligible. Information regarding attendance of the directors in the
Approval of shareholders was sought for appointment meeting is attached as a separate report with the annual
of Independent Directors. As per Corporate report. The list of the Board members and their
Governance Guidelines, term of the Independent attendance in the meeting is stated below:
Name Director Positiona Attended Attended
Anisul Islam Mahmud Chairman 3 Appointed on 29/01/2019
Parveen Mahmud Ex-Chairman 3 Resigned on 29/01/2019
Shams Mahmud Managing Director 6 -
Zareen Mahmud Director 7 -
Aftabur Rahman Jafree Rep. Director 3 Resigned on 11/11/2018
Nishat Nahrin Hamid Rep. Director 3 Resigned on 11/11/2018
N K A Mobin Ind. Director 7 -
Syed Mayeenul Huq Ind. Director 7 -
INFORMATION GIVEN TO THE BOARD • Information regarding capital expenditure
As part of the regulatory requirement the Company • Policy regarding managing core risks and others.
provides the following information to the Board. Such
information is submitted either as part of the agenda
STATEMENT OF DIRECTORS’
papers in advance of the meeting or by way of RESPONSIBILITY
presentations and discussion materials during the The Board of Directors of Shasha Denims Ltd.
meeting. Few of the agenda are presented below: formulates strategies and policies for the Company to
run the business efficiently and effectively. The Board of
• Business activities and performance evaluation Directors always monitor and oversee the policies and
• Quarterly, half yearly and annual results of the procedures whether it is properly implemented or not.
Company The affairs of the company are in full control of the
• Minutes of the meeting of Audit Committee and Board and the Board makes the affairs accountable and
Subsidiary Company transparent to the shareholders and others. The Board
members perform the following the major tasks:
Monitoring the financial Evaluating and approving

performance, production, capital expenditure and
quality, sales, market etc. performance of the company
Evaluating the
Addressing the major policy, monthly/quarterly/yearly
regulatory and strategic issues and performance and approving
providing proper guidelines the financial Audit Report
STATEMENT
OF DIRECTORS’
RESPONSIBILITY
Periodic and timely reporting Ensuring that the senior Management
to the sharsholders about the Team has the requisite skills and
affairs and performance of the experiences to perform their functions
Company. effectively for maximizing shareholders value.
Monitoring significant Monitoring the adequacy,

business risks and reviewing appropriateness and operations
how they are managed. of internal control.
REMUNERATION OF DIRECTORS management. The Management may exercise any kind

of activities with consultation with the Managing
Remuneration, performance and other related
Director to perform its day to day smoothly . In addition,
perquisites/benefits of Directors are paid monthly which
the Board has delegated certain responsibilities to the
is reviewed and approved by the Chairman considering
management on some matters within defined
company’s business growth. During the period
parameters. These include development and
remuneration paid to the Directors are disclosed in the
recommendation of strategic plans for consideration by
financial statement. Non Executive Board of Directors
the Board reflecting the long term objectives and
are now getting Tk.10,000/- for attending per meeting.
priorities established by the Board.
DELEGATION OF AUTHORITY
MATERIAL CONTRACT
The Board of Directors designated and specified some
Since the end of the previous financial year, no material
delegation to the Managing Director as well as the most
contracts involving the interest of any directors or
senior officials of factory management and head office
controlling shareholder of the Company has been After expiry of his first term, the Board of Directors
entered into by the Company or subsidiary company. appointed him for further five years which was approved
There is no such contract between the Company and by the shareholders in its 20th AGM held on 15
any of Directors regarding any future compensation to November, 2017. Remuneration of the Managing
be made to them. Director is fixed Tk. 2.5 lac per month.
ROLE OF THE CHAIRMAN AND MANAGEMENT TEAM

MANAGING DIRECTOR The management team is the Executive Committee of
Chairman of the Board and Managing Director of the Shasha headed by the Managing Director. The
Company are different persons. The responsibility of the management team is responsible for managing and
Chairman and the Managing Director are separate. running the affairs of the Company. Any requirement
and decision relating to the company decided in the
Role of the Chairman Executive Meeting. The Committee is consisted of the
following executives.
The Chairman is elected by the Board. The Chairman is
responsible for the overall leadership and efficient
functioning of the Board of Directors. She is responsible Name Director Positiona
for organizing business of the Board, ensuring its Mr. Shams Mahmud Managing Director
effectiveness and setting its agenda to the best interest
Mr. Jamal Abdun Naser Executive Director (Operation)
of the stakeholders. The chairman is not involved in the
day-to-day business of the Bank. Md. Ahasanul Haque Executive Director (Finance)
Role of the Managing Director Mr. Sarwar Hossain CFO
Subject to the control and supervision of the Board of Lt. Col. Md. Quaderuzzaman General Manager
Directors the business and affairs of the Company
manage by the Managing Director. The Managing
The Management team works to achieve the strategic
Director is responsible for overall activities of the
goals & mission of the company set by the Board of
business. He also responsible to implement, manage Directors. The Management team meets on randomly
and administer corporate business strategy, ensure to monitor the business performance of the company.
adherence to policies and procedures, applicable
regulations and laws, and monitoring exceptions and APPOINTMENT OF CHIEF FINANCIAL
serious deviations, manage the overall human OFFICER, COMPANY SECRETARY AND
resources and skills/competencies pool to ensure the HEAD OF INTERNAL AUDIT
effective and efficient running of the company, The Board of Directors of Shasha Denims Ltd.
represent the company with customers, suppliers, appointed CFO, Company Secretary and Head of
governments, financial institutions, the media, the Internal Audit and defined their job responsibilities.
community and the public.. He has control of the According to their job description they perform their
company on a day-to-day basis and is accountable to activities properly. CFO and Company secretary also
the Board for its financial and operational performance. attend the Board regularly.
APPOINTMENT AND REMUNERATION OF FORMATION OF AUDIT COMMITTEE

MANAGING DIRECTOR As per requirement of BSEC notification, the Board of
The Board of Directors of Shasha Denims Ltd. in its Directors of Shasha Denims Limited formed an Audit
Board Meeting held on 1 July, 2012 appointed Mr. Committee headed by Company’s Independent
Shams Mahmud as Managing Director of the Company Director Mr. N K A Mobin FCA, FCS, CFC. The
for five years. The appointment of the Managing Committee is composed of 4 (four) members of the
Director of the Company was subsequently approved in Board. Details of Audit Committee functions are given in
the Annual General Meeting held on 16 July, 2012. “Report on the Audit Committee.”
FORMATION OF NOMINATION AND COMMUNICATION WITH THE

REMUNERATION COMMITTEE (NRC) SHAREHOLDERS
As per BSEC notification dated 3 June, 2018 the Board The Company assumed that regular communication
of Directors of Shasha Denims Ltd. formed a between the Company and Shareholders is one the
Nomination and Remuneration Committee as sub important issue. The company has adopted a detailed
committee of the Board. The Committee is composed policy on information disclosure and communication. In
of 3 (three) members headed by Company’s compliance with continuous disclosure requirements,
independent director Mr. Syed Mayeenul Huq, Mr. N K The Company’s policy is that shareholders will be
A Mobin FCA, FCS,CFC. and Parveen Mahmud are the informed in a routine manner of all major developments
other members of the Committee. Role of the NRC was that impact the business of the company and also be
able to make inform decision.
properly communicated to the members of the
Committee. Shasha Denims Ltd. provides Information to the
Shareholders as per requirement of BSEC circular. The
DIVIDEND POLICY
following information is provided to the shareholders to
The profit of the Company, subject to any special right comply with rules.
relating thereto created or authorized to be created by
• Financial Performance on quarterly basis
the Memorandum and subject to the provisions of the
• Price Sensitive information regarding Adoption on
Articles of Association, shall be divisible among the
audited financial statements, declaration of
members in proportion to the amount of capital paid-up
dividend, AGM related activities etc.
on the shares held by them respectively.
• Price Sensitive information regarding when any
The Board of Directors has established a dividend event occur.
policy which forms the basis for the proposals on
dividend payment that it makes to the shareholders
Way of Information
taking into consideration the business performance of All financial results and key performance indicators as
the Company and its strategic objectives. well as other relevant financial and non-financial data
send immediately to Stock Exchanges for their kind
SUBSIDIARY COMPANY information and disseminate to the shareholders
Shasha Denims Ltd. has three subsidiary companies through their website. This information is also posted to
and according to the corporate governance guidelines, our website side by side also publish news in two widely
activities are also followed in the subsidiary companies published newspaper.
relating to :-
Besides above the company send Half yearly financial
result and Annual report to the all shareholder through
• Composition of the Board of Directors of Shasha
courier services.
Denims Ltd. should be composed including the
requirement to appoint independent director Shasha believes in transparency and accountability to
• Independent Director of Shasha Denims Ltd. also the society as a whole through establishment of an
appointed in the Subsidiary company. efficient and effective Corporate Governance regime. It
• Minutes of Subsidiary Company also place in the has been attempted in this report to present the
Board meeting of Shasha Denims Ltd. for review. governance practices and principles being followed at
Shasha Denims Ltd., as evolved over the years, and as
• Review the Financial Statements of Subsidiary
best suited to the needs of the Company’s business
Company in the Audit Committee Meeting of
and stakeholders.
Shasha Denims Ltd.
Report to the Shareholders of

Shasha Denims Limited on compliance
on the Corporate Governance Code
We have examined the compliance status to the Corporate Governance Code by Shasha Denims
Limited for the year ended on 30 June, 2019. This Code relates to theNotification No.
BSEC/CMRRCD/2006-158/207/Admin/80 dated 3 June, 2019 of the Bangladesh Securitiesand
Exchange Commission.
Such compliance with the Corporate Governance Code is the responsibility of the Company. Our
examination was limited to the procedures and implementation thereof as adopted by theManagement
in ensuring compliance to the conditions of the Corporate Governance Code.
This is a scrutiny and verification and an independent audit on compliance of the conditions ofthe
Corporate Governance Code as well as the provisions of relevant Bangladesh SecretarialStandards
(BSS) as adopted by Institute of Chartered Secretaries of Bangladesh (ICSB) in so faras those standards
are not inconsistent with any condition of this Corporate Governance Code.
We state that we have obtained all the information and explanations, which we have required,and after
due scrutiny and verification thereof, we report that, in our opinion:
(a) The Company has complied with the conditions of the Corporate Governance Code asstipulated in
the above mentioned Corporate Governance Code issued by theCommission or not complied (if not
complied, specify non-compliances);
(b) The company has complied with the provisions of the relevant Bangladesh SecretarialStandards
(BSS) as adopted by the Institute of Chartered Secretaries of Bangladesh(ICSB) as required by this
Code or not complied (if not complied, specify noncompliances);
(c) Proper books and records have been kept by the company as required under theCompanies Act,
1994, the securities laws and other relevant laws or not complied (if notcomplied, specify
non-compliances); and
(d) The governance of the company is highly satisfactory or satisfactory or not satisfactory.
Place -Dhaka. Mazumdar Sikder and Associates

Date- 21 Nov. 2019 Cost & Management Accountants
Shasha CG Report
2018-2019
Status of compliance with the conditions imposed by the Commission’s Notification No
BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June 2019 issued under section 2CC of
the Securities and Exchange Ordinance, 1969:
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
1. Board of Directors:
1.1 Board’s Size: The number of the board members shall not be
√
less than 5(Five) and more than 20 (Twenty)
1.2 Independent Directors:
1.2(i) One fifth(1/5) of the total number of directors √

1.2(ii) (a) Does not hold any share or holds less than 1% shares of the
total paid-up shares. √
1.2(ii) (b) Not connected with any Sponsor/ Director/ Shareholder who
hold 1% or more shares of the total paid -up shares on the √
basis of family relationship
1.2.(ii) (c) Does not have any other relationship, whether pecuniary or
otherwise, with the company or its subsidiary/associated √
companies.
1.2(ii) (d) Not a member, director or officer of any stock exchange.
1.2 (ii)(e) Not a shareholder, director or officer of any member of stock √

exchange or an intermediary of the capital market.
1.2(ii) (f) Not a partner or an executive or was not a partner or an
executive during the preceding 3(three) years √
of any statutory audit firm.
1.2(ii) (g) Not be an independent director in more than 3 (three) listed
companies. √
1.2(ii ) (h) Not been convicted by a court of competent jurisdiction as a

defaulter in payment of any loan to a bank or a NBFI. √
1.2(ii) (i) Not been convicted for a criminal offence involving moral
√
turpitude.
1.2(iii) Nominated by the board of directors and approved by the

√
shareholders in the AGM.
1.2(iv) Not remain vacant for more than 90 (ninety) days. √
1.2(v) Board shall lay down a code of conduct of all Board members
and annual compliance of the code to be Recorded. √
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
1.2(vi) Tenure of office of an independent director shall be for a period

of 3 (three) years, which may be extended for 1 (one) term √
only.
1.3 Qualification of Independent Director (ID):
1.3(i) Knowledge of Independent Directors. √
1.3(ii) Background of Independent Directors. √
1.3(iii) Special cases for qualifications. N/A
1.4 Duality of Chairperson of the Board and Managing Director or CEO.
1.4(a) The positions of the Chairperson of the Board and the

Managing Director and / or CEO of the company shall be filled √
by different individuals.
1.4 (b) The Managing Director (MD) and/or Chief Executive Officer
√
(CEO) of a listed company shall not hold the same position
another listed company. √
1.4 ( c) The Chairperson of the Board shall be elected from among the
√
non-executive directors of the Company.
1.4 (d) The Board shall clearly define respective roles and √
responsibilities of the Chairperson and the Managing Director √
and/ or CEO.
1.4 (e) In the absence of the Chairperson of the Board, the remaining √
members may elect one of themselves from non-executive
directors as chairperson for that particular Board’s meeting; N/A
the reason of absence of the regular Chairperson shall be duly
recorded in the minutes.
1.5 The Directors’ Report to the Shareholders: √
1.5(i) Industry outlook and possible future developments in the industry. √
1.5(ii) Segment-wise or product-wise performance. The company operates in a single

product segment-denim fabrics.
1.5(iii) Risks and concerns. √

1.5(iv) Discussion on Cost of Goods sold, Gross Profit Margin and
√
Net Profit Margin.
1.5(v) Discussion on continuity of any Extra-ordinary gain or loss. √
1.5(vi) Basis for related party transactions. √

1.5(vii) Utilization of proceeds from public issues, rights issues and/or
through any others. √
1.5(viii) Explanation of the financial results deteriorate after the

√
company goes for IPO, RPO, Rights Offer, and Direct Listing.
1.5(ix) Explanation about significant variance occurs between Quarterly
√
Financial performance and Annual Financial Statements.
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
1.5(x) Remuneration to directors including independent directors. √

1.5(xi) Fairness of Financial Statement. √
1.5(xii) Maintenance of proper books of accounts. √

1.5(xiii) Adoption of appropriate accounting policies and estimates. √
1.5(xiv) Followed IAS, BAS, IFRS and BFRS in preparation of financial
√
statements.
1.5(xv) Soundness of internal control system. √
1.5 (xvi) Protection of Minority Shareholders Interest √
1.5(xvii) Ability to continue as a going concern. √
1.5(xviii) Significant deviations from the last year’s. √
1.5(xix) Key operating and financial data of at least preceding 5 (five) year. √
1.5(xx) Reasons for not declared dividend. N/A
1.5 (xxi) Board’s statement to the effect that no bonus share or stock
√
dividend has been or shall be declared as interim dividend:
1.5(xxii) Number of board meetings held during the year and
√
attendance.
1.5(xxiii) Pattern of Shareholding:
1.5(xxii)a) Parent/Subsidiary/Associated Companies and other related
√
parties.
1.5(xxii)b) Directors, CEO, CS, CFO, HIA and their spouses and minor
√
children.
1.5(xxii)c) Executives. √
1.5(xxiii)d) 10% or more voting interest. √
1.5(xxiv) Appointment/re-appointment of director: √
1.5(xxiv)a) Resume of the director √
1.5(xxiv)b) Expertise in specific functional areas. √
1.5(xxiv)c) Holding of directorship and membership of committees of the
√
board other than this company.
1.5 (xxv) A Management’s Discussion and Analysis signed by CEO or MD √
1.6 Meeting of the Board of Directors
The company shall conduct its Board meeting and record the
minutes of the meeting and keep records as per Provision of √
ICSB.
1.7 Code of Conduct for the Chairperson, other Board
members and Chief Executive officer
1.7 (a) The Board shall lay down a code of conduct, based on the
recommendation of the Nomination and Remuneration
Committee (NRC) at condition No. 6 for the Chairperson of the √
Board, other board members and Chief Executive Officer of
the Company
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
1.7 (b) The code of conduct as determined by the NRC shall be

posted on the website of the company including, among
others, prudent conduct and behaviour; confidentiality; conflict
√
of interest; compliance with laws, rules and regulations;
prohibition of insider trading; relationship with environment,
employees, customers and suppliers; and independency.
2 Governance of Board of Directors of Subsidiary Company
2(a) Provisions relating to the composition of the Board of the
holding company shall be made applicable to the composition √
of the Board of the subsidiary company;
2(b) At least 1 (one) independent director on the Board of the
holding company shall be a director on the Board of the √
subsidiary company;
2(c) The minutes of the respective Board Meeting of the holding
company shall state that they have reviewed the affairs of the √
subsidiary company also
2(d) The Audit Committee of the holding company shall also review
the financial statements, in particular the investments made by √
the subsidiary company.
3. Managing Director (MD) or Chief Executive Officer (CEO),
Chief Financial Officer (CFO), Head of Internal Audit and
Compliance (HIAC) and Company Secretary (CS)
3.1 (a) The Board shall appoint a Managing Director, Company
Secretary, Chief Financial Officer and Head of Internal Audit √
and Compliance
3.1 (b) The positions of the Managing Director (MD) or Chief Executive
Officer, Company Secretary, and Head of Internal Audit and √
Compliance (HIAC) shall be filled by different individuals.
3.1 (c) The MD, CS, CFO and HIAC of a listed company shall not hold
√
any executive position in any other company at the same time;
3.1 (d) The Board shall clearly define respective roles, responsibilities
√
and duties of the CFO, the HIAC and the CS:
3.1 (e) The MD or CEO, CS, CFO and HIAC shall not be removed
from their position without approval of the Board as well as
√
immediate dissemination to the Commission and Stock
Exchange.
3.2 Requirement to attend Board of Directors’ Meetings
The MD or CEO, CS, CFO and HIAC of the Company shall
√
attend the meeting of the Board
3.3 Duties of Managing Director (MD) or Chief Executive
officer (CEO) and Chief financial Officer (CFO)
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
3.3 (a) (i) These statements do not contain any materially untrue
√
statement or omit any material fact or contain statements that
might be misleading
3.3 (a) (ii) These statements together present a true and fair view of the
company’s affair and are in compliance with existing √
accounting standards and applicable laws
3.3 (b) The MD and CFO shall also certify that there are, to the best of
knowledge and belief, no transactions entered into by the
company during the year which are fraudulent, illegal or in √
violation of the code of conduct for the company’s board or its
members;
3.3 (c ) The certification of the MD or CEO and CFO shall be disclosed √
in the Annual Report.
4. Board of Directors’ Committee
4.1 Audit Committee √
4.2 Nomination and Remuneration Committee √
5. Audit Committee:
5.1 (a) Constitution of Audit Committee √
5.1.(b) Assistance of the Audit Committee to Board of Directors. √
5.1.(c) Responsibility of the Audit Committee. √
5.2 Constitution of the Audit Committee: √
5.2(a) At least 3 (three) members. √
5.2(b) Appointment of members of the Audit Committee including √
independent Director √
5.2(c) Qualification of Audit Committee members. √
5.2(d) Term of service of Audit Committee members. √
5.2(e) Secretary of the Audit Committee. √
5.2(f) Quorum of the Audit Committee. √
5.3 Chairman of the Audit committee: √
5.3(a) Board of Director shall select the Chairman. √
5.3 (b) In case of absence of Chairman of Audit Committee, the
remaining members may elect one of themselves as √
chairperson
5.3(c) Chairman of the audit committee shall remain present in the AGM.
√
5.4 Meeting of the Audit Committee
5.4.(a) The Audit Committee shall conduct at least its four meeting in √
a financial year
The quorum of the meeting of the Audit Committee shall be
constituted in presence of either two members or two third of
√
the members of the Audit Committee whichever is higher,
where presence of an independent director is a must.
5.5 Role of Audit Committee:
5.5(a) Oversee the financial reporting process. √
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
5.5(b) Monitor choice of accounting policies and principles. √

5.5(c) Monitor Internal Control Risk management process. √
5.5(d) Oversee hiring and performance of external auditors. √
5.5(e) Hold meeting with the external or statutory auditors for review
of the annual financial statements before submission to the √
board for approval.
5.5(f) Review along with the management, the annual financial
√
statements before submission to the Board for approval;
5.5(g) Review along with the management, the quarterly and half
yearly financial statements before submission to the Board for √
approval; Review the adequacy of internal audit function.
5.5(h) Review the adequacy of internal audit function. √
5.5 (i) Review the Management’s Discussion and Analysis before
√
disclosing the Annual Report;
5.5 (j) Review statement of significant related party transactions. √
5.5 (k) Review Management Letters/Letter of Internal Control
√
weakness issued by statutory auditors.
5.5 (l) Oversee the determination of audit fees based on scope and
magnitude, level of expertise deployed and time required for √
effective audit and evaluate the performance of external auditors
5.5 (m) Oversee the proceeds raised through Initial Public Offering √
(IPO) have been utilized as per approval.
5.6 Reporting of the Audit Committee: √
5.6.(a) Reporting to the Board of Directors. √
5.6.(a)(i) Activities of Audit Committee. √
5.6.(a)(ii) The Audit Committee shall immediately report to the Board of
N/A
Directors on the following findings, if any
5.6(a)(ii)a Conflicts of interests. N/A
5.6(a)(ii)b Material defect in the internal control system. N/A
5.6 (a) (ii)c Infringement of laws, rules and regulations. N/A
5.6.(a)(ii)d Any other matter. N/A
5.6.(b) Reporting to the Authorities. N/A
5.7 Reporting to the Shareholders and General Investors. √
6. Nomination and Remuneration Committee (NRC)
6.1 Responsibility to the Board of Directors
6.1.a The Company shall have a Nomination and Remuneration
√
Committee as a sub sub-committee of the Board;
6.1.b The NRC shall assist the Board in formulation of the
nomination criteria or policy for determining qualification,
positive attributes, experiences and independence of directors √
and top level executive as well as a policy for formal process of
considering remuneration of directors, top level executives
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
6.1.c The Terms of Reference (ToR) of the NRC shall be clearly set
forth in writing covering the areas stated at the condition No. √
6(5)(b)
6.2 Constitution of the NRC
6.2.(a) The Committee shall comprise of at least three members
√
including an independent director
6.2.(b) All members of the Committee shall be non-executive directors √
6.2.(c) Members of the Committee shall be nominated and appointed
√
by the Board
6.2.(d) The Board shall have authority to remove and appoint any
√
member of the committee
6.2.(e) (e) In case of death, resignation, disqualification, or removal of any
member of the Committee or in any other cases of vacancies, the √
board shall fill the vacancy within 180 (one hundred eighty) days of
occurring such vacancy in the Committee;
6.2.(f) The Chairperson of the Committee may appoint or co-opt any
√
external expert
6.2.(g) The company secretary shall act as the secretary of the
√
Committee;
6.2.(h) The quorum of the NRC meeting shall not constitute without
√
attendance of at least an independent director;
6.2.(i) No member of the NRC shall receive, either directly or indirectly,
any remuneration for any advisory or consultancy role or
√
otherwise, other than Director’s fees or honorarium from the
company.
6.3 Chairperson of the NRC
6.3.(a) The Board shall select 1 (one) member of the NRC to be
Chairperson of the Committee, who shall be an independent √
director;
6.3.(b) In the absence of the Chairperson of the NRC, the remaining
members may elect one of themselves as Chairperson for that
particular meeting, the reason of absence of the regular √
Chairperson shall be duly recorded in the minutes;
6.3.(c) The Chairperson of the NRC shall attend the annual general
meeting (AGM) to answer the queries of the shareholders:
6.4 Meeting of the NRC
6.4.(a) The NRC shall conduct at least one meeting in a financial year; √
6.4.(b) The Chairperson of the NRC may convene any emergency
√
meeting upon request by any member of the NRC;
6.4.(c) The quorum of the meeting of the NRC shall be constituted in
presence of either two members or two third of the members of
the Committee, whichever is higher, where presence of an √
independent director is must as required under condition No.
6(2)(h);
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
6.4.(d) The proceedings of each meeting of the NRC shall duly be

recorded in the minutes and such minutes shall be confirmed √
in the next meeting of the NRC.
6.5 Role of the NRC
6.5.(a) NRC shall be independent and responsible or accountable to
√
the Board and to the shareholders;
6.5.(b) NRC shall oversee, among others, the following matters and
√
make report with recommendation to the Board:
6.5.(b)(i) formulating the criteria for determining qualifications, positive
attributes and independence of a director and recommend a
√
policy to the Board, relating to the remuneration of the
directors, top level executive, considering the following:
6.5.(b)(i)(a) the level and composition of remuneration is reasonable and
sufficient to attract, retain and motivate suitable directors to √
run the company successfully;
6.5(b)(i)(b) the relationship of remuneration to performance is clear and
√
meets appropriate performance benchmarks; and
6.5.(b)(i)(c) remuneration to directors, top level executive involves a
balance between fixed and incentive pay reflecting short and
√
long-term performance objectives appropriate to the working
of the company and its goals;
6.5.(b)(ii) devising a policy on Board’s diversity taking into consideration
age, gender, experience, ethnicity, educational background √
and nationality;
6.5.(b)(iii) identifying persons who are qualified to become directors and
who may be appointed in top level executive position in
√
accordance with the criteria laid down, and recommend their
appointment and removal to the Board;
6.5.b.(iv) formulating the criteria for evaluation of performance of
√
independent directors and the Board;
6.5.b.(v) identifying the company’s needs for employees at different
levels and determine their selection, transfer or replacement √
and promotion criteria; and
6.5.b.(vi) developing, recommending and reviewing annually the
√
company’s human resources and training policies;
6.5.c The company shall disclose the nomination and remuneration
policy and the evaluation criteria and activities of NRC during √
the year at a glance in its annual report.
7 External or Statutory Auditors
7.1 The issuer company shall not engage its external or statutory
auditors to perform the following services of the company, √
namely:
7.1.(i) Appraisal or valuation services or fairness opinions √
7.1.(ii) Financial information systems design and implementation √
Compliance Status
Condition Remarks
Title Not
No. (if any)
Complied
Complied
7.1.(iii) Book-keeping or other services related to the accounting √

records or financial statements;
7.1.(iv) Broker-dealer services √
7.1.(v) Actuarial services √
7.1.(vi) Internal audit services or special audit services √
7.1.(vii) Any service that the Audit Committee determines; √
7.1.(viii) Audit or certification services on compliance corporate
√
governance as required under condition No. 9 (1); and
7.1.(ix) Any other services that create conflict of interest √
7.2 No partner or employees of the external audit firms shall
possess any share of the company they audit at least during
the tenure of their audit assignment of that company; his or √
her family members also shall not hold any shares in the said
company
7.3 Representative of external or statutory auditors shall remain
present in the shareholders’ Meeting (Annual General Meeting √
or EGM) to answer the queries of the shareholders.
8 Maintaining a website by the Company
8.1 The company shall have an official website linked with the
√
website of the stock exchange.
8.2 The company shall keep the website functional from the date
√
of listing
8.3 The company shall make available the detailed disclosures on
its website as required under the listing regulations of the √
concerned stock exchange
9 Reporting and compliance of corporate Governance
9.1 The company shall obtain a certificate from a practicing
Professional Accountant or Secretary other than its statutory
auditors or audit firm on yearly basis regarding compliance of √
Corporate Governance Code of the Commission and shall
such certificate shall be disclosed in the Annual Report.
9.2 The Professional who will provide the certificate on
compliance of this Corporate Governance Code shall be √
appointed by the Shareholders in the annual general meeting.
9.3 The directors of the company shall state, in accordance with
the Annexure-C attached, in the directors report whether the √
company has complied with these conditions or not;
Shams Mahmud
Managing Director
Evaluation of Quarterly Financial Statements

In compliance with the BSEC directives Shasha Denims Ltd. (SDL) prepared consolidated
quarterly financial statements as per BAS-34 and submitted the same to Dhaka Stock
Exchange, Chittagong Stock Exchange and BSEC regularly. Quarterly consolidated
Financial Statements are reviewed and approved by Audit Committee and Board of
Directors respectively. All price sensitive information and quarterly financial statements were
published in at least two daily news paper and also available in our web site.
During the year, quarterly published financial statements a result Gross Profit margin were decreased. In the 3rd
was consolidated by financial statements of Shasha Denims Quarter Consolidated EPS was increased compared to last
Ltd. along with financial statements of its three subsidiary quarter which was happened due to extraordinary income
companies named Eenergis Power Corporation Limited, earned by Shasha Garments Ltd. from sales of shares.
Shasha Garments Ltd. and Shasha Textile Mills Limited.
Consolidated quarterly financial performance for the year
Financial performance for the 2nd Quarter and 3rd Quarter 2018-2019 of the Company was inconsistent due to up
were not satisfactory. Consolidated earning of the down of direct cost including material cost, utility cost,
company fell in 2nd quarter and 3rd Quarter remarkably financial cost etc and other non-controllable events
due to increase of cost of sales. During the period utility occurred during the period. Comparative consolidated
expenses and yarn cost were increased but the company quarterly financial performance is stated below:
could not increase selling price of products accordingly. As
Amount in million
2018-2019 2017-2018
31-Mar-19 31-Dec-18 30-Sep-18 31-Mar-18 31-Dec-17 30-Sep-17
Balance Sheet
Non-Current Assets 4,854 4,947 4,922 5,074 5,033 5,038
Current Assets 7,729 7,978 8,193 7,555 7,007 5,695
Total Assets 12,584 12,926 13,116 12,629 12,041 10,734
Capital & Reserve 6,241 6,034 6,159 5,647 5,493 5,476
Non-Current Liabilities 615 664 718 786 859 912
Current Liabilities 5,708 6,213 6,225 5,994 5,489 4,145
Income Statement
Revenue 1,858 2,137 2,198 2,244 1,989 1,546
Less: Cost of Goods Sold 1,600 1,905 1,799 1,922 1,650 1,251
Gross Profit 258 233 398 321 339 295
Less: Administrative & Selling Exp. 63 60 60 64 64 55
Operating Profit 194 172 337 256 274 240
Add: Financial Income -1 2 1 4 3 4
Less: Financial Expenses 98 122 97 94 109 83
Profit before Non-Operating Income 96 52 241 166 168 161
Add: Non-operation income/(loss) 126 5 -3 2 9 -2
Profit before WPPF 222 57 237 169 178 159
Less: Provision for WPPF - 1 - - - -
Profit before Income Tax 222 56 237 169 178 159
Current Tax 4 -3 22 19 26 22
Deferred Tax 6 5 -4 - - -
Net Profit after Tax 212 54 219 150 151 137
Non-Controlling 4 - - 1 - -
Net Profit attributable to the Shareholders 208 54 219 149 151 137
Earnings Per Share (restated) 1.63 0.43 1.71 1.16 1.18 1.07
Compliance Report on
BAS and BFRS
SL. No BAS Title BAS Effective Date Remarks
BAS-01 Presentation of Financial Statements Adopted on or after 1st January 2007 Applied
BAS-02 Inventories Adopted on or after 1st January 2007 Applied
BAS-07 Statement Of Cash Flows Adopted on or after 1st January 1999 Applied
BAS-08 Accounting Policies, Changes in Accounting

Estimates and Errors Adopted on or after 1st January 2007 Applied
BAS-10 Events after the Reporting period Adopted on or after 1st January 2007 Applied
BAS-11 Construction Contracts Adopted on or after 1st January 1999 N/A
BAS-12 Income Taxes Adopted on or after 1st January 1999 Applied
BAS-16 Property, Plant &Equipment Adopted on or after 1st January 2007 Applied
BAS-17 Leases Adopted on or after 1st January 2007 Applied
BAS-18 Revenue Adopted on or after 1st January 2007 Applied
BAS-19 Employee Benefits Adopted on or after 1st January 2004 Applied
BAS-20 20Accounting of Government Grants and

Disclosure of Government Assistance Adopted on or after 1st January 1999 N/A
BAS-21 The Effects of Changes in Foreign Exchange Rates Adopted on or after 1st January 2007 Applied
BAS-23 Borrowing Costs Adopted on or after 1st January 2010 Applied
BAS-24 Related Party Disclosures Adopted on or after 1st January 2007 Applied
BAS-26 Accounting and Reporting by Retirement Benefit Plans Adopted on or after 1st January 2007 N/A
BAS-27 Separate Financial Statements Adopted on or after 1st January 2010 Applied
BAS-28 Investments in Associates Adopted on or after 1st January 2007 Applied
IAS-29 Financial Reporting in Hyperinflationary Economics Adopted on or after 1st January 2013 N/A
BAS-32 Financial Instruments: Presentation Adopted on or after 1st January 2010 Applied
BAS-33 Earnings per Share Adopted on or after 1st January 2007 Applied
BAS-34 Interim Financial Reporting Adopted on or after 1st January 1999 Applied
BAS-36 Impairment of Assets Adopted on or after 1st January 2005 Applied
BAS-37 Provisions, Contingent Liabilities and Contingent Assets Adopted on or after 1st January 2007 Applied
SL. No BAS Title BAS Effective Date Remarks
BAS-38 Intangible Assets Adopted on or after 1st January 2005 Applied
BAS-39 Financial Instruments: Recognition and Measurement Adopted on or after 1st January 2010 Applied
BAS-40 Investment Property Adopted on or after 1st January 2007 N/A
BAS-41 Agriculture N/A
BFRS 1 First-Time adoption of international Financial Adopted as BFRS 1,

Reporting Standards Effective on or after 1 January 2009 N/A
BFRS 2 Share –based Payment Adopted as BFRS 2,

Effective on or after 1 January 2007 N/A
BFRS 3 Business Combinations Adopted as BFRS 3,

Effective on or after 1 January 2010 Applied
BFRS 4 Insurance Contracts Adopted as BFRS 4,

BFRS 5 Noncurrent Assets Held for Sale and Adopted as BFRS 5,

Discontinued Operations Effective on or after 1 January 2007 N/A
BFRS 6 Expiration for and Evaluation of Mineral Resources Adopted as BFRS 6,

BFRS 7 Financial Instruments: Disclosures Adopted as BFRS 7,

BFRS 8 Operating Segments Adopted as BFRS 8,

BFRS 9 Financial Instruments Adopted as BFRS 9,

BFRS 10 Consolidated Financial Statements Adopted as BFRS 10,

BFRS 11 Joint Arrangements Adopted as BFRS 11,

BFRS 12 Disclosure of Interests in other Entities Adopted as BFRS 12,

BFRS 13 Fair value Measurement Adopted as BFRS 13,

Report of the Audit Committee

The Audit Committee is formed with members having relevant experience
in finance and accounting to oversee the audit of Company’s financial
reports as well as adequacy of company’s internal control. The Audit
Committee comprises of members of the Board.
The Committee is empowered, among other things, to access to the Committee. The Committee is directly
examine any matter relating to the financial affairs of the reportable to the Board.
Company and to review all audit and inspection
programs, internal control systems and procedures, COMPOSITION OF AUDIT COMMITTEE
accounting policies and adherence to compliance As per requirement of BSEC circular, The Board of
requirements. This would ensure that a sound financial Directors of Shasha Denims Ltd. formed an Audit
reporting system is in place, which is well managed Committee headed by Company’s Independent Director
providing accurate, appropriate and timely information Mr. N K A Mobin FCA, FCS, CFC. The Committee is
to the Board of Directors and stakeholders. composed of 3 (three) members of the Board. The
The Head of Internal Audit and Compliance has direct members of the Audit Committee is as under:
Sl # Name Position Qualification

1. N K A Mobin Chairman FCA, FCS, CFC
2. Syed Member BA (Hon’s), MA
Mayeenul Huq (Economics) and LLB
3. Zareen Mahmud Member CPA, FCA
RESPONSIBILITY OF AUDIT COMMITTEE The Audit Committee among others is also

responsible for:
INTERNAL CONTROL
Assisting the Board in its oversight of i) the integrity and
The Board of Directors is primarily responsible for ensuring
reporting of the Company’s quarterly, half yearly and
that a proper and effective control system is in place to run
annual financial statements, ii) the qualifications,
the operations of the Company. It is meant to ensure
independence and performance of the Company’s
smooth functioning of the company alongwith compliance
internal and external auditors.
of all internal and external rules and regulations.
An effective internal control also ensures that measures Assisting the Board with respect to internal control,
taken to minimize operational risks and detect errors in accounting policies, auditing and financial reporting
various operational areas to ensure timely rectification. practices.
Although a full scale control system is not possible to
Overseeing the performance of the Company’s internal
establish, but it helps the Management to keep
audit function, independent audits and regulatory
effective control over operations and minimize
inspections.
deviations as far as possible.
Overseeing the Company’s compliance with the rules of • to provide the Board and Management with detail
good corporate governance. information regarding business activities of the
company.
INTERNAL CONTROL AND COMPLIANCE
The Company has a separate department for internal MEETING AND ATTENDENCE
control and compliance. The department operate During the year 2018-2019, under review the Audit
independently and has given responsibilities by the Committee of Shasha Denims Ltd. met 4 (four) times on
Audit Committee. The major responsibility of audit the following dates.
department is under:
i) 27 October, 2018
• to ensure that the Company operates within the ii) 11 November, 2018
principle, policies, framework and procedures
iii) 29 January, 2019
formulated by the Audit Committee.
iv) 29 April, 2019
• to ensure the regulatory compliance in its day to
day activities.
Name Position Attended During the Year Percentage

Mr. N K A Mobin Chairman
Independent Director Four 100%
Mr. Syed Mayeenul Huq Member
Independent Director Four 100%
Ms. Zareen Mahmud Member Four 100%
FUNCTIONS AND ACTIVITIES: • Monitored Independence of Audit Work

During the year, principal activities were as follows:
GOVERNANCE AND COMPLIANCE
Control Issues • Reviewed compliance with existing laws and
• Reviewed Internal Control and risk management regulations.
system • Reviewed financial of subsidiary
• considered the effectiveness of the Company’s EXTERNAL AUDIT MATTERS

Internal Controls over financial reporting
• Reviewed the effectiveness and independence of
Financial Results the Statutory auditors
• Reviewed reports from the Chief Financial Officer • recommend appointment, remuneration of the
on the Quarterly and annual financial statements, statutory auditor
including other financial statements and disclosures
• reviewed the annual audit activities and audit report.
prior to their publication.
• Reviewed the Annual Report, these reviews Acknowledgement
incorporated the accounting policies and key The members of the Audit Committee express their
judgments and estimates underpinning the financial
gratitude and thanks to the Board of Directors,
statements as disclosed in Notes to the Accounts.
Management and Auditors for their cooperation while
INTERNAL AUDIT MATTERS performing its duties and responsibilities.
• Received reports from the internal auditors

• monitored the performance of the internal audit
function
• Reviewed appropriate systems and controls are in N K A Mobin FCA, FCS, CFC
place for effectiveness of internal audit function Chiarman-Independent Director
MD & CFO’S
Declaration
The Board of Directors
House No #23, Road No #129
Gulshan-01, Dhaka-1212
Subject: Declaration on Financial Statements for the year ended on 30 June, 2019.
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. SEC/CMRRCD/2006-158/207/Admin/80
Dated 03 June, 2019 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:
(1) The Financial Statements of Shasha Denims Limited for the year ended on 30 June, 2019 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as
applicable in the Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudentand reasonable basis, in
order for the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have beenreasonably and fairly presented
in its financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing asystem of internal control and
maintenance of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurancethat the established policies and
procedures of the Company were consistently followed;
and
(6) The management’s use of the going concern basis of accounting in preparing thefinancial statements is appropriate
and there exists no material uncertainty relatedto events or conditions that may cast significant doubt on the
Company’s abilityto continue as a going concern.
In this regard, we also certify that: -

(i) We have reviewed the financial statements for the year ended on 30 June, 2019 and that tothe best of our knowledge
and belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the Companyduring the year which are
fraudulent, illegal or in violation of the code of conduct for thecompany’s Board of Directors or its members.
Sincerely yours,
Shams Mahmud Md. Sarwar Hossain FCA

Managing Director Chief Financial Officer
Capital Structure
of the Company
Shasha Denims Ltd. is a strong Capital Base Company. and 25 million redeemable preference shares at Tk.10
The Company started its business with paid up Tk. 20 each. The Company raised paid up capital by Tk. 500
million now its existing paid up capital stood to million through IPO. The Company is listed with DSE and
Tk.1272.37 million. In the last year SDL’s paid up capital CSE. The market capitalization of the Company is
increased by Tk.83.69 million as the Shareholders of Tk.5,923 million as on 30 June, 2019. The market price
the Company approved 7% stock dividend for the year of share of Shasha Denims Ltd. was Tk.46.30 as on 30
2017-2018. Authorized Capital of the Company is Tk. June, 2019. Sector and range wise shareholding of
2250 million dividend into 200 million ordinary shares Shasha Denims Ltd. as on 30 June, 2019 are as follows:
The Paid up Capital of Shasha Denims Ltd.

Amount (Tk.) Percentage
Sponsor & Directors: 48,060,383 37.570%
Institutions: 22,609,056 17.674%
Foreign: 4,077,927 3.188%
Public: 53,176,363 41.568%
127,923,729 100%
The Range of Shareholdings
Shareholding Range No. of Shareholders No. of Shares Percentage

Up to 500 Shares 6,274 1,207,932 0.94%
501 to 5000 shares 2,482 5,015,649 3.92%
5001 to 10,000 Shares 569 4,164,573 3.26%
10001 to 20000 shares 386 5,475,090 4.28%
20001 to 30,000 shares 146 3,647,404 2.85%
30001 to 40000 shares 75 2,611,795 2.04%
40001 to 50000 shares 47 2,159,921 1.69%
50001 to 1,00,000 shares 94 6,718,125 5.25%
100001 to 1000000 shares 90 21,535,090 16.83%
1000001 and above shares 13 75,388,150 58.93%
Total 10,176 127,923,729 100%
Sector Wise percentage Shareholding
Sponsors & Directors Institutions
Foreign Public
Integrated Reporting Checklist

Sl. Content
Particulars Page No.
No. Reference
1 Elements of an Integrated Report

1.1 Organizational Overview & External Environment
An integrated report should disclose the main activities of the organization Company Overview 08 - 09
and the environment of which it operates
An integrated report should identify the organization’s mission and vision, Vision, Mission and 16 - 17
and provides essential context by identifying matters such as the Objectives
organization’s:
Culture, ethics and values Code of Conduct 18 - 20
ownership & operating structure including size of the organization, location Corporate Profile 07
of its operations
Principal activities & markets Company Overview 08 - 09
Competitive landscape and market positioning (Considering factors such as Directors’ Report 47- 62
the threat of new competition and substitute products or services, the
bargaining power of customers and suppliers, and the intensity of
competitive rivalry)
Key quantitative information Financial Highlights 44 - 46
The number of employees, revenue and number of countries in which the Directors’ Report 47 - 62
organization operates highlighting, in particular, significant changes from
prior periods
Significant factors affecting the external environment and the organization’s Risk Management & 65 - 68
response: Sustainability
Analysis
The legitimate needs and interests of key stakeholders Directors’ Report 47 - 62
Macro and micro economic conditions, such as economic stability, Directors’ Report 47 - 62
globalization and industry trends
Market forces, such as the relative strengths & weaknesses of competitors Directors’ Report 47 - 62
& customers’ demand
The speed & effect of technological change Directors’ Report 47 - 62
Societal issues, such as population and demographic changes, human Directors’ Report 47 - 62
rights, health, poverty, collective values and educational systems
The political environment in countries where the organization operates and Directors’ Report 47 - 62
other countries that may affect the ability of the organization to implement
its strategy
Environmental changes, such as climate change, the loss of ecosystems, Sustainability 86 - 94
and resource shortages as planetary limits are approached Reporting
The legislative & regulatory environment in which the organization operates Sustainability Reporting 86 - 94
1.2 Governance
An integrated report should show how does the organization’s governance Report on 101 - 105
structure support its ability to create value in the short, medium & long term. Corporate
An integrated report needs to provide an insight about how such matters as Governance
the following are linked to its ability to create value: Guideline
The organization’s leadership structure, including the skills & diversity Corporate Organogram 100
Specific processes used to make strategic decisions and to establish & Risk Management & 65 - 68
monitor the culture of the organization, including its attitude to risk & Sustainability Analysis
mechanisms for addressing integrity & ethical issues
Sl. Content
No. Reference
Particular actions those charged with governance have taken to influence Risk Management & 65 - 68
and monitor the strategic direction of the organization and its approach to Sustainability
risk management Analysis
Whether the organization is implementing governance practices that exceed Report on 101 - 105
legal requirements/ Key Policies Corporate
The responsibility those charged with governance take for promoting & Governance
enabling innovation Guideline
How remuneration and incentives are linked to value creation in the short,
medium & long term, including how they are linked to the organization’s use
of and effects on the capitals.
1.3 Performance
An integrated report needs to explain the extent to which the organization Chairman’s Statement 32 - 37
has achieved its strategic objectives for the period and what are its and
outcomes in terms of effects on the capitals. Strategic Review of the 38 - 43
Managing Director
An integrated report should contain qualitative and quantitative information Directors’ Report 47 - 62
about performance:
Quantitative indicators with respect to targets and risks and opportunities,
explaining their significance, their implications, and the methods and
assumptions used in compiling them
The state of key stakeholder relationships and how the organization has
responded to key stakeholders’ legitimate needs & interests
The linkages between past & current performance, and between current
performance and the organization’s outlook.
KPI’s that combine financial measures with other components or narrative
that explains the financial implications of significant effects on other capitals
and other causal relationships may be used to demonstrate the connectivity
of financial performance with performance regarding other capitals. In some
cases, this may also include monetizing certain effects on the capitals.
Include instances where regulations have a significant effect on
performance (e.g., a constraint on revenues as a result of regulatory rate
setting) or the organization’s non-compliance with laws or regulations may
significantly affect its operations.
1.4 Risks & Opportunities
An integrated report should explain what are the specific risks and Risk Management & 65 - 68
opportunities that affect the organization’s ability to create value over the Sustainability
short, medium & long term, and how is the organization dealing with them. Analysis
This can include identifying
The specific source of risks and opportunities which can be internal,
external or commonly a mix of the two
The organization’s assessment of the likelihood that the risk or opportunity
will come to fruition and the magnitude of its effect if it does.
The specific steps being taken to mitigate or manage key risks or to create
value from key opportunities, including the identification of the associated
strategic objectives, strategies, policies, targets and KPIs.
1.5 Strategy & Resource Allocation
An integrated report should describe its strategic direction (Where does the Vision, Mission and 16 -17
organization want to go and how does it intend to get there). Objectives
Sl. Content
No. Reference
An integrated report needs to identify:

The organization’s short, medium and long term strategic objectives
The strategies it has in place or intends to implement, to achieve those
strategic objectives
The resource allocation plans it has to implement its strategy Directors’ Report 47 - 62
How it will measure achievements and target outcomes for the short, Directors’ Report 47 - 62
medium and long term.
1.6 Outlook
An integrated report should explain what challenges and uncertainties is the Chairman’s 32 - 37
organization likely to encounter in pursuing its strategy and what are the Statement
potential implications for its business model and future performance
The organization’s expectations about the external environment the Directors’ Report 47 - 62
organization is likely to face in the short, medium and long term
How that will affect the organization
How the organization is currently equipped to respond to the critical
challenges and uncertainties that are likely to arise.
The discussion of the potential implications including implications for future Risk Management & 65 - 68
financial performance which may include: Sustainability and
The external environment and risks & opportunities with an analysis of how Analysis and 47 - 62
these could affect the achievement of strategic objectives Directors’ Report
The availability, quality and afford quality of capitals the organization uses or
affects including how key relationships are managed and why they are
important to the organization’s ability to create value over time.
An integrated report may also provide lead indicators, KPIs or objectives, Financial Highlights 44 - 46
relevant information from recognized external sources and sensitivity
analysis. If forecasts or projections are included in reporting the
organization’s outlook, a summary of related assumptions is useful.
Comparisons of actual performance to previously identified targets further
enables evaluation of the current outlook.
Disclosures about an organization’s outlook in an integrated report should Directors’ Report 47 - 62
consider the legal or regulatory requirements to which the organization is Integrated Reporting 95
subject.
1.7 Basis of preparation & presentation
How does the organization determine what matters to include in the Integrated Reporting 95
integrated report and how are such matters quantified or evaluated?
An integrated report describes its basis of preparation and presentation,
including:
A summary of the organization’s materiality determination process:
Brief description of the process used to identify relevant matters, evaluate
their importance and narrow them down to material matters.
Identification of the role of those charged with governance and key
personnel in the identification and prioritization of material matters.
A description of the reporting boundary and how it has been determined
A summary of the significant frameworks and methods used to quantify or
evaluate material matters
Sl. Content
No. Reference
2 Responsibility for an integrated report

An integrated report should include a statement from those charged with Integrated Reporting 95
governance that includes:
An acknowledgement of their responsibility to ensure the integrity of the
integrated report
An acknowledgement that they have applied their collective mind to the
preparation & presentation of the integrated report
Their opinion or conclusion about whether the integrated report is
presented in accordance with the Framework
3 Other Qualitative Characteristics of an Integrated Report
3.1 Consistency & Comparability
The information in an integrated report should be presented. Financial Highlights 44 - 46
Comparison of information over time in the form of ratio
3.2 Connectivity of Information
An integrated report should show a holistic picture of the combination, Integrated Reporting 95
interrelatedness and dependencies between the factors that affect the
organization’s ability to create value over time.
3.3 Materiality
An integrated report should disclose information about matters that Directors’ Report 47 - 62
substantively affect the organization’s ability to create value over the short,
medium and long term.
3.4 Assurance of the Report
The policy and practice relating to seeking assurance on the report,
Integrated Reporting 95
The nature and scope of assurance provided for this particular report
Any qualifications arising from the assurance, and the nature of the Not Applicable
relationship between the organization and the assurance providers
AUDITORS’ REPORT AND
FINANCIAL STATEMENTS
S F AHMED & CO. House 51 (2nd Floor),

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
C H A R T E R E D A C C O U N T A N TS Fax: (88-02) 55042314
Banani, Dhaka 1213,
...Since 1958 E-mail: sfaco@dhaka.net
Bangladesh sfali@connectbd.com
Member Firm of HLB International
ahmeds@bol-online.com
Independent Auditor’s Report to the

shareholders of Shasha Denims Limited
Report on the Audit of the Consolidated Financial Statements
Opinion responsibilities under those standards are further
described in the Auditors’ Responsibilities for the
We have audited the consolidated financial statements
Audit of the Consolidated Financial Statements
of Shasha Denims Limited and its subsidiaries (the
section of our report. We are independent of the
Group), which comprise the consolidated statement of
Company in accordance with the International Ethics
financial position as at 30 June 2019 and the
Standards Board for Accountants’ Code of Ethics for
consolidated statement of profit or loss and other
Professional Accountants (IESBA Code) together with
comprehensive income, consolidated statement of
the ethical requirements that are relevant to our audit
changes in equity and consolidated statement of cash
of the consolidated financial statements in
flows for the year then ended, and notes to the
Bangladesh, and we have fulfilled our other ethical
consolidated financial statements, including a summary
responsibilities in accordance with the IESBA Code.
of significant accounting policies.
We believe that the audit evidence we have obtained
In our opinion, the accompanying consolidated financial is sufficient and appropriate to provide a basis for our
statements give a true and fair view of the consolidated opinion.
financial position of the Company as at 30 June 2019 and of
its consolidated financial performance and its consolidated Key Audit Matters
cash flows for the year then ended in accordance with Key audit matters are those matters that, in our
International Financial Reporting Standards (IFRSs), the professional judgement, were of most significance in
Companies Act 1994, the Securities and Exchange Rules our audit of the consolidated financial statements of the
1987 and other applicable laws and regulations. current period. These matters were addressed in the
context of our audit of the consolidated financial
Basis for Opinion statements as a whole and in forming our opinion
We conducted our audit in accordance with thereon and we do not provide a separate opinion on
International Standards on Auditing (ISAs). Our these matters.
How the scope of our audit responded to

Key audit matter description
the key audit matter
Revenue
ISAs require that, as part of our overall response to Audit procedures performed
the risk of fraud, when identifying and assessing the We performed walkthroughs of the revenue cycle at
risks of material misstatement due to fraud, we significant components to gain an understanding of
evaluate which types of revenue or revenue when the revenue should be recognized, to map out the
transactions might give rise to potential fraud risks. relevant controls end to end and the processes in place.
Chittagong Office: Ispahani Building, Agrabad, Chittagong; Phone: 31-716184; Fax: 31-713683; E-mail: sfaco@bbts.net

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

The Group was concentrated in Manufacturing, We assessed the design and implementation of
dyeing, weaving & finished of denim fabric, and these controls. We tested a sample of individual sales
various types of garments, textile exporting the same transactions and traced to dispatch notes and
in home and abroad also generate and supply subsequent cash receipt or other supporting
electricity to the nation grid of power We have documents. We performed analytical reviews to
specifically focused this key audit matter to cut-off identify any unusual or one-off material revenue
and occurrence for revenue recorded within June transactions.
2019. Pressures to meet stakeholders’ expectations We identified and considered the impact of any credit
could provide incentives to record revenues where notes or inventory returns occurring after year-end,
controls of the goods have not passed. including evaluating the impact of any material
The associated disclosure is included within Note 22. overdue debts from customers.
For specific detail on the Group’s accounting policy, With regard to the implementation of IFRS 15
please see Note 3.11. “Revenue from Contract with Customers”, we verified
management’s conclusion from assessing different
types of contracts and the accuracy of the revised
accounting policies in light of the industry specific
circumstances and our understanding of the business.
We tested the appropriateness of the accounting
treatment on a sample basis. In addition, we verified
the accuracy of IFRS 15 related disclosures.
Key observations communicated to the
Audit Committee
We were satisfied that the revenue recognition
policies have been applied appropriately. Based on
the work performed, we concluded that revenue has
been recorded appropriately.\
Inventory
At the reporting date, the carrying value of inventory Audit procedures performed
amounted to Taka 2,226,395,602 which is 18% of • Assessing the compliance of Group’s accounting
total assets. Inventories were considered as a key policies over inventory with applicable accounting
audit matter due to the size of the balance and standards.
because inventory valuation involves management
• Assessing the inventory valuation process and
judgement.
practices. On major locations, we tested the
effectiveness of the key controls.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

Inventory valuation and existence was an audit focus • Assessing the analyses made by management
area because of the number of locations/stores that with respect to slow moving and obsolete stock.
inventory was held at, and the judgement applied in • Attending inventory count on 30 June 2019 and
the valuation of inventory to incorporate inventory reconciling the count results to the inventory
shrinkage. listings to test the completeness of data.
According to the Group’s accounting policy, • Comparing the net realizable value, obtained
inventories are measured at the lower of cost or net through a detailed review of sales subsequent to
realizable value. The Group has specific procedures the year-end, to the cost price of a sample of
for identifying risk for obsolete items and measuring inventories.
inventories at the lower of cost and net realizable
• Reviewing the historical accuracy of inventory
value.
provisioning, and the level of inventory write-offs
The associated disclosure is included within Note 7. during the year.
For specific detail on the Group’s accounting policy,
• Evaluating the correctness of the valuation of raw
please see Note 3.5.
materials and packing material as per FIFO
method.
• Reviewing the calculation of standard labor hours
and their regular comparison with actual labor
hours of production; and reviewing the process of
valuing work-in-progress.
Audit Committee
We were satisfied that the inventory recognition and
measurement policies have been applied appropriately.
Based on the work performed, we concluded that
inventories have been recorded appropriately.
Property, plant and equipment

At the reporting date, the carrying value of the Group’s Audit procedures performed
property, plant and equipment amounted to Taka ▽ We obtained an understanding of the client and
4,819,151,480. The valuation of property, plant, and its environment to consider inherent risk related to
equipment was identified as a key audit matter due to property, plant, and equipment. Our understanding
the significance of this balance to the financial includes:
statements, as well as the significance of management’s ▽ Obtaining an understanding of the internal control
judgements in determining its valuation. over property, plant, and equipment.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

In considering the valuation of property, plant, and ▽ Assessing the risks of material misstatement and
equipment, we focused on the assessment of the designing tests of controls and substantive
followings: procedures that cover the following aspects:
• Inherent risks associated with property, plant and ▽ Substantiate the existence of property, plant, and
equipment. equipment.
• Potential misstatements in property, plant, and
▽ Establish the completeness of recorded property,
equipment on account of frauds and errors.
plant, and equipment.
• Assessment of useful lives of assets.
▽ Verify the cut-off of transactions affecting
• Assessment of impairment of assets.
property, plant, and equipment.
Inherent risks associated with property,
▽ Establish the proper valuation or allocation of
plant and equipment
property, plant, and equipment and the accuracy
• Property, plant and equipment may include assets
of transactions affecting property, plant, and
that should have been derecognised following sale,
equipment.
other transfer of rights or abandonment.
▽ Determine the correctness and appropriateness
• Expenditure that should have been recognised as
of classification of property, plant and
property, plant and equipment but has not been so
recognised, including capitalised finance costs. equipment.
• Depreciation may have been incorrectly calculated. • We obtained an understanding of the potential
misstatements in property, plant, and equipment
Potential misstatements in property, plant,
and equipment on account of frauds and on account of frauds and errors.
errors • We evaluated the assumptions made by
• Purchase of an asset at an inflated price management in the determination of useful lives to
especially from a related party. ensure that these are consistent with the principles
• Wrong write-off of the asset as scrap, of IAS 16. “Property, Plant and Equipment”.
obsolescence, missing, donated, or destroyed. • We compared the useful lives of each class of asset
• Expenditures for repairs and maintenance recorded in the current year to the prior year to determine
as property, plant and equipment or vice versa. whether there were any significant changes in the
• Capitalization of expenditure which are not useful lives of assets, and considered the
normally attributable to the cost of the property, reasonableness of changes based on our
plant and equipment. knowledge of the business and the industry.
• Recording of an asset purchased, which in effect • We assessed whether there are circumstances
has not actually been received by the entity at all. that indicate a possible impairment of property,
Assessment of useful lives of assets plant and equipment and if such circumstances
Management applies estimates and judgements in its exist, how the same have been dealt with by the
determination of useful lives of assets and reviews entity.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

the useful lives of assets at each financial year end Key observations communicated to the
and adjusts for changes, where appropriate. Audit Committee
Impairment of assessment We were satisfied that the property, plant and
At the end of each reporting period, management equipment recognition and measurement policies
assesses whether there is any indication that an have been applied appropriately. Based on the work
asset may be impaired. If any such indication exists, performed, we concluded that property, plant and
management estimates the recoverable amount of equipment have been recorded appropriately.
the asset. If the recoverable amount of an asset is
less than its carrying amount, the carrying amount of
the asset is reduced to its recoverable amount.
The associated disclosure is included within Note 4.
For specific detail on the Group’s accounting policy,
please see Note 3.2.
Measurement of deferred tax Liability
Company reported net deferred tax liability totaling Audit procedures performed
Taka 94,067,657 as at 30 June 2019. • We evaluated the design and tested the operating
Significant judgment is required in relation to deferred effectiveness of controls in respect of the
tax liability as their liability is dependent on forecasts recognition and measurement of uncertain tax
of future profitability over a number of years. provisions. We determined that we could rely on
See note no 3.9 to the financial statements these controls for the purposes of our audit.
• With the assistance of our tax specialists, we
evaluated management’s judgements and
estimates of tax exposures and contingencies in
order to assess the adequacy of the Group’s tax
provisions. In understanding and evaluating
management’s judgements, we considered the
status of recent and current tax authority audits
and enquiries, judgmental positions taken in tax
returns and current year estimates and
developments in the tax environment.
Audit Committee
deferred tax liabilities have been disclosed and
recorded appropriately.
Reporting on Other Information Those charged with governance are responsible for
overseeing the Group’s financial reporting process.
Management is responsible for the other information.
The other information comprises the information Auditor’s Responsibilities for the Audit of the
included in the Annual Report, other than the Financial Statements
consolidated financial statements and our auditors’
report thereon. Our objectives are to obtain reasonable assurance
about whether the consolidated financial statements as
Our opinion on the financial statements does not cover a whole are free from material misstatement, whether
the other information and, except to the extent due to fraud or error, and to issue an auditor’s report
otherwise explicitly stated in our report, we do not that includes our opinion. Reasonable assurance is a
express any form of assurance conclusion thereon. high level of assurance but is not a guarantee that an
audit conducted in accordance with ISAs will always
In connection with our audit of the consolidated financial
detect a material misstatement when it exists.
statements, our responsibility is to read the other
Misstatements can arise from fraud or error and are
information and, in doing so, consider whether the other
considered material if, individually or in the aggregate,
information is materially inconsistent with the consolidated
they could reasonably be expected to influence the
financial statements or our knowledge obtained in the
economic decisions of users taken on the basis of these
audit or otherwise appears to be materially misstated.
consolidated financial statements.
If we identify such material inconsistencies or apparent
As part of an audit in accordance with ISAs, we exercise
material misstatement, we are required to determine
professional judgement and maintain professional
whether there is a material misstatement in the
skepticism throughout the audit. We also:
consolidated financial statements or a material
misstatement of the other information. If, based on the • Identify and assess the risks of material
work we have performed, we conclude that there is a misstatement of the consolidated financial
material misstatement of this other information, we are statements, whether due to fraud or error, design
required to report that fact. We have nothing to report and perform audit procedures responsive to those
in respect of these matters. risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those The risk of not detecting a material misstatement
Charged with Governance for the Financial resulting from fraud is higher than for one resulting
Statements and Internal Controls from error, as fraud may involve collusion, forgery,
Management is responsible for the preparation and fair intentional omissions, misrepresentations, or the
presentation of the consolidated financial statements in override of internal control.
accordance with IFRSs, the Companies Act 1994, the • Obtain an understanding of internal control relevant
Securities and Exchange Rules 1987 and other to the audit in order to design audit procedures that
applicable laws and regulations and for such internal are appropriate in the circumstances, but not for
control as management determines is necessary to the purpose of expressing an opinion on the
enable the preparation of consolidated financial effectiveness of the Group’s internal control.
statements that are free from material misstatement,
• Evaluate the appropriateness of accounting policies
whether due to fraud or error.
used and the reasonableness of accounting
In preparing the consolidated financial statements, estimates and related disclosures made by
management is responsible for assessing the Group’s management.
ability to continue as a going concern, disclosing, as • Conclude on the appropriateness of management’s
applicable, matters related to going concern and using the use of the going concern basis of accounting and,
going concern basis of accounting unless management based on the audit evidence obtained, whether a
either intends to liquidate the Group or to cease material uncertainty exists related to events or
operations, or has no realistic alternative but to do so. conditions that may cast significant doubt on the
Group’s ability to continue as a going concern. If we From the matters communicated with those charged
conclude that a material uncertainty exists, we are with governance, we determine those matters that were
required to draw attention in our auditor’s report to the of most significance in the audit of the consolidated
related disclosures in the consolidated financial financial statements of the current period and are
statements or, if such disclosures are inadequate, to therefore the key audit matters. We describe these
modify our opinion. Our conclusions are based on the matters in our auditor’s report unless law or regulation
audit evidence obtained up to the date of our auditor’s precludes public disclosure about the matter or when,
report. However, future events or conditions may cause in extremely rare circumstances, we determine that a
the Group to cease to continue as a going concern. matter should not be communicated in our report
• Evaluate the overall presentation, structure and because the adverse consequences of doing so would
content of the consolidated financial statements, reasonably be expected to outweigh the public interest
including the disclosures, and whether the benefits of such communication.
consolidated financial statements represent the
Report on other Legal and Regulatory
underlying transactions and events in a manner that
achieves fair presentation.
Requirements
• Obtain sufficient appropriate audit evidence In accordance with the Companies Act 1994 and the
regarding the financial information of the entities or Securities and Exchange Rules 1987 and relevant
business activities within the Group to express an notifications issued by Bangladesh Securities and
opinion on the consolidated financial statements. Exchange Commission, we also report the following:
We are responsible for the direction, supervision
a) we have obtained all the information and
and performance of the group audit. We remain
explanations which to the best of our knowledge
solely responsible for our audit opinion.
and belief were necessary for the purposes of our
We communicate with those charged with governance audit and made due verification thereof;
regarding, among other matters, the planned scope b) in our opinion, proper books of accounts as
and timing of the audit and significant audit findings, required by law have been kept by the Group so far
including any significant deficiencies in internal control as it appeared from our examination of these
that we identify during our audit. books;
We also provide those charged with governance with a c) the consolidated statement of financial position and
statement that we have complied with relevant ethical consolidated statement of profit or loss and other
requirements regarding independence, and to comprehensive income dealt with by the report are
communicate with them all relationships and other in agreement with the books of accounts; and
matters that may reasonably be thought to bear on our d) the expenditure incurred was for the purposes of
independence, and where applicable, related the Group’s business.
safeguards.
Place: Dhaka S. F. Ahmed & Co.,

28 October 2019 Chartered Accountants

Consolidated Statement of Financial Position
as at 30 June 2019
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
ASSETS
NON-CURRENT ASSETS
Property, Plant & Equipment 4 4,819,151,480 4,910,771,780

Intangible Assets 5 4,837,780 4,523,663
Capital Work in Progress 89,193,112 -
Investment in Associates 6 30,100,975 48,120,189
4,943,283,346 4,963,415,632
CURRENT ASSETS
Inventories 7 2,226,395,602 2,270,752,424
Materials In Transit 8 84,590,137 352,496,618
Accounts Receivable 9 3,702,829,144 3,149,252,735
Interest Receivable - 1,037,000
Deposit for Share 10 373,827,926 373,677,926
Advance, Deposit & Prepayments 11 854,102,032 840,105,092
Cash and Cash Equivalent 12 240,754,096 126,443,985
7,482,498,937 7,113,765,780
TOTAL ASSETS 12,425,782,283 12,077,181,412
EQUITY AND LIABILITIES
CAPITAL & RESERVE

Share Capital 13 1,279,237,290 1,195,548,870
Share Premium Account 14 1,250,000,000 1,250,000,000
Share Money Deposit 284,187,933 284,187,933
Retained Earnings 2,257,761,144 2,336,827,839
Revaluation reserve 873,906,660 873,906,660
Equity attributable to equity holders of Shasha Denims Ltd. 5,945,093,026 5,940,471,302
Non Controlling Interest 15 228,629,764 13,243,530
Total Equity 6,173,722,790 5,953,714,832
NON CURRENT LIABILITIES

Long Term Loan 16 439,273,441 239,777,506
Financial Liability 81,200,000 481,200,000
Deferred Tax Liability 94,067,657 68,545,525
614,541,098 789,523,031
CURRENT LIABILITIES
Accounts Payable 17 2,024,788,666 1,796,490,936
Liability for Expenses 18 193,866,935 199,022,515
Provision for Tax 19 143,582,144 163,475,093
Others Payable 13,000,000 13,000,000
IPO Fund Received 20 3,436,928 3,436,928
Short Term Loan 21 3,258,843,721 3,158,518,077
5,637,518,395 5,333,943,549
TOTAL EQUITY AND LIABILITIES 12,425,782,283 12,077,181,412
NAV 46.47 46.44
The annexed notes form an integral part of these statements.
Director Managing Director Company Secretary

Signed in terms of our separate report of even date annexed.

Consolidated Statement Profit or Loss and other Comprehensive Income
for the year ended 30 June, 2019
Amount in Taka
Particulars Note
2018-2019 2017-2018
Revenue 22 7,922,782,132 7,511,254,092
Less: Cost of Goods Sold 23 6,936,615,024 6,271,816,134
Gross Profit 986,167,108 1,239,437,958
Less: Administrative Expenses 24 196,552,126 180,463,304
Less: Selling & Distribution Expenses 25 58,085,438 54,299,582
Operating Profit 731,529,545 1,004,675,072
Add: Financial Income 2,164,359 13,146,937
Less: Financial Expenses 26 399,872,763 394,521,014
Add: Non-Operation Income/(loss) 27 107,731,247 13,161,312
Profit/(Loss) before central fund 441,552,387 636,462,307
Less: Central Fund (SGL-.03%) 308,338 208,574
Profit/(Loss) before Tax 441,244,049 636,253,733
Less: Income Tax
Current Tax 28 36,381,626 81,022,550
Deferred Tax 25,522,134 (524,734)
Net Profit/ (loss) for the period after Corporate Tax 379,340,289 555,755,916
Other Comprehensve Income - -
Total comprehensive Income 379,340,289 555,755,916
Profit attributable to:
Owners of the Company 390,385,257 554,448,943
Non-Controlling interest (11,044,968) 1,306,973
379,340,289 555,755,916
Total Comprehensive income attributable to:
Owners of the Company 390,385,257 554,448,943
Non-Controlling interest (11,044,968) 1,306,973
379,340,289 555,755,916
Basic Earnings Per Share (EPS) 29 3.05 4.33

Consolidated Statement of Changes in Equity
for the year ended 30th June,2019
2018-2019
Attributable to equity holders of Shasha Denims Ltd.
Non- Total
Particulars Share Share Retained Share Money Revaluation Equity for Controlling
Shasha Interest Equity
capital Premium earnings Deposit reserve Denims Ltd.
Balance as on 01.07.18 1,195,548,870 1,250,000,000 2,336,827,839 284,187,933 873,906,660 5,940,471,302 13,243,530 5,953,714,832
Cash Dividend - - (179,332,331) - - (179,332,331) (179,332,331)
Stock Dividend 83,688,420 - (83,688,420) - - - -
Net profit for the period - - 390,385,257 - - 390,385,257 (11,044,969) 379,340,289
Adjustment for holding Change
in Shasha Garments Ltd. - - (206,431,202) - - (206,431,202) 226,431,202 20,000,000
Balance as on 30.06.19 1,279,237,290 1,250,000,000 2,257,761,144 284,187,933 873,906,660 5,945,093,026 228,629,764 6,173,722,790
2017-2018
Attributable to equity holders of Shasha Denims Ltd.
Non- Total
Particulars Share Share Retained Share Money Revaluation Equity for Controlling
Shasha Interest Equity
capital Premium earnings Deposit reserve Denims Ltd.
Balance as on 01.07.17 1,127,876,300 1,250,000,000 1,991,036,004 284,187,933 873,906,660 5,527,006,897 11,936,557 5,538,943,454
Cash Dividend (140,984,538) (140,984,538) (140,984,538)
Stock Dividend 67,672,570 (67,672,570) - -
Net profit for the period - 554,448,943 - - 554,448,943 1,306,973 555,755,916
Balance as on 30.06.18 1,195,548,870 1,250,000,000 2,336,827,839 284,187,933 873,906,660 5,940,471,302 13,243,530 5,953,714,832

Annual Report 2019
137

Consolidated Statement of Cash Flows
for the year ended June 30,2019
Amount in Taka
Particulars Note
2018-2019 2017-2018
Cash flow from operating activities
Collection from Turnover 7,382,798,917 6,932,687,912
Payment for cost & other expenses (6,323,652,008) (6,226,630,051)
Financial Expenses (399,872,764) (394,521,014)
Central Fund payment (308,338) (208,574)
Income Tax Paid (80,878,269) (46,371,195)
Net cash provided by operating activities 578,087,538 264,957,079
Cash flow from investing activities

Acquisition of Fixed Assets (233,357,793) (494,744,705)
Investment Realized-SGL 18,019,214 -
Capital work in progress (89,193,112) -
Received from Machinery Sale - 4,250,000
Advance for Land & Land Development - 2,038,555
Net Cash provided by investing activities (304,531,691) (488,456,150)
Cash flow from financing activities

Dividend Paid (179,332,331) (140,984,538)
Share Capital-SGL 20,000,000 -
Investment in Associates - 300,000
Dividend Income-SGL 3,769,654 3,042,380
Deposit for Shares (150,000) (13,012,427)
Capital Gain-SGL 96,770,210 -
Long Term Loan 199,495,935 (211,821,589)
Share Money Deposit - 13,582,647
Others Payable - 13,000,000
Financial Liability (400,000,000) 44,800,000
Short-Term Loan 100,325,643 (113,041,524)
Net Cash provided by financing activities (159,120,890) (404,135,052)
Increase/ (decrease) in cash and bank balances 114,434,956 (627,634,123)
Effect of Un-realized Gain/(Loss) due to Currency Translation (124,846) 421,848
Cash and bank balances on opening 126,443,985 753,656,260
Cash and bank balances on closing 240,754,096 126,443,985
Net Operating cash flow per share 4.52 2.07


Notes to the Financial Statements
1.0 Reporting Entity

1.1 Company Profile
1.1.1 Shasha Denims Limited (the parent company)
Shasha Denims Limited a Private Limited Company with an incorporation date on 28th October 1996 had
been converted into a Public Limited Company on 1st day October 1997 under the companies Act 1994.
Registered office of the companies is at House # 07, Road # 117, Gulshan, Dhaka.
1.1.2 Shasha Garments Limited

Shasha Garments Limited originally limited as a Private Limited Company on 18th November 1991 under the
companies Act.1913. Registered office of the companies is at House # 07, Road # 117, Gulshan,Dhaka.
1.1.3 Energis Power Corporation Limited

Energis Power Corporation Limited (the Company) was incorporated in Bangladesh on December 28,
2008 as a Private Limited Company. On April 20, 2009 the Company registered itself as a Public Limited
Company under the Companies Act, 1994. The registered office of the Company is situated at House #
07, Road # 117, Gulshan,Dhaka.
1.1.4 Shasha Textiles Limited

Shasha Textiles Limited was originally incorporated as a Public Limited Company on 18th September
2003, Regd. No. C-50512(807) under the companies Act.1994 Registered office of the companies is at
House # 07, Road # 117, Gulshan; Dhaka.
1.2 Nature of Business

1.2.1 Shasha Denims Limited
The main activities of the company were concentrated in Manufacturing, Dyeing, Weaving & Finishing of
Denim Fabric and exporting the same.
1.2.2 Shasha Garments Limited

The main activities of the company were concentrated in Manufacturing various types of garments, shirt,
children wear, female wear and exporting the same.
1.2.3 Energis Power Corporation Limited

The principal activity of this Company is to set up power plants for generation and supply of electricity. The
plant, capacity of 55 MW at Sikalbaha, Chittagong has successfully commissioned on 10 January, 2010
and started its commercial operation from 06 May, 2010 and supplying to National Grid of Power.
The company signed a Power Purchase Agreement (PPA) with Bangladesh Power Development Board
(BPDB) on 28 December 2008 for a term of 3 years to provide 55 MW net electricity to Bangladesh Power
Development Board (BPDB). This agreement is subsequently renewed on 12 May 2014 for another 5
years for a plant capacity of 35 MW to 55 MW.
1.2.4 Shasha Textiles Limited

The main activities of the company were concentrated in Textile and Textile related business. However, the
company is yet to start its commercial operation.
2.0 Basis of Preparation

2.1 Statement of Compliance
The financial statements of the company under reporting have been prepared under historical cost
convention in a going concern concept and on accrual basis in accordance with generally accepted
accounting principles and practice in Bangladesh in compliance with the Companies Act 1994, The
Securities and Exchange Rules 1987, International Accounting Standards (IAS) as adopted by the Institute
of Chartered Accountants of Bangladesh (ICAB) and International Financial Reporting Standards (IFRS)
and other applicable laws and regulations.
2.2 Basis of consolidated and separate financial statements

2.2.1 Subsidiaries
Subsidiaries are entities controlled by the group. The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when assessing whether the group controls another
entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They
are de-consolidated from the date on which control ceases.
Ownership interests held by NCI

Name of the company Operating segment
2018-19 2017-18
Shasha Garments Ltd. 100% export oriented garments 57.81% 3.54%
Shasha Textiles Ltd. textile products 0.43% 0.43%
Energis Power Corporation Ltd. Energy producing company 0.03% 0.03%
2.2.2 Power over the investee

Accroding to para 10 of IFRS 10: Consolidated and Separate Financial Statements; An Investee has power
over an investee when the investor has existing rights that give it the current ability to direct the relevant
activities, i.e. the activities that significantly affect the investee's return.
During the preparation of these consolidated financial statements, it is reportable that, during the 4th quarter of
this financial period, as at 4 April 2019, one of the subsidiary companies, Shasha Garments Limited has made
allotment of shares to its shareholders. These sponsor shareholders of the subsidairy company is also the
sponsor shareholders of the parent company (Shasha Denims Limited). As a result, due to having common
interest of the decision making for both the subsidairy and the parent, it can be said reasonably that, the current
ability of the parent company to direct relevant activities has not been reduced at all due to allotment of shares.
It is to be noted, due to allotment received by the shareholders (except Shasha Denims Limited, which declares
in their 19th AGM that, the company is not interested in investment in Shasha Garments Limited) of the
subsidiaries, the holding proposition of the parent, Shasha Dneims Limited is showing only having 42.19%
holdings of the entire shares of the subsidiary at the end of the reporting date.
Having the existing rights to the current ability to direct the relevant activities, though the shareholding
proposition is less than 50%; the parent company still considering the investment as a subsidiary and
accounted for accordingly.
2.2.3 Transaction eliminated on consolidation

The financial statements of the subsidiaries have been consolidated with those of Shasha Denims Limited
in accordance with IFRS 10: Consolidated and Separate Financial Statements. Intra group balances and
transactions, and any unrealized income and expenses arising from intra group transactions are eliminated
in preparing consolidated financial statements.
2.2.4 Basis of preparation

The group has presented separate financial statements in addition to consolidated financial statements.
2.2.5 Non Controlling Interest

Non-Controlling Interest are measured at their proportionate share of the acquires indentifiable net assets
at the date of acquisition as per Para 19 of IFRS-3 "Business Combinations".
The company presents the non-controlling interests in the consolidated balance sheet within equity, separately
from the equity of the owners of parent as per Para 22 of IFRS-10 "Consolidated Financial Statements".
Changes in Group's interest in a subsidiary that do not result in a loss of control are accounted for as
equity transaction as per Para 23 of BFRS-10 "Consolidated Financial Statements".
The company attributes the profit and loss to the owners of the parent and to the non-controlling interests
even if the results in the non-controlling interest having a deficit balance as per provision of Para B94 of
IFRS-10 "Consolidated Financial Statements".
When the proportion of the equity held by the non-controlling interests changes, the company adusted the
carrying amounts of the controlling and non-controlling interests to reflect the changes in their relative interests
in the subsidiary and recognized directly in equity for any difference between the amount by which the
non-controlling interests are adjusted and the fair value of the consideration paid or received, and atribute it to
the owners of the parent by as per provision of Para B96 of IFRS-10 "Consolidated Financial Statements".
2.3 Reporting Period

The financial period of the company covers the period from 1 July 2018 to 30 June 2019.
2.4 Date of Authorization

The board of directors has authorized these financial statements on October 28, 2019.
2.5 Reporting Currency and Level of Precision

The figure in the financial statements represent Bangladesh Currency (Taka), which have been rounded off
to the nearest Taka except where indicates otherwise.
3.0 Significant Accounting Polices

Principal Accounting Policies
The accounting policies set out below have been applied consistently (otherwise as stated) to all periods
presented in these financial statements.
Changes in accounting policies

Shasha Denims Limited changes its accounting policy only if the change is required by a IFRS or results in
the financial statements providing reliable and more relevant information about the effects of transactions,
other events or conditions on the company’s financial position, financial performance or cash flows.
Changes in accounting policies is to be made through retrospective application by adjusting opening
balance of each affected components of equity i.e. as if new policy has always been applied.
Changes in accounting estimates

Estimates arise because of uncertainties inherent within them, judgment is required but this does not
undermine reliability. Effect of changes of accounting estimates is included in profit or loss account.
Correction of error in prior period financial statements

Shasha Denims Limited corrects material prior period errors retrospectively by restating the comparative
amounts for the prior period(s) presented in which the error occurred; or if the error occurred before the
earliest prior period presented, restating the opening balances of assets, liabilities and equity for the
earliest prior period presented.
3.1 Foreign currency

Foreign currencies are converted into Taka at the rates ruling on the transaction dates. Monetary assets
and liabilities are reconverted at the rates prevailing at the balance sheet date. Non-monetary assets and
liabilities are reported using the exchange rate at the date of transaction. Differences arising on conversion
are charged or credited to the profit or loss account.
3.2 Property, plant and equipment

3.2.1 Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises its
purchase price, import duties and non-refundable taxes and any costs directly attributable to bringing the
assets to the location and condition necessary for it to be capable of operating in the intended manner.
3.2.2 Subsequent costs

The cost of replacing part of an item of property, plant and equipment is 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. The costs of the day-to-day servicing of property, plant and equipment
are recognized in the Statement Profit or Loss and other Comprehensive Income as incurred.
3.2.3 Depreciation
Shasha Denims Limited uses the reducing balance method to depreciate each item of property, plant and
equipment.
The rates of depreciation, applied on reducing balance method, for the current and comparative year are
as follows:
Particulars 2018-2019 2017-2018
Building & Civil work 5% 5%

Plant & Machinery 10% 10%
Generator, Sub-Sta., Elec. 10% 10%
Turbine 8% 8%
Local Machinery & Installation 8% 8%
Workshop Equipment 15% 15%
Fire Extinguisher 20% 20%
Office Equipment 20% 20%
Furniture & Fixture 15% 15%
Crockery & Cutlery 20% 20%
Air Conditioner 15% 15%
Sanitary Fittings 15% 15%
Vehicle 15% 15%
Office Decoration 15% 15%
Hydrant Line 15% 15%
ETP Plant 15% 15%
Other Assets 15% 15%
Deep Tube-Well 15% 15%
CC Camera 10% 10%
Oil Tanker 10% 10%
Furnace Oil Reserver 15% 15%
3.3 Investments
Investments include investment in subsidiaries and some other non operating companies which represents
management vision to business expansion.
3.4 Capital Work in Progress

Capital Work in Progress comprises the capital expenditures incurred in regular course of business. These
items are classified in two categories: plant & machinery and Building & civil works. As both the items are
qualifying assets, all expenses associated with these items are recognized as capital work in progress.
3.5 Inventories
Inventories are measured at lower of cost and estimated net realizable value. The cost of inventories is
measured by using weighted average cost formula and includes expenditure incurred for acquiring the
inventories, production or conversion costs and other costs in bringing them to their existing 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.
3.6 Impairment
The carrying value of the Company's assets other than inventories, are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any such indication exists, the asset's
recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the
asset or its cash-generating unit exceeds its recoverable amount. Impairment losses, if any, are
recognized in the Statement Profit or Loss and other Comprehensive Income.
3.7 Deposit for shares

Deposit for shares are investment of the company to its other sister concerns in which the company has
significant interest and control. Deposit for shares are being provided with an objective to assist these
companies being capable of running its business without interruption as well as the company can enhance
its control over these companies.
3.8 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. The entity recognizes financial instruments and provides necessary
disclosures only for the parent company and not for the consolidated status.
3.8.1 Financial Assets

Financial assets are recognized initially on the date at which the company becomes a party to the
contractual provisions of the transaction.
The company derecognizes a financial asset when the contractual rights or probabilities of receiving the
cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the
financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial
asset are transferred.
Financial assets basically include cash and cash equivalents and accounts receivable.
(a) Accounts Receivables
Accounts receivables are initially recognized at nominal value which is the fair value of the consideration
given in return.
(b) Cash and cash equivalents

Cash and cash equivalents comprise cash balances both in hand and at bank.
3.8.2 Financial Liability

All financial liabilities are recognized initially on the transaction date at which the company becomes a party
to the contractual provisions of the liability.
The company derecognizes a financial liability when its contractual obligations are discharged, cancelled
or expired.
Financial liabilities include loans and borrowings both in short and long termed, bank liability generated
from import of raw materials, accounts payable etc.
(a) Long term loan

The consolidated long term loan includes project loan of Energis Power Corporation Limited.
(b) Financial Liability

Financial Liability is associated with issued Redeemable Preference Shares by Energis Power Corporation
Limited to a bank which was according to a agreement converted to financial liability due to non
conversion to equity within a given timeline. However, the associated interest expenses are being recorded
by the entity as per the said agreement.
(c) Accounts Payable

The company recognizes financial liability when its contractual obligations arising from past events are certain
and the settlement of which is expected to result in an outflow from the entity of resources embodying
benefits
(d) Short Term Loan

Short term loan includes short term facilities from the associated banks of the entity named, Over Draft (OD)
facility, Cash Credit Hypo (CCHP). It also includes Trade Payables incurred from procurement of goods through
Letter of Credit (L/C) which is also duly accepted by the bankers of the entity waiting for maturity of payment as
per the terms & conditions. It also includes other short term facility provided by the banks to the entity (if any).
3.9 Income tax

Income tax expense comprises current and deferred tax. Income tax expense is recognized in the
statement of profit or loss and other comprehensive income.
3.9.1 Current tax

The current income tax charge is calculated based on tax laws enacted or substantively enacted at the
balance sheet date. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
3.9.2 Deferred tax

Principle of recognition
Deferred tax is recognised as income or an expense amount within the tax charge, and included in the net
profit or loss for the period. Deferred tax relating to items dealt with as other comprehensive income is
recognised as tax relating to other comprehensive income within the statement of profit or loss and other
comprehensive income.
Taxable temporary difference

A deferred tax liability is recognised for all taxable differences, except to the extent that the deferred tax
liability arises from the initial recognition of goodwill; or the initial recognition of an asset or liability in a
transaction which is not a business combination; and at the time of the transaction, affects neither
accounting profit nor taxable profit (tax loss).
Deductible temporary difference

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable
that taxable profit will be available against which the deductible temporary difference can be utilised, unless
the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is not a
business combination; and at the time of the transaction, affects neither accounting profit nor taxable profit
(tax loss).
Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.
3.10 Employee benefit

The Company maintains defined contribution plan (provident fund) for its eligible permanent employees.
The eligibility is determined according to the terms and conditions set forth in the respective trust deeds.
3.11 Revenue recognition
3.11.1 Export sales

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable,
net of returns and allowances, trade discounts etc. recognized according to IAS 18: Revenue
Recognation. This usually occurs at the time of delivery of goods along with invoice. The company also
considers the time of delivery as revenue recognition point.
3.11.2 Energy sales by EPCL

Revenue is initially recognized in the income statement upon supply of electricity based on net energy
output on a monthly basis according to PPA agreement with BPDB. Net energy output is determined by
the Joint meter reading and verification committee consisting of EPCL personnel's and BPDB
representatives. The measurement of the revenue deriving from energy sales is determined after necessary
adjustment, due assurance from the BPDB regarding the recoverability of the revenue.
3.12 Financial Income

Financial Income comprises interest income arising from the idle fund as well as yet to be utilized IPO fund
kept in Fixed Deposit (FDR) mode. However these deposits are being encashed as and when necessary
to ensure the smooth construction of new factory building and importation of new machinery as declared
in the prospectus.
3.13 Finance expenses

Finance expenses comprise interest expense on term loan, overdraft, and bank charges. It also includes
bill discounting charge which evolves as the most effective financial arrangement of the parent company.
All finance expenses are recognized in the Statement Profit or Loss and other Comprehensive Income.
3.14 Earnings per share

The company presents basic earnings per share (EPS) data for its ordinary shares and diluted EPS where
applicable. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company net of non controlling interest on consolidated profit by the weighted average number of ordinary
shares during the period, adjusted for the effect of change in number of shares for bonus issue. Diluted EPS is
determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares. However,
dilution of EPS is not applicable for these financial statements as there was no dilutive potential ordinary
shares during the relevant periods.
3.15 Statements of Cash flows

Cash flows from operating activities have been presented under direct method. However to comply with
the directives of official gezzette of BSEC, a indirect method of cash flows are measured and presented
only for the operating cash flows of the company.
3.16 Events after the reporting period

Events after the reporting date that provide additional information about the Company's position at the
reporting date are reflected in the financial statements. Material events after the reporting date that are not
adjusting events are disclosed in a separate note, if any.
4. Property, Plant & Equipment
Original Cost Depreciation Written down

Balance Addition Sale/ Total Cost Balance Sale/ Charged Total Value
Particulars
as at during the Disposal as at as at Disposal during the as at as at
01.07.18 year 30.06.2019 01.07.18 year 30.06.2019 30.06.2019
Tangible Assets
Land & Land Development 1,110,049,942 - - 1,110,049,942 - - - - 1,110,049,942
Building & Civil work 568,156,065 7,322,277 - 575,478,342 123,357,350 - 18,323,673 141,681,023 433,797,320
Plant & Machinery 2,514,129,088 174,250,404 - 2,688,379,492 1,165,988,081 - 125,062,626 1,291,050,707 1,397,328,785
Generator, Sub-Sta., Elec. 2,567,792,665 37,174,662 - 2,604,967,327 1,125,849,718 - 120,635,848 1,246,485,566 1,358,481,761
Turbine 602,625,301 - - 602,625,301 330,922,945 - 21,736,189 352,659,134 249,966,167
Local Machinery & Installation 246,284,056 - - 246,284,056 122,711,236 - 9,885,826 132,597,062 113,686,994
Workshop Equipment 7,272,174 25,000 - 7,297,174 3,035,215 - 635,544 3,670,759 3,626,415
Fire Door, Alarm & Extinguisher 40,589,623 1,783,115 - 42,372,738 6,548,660 - 6,281,176 12,829,835 29,542,903
Office Equipment 31,329,602 6,170,587 - 37,500,189 21,015,299 - 3,293,291 24,308,590 13,191,600
Furniture & Fixture 11,117,259 2,102,473 - 13,219,732 6,409,504 - 744,852 7,154,356 6,065,377
Crockery & Cutlery 162,212 3,340 - 165,552 97,229 - 16,487 113,716 51,836
Air Conditioner 11,127,873 570,175 - 11,698,048 8,317,700 - 494,907 8,812,607 2,885,441
Sanitary Fittings 24,788 - - 24,788 23,162 - 244 23,406 1,382
Vehicle 110,699,162 - - 110,699,162 60,761,593 - 8,014,551 68,776,143 41,923,019
Office Decoration 15,591,189 27,008 - 15,618,197 6,915,840 - 1,057,400 7,973,240 7,644,957
Hydrant Line 1,680,530 278,020 - 1,958,550 912,359 - 202,951 1,115,310 843,240
ETP Plant 8,958,616 - - 8,958,616 4,516,764 - 696,207 5,212,971 3,745,645
Other Assets 41,945,765 2,884,249 - 44,830,014 18,766,332 - 2,777,422 21,543,754 23,286,260
Deep Tube-Well 14,948,862 - - 14,948,862 6,251,068 - 1,073,702 7,324,770 7,624,092
CC Cemera 1,792,902 - - 1,792,902 1,032,552 - 76,035 1,108,587 684,315
Oil Tanker 22,452,405 - - 22,452,405 9,127,520 - 2,664,977 11,792,497 10,659,908
Furnace Oil Reserver 11,287,184 - - 11,287,184 6,685,358 - 537,704 7,223,062 4,064,122
Total 7,940,017,267 232,591,310 - 8,172,608,577 3,029,245,486 - 324,211,610 3,353,457,096 4,819,151,480
Property, Plant & Equipment 6,559,731,243 1,411,770,282 31,484,258 7,940,017,267 2,821,865,613 24,281,669 231,661,542 3,029,245,486 4,910,771,780
as at 30 June 2018
Annual Report 2019
147
148
5. Intangible Assets
Original Cost Depreciation Written down

Annual Report 2019
Balance Addition Sale/ Total Cost Balance Sale/ Charged Total Value
Particulars
as at during the Disposal as at as at Disposal during the as at as at
01.07.18 year 30.06.2019 01.07.18 year 30.06.2019 30.06.2019
Software Development 7,090,961 766,483 - 7,857,444 2,567,298 - 452,367 3,019,665 4,837,780
Intangible Assets as at
30 June 2018 5,697,767 1,393,194 - 7,090,961 2,211,299 - 355,999 2,567,298 4,523,663
5.1 Allocation of Depreciation & Amortization

Factory 319,377,267
Administrative 5,286,710
Total 324,663,977
Amount in Taka
Particulars
30 June 2019 30 June 2018
6 Investment in Associates:
Particulars
Shasha Apparels Ltd. 600,000 600,000
Shasha Spinning Ltd. 25,000 25,000
Shasha Denims Ltd. Unit-2 15,939,189 15,939,189
Cider Education Services Ltd. 9,990,000 9,990,000
TelStar Communication Ltd. 300,000 300,000
Trade Matrix Bangladesh Ltd. 300,000 300,000
Shasha Denims Ltd.(SGL) 2,596,786 20,616,000
Energis Holdings Ltd. 350,000 350,000
Total: 30,100,975 48,120,189
7 Inventories:
Particulars
Yarn 852,312,265 992,742,837
Chemical 266,054,874 235,138,725
Packing Materials 3,461,832 2,616,100
Stationery 1,140,235 1,210,753
Spare Parts & Others 127,086,060 115,480,174
Fuel, Oil & Lubricants 2,827,177 3,124,077
Finished Fabric 513,102,388 271,296,108
Fabric & Others -SGL 22,180,734 46,935,909
Fuel, Oil & Lubricants-EPCL 308,058,401 340,529,468
Spare Parts-EPCL 5,053,817 10,053,817
Work-in-Progress- Fabric 85,711,336 131,735,976
Work-in-Progress- Sizing Yarn & Chemical 39,406,481 119,888,481
Total: 2,226,395,602 2,270,752,424
8 Materials In Transit:
Particulars
Yarn 50,830,868 315,991,474
Chemical 3,968,076 27,301,268
Machine - 2,190,197
Transit(SGL) 17,216,673 -
Total: 84,590,137 352,496,618
9 Accounts Receivable :
Particulars
Export Bill receivable 1,868,648,526 1,809,620,260
Export Bill receivable-SGL 138,354,849 120,518,360
Rental Bill-BPDB 669,422,815 271,751,192
Energy Bill-BPDB 24,692,403 28,139,222
Service Charge (Transportation)-EPCL 73,422,434 69,764,436
Fuel Payment-HFO 78,828,851 -
Disputed Deduction-Fuel 849,459,265 849,459,265
Total: 3,702,829,144 3,149,252,735
Amount in Taka
Particulars
30 June 2019 30 June 2018
10 Deposit for Shares:
Particulars
EOS Textiles Mills Ltd. 300,000,000 300,000,000
Form Icon Limited 66,381,622 66,381,622
Total: 373,827,926 373,677,926
11 Advance Deposit & Prepayments:

Particulars
Security Deposit & Guarantee (note: 11.01) 50,365,738 54,570,148
Advances (note: 11.02) 414,204,263 369,359,268
Prepayments (note: 11.03) 389,532,032 416,175,675
Total: 854,102,032 840,105,092
11.01 Security Deposit & Bank Guarantee:

Particulars
Security Deposit (note: 11.1.1) 49,082,648 53,287,058
Bank Guarantee (note: 11.1.2) 1,283,090 1,283,090
Total: 50,365,738 54,570,148
11.1.1 Security Deposit:

Particulars
Security Deposit BEPZA Land 1,117,871 1,117,871
Security Deposit BEPZA Land Elect. Plot-189-292 1,820,982 1,820,982
Security Deposit BEPZA Electric 1,207,500 1,207,500
Security Deposit BEPZA Water Connection 103,068 103,068
Security Deposit Titas Gas 19,477,100 19,477,100
Security Deposit-TBL 270,000 270,000
Security BOC Cylinder 54,000 54,000
Security Deposit-T&T 33,000 33,000
Security Deposit Titas Gas 331,250 331,250
Security Deposit-DPBS 283,570 105,570
Group4s Security 259,996 259,996
Security Deposit-Mobile 8,000 8,000
Security Deposit-IPDC 991,419 991,419
Security Deposit-CDBL 305,636 411,636
Security Deposit-Office Rent 400,000 400,000
Security Deposit-IDLC 61,010 4,337,420
Security Deposit-Load 2500 KW 2,152,500 2,152,500
Security Deposit-Electricity 2500 kW 20,103,747 20,103,747
BPDB 100,000 100,000
Total: 49,082,648 53,287,058
Amount in Taka
Particulars
30 June 2019 30 June 2018
11.1.2 Bank Guarantee:
Particulars
BG Margin-Titas Gas-Bank Asia 523,750 523,750
BG Margin-Titas Gas-PBL Uttara 203,340 203,340
BG Margin-Titas Gas 556,000 556,000
Total: 1,283,090 1,283,090
11.02 Advances:
Particulars
Office Employees 10,217,213 11,397,334
House Rent-Chittagong 510,000 510,000
Factory Rent 4,337,752 4,255,055
Flat Purchase-Samudra Builders 16,711,925 15,211,925
SIBSL-SGL 50,667,424 75,000,000
Store & Garage Rent 3,142,900 3,192,900
Rent-BEPZA 1 -
D.G Department of Environment 2,288,000 2,288,000
Others Receivable 87,390,858 41,181,217
Advance-Suppliers & Others (EPCL) 238,938,190 216,322,836
Total: 414,204,263 369,359,268
11.03 Prepayments:
Particulars
Factory Expenses 8,764,284 4,466,255
Land & Land Development 86,059,023 86,059,023
Deposit & Prepayments-SGL 78,200 78,200
Mobile Bill & Others 147 356,148
L/C Margin 20,799,640 84,575,459
L/C & Bank Guarantee Margin-EPCL 78,939,875 80,194,916
Hashem Plaza-Civil Work-SGL 9,235,243 7,276,383
Adv. For Customs Appel. Tribunal 1,107,072 -
Advance Income Tax Note: 11.03.01 121,957,362 95,538,391
Adv. Against Purchase Note: 11.03.02 62,591,187 57,630,900
Total: 389,532,032 416,175,675
11.03.01 Advanced Income Tax:

Particulars
Opening Balance 95,538,391 116,468,601
Addition during the period 37,278,269 40,114,852
Adjusted during the year 10,859,299 61,045,062
Closing balance 121,957,362 95,538,391
11.03.02 Adv. Against Purchase:

Particulars
Foreign-TT 12,521,233 10,539,790
Local Purchase 50,069,954 47,091,110
Total: 62,591,187 57,630,900
Amount in Taka
Particulars
30 June 2019 30 June 2018
12 Cash and Cash Equivalents:
Particulars
Cash in Hand (note: 12.01) 6,889,155 5,256,906
Cash at Bank- Current Account (note: 12.02) 121,748,177 10,181,941
Cash at Bank- Foreign Currency (note: 12.03) 103,502,873 38,701,688
Cash at Bank- IPO Account (note: 12.04) 8,613,892 11,303,450
Fixed Deposit (note: 12.05) - 61,000,000
Total: 240,754,096 126,443,985
12.01 Cash in Hand:

Particulars
Head Office 5,970,547 4,150,834
Factory Office 918,608 1,106,072
Total: 6,889,155 5,256,906
12.02 Cash at Bank- Current Account:

Particulars
United Commercial Bank Ltd., CD-015-1101-000000371 78,007 151,942
IFIC Bank Ltd., CD-33014676 17,111 17,111
Sonali Bank Ltd.,CD-33053716 136,254 136,254
The Premier Bank Ltd., CD-11002930 2,356 3,506
The Premier Bank Ltd., CD-7632 - 97,970
Trust Bank Ltd.,CD-33001855 1,161,478 1,165,128
One Bank Ltd., CD-5006 412,730 111,824
First Security Bank, CD-111000553-4 15,438 17,250
United Commercial Bank Ltd.,CD-14/10 107,334 787,293
Bank Asia Ltd., RAD A/C 1 1,019
The Premier Bank Ltd.,CD-7609 1,002,257 1,005,907
United Commercial Bank ltd.,CD-105-440 3,495 4,645
Agrani Bank CD-8652-2 519,810 2,790
Bank Asia Ltd., CD-1208 49,190 49,190
Union Bank Ltd. CD-1197 2,824 4,089
Sonali Bank CD-705 46,938 46,938
The Premier Bank Ltd., CD-6886 1,434,740 250,617
DBBL CD-11820 19,703 22,733
Pubali Bank Ltd. CD-31950 2,771,841 75,450
Agrani Bank Ltd., Escrow A/C 2,524 2,525
City Bank CD-4001 3,390 3,390
Bank Asia CD-1829 98,316 163,026
United Commercial Bank Ltd., CD-120/18 338,267 268,284
DBBL CD-35950 2,355 2,355
IPDC 10,000,000 -
Bank Asia , SND-101 563,717 1,012,873
Bank Asia Ltd., RAD A/C 6,863,156 1,637,744
United Commercial Bank Ltd., CD-7256 62,784,366 266,035
UCBL SND-90, Sonargaon Janapath Branch 20,102,736 -
IFIC Bank Ltd. -041 908,282 908,282
Premier Bank Ltd., -869 1,413,769 1,373,076
Midland Bank Limited-CD-2956 10,078,617 -
The City Bank-2001 3,270 -
Bank Asia Ltd., STD-625 803,905 592,696
Total: 121,748,177 10,181,941
Amount in Taka
Particulars
30 June 2019 30 June 2018
12.03 Cash at Bank- Foreign Currency Account:

Particulars
The Premier Bank Ltd., FC-128/04 4,556 4,515
Bank Asia Ltd.,FC-344 2,079,376 2,539,832
Sonali Bank Ltd.,FC-045 6,788,265 6,727,286
United Commercial Bank Ltd. FC-0054 17200000032 59,490,027 19,300,099
United Commercial Bank Ltd. ERQ A/C-129 4,989,934 5,969,938
Bank Asia Ltd.,ERQ 14,931 -
The Premier Bank Ltd., FC-313 28,317,083 -
The Premier Bank Ltd., FC-83 1,818,702 4,160,018
Total: 103,502,873 38,701,688
12.04 Cash at Bank- IPO Account:

Particulars
Eastern Bank Ltd., -High Performance A/C-58906 8,278,700 8,062,765
Eastern Bank Ltd.- USD Account 133,610 132,557
Premier Bank Ltd. Uttara Br. SND-228 175,743 3,082,049
Eastern Bank Ltd.- Euro Account 13,792 13,744
Eastern Bank Ltd.- GBP Account 12,047 12,335
Total: 8,613,892 11,303,450
12.05 Cash at Bank- Fixed Deposit Account:

Particulars
Premier Bank Ltd., Uttara Branch - 61,000,000
Total: - 61,000,000
13 Share Capital:
Authorized Capital:
20,00,00,000 ordinary shares of TK.10/- each 2,000,000,000 2,000,000,000
2,50,00,000 redeemable preference shares of TK.10/- each 250,000,000 250,000,000
2,250,000,000 2,250,000,000
Issued & Paid up Capital:

Ordinary Shares 1,195,548,870 1,127,876,300
Stock Dividend 83,688,420 67,672,570
1,279,237,290 1,195,548,870
The Paid up Capital of Shasha Denims Ltd.

Amount (Tk.) Percentage
Sponsor & Director 480,603,830 38%

Institutions 226,090,560 18%
Foreign 40,779,270 3%
Others 531,763,630 42%
1,279,237,290 100%
The Range of Shareholdings:
Shareholding Range No.of Shareholders No. of Shares Percentage
Up to 500 Shares 6274 1,207,932 0.94%

501 to 5,000 Shares 2482 5,015,649 3.92%
5,001 to 10,000 Shares 569 4,164,573 3.26%
10,001 to 20,000 Shares 386 5,475,090 4.28%
20,001 to 30,000 Shares 146 3,647,404 2.85%
30,001 to 40,000 Shares 75 2,611,795 2.04%
40,001 to 50,000 Shares 47 2,159,921 1.69%
50,001 to 1,00,000 Shares 94 6,718,125 5.25%
1,00,001 to 10,00,000 Shares 90 21,535,090 16.83%
10,00,001 and above shares 13 75,388,150 58.93%
10,176 127,923,729 100.00%
Amount in Taka
Particulars Amount in Taka
30 June 2019 30 June 2018
14 Share on Premium Account:
5,00,00,000 Shares of Tk. 25 each 1,250,000,000 1,250,000,000
15 Non Controlling Interest:

Particulars
Opening Balance 13,243,530 11,936,557
Addition during the year (11,044,968) 1,306,973
Adjustment for holding change in Shasha Garments Ltd. 226,431,202 -
Total: 228,629,764 13,243,530
16 Long Term Loan:

Particulars
Project Loan for 55MW Power Plant Note: 16.01 439,273,441 239,777,506
Total: 439,273,441 239,777,506
16.01 Project Loan for 55MW Power Plant:

Particulars
Agrani Bank Ltd. - 42,092,947
Janata Bank Ltd. - 42,340,346
Sonali Bank Ltd. - 39,073,883
Premier Bank Ltd. - 6,816,850
Bangladesh Commerce Bank Ltd. - 9,217,211
South East Bank Ltd. - 8,966,284
United Commercial Bank Ltd. 304,772,295 -
IPDC 108,618,561 14,189,643
IDLC 25,882,585 77,080,342
Total: 439,273,441 239,777,506
Amount in Taka
Particulars
30 June 2019 30 June 2018
17 Accounts Payable:
Particulars
Dhaka Logoistics Network - 86,721
General Enterprise 11,515 72,800
New Khan Transport Agency 4,703,025 4,013,166
Gazi International 5,800 5,800
New Asia Ltd. - 19,000
New Light Corner - 24,859
Bismillah Rubber & Engineering 10,540 4,680
Titas Spinning & Denim - 14,781
Mr. Korsher Alam 53,000 51,750
Met Life Alico 18,862 18,862
AG Tex 1,135 -
Max Leather - 10,000
J.R Collection - 52,924
Sharmin Reed - 10,800
Telecom Spare - 81,225
S.Alam Electronics - 35,507
Hakim Enterprise - 6,437
Friends Chemitech 194,400 205,500
Japan Engr. - 21,400
ITS Labtest Bangladesh Ltd. 1 164,900
Dana Engr. Ltd. 44,259 1,452
SGS Bangladesh Ltd. - 908
Touch Paper 1,122,454 1,267,570
Sohel & Brothers - 310,218
Unifil Composite Dyeing Mills - 20,317
Dexterous Engr.-Chiller 18,630 171,760
Rafi Paper 338,884 616,413
Z.R Color Chem - 33,000
Ahsiar Fashions Ltd. - 1,268,184
Richmod Hotel - 16,710
TUV Rheinland Bangladesh 552 552
EMKAY Enterprise - 82,750
Cargoline Global Logistices 17,000 -
Consumer Gas Service 92,200 -
Lanka Bangla Infor. Sys. Ltd. 72,000 63,000
Mozumder Sikder Associates 3,000 7,500
Multicable Network - 4,200
Kurmitola Golf Club - 12,100
Sigma Pump 8,635 4,920
Others payable - 143
Horizon Express Ltd. 129,169 668,750
Energypac Power Generation 93,980 -
Falcate Paper Tube 255,449 -
Haque Textiles 36,012 -
Bureau Veritas Con. Pro Bd Ltd. - 169,852
Jamuna Denim Weaving Ltd. 13,671 -
Md. Toha Hossain - 366,016
Amount in Taka
Particulars
30 June 2019 30 June 2018
Technical World 4,526 2,236
Engr.-Survey & Planning - -
Multibrand Workshop 166,230 79,210
Juel Enterprise 39,619 -
Aegis Services Ltd. 8,694 8,694
Civic Inn - 33,345
Oversis Marketing Corp. Ltd. 7,500 7,500
Hashem Textiles 108 128,469
Al Baraka Enterprise 347,347 423,806
Baizid Enterprise 6,884,000 -
Fashion Bangla - 873,217
Tareq Catering & Event 9,450 9,450
ICSB - 9,500
H.A Engneering - 14,000
Sovereign Technology 5,880 190,000
AE International 3,318 3,318
Saje Solution - 233,200
Roots Construction - 1,491
AA Synthetic 3,897 3,500
Atlas Copco - 210,000
The Jamalpur Trade Syndicates 4,681 129,085
Credit Rating Agency of Bangladesh 214,000 230,000
Nazrul Islam Textiles 101,354 384,736
Camair Travels - 24,000
Biniyoughbarta 20,000 40,000
Karnaphulli Insurance 3,233,396 -
Kavasji Nariman 1,882,827 -
Link3 Technology 9,200 -
Long Lasting Coating 8,716 -
Bozlu Traders 1,965 -
S.Alam Construction 207,969 -
Mahmud Fabrics 1,939,646 -
Navana Ltd. 49,800 -
Nizam Uddin 975 -
Rafin Cargo 313,687 -
Royal Denim 2,749,527 -
Shamim Enterprise 4 -
SK International 10 -
Trident Agency 113,400 -
Unique Solutions 210,405 -
Agni System 5,471 -
ABC Building 1 -
MJL Bangladesh 12,628
South West Composite Ltd. 2,005,454 2,110,126
Import Liability-SDL 871,778,840 1,152,572,772
Import Liability-SGL 144,832,799 78,864,872
Payable-Shasha Garments Ltd. 5,326,168 6,419,260
Payable-Energis Power Corporation Ltd. 969,062,849 535,714,262
Total: 2,024,788,666 1,796,490,936
Amount in Taka
Particulars
30 June 2019 30 June 2018
18 Liabilities for Expenses:
Particulars
BEPZA-Electric Bill 2,882,624 6,407,179
BEPZA-Water Bill 1,913,921 2,298,630
BEPZA-Gas Bill Service Charge 1,577,071 1,656,035
BEPZA-Medical Bill 86,190 78,306
BEPZA-Workers Welfare Fund 38,025 25,110
BEPZA-IP/SC/L 19,610 15,350
BEPZA-WWT 1,981,227 2,301,745
Titas Gas Bill 8,101,811 16,560,350
Electric Bill 85,421 81,629
Wasa Bill 22,333 23,281
Gas Bill 3,100 -
Telephone Bill 30,276 42,525
Mobile Bill 5,789 -
Rent Gulshan Office 559,000 487,000
Razia Motors 22,300 -
Remuneration 1,751,042 1,178,542
Salary, Wages & Overtime 29,132,616 22,619,929
AIT-Titas, Salary & Others 242,857 243,249
Tax Liability 65,904,363 82,904,363
P.F Payable 11,548,361 5,118,076
Stamp Payable 10,750 10,260
Guest House Rent 600,500 615,105
Exchange/Discount (SB & BAL) 20,612,571 23,289,200
Garage Rent Payable 10,000 10,000
Audit Fees Payable 375,000 345,000
Board Meeting/Advisor Fees/Consultancy Payable 282,500 329,500
Afroza Enterprise 115,000 15,000
Share Biz Kortcha 74,750 74,750
DHL World Wide Express (BD)P. Ltd. 87,316 269,395
Bangladesh Trade Syndicate - 5,494
Dhaka Com Ltd. - 2,400
Royal Office 107,600 40,900
Root Marketing Services - 1,640
Nirapad Aluminum 18,020 18,020
Khan Sons Automobiles - 19,359
AD Creation 81,998 297,350
G4s Security Services BD. (P) Ltd. 680,227 1,005,179
Warrior Security Service 11,004 11,004
Overseas Marketing Co - 7,000
Sanyo Refrigeration 8,400 38,000
ST Express 504,151 210,036
Comculus System & Innovation 49,450 10,000
Aamra Network - 1,000
M/S Zahura and Sons 65,215 7,740
Amount in Taka
Particulars
30 June 2019 30 June 2018
Sign Palace 77,487 17,000
Sohana Machinery 23,611
Gulshan Club 10,786 5,929
Nisa Software - 8,225
A & S Engr. Ltd. 712,862 -
DHS Motors Ltd. - 1,076
Motin Courier Service - 1,342
Elit Paint - 9,867
CU Certification 137,886 41,411
Unique Thread 125,665 125,665
Travel Wise Ltd. 42,305 42,305
Metro Books - 56,276
Kia Service 40 -
Arthosuchk 400 -
Liability -Shasha Garments Ltd. 14,919,194 14,067,190
Liability-Energis Power Corporation Ltd. 28,107,407 15,886,079
Liability -Shasha Textiles Ltd. 57,500 57,500
Other Expenses 73,015 4,409
Total: 193,866,935 199,022,515
19 Provision for Income Tax:

Particulars
As per Last Year 163,475,093 232,658,415
Less: Paid During the year 56,274,576 9,398,821
Less: Tax Adjustment after Assesment (01/01/16-30/06/16) - 51,399,885
Less: Tax Adjustment after Assesment (01/01/15-31/12/15) - 89,407,166
Add: During the year 36,381,626 81,022,550
Closing Balance: 143,582,144 163,475,093
20 IPO Fund Received:

Particulars
Eastern Bank Ltd., HP A/C-58906
Eastern Bank Ltd., USD 3,436,928 3,436,928
Eastern Bank Ltd., Euro
Eastern Bank Ltd., GBP
3,436,928 3,436,928
21 Short Term Loan:

Particulars
Bank Asia Ltd. Note: 21.01 567,769,828 1,082,141,391
The Premier Bank Ltd. Note: 21.02 2,039,085,480 1,769,934,460
United Commercial Bank Ltd. Note: 21.03 9,888,508 7,860,889
Midland Bank Ltd. 287,326,089 -
Agrani Bank Ltd.-EPCL 212,377,396 202,922,636
Others Loan-EPCL 142,396,421 95,658,701
Total: 3,258,843,721 3,158,518,077
Amount in Taka
Particulars
30 June 2019 30 June 2018
21.01 Bank Asia Ltd.
Particulars
Bank Asia Ltd., OD-692 215,657,100 204,903,441
Bank Asia Ltd., -FBN 115,285,197 320,813,988
Bank Asia Ltd., -EDF 180,135,826 141,787,792
Bank Asia Ltd., -PAD 56,691,705 147,446,981
Bank Asia Ltd., Demand Loan - 215,539,642
Bank Asia Ltd., STL - 51,648,653
Bank Asia Ltd., RAD - 894
Total: 567,769,828 1,082,141,391
21.02 The Premier Bank Ltd.

Particulars
The Premier Bank Ltd., 129,061,120 157,834,224
The Premier Bank Ltd.,OD-141 659,730,753 613,438,168
The Premier Bank Ltd.,-FBN 853,751,275 853,086,489
The Premier Bank Ltd.,-EDF 284,231,012 -
The Premier Bank Ltd.,-7632 4,591,993 -
The Premier Bank Ltd.,-Demand Loan - 118,600,060
The Premier Bank Ltd.,-SOD - 19,391,789
The Premier Bank Ltd.,-PAD 107,719,326 7,583,730
Total: 2,039,085,480 1,769,934,460
21.03 United Commercial Bank Ltd.

Particulars
Packing Credit - 1,297,169
FBN 9,888,508 6,563,720
Total: 9,888,508 7,860,889
Amount in Taka
22 Revenue: 2018-2019 2017-2018
Particulars
Export Bill -SDL 5,322,872,598 5,141,246,569
Rental Received 858,907,615 682,405,590
Energy Sale 115,677,312 103,732,459
Heavy Furnace Oil 568,196,076 826,759,920
Service Charge(Transportation) 15,392,439 11,201,204
Export Bill -SGL 1,041,736,093 745,908,349
Total: 7,922,782,132 7,511,254,092
Amount in Taka
Particulars
2018-2019 2017-2018
23 Cost of Goods Sold:

Particulars
Materials-Yarn Note: 23.01 3,389,220,981 3,041,161,591
Materials-Chemical Note: 23.02 524,630,842 504,855,024
Materials Purchase-SGL 782,804,942 544,114,307
Raw Materials Consumed 4,717,600,797 4,107,503,234
Add: Factory Overhead Note: 23.03 2,390,038,119 2,265,967,471
Cost of Production 7,107,638,916 6,373,470,705
Opening Work-in-Progress 131,735,976 19,050,628
Less: Closing Work-in-Progress 85,711,336 131,735,976
Cost of Goods Manufactured 7,153,663,555 6,260,785,358
Opening Finished Goods 271,296,108 288,480,141
Opening Finished Goods-SGL 46,362,718 40,209,460
Less: Closing Finished Goods 513,102,388 271,296,108
Less: Closing Finished Goods-SGL 21,604,969 46,362,718
Cost of Goods Sold 6,936,615,024 6,271,816,134
23 Cost of Materials -Yarn

Particulars
Opening Stock
Yarn 992,742,837 655,987,381
Work in Process-Yarn 119,888,481 16,312,773
Add: Purchases (Import) 3,022,298,076 3,344,249,431
Add: CIF Cost 146,010,333 137,243,322
4,280,939,727 4,153,792,908
Less: Closing Stock
Yarn 852,312,265 992,742,837
Cost of Materials -Yarn 3,389,220,981 3,041,161,591
23 Cost of Materials -Chemical

Particulars
Opening Stock 235,138,725 156,793,768
Add: Purchase 529,944,811 560,209,755
Add: CIF Cost 25,602,180 22,990,225
790,685,716 739,993,748
Less: Closing Stock 266,054,874 235,138,725
Cost of Materials -Chemical 524,630,842 504,855,024
Amount in Taka
Particulars
2018-2019 2017-2018
23 Factory Overhead:
Particulars
Factory Wages & allowance 534,325,028 504,124,528
Security Service charges 7,151,596 6,439,494
BEPZA Rent 6,278,855 6,170,454
Electric bill for Bepza,SGL & EPCL 71,462,255 86,309,520
Gas bill,S/Charge for Bepza 9,943,022 10,157,109
Water bill for Bepza 29,172,436 24,397,073
Medical bill 1,740,804 2,031,981
BEPZA-Worker Welfare Fund 328,215 298,470
BEPZA-Waste Water Bill 30,252,619 27,219,159
BEPZA-EP/IP/SC 238,001 243,916
Gas bill-Titas & SGL 100,706,671 103,198,574
Fuel, Oil and Lubricant 86,664,988 107,705,345
Heavy Furnace Oil (HFO) 568,196,076 826,759,920
Spare parts 58,536,485 46,631,604
Stationery 5,074,005 6,215,843
Ink & Cartidge 368,646 663,782
Repair 68,529,147 73,262,303
Operational Expenses 3,954,624 14,750,617
Water Refinery Expenses 3,554,000 2,907,000
Clearing Charge 6,458,268 6,414,540
Electrical expenses 1,002,739 786,205
Labour charges 4,740,358 4,261,486
Fabric Test 2,720,295 3,258,432
Carrying Charges 13,084,468 14,622,760
Insurance Premium 3,548,018 6,461,686
Laboratory Expenses 509,452 369,823
House Rent for workers 3,506,000 3,505,200
P.F Contribution 10,362,289 9,227,714
Entertainment 13,070,489 14,723,688
Group Insuarnce 2,497,724 2,358,469
Factory rent-Hashem Plaza 14,400,000 14,400,000
Courier Bill 4,539,332 5,995,332
Communication Expenses 1,405,595 1,297,541
Conveyance 190,714 424,126
Accomodation Bill 160,751 198,769
CBG for Boiler 1,999,732 2,394,991
Night Bill 396,025 673,400
Tiffin Bill 731,877 1,009,634
Carriage Inward 843,150 593,200
Land Rent, Rates, Taxes & Others 847,839 801,046
Fuel & Water Test 72,204 371,534
Misc. Expenses 919,214 1,072,132
Plant office Expenses 428,866 983,124
Liquidity Demerage 395,747,981 92,560,822
Depreciation 319,377,267 227,715,124
Total: 2,390,038,119 2,265,967,471
Amount in Taka
Particulars
2018-2019 2017-2018
24 Administrative Expenses:
Particulars
Directors Remuneration 16,395,000 11,955,000
Salary and allowance 81,260,798 70,895,965
Office Rent 2,505,000 2,484,000
Gas Bill 18,600 55,100
Wasa Bill 192,882 218,804
Mobile Bill 1,426,798 1,384,631
Store Rent 300,000 300,000
Office Expenses 1,640,555 1,977,438
Donation & Subscription 1,361,113 945,870
Fees & forms 7,974,497 6,453,294
RJSC Expenses 19,879 12,677
Renewal & Registration Fee 2,081,815 2,299,949
P.F Contribution 2,183,184 2,033,450
Postage & stamps 534,680 593,702
Stationery 1,073,880 1,190,577
Ink & Cartidge 130,730 -
Entertainment 2,996,470 3,265,275
Travelling & Conveyance 22,791,228 22,689,636
Photocopy 26,167 35,524
Courier bill 5,390,112 6,610,800
Medical Expenses 43,432 10,000
Board Meeting Fees 230,000 264,500
Audit Fees-IPO Exp. - 212,750
Gift & compliments 9,250 257,000
Paper bill 13,430 12,580
Car Fuel 6,992,546 6,831,044
Car Expenses 1,001,328 591,579
Internet Bill 1,846,003 1,904,565
Computer Accessories 203,220 178,714
Books & Periodicals 3,164 3,030
AGM Expenses 2,094,100 2,892,348
Uniform & Leverage 386,960 249,570
Credit Rating Fees 321,000 575,000
Cable Charge 7,200 7,200
Consultancy/Professional Fees 5,153,840 4,243,500
Compliance Fees - 34,500
Tax Charge-SGL 1,011,141 27,250
Softwear Maintenance Charge 438,900 426,300
Advertisement 2,772,387 1,379,896
Insurance 40,076 187,664
Audit Fees 701,500 629,500
Dhaka Stock , Ctg.Stock Exchange & BSEC Charge 2,223,287 -
Vat Expenses 774,582 -
Transport Expenses 3,930,743 4,632,830
Rent,rates & Taxes 5,100 5,100
Survey Charge 59,000 93,500
Carrying Bill - 2,700
Misc. Exp. 5,739,074 11,473,524
Buying house commission 3,909,954 2,666,801
Depreciation (note:5.1) 5,286,710 4,302,417
Total: 196,552,126 180,463,304
Amount in Taka
Particulars
2018-2019 2017-2018
25 Selling ,Commercial & Distribution Expenses

Particulars
Sample & Marketing Expenses 48,066,903 46,334,173
Carriage outward 3,013,420 2,423,050
Forwarding charge 3,205,479 2,716,510
Trade Promotion 547,504 232,500
Freight Charge 3,252,132 2,593,349
Total: 58,085,438 54,299,582
26 Financial Expenses
Particulars
Bank Charges & Commission
L/C advising and amend.charges 1,113,662 966,591
Comm.and Intt.for Export 906,798 943,210
Bank Charges & Commission 10,063,450 8,029,460
Discount-FBN 82,623,359 104,928,284
Foreign Bank Charge 9,934,131 8,477,834
Interest
Bank Asia Ltd.,Interest on OD-692 22,638,563 17,212,902
Bank Asia Ltd.,Int. on OAP A/C 29,460,419 5,450,642
Bank Asia Ltd.,Int. on Term Loan 700,203 30,093,990
The Premier Bank Ltd., Int. on OD 79,181,331 49,608,652
Midland Bank Ltd., Term Loan 34,042,040 -
The Premier Bank Ltd., Int. on Demand Loan 19,670,723 2,191,274
Interest on EDF/PAD, SOD & Others 21,680,776 5,676,728
IPDC- Interest on Loan A/C - 1,650,000
Bank Charge, Intt. On Long & Short Term-EPCL 87,857,308 159,291,447
Total: 399,872,763 394,521,014
27 Non-Operating Income
Particulars
Gain/(Loss) on disposal of Assets (Note: 27.01) - (2,952,589)
Exchange Gan /(Loss) 3,984,372 4,364,485
Dividend Income 3,769,654 3,042,380
Capital Gain/(Loss)-SGL 96,770,210
Others Income 3,207,011 8,707,035
Total: 107,731,247 13,161,311
Amount in Taka
Particulars
2018-2019 2017-2018
27.01 Loss on Disposal of Plant & Machineary

Particulars
Cost - 31,484,258
Less: Accumulated Depreciation - 24,281,669
Carrying Value - 7,202,589
Less: Selling Price - 4,250,000
Gain/ (Loss) - (2,952,589)
28 Corporate Tax:
Particulars
Tax from Operating Income 28,754,576 75,546,366
Tax On Non-Operating Income 376,556 4,867,720
Gain Tax-SGL 6,496,568 -
Tax On Dividend Income 753,927 608,464
Total: 36,381,626 81,022,550
29 Earnings Per Share (EPS)

Basic Earnings Per Share:
Net Profit 390,385,257 554,448,943
Outstanding Weight Average Number of Share 127,923,729 119,554,887
Basic Earnings Per Share (EPS) 3.05 4.64
Adjusted Earnings Per Share (EPS) 4.33
30 Event after Balance Sheet Date:

1) The Board of Directors of Shasha Denims Ltd. in its board meeting held on 28-10-2019,
recommended 5% cash and 5% stock dividend for the year 2018-2019.
2) After expire of existing contract between Energis Power Corporation Ltd. and BPDB to supply of 55
MW electricity EPCL, electricity generation has been suspended since 11 July, 2019 as per instruction
of BPDB.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,
Independent Auditor’s Report

to the shareholders of Shasha Denims Limited
Report on the Audit of the Financial Statements
Opinion responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit
We have audited the financial statements of Shasha
of the Financial Statements section of our report. We
Denims Limited, which comprise the statement of
are independent of the Company in accordance with
financial position as at 30 June 2019 and the statement
the International Ethics Standards Board for
of profit or loss and other comprehensive income,
Accountants’ Code of Ethics for Professional
statement of changes in equity and statement of cash
Accountants (IESBA Code) together with the ethical
flows for the year then ended, and notes to the financial
requirements that are relevant to our audit of the
statements, including a summary of significant
financial statements in Bangladesh, and we have
accounting policies.
fulfilled our other ethical responsibilities in accordance
In our opinion, the accompanying financial statements with the IESBA Code. We believe that the audit
give a true and fair view of the financial position of the evidence we have obtained is sufficient and appropriate
Company as at 30 June 2019 and of its financial to provide a basis for our opinion.
performance and its cash flows for the year then ended
in accordance with International Financial Reporting Key Audit Matters
Standards (IFRSs), the Companies Act 1994, the Key audit matters are those matters that, in our
Securities and Exchange Rules 1987 and other professional judgement, were of most significance in
applicable laws and regulations. our audit of the financial statements of the current
period. These matters were addressed in the context of
Basis for Opinion our audit of the financial statements as a whole and in
We conducted our audit in accordance with forming our opinion thereon and we do not provide a
International Standards on Auditing (ISAs). Our separate opinion on these matters.

Revenue
ISAs require that, as part of our overall response to Audit procedures performed
the risk of fraud, when identifying and assessing the We performed walkthroughs of the revenue cycle at
risks of material misstatement due to fraud, we significant components to gain an understanding of
evaluate which types of revenue or revenue when the revenue should be recognized, to map out
transactions might give rise to potential fraud risks. the relevant controls end to end and the processes in
The Company exports different kind of textile place.
products under various commercial contract.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

We have specifically focused this key audit matter to We assessed the design and implementation of these
cut-off and occurrence for revenue recorded within controls. We tested a sample of individual sales
June 2019. Pressures to meet stakeholders’ transactions and traced to dispatch notes and
expectations could provide incentives to record subsequent cash receipt or other supporting documents.
revenues where controls of the goods have not
We performed analytical reviews to identify any
passed. unusual or one-off material revenue transactions. We
The associated disclosure is included within Note 22 identified and considered the impact of any credit
notes or inventory returns occurring after year-end,
For specific detail on the Company’s accounting
including evaluating the impact of any material
policy, please see Note 3.13.
overdue debts from customers.
With regard to the implementation of IFRS 15

“Revenue from Contract with Customers”, we verified
management’s conclusion from assessing different
types of contracts and the accuracy of the revised
accounting policies in light of the industry specific
circumstances and our understanding of the business.
We tested the appropriateness of the accounting
treatment on a sample basis. In addition, we verified
the accuracy of IFRS 15 related disclosures.

Audit Committee
We were satisfied that the revenue recognition
policies have been applied appropriately. Based on
the work performed, we concluded that revenue has
been recorded appropriately.
Inventory
At the reporting date, the carrying value of inventory Audit procedures performed
amounted to Taka 1,891,102,650 which is 22.48% • Assessing the compliance of company’s
of total assets. Inventories were considered as a key accounting policies over inventory with applicable
audit matter due to the size of the balance and accounting standards.
because inventory valuation involves management
• Assessing the inventory valuation process and
judgement.
practices. On major locations, we tested the
Inventory valuation and existence was an audit focus effectiveness of the key controls.
area because of the number of locations/stores that • Assessing the analyses made by management
inventory was held at, and the judgement applied in with respect to slow moving and obsolete stock.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

the valuation of inventory to incorporate inventory • Attending inventory count on 30 June 2019 and
shrinkage. reconciling the count results to the inventory
listings to test the completeness of data.
According to the Company’s accounting policy,
• Comparing the net realizable value, obtained
inventories are measured at the lower of cost or net
through a detailed review of sales subsequent to
realizable value. The Company has specific the year-end, to the cost price of a sample of
procedures for identifying risk for obsolete items and inventories.
measuring inventories at the lower of cost and net
• Reviewing the historical accuracy of inventory
realizable value. provisioning, and the level of inventory write-offs
The associated disclosure is included within Note 7. during the year.
For specific detail on the Company’s accounting • Evaluating the correctness of the valuation of raw
policy, please see Note 3.6. materials and packing material as per FIFO method.
• Reviewing the calculation of standard labor hours
and their regular comparison with actual labor
hours of production; and reviewing the process
of valuing work-in-progress.

Audit Committee
We were satisfied that the inventory recognition and
measurement policies have been applied appropriately.
inventories have been recorded appropriately.
Property, plant and equipment
At the reporting date, the carrying value of the Audit procedures performed
Company’s property, plant and equipment
∇ We obtained an understanding of the client and
amounted to Taka 2,046,425,827. The valuation of
its environment to consider inherent risk related
property, plant, and equipment was identified as a
to property, plant, and equipment. Our
key audit matter due to the significance of this
understanding includes:
balance to the financial statements, as well as the
∇ Obtaining an understanding of the internal
significance of management’s judgements in
control over property, plant, and equipment.
determining its valuation.
∇ Assessing the risks of material misstatement and
In considering the valuation of property, plant, and
designing tests of controls and substantive
equipment, we focused on the assessment of the
procedures that cover the following aspects:
followings:
∇ Substantiate the existence of property, plant, and
• Inherent risks associated with property, plant and
equipment.
equipment.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

• Potential misstatements in property, plant, and ∇ Establish the completeness of recorded property,
equipment on account of frauds and errors. plant, and equipment.
• Assessment of useful lives of assets. ∇ Verify the cut-off of transactions affecting
• Assessment of impairment of assets. property, plant, and equipment.
∇ Establish the proper valuation or allocation of
Inherent risks associated with property,
property, plant, and equipment and the accuracy
plant and equipment
of transactions affecting property, plant, and
• Property, plant and equipment may include assets equipment.
that should have been derecognised following sale,
∇ Determine the correctness and appropriateness
other transfer of rights or abandonment.
of classification of property, plant and equipment.
• Expenditure that should have been recognised as
• We obtained an understanding of the potential
property, plant and equipment but has not been so
misstatements in property, plant, and equipment
recognised, including capitalised finance costs.
on account of frauds and errors.
• Depreciation may have been incorrectly calculated.
• We evaluated the assumptions made by
Potential misstatements in property, plant, management in the determination of useful lives
and equipment on account of frauds and to ensure that these are consistent with the
errors principles of IAS 16. “Property, Plant and
Equipment”.
• Purchase of an asset at an inflated price
especially from a related party. • We compared the useful lives of each class of
asset in the current year to the prior year to
• Wrong write-off of the asset as scrap,
determine whether there were any significant
obsolescence, missing, donated, or destroyed.
changes in the useful lives of assets, and
• Expenditures for repairs and maintenance recorded
considered the reasonableness of changes
as property, plant and equipment or vice versa.
based on our knowledge of the business and the
• Capitalization of expenditure which are not industry.
normally attributable to the cost of the property,
• We assessed whether there are circumstances
plant and equipment.
that indicate a possible impairment of property,
• Recording of an asset purchased, which in
plant and equipment and if such circumstances
effect has not actually been received by the
exist, how the same have been dealt with by the
entity at all.
entity.
Assessment of useful lives of assets
Management applies estimates and judgements in its Audit Committee
determination of useful lives of assets and reviews
We were satisfied that the property, plant and
the useful lives of assets at each financial year end
equipment recognition and measurement policies
and adjusts for changes, where appropriate.

Road 9, Block F,
Telephone: (88-02) 9870957, 9894026,
01707079855, 01707079856
Banani, Dhaka 1213,

Key audit matter description the key audit matter
Impairment of assessment have been applied appropriately. Based on the work

performed, we concluded that property, plant and
At the end of each reporting period, management
equipment have been recorded appropriately.
assesses whether there is any indication that an
asset may be impaired. If any such indication exists,
management estimates the recoverable amount of
the asset. If the recoverable amount of an asset is
less than its carrying amount, the carrying amount of
the asset is reduced to its recoverable amount.
The associated disclosure is included within Note 4 &

5. For specific detail on the Company’s accounting
policy, please see Note 3.3.
Measurement of deferred tax Liability

Company reported net deferred tax liability totaling Audit procedures performed
Taka 93,561,525 as at 30 June 2019.
• We evaluated the design and tested the
Significant judgment is required in relation to deferred operating effectiveness of controls in respect of
tax liability as their liability is dependent on forecasts the recognition and measurement of uncertain
of future profitability over a number of years. tax provisions. We determined that we could rely
on these controls for the purposes of our audit.
See note no 3.11.2and 16 to the financial statements
• With the assistance of our tax specialists, we
evaluated management’s judgements and
estimates of tax exposures and contingencies in
order to assess the adequacy of the Group’s tax
provisions. In understanding and evaluating
management’s judgements, we considered the
status of recent and current tax authority audits
and enquiries, judgemental positions taken in tax
returns and current year estimates and
developments in the tax environment.

Audit Committee
deferred tax liabilities have been disclosed and
recorded appropriately
Reporting on Other Information Auditor’s Responsibilities for the Audit of the

Management is responsible for the other information. Financial Statements
The other information comprises the information Our objectives are to obtain reasonable assurance
included in the Annual Report, other than the financial about whether the financial statements as a whole are
statements and our auditors’ report thereon. free from material misstatement, whether due to fraud
Our opinion on the financial statements does not cover or error, and to issue an auditor’s report that includes
the other information and, except to the extent our opinion. Reasonable assurance is a high level of
otherwise explicitly stated in our report, we do not assurance but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a
express any form of assurance conclusion thereon.
material misstatement when it exists. Misstatements
In connection with our audit of the financial statements, can arise from fraud or error and are considered
our responsibility is to read the other information and, in material if, individually or in the aggregate, they could
doing so, consider whether the other information is reasonably be expected to influence the economic
materially inconsistent with the financial statements or decisions of users taken on the basis of these financial
our knowledge obtained in the audit or otherwise statements.
appears to be materially misstated.
If we identify such material inconsistencies or apparent professional judgement and maintain professional
material misstatement, we are required to determine skepticism throughout the audit. We also:
whether there is a material misstatement in the financial • Identify and assess the risks of material
statements or a material misstatement of the other misstatement of the financial statements, whether
information. If, based on the work we have performed, due to fraud or error, design and perform audit
we conclude that there is a material misstatement of this procedures responsive to those risks, and obtain
other information, we are required to report that fact. We audit evidence that is sufficient and appropriate to
have nothing to report in respect of these matters. provide a basis for our opinion. The risk of not
Responsibilities of Management and Those detecting a material misstatement resulting from
Charged with Governance for the Financial fraud is higher than for one resulting from error, as
Statements and Internal Controls fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
Management is responsible for the preparation and fair
internal control.
presentation of the financial statements in accordance
with IFRSs, the Companies Act 1994, the Securities • Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
and Exchange Rules 1987 and other applicable laws
are appropriate in the circumstances, but not for
and regulations and for such internal control as
the purpose of expressing an opinion on the
management determines is necessary to enable the
effectiveness of the Company’s internal control.
preparation of financial statements that are free from
material misstatement, whether due to fraud or error. • Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
In preparing the financial statements, management is estimates and related disclosures made by
responsible for assessing the Company’s ability to management.
continue as a going concern, disclosing, as applicable,
• Conclude on the appropriateness of management’s
matters related to going concern and using the going
use of the going concern basis of accounting and,
concern basis of accounting unless management either
based on the audit evidence obtained, whether a
intends to liquidate the Company or to cease operations,
material uncertainty exists related to events or
or has no realistic alternative but to do so.
conditions that may cast significant doubt on the
Those charged with governance are responsible for Company’s ability to continue as a going concern.
overseeing the Company’s financial reporting process. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report of most significance in the audit of the financial
to the related disclosures in the financial statements statements of the current period and are therefore the
or, if such disclosures are inadequate, to modify our key audit matters. We describe these matters in our
opinion. Our conclusions are based on the audit auditor’s report unless law or regulation precludes
evidence obtained up to the date of our auditor’s public disclosure about the matter or when, in extremely
report. However, future events or conditions may rare circumstances, we determine that a matter should
cause the Company to cease to continue as a going not be communicated in our report because the
concern. adverse consequences of doing so would reasonably
• Evaluate the overall presentation, structure and be expected to outweigh the public interest benefits of
content of the financial statements, including the such communication.
disclosures, and whether the financial statements Report on other Legal and Regulatory
represent the underlying transactions and events in Requirements
a manner that achieves fair presentation.
In accordance with the Companies Act 1994 and the
• Obtain sufficient appropriate audit evidence Securities and Exchange Rules 1987 and relevant
regarding the financial information of the entities or notifications issued by Bangladesh Securities and
business activities within the Company to express Exchange Commission, we also report the following:
an opinion on the financial statements. We are
a) we have obtained all the information and
responsible for the direction, supervision and
explanations which to the best of our knowledge
performance of the Company audit. We remain
and belief were necessary for the purposes of our
solely responsible for our audit opinion.
audit and made due verification thereof;
We communicate with those charged with governance b) in our opinion, proper books of accounts as
regarding, among other matters, the planned scope required by law have been kept by the Company so
and timing of the audit and significant audit findings, far as it appeared from our examination of these
including any significant deficiencies in internal control books;
that we identify during our audit.
c) the statement of financial position and statement of
We also provide those charged with governance with a profit or loss and other comprehensive income
statement that we have complied with relevant ethical dealt with by the report are in agreement with the
requirements regarding independence, and to books of accounts; and
communicate with them all relationships and other matters d) the expenditure incurred was for the purposes of
that may reasonably be thought to bear on our the Company’s business.
independence, and where applicable, related safeguards.
From the matters communicated with those charged

with governance, we determine those matters that were


Statement of Financial Position
as at 30th June 2019
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
ASSETS
NON-CURRENT ASSETS
Intangible Assets 5 4,213,363 3,829,867
Capital Work In Progress 89,193,112 -
Investment 6 1,095,604,189 1,095,604,189
3,235,436,491 3,181,725,427
Inventories 7 1,891,102,650 1,873,233,230

Materials In Transit 8 67,373,464 352,496,618
Accounts Receivable 9 1,868,648,526 1,809,620,260
Interest Receivable - 1,037,000
Deposit for Share 10 951,448,734 951,298,734
5,175,475,223 5,406,973,193
TOTAL 8,410,911,714 8,588,698,620
CAPITAL & RESERVE

Share Capital 13 1,279,237,290 1,195,548,870
Share Premium Account 14 1,250,000,000 1,250,000,000
Retained Earnings 15 1,780,390,553 1,882,028,758
4,309,627,843 4,327,577,628
NON CURRENT LIABILITIES
Deferred Tax Liability 16 93,561,525 68,140,054
93,561,525 68,140,054
CURRENT LIABILITIES
Accounts Payable 17 905,566,852 1,175,492,547
IPO Fund Received 20 3,436,928 3,436,928
Short Term Loan 21 2,815,780,179 2,694,241,629
4,007,722,346 4,192,980,938
TOTAL 8,410,911,714 8,588,698,620
Net Asset Value (NAV) Per Share 33.69 33.83



Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2019
Amount in Taka
Particulars Note
2018-2019 2017-2018
Revenue 22 5,325,948,203 5,141,246,569
Less: Cost of Goods Sold 23 4,631,446,893 4,262,764,990
Gross Profit 694,501,309 878,481,579
Less: Selling & Distribution Exp. 25 48,066,903 46,334,173
Operating Profit 509,294,001 707,164,674
Add: Financial Income 2,164,359 13,146,936
Add: Non-Operating Income 27 4,181,426 4,326,713
Net Profit/(Loss) before tax 211,761,482 496,690,441
Less: Income Tax
Current Tax 28 24,957,466 74,320,876
Deferred Tax 25,421,471 (634,432)
Net Profit/ (loss) for the year after Corporate Tax 161,382,545 423,003,997
Basic Earning Per Share (EPS) 29 1.26 3.31


Statement of changes in Equity
2018-2019
Particulars Share capital Share Premium Retained Total

earnings
Balance as on 01.07.2018 1,195,548,870 1,250,000,000 1,882,028,758 4,327,577,628
Final Cash Dividend, 15% (2017-2018) - - (179,332,331) (179,332,331)
Stock Dividend, 7% (2017- 2018) 83,688,420 - (83,688,420) -
Net Profit/(Loss) for the year - - 161,382,545 161,382,545
Balance as on 30.06.2019 1,279,237,290 1,250,000,000 1,780,390,553 4,309,627,843

Statement of changes in Equity
2017-2018
Particulars Share capital Share Premium Retained Total

earnings
Balance as on 01.07.2017 1,127,876,300 1,250,000,000 1,667,681,869 4,045,558,169
Final Cash Dividend, 12.5% (2016-2017) - - (140,984,538) (140,984,538)
Stock Dividend 6 % (2016-2017) 67,672,570 - (67,672,570) -
Net Profit/(Loss) for the year - 423,003,997 423,003,997
Balance as on 30.06.2018 1,195,548,870 1,250,000,000 1,882,028,758 4,327,577,628


Statement of Cash Flows
Amount in Taka
Particulars Note
2018-2019 2017-2018

Collection from Turnover 5,274,427,569 4,515,212,885
Payment for cost & other expenses (4,632,474,430) (4,187,435,129)
Income Tax Paid (68,557,466) (38,245,937)

Fixed Assets (149,084,967) (412,231,344)
Capital Work In Progress (89,193,112)
Received from Machine Sale - 4,250,000

Dividend Paid-Cash (179,332,331) (140,984,538)
Investment in Associates - 300,000
Deposit for Shares (150,000) (13,012,427)
Short-Term Loan 121,538,550 (7,420,913)
Increase/ (decrease) in cash and bank balances (26,704,492) (507,515,284)
Effect on Unrealized Gain/(Loss) (124,846) 421,848

-
Net operating Cash flow per share--(restated) 2.11 0.48


1 Reporting entity
1.1 Company profile

Shasha Denims Limited a Private Limited Company with an incorporation date on 28th October 1996 had
been converted into a Public Limited Company on 1st day October 1997 under the companies Act 1994.
Registered office of the companies is at House # 07, Road # 117, Gulshan, Dhaka.
1.2 Nature of business

The main activities of the company were concentrated in Manufacturing, Dyeing, Weaving & Finishing of
Denim Fabric and exporting the same.
2 Basis of preparation of financial statements
2.1 Statement of compliance

The financial statements of the company under reporting have been prepared under historical cost convention
in a going concern concept and on accrual basis in accordance with generally accepted accounting principles
and practice in Bangladesh in compliance with the Companies Act 1994, The Securities and Exchange Rules
1987, International Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of
Bangladesh (ICAB) and other applicable laws and regulations.
2.2 Measurement of elements in the financial statements

The group has presented separate financial statements in addition to consolidated financial statements.
2.3 Reporting period

The financial period of the company covers the period from July 2018 to June 2019.
2.4 Date of authorization

The board of directors has authorized these financial statements on 28 October, 2019.
2.5 Reporting currency and level of precision

The figure in the financial statements represent Bangladesh Currency (Taka), which have been rounded off to
the nearest Taka except where indicates otherwise.
2.6 Use of estimates and judgement

The preparation of financial statements in conformity with International Financial Reporting Standards requires
management to make judgments, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses, and disclosures requirements
for contingent assets and liabilities during and at the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions of accounting estimates are recognized in the period in which the estimate is revised
and in any future periods affected as required by IAS 8: Accounting Policies, Changes in Accounting Estimates
and Errors.
In particular, significant areas of estimation uncertainty and critical judgments in applying accounting policies
that have the most significant effect on the amounts recognized in the financial statements include
depreciation, amortization, impairment, net realizable value of inventories, accruals, taxation and provision
2.7 Comparative information and rearrangement thereof

Comparative figures have been re-arranged wherever considered necessary to ensure better comparability
with the current period without causing any impact on the profit and value of assets and liabilities as reported
in the financial statements.
2.8 Going concern

When preparing financial statements, management makes an assessment of Shasha Denims Limited’s ability
to continue as a going concern. Shasha Denims Limited prepares financial statements on a going concern
basis.
2.9 Accrual basis of accounting

Shasha Denims Limited prepares its financial statements, except for cash flow information, using the accrual
basis of accounting. Since the accrual basis of accounting is used,the company recognizes items as assets,
liabilities, equity, income and expenses (the elements of financial statements) when they satisfy the definitions
and recognition criteria for those elements in the Framework.
2.10 Materiality and aggregation

Shasha Denims Limited presents separately each material class of similar items. The Company presents
separately items of a dissimilar nature or function unless they are immaterial. Financial statements result from
processing large numbers of transactions or other events that are aggregated into classes according to their
nature or function.
2.11 Offsetting
Shasha Denims Limited does not offset assets and liabilities or income and expenses, unless required or
permitted by a IFRS.
3 Significant accounting policies

Shasha Denims Limited selects and applies its accounting policies consistently for similar transactions, other
events and conditions, unless a IFRS specifically requires or permits categorization of items for which different
policies may be appropriate. The accounting policies set out below have been applied consistently (otherwise
as stated) to all periods presented in these financial statements.
3.1 Changes in accounting policies

Shasha Denims Limited changes its accounting policy only if the change is required by a IFRS or results in the
financial statements providing reliable and more relevant information about the effects of transactions, other
events or conditions on the company’s financial position, financial performance or cash flows. Changes in
accounting policies is to be made through retrospective application by adjusting opening balance of each
affected components of equity i.e. as if new policy has always been applied.
3.1.1 Implementation of IFRS 9 ‘Financial Instruments’

Shasha Denims Limited has applied IFRS 9 ‘Financial Instruments’ with effect from 1 July 2018. IFRS 9
introduces new requirements for the classification and measurement of financial assets and financial
liabilities and impairments for financial assets. Details of these new requirements as well as their impact on
the Company’s financial statements are described later.
3.1.2 Implementation of IFRS 15 ‘Revenue from Contracts with Customers’

Shasha Denims Limited has applied IFRS 15 ‘Revenue from Contracts with Customers’ with effect from 1
July 2018. IFRS 15 provides a single, principles-based approach to the recognition of revenue from all
contracts with customers. It focuses on the identification of performance obligations in a contract and
requires revenue to be recognised when or as those performance obligations are satisfied.
The company has no reportable issues to be complied with the provisions of IFRS 15 during this financial
period.
3.1.3 Changes in accounting estimates

Estimates arise because of uncertainties inherent within them, judgment is required but this does not
undermine reliability. Effect of changes of accounting estimates is included in profit or loss account.
3.1.4 Correction of error (if any)

Shasha Denims Limited corrects material prior period errors retrospectively by restating the comparative
amounts for the prior period(s) presented in which the error occurred; or if the error occurred before the
earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest
prior period presented.
3.2 Reporting foreign currency transactions

Foreign currencies are converted into Taka at the rates ruling on the transaction dates. Monetary assets and
liabilities are reconverted at the rates prevailing at the balance sheet date. Non-monetary assets and
liabilities are reported using the exchange rate at the date of transaction. Differences arising on conversion
are charged or credited to the profit or loss account.
3.2.1 Initial recognition

A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the
foreign currency amount the spot exchange rate between the functional currency and the foreign currency
at the date of the transaction.
3.2.2 Subsequent measurement

A foreign currency transaction may give rise to assets or liabilities that are denominated in a foreign
currency. These assets and liabilities is translated into Shasha Denims Limited’s functional currency at each
reporting date. Foreign currency monetary items outstanding at the end of the reporting date are translated
using the closing rate. The difference between this amount and the previous carrying amount in functional
currency is an exchange gain or loss. Exchange differences arising on the settlement of monetary items or
on translating monetary items at rates different from those at which they were translated on initial
recognition during the period or in previous financial statements is recognised in profit or loss in the period
in which they arise
3.3 Property, plant and equipment
3.3.1 Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises its
purchase price, import duties and non-refundable taxes and any costs directly attributable to bringing the
assets to the location and condition necessary for it to be capable of operating in the intended manner.
3.3.2 Subsequent costs

The cost of replacing part of an item of property, plant and equipment is 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. The costs of the day-to-day servicing of property, plant
and equipment are recognized in the Statement Profit or Loss and other Comprehensive Income as
incurred.
3.3.3 Depreciation
Shasha Denims Limited uses the reducing balance method to depreciate each item of property, plant and
equipment.
The rates of depreciation, applied on reducing balance method, for the current and comparative year are as
follows:
Particulars 2018-2019 2017-2018
Building & Civil work 5% 5%

Plant & Machinery 10% 10%
Generator, Sub-Sta., Elec. 10% 10%
Workshop Equipment 15% 15%
Fire Extinguisher 20% 20%
Furniture & Fixture 15% 15%
Crockery & Cutlery 20% 20%
Sanitary Fittings 15% 15%
Vehicle 15% 15%
Office Decoration 15% 15%
Hydrant Line 15% 15%
ETP Plant 15% 15%
CC Camera 10% 10%
3.3.4 Derecognition of property, plant and equipment

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no
future economic benefits are expected from its use or disposal. The gain or loss arising from derecognition
of an item of property, plant and equipment is included as other income in profit or loss when the item is
derecognised.
3.4 Investments
Investments include investment in subsidiaries and some other non operating companies which represents
management vision to business expansion. Investment is usually measured at equity method for the
associates of the company only for those which are in operations.
3.5 Capital work in progress

Capital Work in Progress comprises the capital expenditures incurred for some regular capital items which
is yet to be ready for its intended use. These items are classified in two categories: plant & machinery and
Building & civil works. As both the items are qualifying assets, all expenses associated with these items are
recognized as capital work in progress.
3.6 Inventories
Inventories are measured at lower of cost and estimated net realizable value. The cost of inventories is
measured by using weighted average cost formula and includes expenditure incurred for acquiring the
inventories, production or conversion costs and other costs in bringing them to their existing 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.
3.7 Impairment
The carrying value of the Company's assets other than inventories, are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any such indication exists, the asset's
recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the
asset or its cash-generating unit exceeds its recoverable amount. Impairment losses, if any, are recognized
in the Statement Profit or Loss and other Comprehensive Income.
3.8 Deposit for shares

Deposit for shares are investment of the company to its other sister concerns in which the company has
significant interest and control. Deposit for shares are being provided with an objective to assist these
companies being capable of running its business without interruption as well as the company can enhance
its control over these companies.
3.9 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. The entity recognizes financial instruments and provides necessary
disclosures only for the parent company and not for the consolidated status.
3.9.1 Financial assets

Financial assets are recognized initially on the date at which the company becomes a party to the
contractual provisions of the transaction.
The company derecognizes a financial asset when the contractual rights or probabilities of receiving the
cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the
financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial
asset are transferred.
Financial assets basically include cash and cash equivalents and accounts receivable.
(a) Accounts receivables

Accounts receivables are initially recognized at nominal value which is the fair value of the consideration
given in return.
(b) Cash and cash equivalents

Cash and cash equivalents comprise cash balances both in hand and at bank.
3.9.2Financial liability
All financial liabilities are recognized initially on the transaction date at which the company becomes a party
to the contractual provisions of the liability.
The company derecognizes a financial liability when its contractual obligations are discharged, cancelled or
expired.
Financial liabilities include loans and borrowings both in short and long termed, bank liability generated from
import of raw materials, accounts payable etc.
(a) Accounts payable & liability for expenses

The company recognizes financial liability when its contractual obligations arising from past events are
certain and the settlement of which is expected to result in an outflow from the entity of resources
embodying benefits.
(b) Short term loan

Short term loan includes short term facilities from the associated banks of the entity named, Over Draft (OD)
facility. It also includes other short term facility provided by the banks to the entity (if any). It was including
Trade Payables incurred from procurement of goods through Letter of Credit (L/C) previously which is also
duly accepted by the bankers of the entity waiting for maturity of payment as per the terms & conditions,
but for the better presentation purpose has been presented as import liability rather to classify as short term
loan.
3.10 Borrowing cost

Shasha Denims Limited capitalises borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset as part of the cost of that asset. Shasha Denims Limited
recognises other borrowing costs as an expense in the period in which it incurs them.
3.11 Income tax

Income tax expense comprises current and deferred tax. Income tax expense is recognized in the
statement of profit or loss and other comprehensive income.
3.11.1 Current tax

The current income tax charge is calculated based on tax laws enacted or substantively enacted at the
balance sheet date. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
3.11.2 Deferred tax
(a) Principle of recognition

Deferred tax is recognised as income or an expense amount within the tax charge, and included in the net
profit or loss for the period. Deferred tax relating to items dealt with as other comprehensive income is
recognised as tax relating to other comprehensive income within the statement of profit or loss and other
comprehensive income
(b) Taxable temporary difference

A deferred tax liability is recognised for all taxable differences, except to the extent that the deferred tax
liability arises from the initial recognition of goodwill; or the initial recognition of an asset or liability in a
transaction which is not a business combination; and at the time of the transaction, affects neither
accounting profit nor taxable profit (tax loss).
(c ) Deductible temporary difference

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable
that taxable profit will be available against which the deductible temporary difference can be utilised, unless
the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is not a
business combination; and at the time of the transaction, affects neither accounting profit nor taxable profit
(tax loss).
(d) Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.
3.12 Employee benefit

The Company maintains defined contribution plan (provident fund) for its eligible permanent employees. The
eligibility is determined according to the terms and conditions set forth in the respective trust deeds.
3.13 Revenue recognition

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net
of returns and allowances, trade discounts etc. recognized according to BAS 18: Revenue. This usually
occurs at the time of delivery of goods along with invoice. The company also considers the time of delivery
as revenue recognition point.
3.14 Financial income

Financial Income comprises interest income arising from the idle fund during the regular course of the
business.
3.15 Finance expenses

Finance expenses comprise interest expense on term loan, overdraft, and bank charges. It also includes bill
discounting charge which evolves as the most effective financial arrangement of the company. All finance
expenses are recognized in the Statement Profit or Loss and other Comprehensive Income.
3.16 Workers Profit Perticipation Fund (WPPF)

In 2015, the Government has formulated the relevant rules under the Act, which is called the Bangladesh
Labour Rules 2015 (the Rules). According to the provisions of said rule 212, Government of Bangladesh
(GoB) will create a central fund and circulate official gazzette to the sectorwise industry's representative who
are engaged in 100% export oriented business regarding the administration and framework of such fund.
Though the contribution of the company on the central fund can be estimated reliably, the mode of payment
and the associated regulatory and administrative bodies of such fund like banks and others are not ready
to receive the fund currently. As a result, the company has not yet started provisioning such amount in its
financial statements.
3.17 Earnings per share

The company presents basic earnings per share (EPS) data for its ordinary shares and diluted EPS where
applicable. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company net of non controlling interest on consolidated profit by the weighted average number of ordinary
shares during the period, adjusted for the effect of change in number of shares for bonus issue. Diluted EPS
is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares. However,
dilution of EPS is not applicable for these financial statements as there was no dilutive potential ordinary
shares during the relevant periods.
3.18 Statements of cash flows

Cash flows from operating activities have been presented under direct method. However to comply with the
directives of official gezzette of BSEC, a indirect method of cash flows are measured and presented only for
the operating cash flows of the company.
3.19 Events after the reporting period

Events after the reporting date that provide additional information about the Company's position at the
reporting date are reflected in the financial statements. Material events after the reporting date that are not
adjusting events are disclosed in a separate note, if any.
184
4. Property, Plant & Equipment

Original Cost Depreciation Written
Particulars Balance Addition Sale/ Total Cost Rate Balance Sale/ Charged Total down Value
as at during the Disposal as at % as at Disposal during the as at as at
Annual Report 2019
01.07.18 year 30.06.2019 01.07.18 year 30.06.2019 30.06.2019

Tangible Assets
Building & Civil work 373,604,707 7,322,277 - 380,926,984 5% 87,110,271 - 14,366,066 101,476,337 279,450,647
Plant & Machinery 2,460,320,885 131,088,054 - 2,591,408,939 10% 1,126,777,787 - 120,086,788 1,246,864,575 1,344,544,364
Generator, Sub-Sta., Elec. 441,061,679 4,008,932 - 445,070,611 10% 82,910,423 - 32,136,023 115,046,446 330,024,165
Workshop Equipment 7,272,175 25,000 - 7,297,175 15% 3,035,216 - 635,544 3,670,760 3,626,415
Fire Extinguisher/Ditector,Alarm System 29,219,545 833,623 - 30,053,168 20% 1,795,541 - 5,484,801 7,280,342 22,772,826
Office Equipment 16,313,319 1,305,230 - 17,618,549 20% 10,655,158 - 1,234,440 11,889,598 5,728,951
Furniture & Fixture 3,907,027 135,496 - 4,042,523 15% 2,504,706 - 217,523 2,722,229 1,320,294
Crockery & Cutlery 128,818 - - 128,818 20% 83,963 - 14,140 98,103 30,715
Air Conditioner 7,386,573 570,175 - 7,956,748 15% 5,076,709 - 364,560 5,441,269 2,515,479
Sanitary Fittings 24,788 - - 24,788 15% 23,161 - 244.05 23,405 1,383
Vehicle 76,736,820 - - 76,736,820 15% 37,999,449 - 5,822,022 43,821,471 32,915,349
Office Decoration 6,374,774 27,008 - 6,401,782 15% 2,670,336 - 560,309 3,230,645 3,171,137
Hydrant Line 1,680,530 278,020 - 1,958,550 15% 912,358 - 202,951 1,115,309 843,241
ETP Plant 8,958,616 - - 8,958,616 15% 4,516,764 - 696,207 5,212,971 3,745,645
Other Assets 22,321,347 2,724,669 - 25,046,016 15% 11,448,217 - 1,630,985 13,079,202 11,966,814
Deep Tube-Well 5,547,072 - - 5,547,072 15% 1,477,218 - 610,908 2,088,126 3,458,946
Furnace Oil Reserver 1,450,000 - - 1,450,000 15% 1,020,026 120,519 1,140,545 309,455
Total 3,462,308,674 148,318,484 - 3,610,627,159 1,380,017,303 - 184,184,030 1,564,201,333 2,046,425,827
Property, Plant & Equipment as at

30 June 2018 2,164,536,011 1,329,256,921 31,484,258 3,462,308,674 1,317,364,075 24,281,669 86,934,897 1,380,017,303 2,082,291,371
5 Intangible Assets
Particulars Balance Addition Sale/ Total Cost Rate Balance Sale/ Charged Total down Value
as at during the Disposal as at % as at Disposal during the as at as at
01.07.18 year 30.06.2019 01.07.18 year 30.06.2019 30.06.2019
Software Development 5,972,361 766,483 - 6,738,844 10% 2,142,494 - 382,987 2,525,481 4,213,363
Total 5,972,361 766,483 - 6,738,844 2,142,494 382,987 2,525,481 4,213,363
Intangible Assets as at 30 June 2018 4,579,167 1,393,194 - 5,972,361 1,863,583 - 278,911 2,142,494 3,829,867
5.1 Allocation of Depreciation & Amortization

Factory 181,793,058
Total 184,567,016
** This allocation of deprteciation is based on the nature of assets contribution directly to production and administration of operation.
Amount in Taka
30 June 2019 30 June 2018
6. Investment
Shasha Textiles Ltd. 69,700,000 69,700,000
Shasha Garments Ltd. 15,000,000 15,000,000
Shasha Denims Ltd. Unit-2 15,939,189 15,939,189
TelStar Communication Ltd. 300,000 300,000
Energis Power Corporation Ltd. 983,400,000 983,400,000
Trade Matrix Bangladesh Ltd. 300,000 300,000
Energis Holdings Ltd. 350,000 350,000
1,095,604,189 1,095,604,189
7. Inventories
Yarn 852,312,265 992,742,837
Chemical 266,054,874 235,138,725
Stationery 1,140,235 1,210,753
Fuel, Oil & Lubricants 2,827,177 3,124,077
Finished Fabric 513,102,388 271,296,108
Work-in-Progress- Fabric 85,711,336 131,735,976
Work-in-Progress- Sizing Yarn 39,406,481 119,888,481
1,891,102,650 1,873,233,230
8. Materials In Transit
Yarn 50,830,868 315,991,474
Chemical 3,968,076 27,301,268
Machine - 2,190,197
67,373,464 352,496,618
9. Accounts Receivable (note-9.1)
Export 1,868,648,526 1,809,620,260
1,868,648,526 1,809,620,260
9.1 As these receivables are due from various clients number of which is not less than 100, to maintain the
haromization of financial statements the beark up is not presented here. However all the receivables are
good in standard and average age is only 90 days.
10. Deposit for Shares

Shasha Textiles Ltd. 238,500,426 238,500,426
Shasha Apperals Ltd. 201,818 201,818
Energis Power Corporation Ltd. 339,120,382 339,120,382
Eos Textiles Mills Limited 300,000,000 300,000,000
Form Icon Ltd. 66,381,622 66,381,622
951,448,734 951,298,734
Amount in Taka
30 June 2019 30 June 2018
11. Advance Deposit & Prepayments

Security Deposit & Guarantee Note: 11.1 48,040,489 48,146,489
Advances Note: 11.2 92,687,629 55,423,506
Prepayments Note: 11.3 191,003,209 223,717,494
331,731,327 327,287,489
11.1. Security Deposit & Bank Guarantee

Security Deposit Note: 11.1.1 47,313,399 47,419,399
Bank Guarantee Note: 11.1.2 727,090 727,090
48,040,489 48,146,489
11.1.1 Security Deposit

Security Deposit BEPZA Land 1,117,871 1,117,871
Security Deposit BEPZA Land Plot-189-292 1,820,982 1,820,982
Security Deposit BEPZA Electric 1,207,500 1,207,500
Security Deposit BEPZA Water Connection 103,068 103,068
Security Deposit Titas Gas 19,477,100 19,477,100
Security Deposit-TBL 270,000 270,000
Security BOC Cylinder 54,000 54,000
Security Deposit-Mobile 8,000 8,000
Security Deposit-Central Depository of Bangladesh 305,636 411,636
Security Deposit Office Rent 400,000 400,000
Security Deposit-Load 2500 KW 2,152,500 2,152,500
Security Deposit-Office Rent 2500 kW 20,103,747 20,103,747
Group4s Security 259,996 259,996
47,313,399 47,419,399
11.1.2 Bank Guarantee
BG Margin-Titas Gas-Bank Asia 523,750 523,750
BG Margin-Titas Gas-PBL Uttara 203,340 203,340
727,090 727,090
11.2 Advances
Office & Factory Employees 10,132,373 9,403,963
Store & Garage Rent - 20,000
Office Rent 96,000 96,000
Rent BEPZA 0.61 -
Flat Purchase-Samudra Builders 16,711,925 15,211,925
Store Rent-Ali Imam 170,400 222,400
D.G Department of Environment 2,288,000 2,288,000
92,687,629 55,423,506
Amount in Taka
30 June 2019 30 June 2018
11.3 Prepayments
Factory Expenses 6,282,095 4,466,255
Adv. Against Purchase Note: 11.3.1 60,735,334 54,935,187
Store & Garage Rent 22,000 -
Mobile Bill & Others - 356,148
LC and Bank Guarantte Margin 17,945,949 84,575,459
Advance Income Tax Note: 11.3.2 104,910,759 79,384,445
Adv. For Customs Appel. Tribunal 1,107,072 -
191,003,209 223,717,494
11.3.1 Adv. Against Purchase
Foreign- T.T 10,665,380 8,142,415
Local suppliers 50,069,954 46,792,772
60,735,334 54,935,187
11.3.2 Advance Income Tax

Opening Balance 79,384,445 99,041,093
Addition during the period 24,957,466 33,246,040
Adjusted during the year (568,848) 52,902,688
Closing balance 104,910,759 79,384,445
12. Cash and Cash Equivalents

Cash in Hand Note: 12.1 4,732,146 3,182,766
Cash at Bank- Current Account Note: 12.2 12,816,503 3,081,993
Cash at Bank- Foreign Currency Account Note: 12.3 39,007,981 13,431,651
Cash at Bank- IPO Note: 12.4 8,613,892 11,303,450
Cash at Bank- Fixed Deposit Account Note: 12.5 - 61,000,000
65,170,522 91,999,860
12.1 Cash in Hand

Head Office 4,302,945 2,457,213
Factory Office 429,201 725,553
4,732,146 3,182,766
12.2 Cash at Bank- Current Account

UCB CD-015-1101-000000371 78,007 151,942
IFIC Bank Ltd., Gulshan Branch,CD-33014676 17,111 17,111
Sonali Bank Ltd., Local Office, CD-33053716 136,254 136,254
The Premier Bank Ltd., Gulshan Branch, CD-11002930 2,356 3,506
The Premier Bank CD-7632 - 97,970
Trust Bank Ltd., Gulshan Branch,CD-33001855 1,161,478 1,165,128
One Bank Ltd., Savar Branch, CD-5006 412,730 111,824
First Security Islami Bank, Gulshan Branch CD-111000553-4 15,438 17,250
United Commercial Bank Ltd., Uttara Branch,CD-14/10 107,334 787,293
Bank Asia Ltd., Corporate Branch RAD AC 1 1,019
Bank Asia Ltd., Corporate Branch, STD-625 803,905 592,696
Midland Bank Limited-CD-2956 10,078,617 -
The City Bank-2001 3,270 -
12,816,503 3,081,993
Amount in Taka
30 June 2019 30 June 2018
12.3 Cash at Bank- Foreign Currency Account
The Premier Bank Ltd., Gulshan Branch,FC-128/04 4,556 4,515

Bank Asia Ltd., Corporate Branch,FC-344 2,079,376 2,539,832
Sonali Bank Ltd.,FC-045 6,788,265 6,727,286
The Premier Bank Ltd., Uttara Branch FC-313 28,317,083 4,160,018
The Premier Bank Ltd., Uttara Branch FC-83 1,818,702 -
39,007,981 13,431,651
12.4 Cash at Bank- IPO Account
Eastern Bank Ltd., Principal Br.-

\ High Performance A/C-1011360258906 8,278,700 8,062,765
Eastern Bank Ltd.- USD Account 133,610 132,557
Eastern Bank Ltd.- Euro Account 13,792 13,744
Premier Bank Ltd. Uttara Br. STD-22-8 175,743 3,082,049
Eastern Bank Ltd.- GBP Account 12,047 12,335
8,613,892 11,303,450
12.5 Cash at Bank- Fixed Deposit Account
The Premier Bank Ltd. - 61,000,000

- 61,000,000
13. Share Capital
Authorized Capital
20,00,00,000 ordinary shares of TK.10/- each 2,000,000,000 2,000,000,000
2,50,00,000 redeemable preference shares of TK.10/- each 250,000,000 250,000,000
2,250,000,000 2,250,000,000
Issued & Paid up Capital

Ordinary Shares 1,195,548,870 1,127,876,300
Stock Dividend 83,688,420 67,672,570
1,279,237,290 1,195,548,870
The paid up Capital of Shasha Denims Ltd.
Amount (Tk) Percentage

Sponsor & Director 480,603,830 38%
Institutions 226,090,560 18%
Foreign 40,779,270 3%
Others 531,763,630 42%
1,279,237,290 100%
The Range of Shareholdings:
Shareholding Range No.of Shareholders No. of Shares Percentage
Up to 500 Shares 6274 1,207,932 0.94%

501 to 5,000 Shares 2482 5,015,649 3.92%
5,001 to 10,000 Shares 569 4,164,573 3.26%
10,001 to 20,000 Shares 386 5,475,090 4.28%
20,001 to 30,000 Shares 146 3,647,404 2.85%
30,001 to 40,000 Shares 75 2,611,795 2.04%
40,001 to 50,000 Shares 47 2,159,921 1.69%
50,001 to 1,00,000 Shares 94 6,718,125 5.25%
1,00,001 to 10,00,000 Shares 90 21,535,090 16.83%
10,00,001 and above shares 13 75,388,150 58.93%
10,176 127,923,729 100%
Amount in Taka
30 June 2019 30 June 2018
14. Share on Premium Account
5,00,00,000 Shares of Tk. 25 each 1,250,000,000 1,250,000,000
15 Retained Earnings
Opening Balance 1,882,028,757 1,667,681,869

Add: Net Profit during the year 161,382,545 423,003,997
2,043,411,303 2,090,685,866
Less: Final Dividend 179,332,331 140,984,538
Less: Stock Divend 83,688,420 67,672,570
1,780,390,553 1,882,028,757
16 Deffererd Tax Liability
Written down Value (Accounting Base) 2,050,639,190 2,086,121,238

Written down Value (Tax Base) 1,426,895,689 1,631,854,211
Temporary Difference 623,743,501 454,267,027
Tax Rate 15% 15%
93,561,525 68,140,054
The temporary difference to determine the deffered tax liability/assets has been increased significantly
due to significant addition of assets during last year and this year. The another reason for significant
difference between the carrying value of accouting base assets and tax based assets is the calculation
methodology and seperate depreciation charging rates of the company and the taxation authority.
Amount in Taka
30 June 2019 30 June 2018
17 Accounts Payable
A G Tex 1,135 -
AA Synthetic 3,897 3,500
ABC Building 1 -
AE International 3,318 3,318
Aegis service ltd 8,694 8,694
Agni System Ltd. 5,471 -
Ahsiar Fashions Ltd. - 1,268,184
AL Baraka Enterprise 347,347 423,806
Atlas Copco - 210,000
Baizid Enterprise 6,884,000 -
Biniyoughbarta 20,000 40,000
Bismillah Rubber & Engineering 10,540 4,680
Bureau Verities Corporation - 169,852
Cargoline Global Logistics Ltd. 17,000 -
Civic In - 33,345
Consumer Gas Services 92,200 -
Credit Rating Agency of Bangladesh 214,000
230,000
Dana Engr. Ltd. 44,259 1,452
Dexterous Engr.-Chiller 18,630 171,760
Dhaka Logoistics Network - 86,721
EMKAY Enterprise - 82,750
Energypac Power Generation Services 93,980
Falcate Paper Tube 255,449 -
Fashion Bangla - 873,217
Fire Service Civil Def.Tahobil - -
Friends Chemitech 194,400 205,500
Gazi International 5,800 5,800
General Enterprise 11,515 72,800
H.A Engr. - 14,000
Hakim Enterprise - 6,437
Haque Textiles 36,012 -
Hashem Textiles 108 128,469
Horizon express 129,169 668,750
ICSB - 9,500
ITS Labtest Bangladesh Ltd. 1 164,900
J.R Collection - 52,924
Jamuna Denims Weaving Ltd. 13,671 -
Japan Engr. - 21,400
Juel Enterprise 39,619 -
Karnaphuli Insurance-Open Cov. 3,233,396 -
Kavasji Nariman 1,882,827 -
Kurmitola Golf Club - 12,100
Lanka Bangla Infor. 72,000 63,000
Link 3 Technologies Ltd. 9,200 -
Long Lasting Coating 8,716 -
M/S Bozlu Traders 1,965 -
M/S S.Alam Construction 207,969 -
Mahmud Fabrics & Finishing 1,939,646 -
Max Leather - 10,000
Md. Thoha Hossain - 366,016
Md.Khorshed Alam Store Owner 53,000 51,750
Met Life Alico 18,862 18,862
Amount in Taka
30 June 2019 30 June 2018
MJL Bangladesh Ltd. 12,628 -
Mozumder Sikder Associates 3,000 7,500
Multibrand Workshop 166,230 79,210
Multicable Network - 4,200
Navana Limited 49,800 -
Nazim Uddin -Painter 975 -
Nazrul Islam Textiles 101,354 384,736
New Asia Ltd. - 19,000
New Khan Transport Agency 4,703,025 4,013,166
New Light Corner - 24,859
Oversis Marketing 7,500 7,500
Rafi Paper 338,884 616,413
Rafin Cargo 313,687 -
Richmond Hotel - 16,710
Roots Consortium - 1,491
Royal Denims Ltd 2,749,527 -
S.Alam Electronics - 35,507
Saje Solution - 233,200
SGS Bangladesh Ltd. - 908
Shamim Enterprise 4 -
Sharmin Reed - 10,800
Sigma Pump 8,635 4,920
SK International 10 -
Sohel & Brothers - 310,218
Southwest Composite Ltd. 2,005,454 2,110,126
Sovereign Technilogy 5,880 190,000
Tareq catering & Event 9,450 9,450
Technical World 4,526 2,236
Telecom Spare - 81,225
The Jamalpur Trade Syndicate 4,681 129,085
Titas Spinning & Denim - 14,781
Touch Paper 1,122,454 1,267,570
Trident Agency 113,400 -
TUV Rheinland Bangladesh 552 552
Unifil Composite Dyeing Mills - 20,317
Unique Solutions 210,405 -
Z.R Color Chem - 33,000
Import Liability note: 17.1 871,778,840 1,152,572,772
Others Payable - 143
905,566,852 1,175,492,547
17.1 Import Liability

Yarn 349,636,901 1,092,812,917
Overdue Import Liability for yarn 399,451,707 -
Chemical 7,616,831 28,174,847
871,778,840 1,152,572,772
These import liability is due to the suppliers through the supplier's bank as these are 100% import LC
liability. These were previously been classified as accepted bank liability now been classified as import
liability seperately with other accounts payable to make the accurate disclosure. The overdue import
liability refers to the liability existed after the expiry of the maturity date and bank has facilitated the
suppliers payment making liability with us. As the corresponding assets associated with this overdue
liability is the raw materials of the business, it has been classified as the import liability rather to
disclosing this as bank loan.
Amount in Taka
30 June 2019 30 June 2018
18 Liabilities for Expenses

BEPZA-Electric Bill 2,882,624 6,407,179
BEPZA-Water Bill 1,913,921 2,298,630
BEPZA-Gas Bill Service Charge 1,577,071 1,656,035
BEPZA-Medical Bill 86,190 78,306
BEPZA-Workers Welfare Fund 38,025 25,110
BEPZA- IP/SC/L 19,610 15,350
BEPZA-WWT 1,981,227 2,301,745
Titas Gas Bill 8,101,811 16,560,350
Wasa Bill 22,333 23,281
Gas Bill 3,100 -
Mobile Bill 5,789 -
Rent Gulshan Office 559,000 487,000
Remuneration 1,751,042 1,178,542
Salary, Wages & Overtime 29,132,616 22,619,929
AIT-Titas, Salary & Others 242,857 243,249
Tax Liability 65,904,363 82,904,363
P.F Payable 11,548,361 5,118,076
Stamp Payable 10,750 10,260
Guest House Rent 600,500 615,105
Exchange/Discount 20,612,571 23,289,200
Garage Rent Payable 10,000 10,000
Advisor Fees Payable 27,500 50,000
Board Meeting Fees Payable 25,000 49,500
Consultancy Fees Payable 230,000 230,000
Afroza Enterprise 115,000 15,000
Share Biz Kortcha 74,750 74,750
DHL World Wide Express (BD)P. Ltd. 87,316
269,395
Bangladesh Trade Syndicate - 5,494
Dhaka Com Ltd. - 2,400
Royal Office 107,600 40,900
Root Marketing Services - 1,640
Nirapad Aluminum 18,020 18,020
Khan Sons Automobiles - 19,359
AD Creation 81,998 297,350
G4s Security Services BD. (P) Ltd. 680,227 1,005,179
Warrior Security Service 11,004 11,004
Overseas Marketing Co - 7,000
Sanyo Refrigeration 8,400 38,000
Razia Motors-2 22,300 -
ST Express 504,151 210,036
Aamra Network - 1,000
Comculus System & Innovation 49,450 10,000
Sohana Machinery - 23,611
Gulshan Club-(S.M) 10,786 5,929
Amount in Taka
30 June 2019 30 June 2018
Nisa Software - 8,225
Others Expenses - 4,409
KIA Service Center 40 -
M/S.Zahura And Sons 65,215 7,740
DHS Motors - 1,076
Motin Courier Service - 1,342
Elit Paint - 9,867
CU Certification 137,886 41,411
Arthosuchak 400 -
Metro Books - 56,276
Sign Palace 77,487 17,000
Unique Thread 125,665 125,665
Travel Wise Ltd 42,305 42,305
A & S Engineering Ltd. 712,862 -
Other Expenses 73,015 -
150,782,835 169,011,748
19 Provision for Income Tax

As per Last Year 150,798,087 217,284,262
Less: Tax Paid 43,600,000 -
Less: Tax Adjust. After assesment(01/01/16-30/06/16) - 51,399,885
Less: Tax Adjust. After assesment(01/01/15-31/12/15) - 89,407,166
132,155,553 150,798,087
20 IPO Fund Received

Eastern Bank Ltd., Principal Br. 3,436,928 3,436,928
21 Short Term Loan

Bank Asia Ltd. Note: 21.1 567,769,828 1,082,141,392
The Premier Bank Ltd. Note: 21.2 1,910,024,360 1,612,100,236
Midland Bank Ltd. Note: 21.3 287,326,089 -
Shasha Garments Ltd. 50,659,902 -
2,815,780,179 2,694,241,628
21.1 Bank Asia Ltd.

Bank Asia Ltd., Corporate Branch, OD-692 215,657,100 204,903,441
Bank Asia Ltd., Corporate Branch, DL - 215,539,642
Bank Asia Ltd., CorporateBr. STL - 51,648,653
Bank Asia Ltd., Corporate Br.-FBN 115,285,197 320,813,988
Bank Asia Ltd., Corporate Br.-EDF 180,135,826 141,787,792
Bank Asia Ltd., Corporate Br.-PAD 56,691,705 147,446,981
Bank Asia RAD - 894
567,769,828 1,082,141,392
Amount in Taka
30 June 2019 30 June 2018
21.2 The Primier Bank Ltd.

The Premier Bank Ltd., Uttara Branch, OD-141 659,730,753 613,438,168
The Premier Bank Ltd., Uttara Branch-FBN 853,751,275 853,086,489
Premier Bank-EDF 284,231,012 -
Premier Demand Loan - 118,600,060
Premier SOD Loan - 19,391,789
The Premier Bank Ltd. PAD AC 107,719,326 7,583,730
The Premier Bank Ltd. -7632 4,591,993 -
1,910,024,360 1,612,100,236
21.3 Midland Bank Ltd.

STL 0011-2510003421 287,326,089 -
287,326,089 -
Amount in Taka
2018-2019 2017-2018
22 Revenue (note-22.1) 5,325,948,203 5,141,246,569
22.1 As export revenue is achieved through proper banking channel from a large number of client base of the
company, to maintain the haromization of financial statements the beark up is not presented here.
23 Cost of Goods Sold:

Materials-Yarn (Note: 23.1) 3,389,220,981 3,041,161,591
Materials-Chemical (Note:23.2) 524,630,842 504,855,024
Raw Materials Consumed 3,934,795,855 3,563,388,928
Add: Factory Overheads (Note:23.3) 892,432,679 794,877,376
Cost of Goods Manufactured 4,827,228,534 4,358,266,304
Opening Work-in-Progress 131,735,976 19,050,628
Less: Closing Work-in-Progress 85,711,336 131,735,976
Cost of Production 4,873,253,174 4,245,580,956
Opening Finished Goods 271,296,108 288,480,141
Less: Closing Finished Goods 513,102,388 271,296,108
Cost of Goods Sold 4,631,446,893 4,262,764,990
23.1 Cost of Materials -Yarn

Opening Stock
Yarn 992,742,837 655,987,381
1,112,631,317 672,300,154
Add: Purchases (Import) 3,022,298,076 3,344,249,431
Add: CIF Cost 146,010,333 137,243,322
4,280,939,727 4,153,792,908
Less: Closing Stock - -
Yarn 852,312,265 992,742,837
Cost of Materials -Yarn 3,389,220,981 3,041,161,591
Amount in Taka
2018-2019 2017-2018
23.2 Cost of Materials -Chemical
Opening Stock
Chemical 235,138,725 156,793,768
Add: Purchase 529,944,811 560,209,755
Add: CIF Cost 25,602,180 22,990,225
790,685,716 739,993,749
Less: Closing Stock
Chemical 266,054,874 235,138,725
Cost of Materials -Chemical 524,630,842 504,855,024
23.3 Factory Overhead
Factory Wages & allowance 338,726,803 334,236,348

Security Service charges 7,151,596 6,439,494
BEPZA Rent 6,278,855 6,170,454
Electric bill for Bepza 68,042,684 82,992,243
Gas bill,S/Charge for Bepza 9,943,022 10,157,109
Water bill for Bepza 29,172,436 24,397,073
Medical bill 1,450,849 1,794,242
BEPZA-Worker Welfare Fund 328,215 298,470
BEPZA-Waste Water Bill 30,252,619 27,219,159
BEPZA-EP/IP/SC 238,001 243,916
Gas bill-Titas 99,083,595 101,571,066
Fuel, Oil and Lubricant 6,453,967 7,955,998
Spare parts 56,681,103 44,368,856
Stationery 4,394,804 5,609,809
Ink & Cartidge 368,646 663,782
Repair and Maintenance 4,348,152 5,701,173
Electrical expenses 677,398 478,610
Labour charges 3,257,094 2,617,708
Fabric Test 2,506,500 3,084,466
Entertainment 9,946,662 11,508,274
Carrying Charges 13,026,318 14,531,730
Laboratory Expenses 509,452 369,823
House Rent for workers 3,506,000 3,505,200
P.F Contribution 10,362,289 9,227,713
Group Insurance 2,497,724 2,358,469
892,432,679 794,877,376
Amount in Taka
2018-2019 2017-2018
24 Administrative Expenses
Directors Remuneration 16,395,000 11,955,000
Salary and allowance 49,892,513 43,927,962
Office Rent 2,505,000 2,484,000
Electricity Bill 369,572 298,715
Gas Bill 18,600 55,100
Wasa bill 192,882 218,804
Telephone bill 204,060 166,094
Mobile bill 1,350,937 1,310,213
Store Rent 300,000 300,000
Office Expenses 444,857 439,870
Donation & Subscription 611,863 668,280
Fees & forms 4,618,196 4,096,365
Credit Rating Fees 214,000 460,000
Renewal & Registration Fee 960,775 1,516,406
P.F Contribution 2,183,184 2,033,450
Stationery 718,622 862,068
Ink & Cartidge 130,730 -
Entertainment 1,462,143 1,584,029
Travelling & Conveyance 19,864,058 20,823,261
Photocopy 23,575 28,094
Courier bill 5,390,112 6,610,800
Board Meeting Fees 230,000 264,500
Audit Fees - 212,750
Paper bill 9,530 9,610
Car Fuel 6,826,536 6,751,967
Internet Bill 767,319 823,761
Books & Periodicals 3,164 3,030
AGM expenses 2,094,100 2,892,348
Uniform & Leverage 324,260 244,520
Cable Charge 7,200 7,200
Car Expenses 939,898 573,559
Consultancy/Professional Fees 4,981,340 4,071,000
Compliance Fees - 34,500
Softwear Maintenance Charge 438,900 426,300
Advertisement 2,772,387 1,379,896
Insurance 40,076 187,664
Audit Fees 345,000 345,000
Dhaka Stock , Ctg.Stock Exchange & BSEC Charge 2,223,287 -
Vat Expenses 769,332 -
Survey Charges - 8,000
Misc. Exp. 3,263,135 3,617,331
137,140,406 124,982,732
25 Selling & Distribution Expenses

Sample Expenses & Marketing Exp. 48,066,903 46,334,173
48,066,903 46,334,173
Amount in Taka
2018-2019 2017-2018
Bank Charges & Commission
L/C advising and amend.charges 1,113,662 966,591
Comm.and Intt.for Export 906,798 943,210
Bank Charge & Others 3,543,520 2,879,312
Discount-Bill Purchase 82,623,359 104,928,284
INTEREST
Bank Asia Ltd.,Interest on OD-692 22,638,563 17,212,902
Bank Asia Ltd.,Int. on Demand Loan 29,460,419 5,450,642
Bank Asia Ltd.,Int. on Term Loan 700,203 30,093,990
The Premier Bank Ltd., Int. on OD 79,181,331 49,608,652
Midland Bank Ltd. Intt. On Term Loan 34,042,040 -
Intt.on Premier Bank Demand Loan 19,670,723 2,099,485
Intt on PBL-Demand Loan - 91,789
Intt on PBL SOD 1,786,490 -
Interest on EDF/PAD & Others 19,749,412 5,528,849
IPDC Interest - 1,650,000
303,878,304 227,947,882
27 Non-Operating Income
Gain on disposal of Assets - (2,952,588)
Exchange Gain/(Loss) 2,050,289 (1,140)
Others Income 2,131,137 7,280,441
4,181,426 4,326,713
27.1 (Loss)/Gain on Disposal of Assets
Cost - 31,484,258
Less: Accumulated Depreciation - 24,281,669
Carrying Value - 7,202,589
Less: Selling Price - 4,250,000
Gain/(Loss) - (2,952,589)
28 Corporate tax: Corporate tax has been calculated on reduced tax rate basis
ie 15 % on Operating profit only.
Current Tax
Tax from operating profit 24,957,466 73,151,383
Tax on Non-Operating Income 4,368,412
24,957,466 77,519,795
Tax Adjustment from tax office

Add: Charge after Assesment including Interest - 2870765
Less: Tax adjustment after Adjustment - (6,069,684)
24,957,466 74,320,876
28.1 The above income tax provision is the tax deducted at source from export proceeds under section 53BB
and under section 53F. Both the provisions of income is subject to payment of minimum tax under
section 82(C) irrespective of the profit or loss of the company. Hence calculation followed the according
law references.
Amount in Taka
2018-2019 2017-2018
29 Earning Per Share (EPS)
Net Profit after Tax 161,382,545 423,003,997

Outstanding Weighted Average Number of Share 127,923,729 119,554,887
Basic Earning Per Share (EPS) 1.26 3.54
Restated Earning Per Share (EPS) 3.31
29.1 Outstanding Weighted Average Number of Share
Opening Number of Shares 119,554,887 112,787,630

Bonus Shares Issued 8,368,842 6,767,257
Outstanding Weight Average Number of Share 127,923,729 119,554,887
30 Net Assets Value Per Share (NAV)
Net Assets 4,309,627,842.39 4,327,577,628

Outstanding Weight Average Number of Share (note 29.1) 127,923,729 119,554,887
Net Assets Value per Share 33.69 36.20
Net Assets Value per Share, (restated) - 33.83
31 Operating Cash flow reconciliation with indirect method
Net cash generated from operating activities
Net Profit before tax 211,761,482 496,690,441

Adjustment for non cash items:
Depreciation & amortizations 184,567,016 87,213,809
Loss on sale of assets - 2,952,588
Exchange gain or loss 2,050,289 2,953,728
186,617,305 93,120,125
Cash generated from operating activities before
changes in working capital 398,378,788 589,810,566
Adjustment for
(increase)/decrease in inventories & material in transit 267,253,735 (921,026,312)
(increase)/decrease in accounts receivable (59,028,266) (644,009,408)
(increase)/decrease in advance, deposits & prepayments (4,443,838) (85,876,569)
(increase)/decrease interest receivable 1,037,000 585,714
increase/(decrease) accounts payable (269,925,695) 1,165,990,260
increase/(decrease) of import liability-EDF (PBL) 284,231,012 -
increase/(decrease) liabilities for expenses (18,228,912) 102,906,695
Cash generated by operation 200,895,037 (381,429,621)
Finance expenses (304,798,990) (108,551,071)

Income tax paid (24,957,466) (38,245,937)
Net cash generated from operating activities 269,517,369 61,583,937
32. Financial risk management

The company management has overall responsibility for the establishment and oversight of the company's risk
management framework. The company's risk management policies are established to identify and analyse the
risks faced by the company, to set appropriate risk limits and controls, and to monitor risks and adherence to
limits. This note presents information about the company's exposure to each of the below risks, the
company's objectives, policies and processes for measuring and managing risk, and the company's
management of capital. The company has exposure to the following risks from its use of financial instruments.
• Credit Risks • Liquidity Risks • Market Risk
32.1 Credit risk

Credit risk is the risk of a financial loss to the company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and it arises principally from the company's
receivables from export sales.
Cedit policy of Shasha Denims Limited is completely regulated by its export letter of credit terms and
conditions. The payment term is 90 days in all the cases. However, in rare cases, due to incomplete
documentation and processing delay the receivable remains more than the sceduled period. This
exposure to credit risk is monitored on an ongoing basis.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the
statement of financial position.
32.1.2 Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk at the reporting date was:
Amount in Taka
30 June 2019 30 June 2018
Accounts receivables 1,868,648,526 1,809,620,260

Cash and cash equivalents 65,170,522 91,999,860
1,933,819,048 1,901,620,120
The maximum exposure to credit risk from export receivables at the reporting date by type of counterparty was:
Domestic- Deemed export 1,868,648,526 1,809,620,260

Direct Foreign Export - -
1,868,648,526 1,809,620,260
32.1.3 Impairment Loss

Trade receivable is assessed at each date of statement of financial position to determine whether there
is objective evidence that it is impaired. Trade receivable is impaired if objective evidence indicates that
a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative
effect on the estimated future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets are impaired can include default or delinquency by a debtor,
indications that a debtor or issuer will enter bankruptcy, etc. The usual terms of export letter of credit is
only for 90 days and it hardly crosses this age limit only for insignificant periods. However, the chance
of irrecoverability is almost zero. Shasha Denims Limited does not have a practice to make provision for
any doubtful debts against any receivable.
The aging of receivables at the reporting date was:
2019 2018
Gross Taka Impairment Taka Gross Taka Impairment Taka
Past due 0-30 days 1,055,660,574 - 914,027,460 -

Past due 31-90 days 812,987,952 - 895,592,800 -
Past due 91-150 days - - - -
Over 150 days - - - -
1,868,648,526 - 1,809,620,260 -
200
32.2 Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach for managing liquidity
(cash and cash equivalents) is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. Typically, the Company ensures that it
Annual Report 2019
has sufficient cash and cash equivalents to meet expected operational expenses, including financial obligations through preparation of the cash flow
forecast prepared based on the basis of payment of the financial obligation and accordingly arrange for sufficient liquidity/fund to make the expected
payment within due date. Moreover, the Company seeks to maintain short term lines of credit with scheduled commercial banks to ensure payment of
obligations in the event that there is insufficient cash to make the required payment. The requirement is determined in advance through cash flow
projections and credit lines with banks are negotiated accordingly
The following are the contractual maturities of financial liabilities, including estimated interest payments:
Carrying Contractual 6 months 6-12 More than

1-2 years 2-5 years
Particulars amount cash flows or less months 5 years
Taka Taka
Taka Taka Taka Taka Taka
As at 30 June 2019
Non-derivative financial liabilities:

Accounts Payable 905,566,852 905,566,852 724,453,482 181,113,370 - - -
Liability for Expenses 150,782,835 150,782,835 143,243,693 7,539,142 - - -
Short Term Loan 2,815,780,179 2,815,780,179 1,653,066,236 1,162,713,942
Derivative financial liabilities - - - - - - -
3,872,129,866 3,872,129,866 2,520,763,411 1,351,366,454 - - -
As at 30 June 2018
Non-derivative financial liabilities:

Accounts Payable 1,175,492,547 1,175,492,547 940,394,038 235,098,509
Liability for Expenses 169,011,747 169,011,747 160,561,159 8,450,587
Short Term Loan 2,694,241,629 2,694,241,629 1,856,508,231 837,733,398
Derivative financial liabilities - - - - - - -
4,038,745,922 4,038,745,922 2,957,463,428 1,081,282,495 - - -
32.3 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates
will affect the company's income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters.
The Company is exposed to normal business risks from changes in market interest rates and currency
rates and from non-performance of contractual obligations by counterparties. The Company does not
hold or issue derivative financial instruments for speculative business.
32.3.1 Interest Rate Risk

Interest rate risk is the risk that future movements in market interest rates will affect the results of the
Company's operations and its cash flow because of some floating/variable loan interest rates. The
Company is primarily exposed to interest rate risk from its borrowings.
At the reporting date the interest rate profile of the Company's interest-bearing financial instruments
was:
Amount in Taka
30 June 2019 30 June 2018
Fixed rate instruments

Fixed rate loans and receivable - -
Other fixed rate instruments-FDR - 61,000,000
Financial assets - 61,000,000
Fixed rate bank overdraft 1,162,713,942 818,341,609

Fixed rate loans - 51,648,653
Other fixed rate liabilities - -
Financial liabilities 1,162,713,942 869,990,262
Variable rate instruments

Variable rate deposits at financial institution - -
Variable rate loans and receivable - -
Other variable rate instruments (assets) - -
Financial assets - -
Variable rate bank overdraft - -

Variable rate loans - -
Variable rate debentures - -
Variable rate promissory notes - -
Other variable rate liabilities 1,653,066,236 1,824,251,367
Financial liabilities 2,815,780,179 1,824,251,367
32.3.2 Cash flow sensitivity analysis for variable rate instruments 2019
A change of 10 basis points in interest rates for variable rate instruments which comprise the accepted
liability against import, EDF etc, in 2018 would have increased/ (decreased) equity and profit or loss by
the amounts shown below. This analysis assumes that all other variables remain constant.
Profit or loss Equity
10 bp increase 10 bp decrease 10 bp increase 10 bp decrease

Taka Taka Taka Taka
30 June 2019
variable rate liabilities 14,078,901 (14,078,901) 14,078,901 (14,078,901)
Cash flow sensitivity 14,078,901 (14,078,901) 14,078,901 (14,078,901)
A change of 10 basis points in interest rates for variable rate instruments which comprise the bank
overdrafts, accepted liability against import, EDF etc, in 2017 would have increased/ (decreased) equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables remain
constant.

Taka Taka Taka Taka
30 June 2018
Expenditures denominated in USD 9121257 (9121257) 9121257 (9121257)
Exchange rate sensitivity 9121257 (9121257) 9121257 (9121257)
32.3.3 Foreign Currency Risk

The Company is primarily exposed to foreign currency risk relating to purchases of raw materials which
are denominated in foreign currencies.
As at 30 June, the Company was exposed to foreign currency risk in respect of financial liabilities
denominated in the following currencies:
2019 2018
US Dollars US Dollars
Accepted Liability for import of raw materials 10,316,909 13,739,355
The following significant exchange rates are applied during the year:
Exchange rate as at
30 June 2019 30 June 2018
Taka Taka
US Dollar 84.50 83.70
32.3.4 Foreign exchange rate sensitivity analysis for foreign currency expenditures
Foreign exchange rate sensitivity is calculated on the basis of impact of change of 10 basis points in
foreign exchange rates. This analysis presents the probable weakening of Taka against US Dollar and
the possibility that the profit or loss and the equity would have increased (decreased) assuming all other
variables, in particular interest rates remain constant. As per current practice, foreign exchange rate
sensitivity analysis is done once at the end of the year. Result of the last assessment in 2019 & 2018 is
summarised below.
32.3.4 Foreign exchange rate sensitivity analysis for foreign currency expenditures
Foreign exchange rate sensitivity is calculated on the basis of impact of change of 10 basis points in
foreign exchange rates. This analysis presents the probable weakening of Taka against US Dollar and
the possibility that the profit or loss and the equity would have increased (decreased) assuming all other
variables, in particular interest rates remain constant. As per current practice, foreign exchange rate
sensitivity analysis is done once at the end of the year. Result of the last assessment in 2019 & 2018 is
summarised below.

Taka Taka Taka Taka
30 June 2019
Expenditures denominated in USD 51,585 (51,585) 51,585 (51,585)
Exchange rate sensitivity 51,585 (51,585) 51,585 (51,585)

Taka Taka Taka Taka
30 June 2019
Expenditures denominated in USD 68,697 (68,697) 68,697 (68,697)
Exchange rate sensitivity 68,697 (68,697) 68,697 (68,697)
32.3.5 Determination of fair value

A number of the Company’s accounting policies and disclosures require the determination of fair value,
for both financial and non-financial assets and liabilities. The fair value is the amount for which an asset
could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length
transaction. Fair values have been determined for measurement and/or disclosure purposes based on
the following methods. When applicable, further information about the assumptions made in
determining fair values is disclosed in the notes specific to that asset or liability.
According to the nature of financial instruments of the company, fair value of such instruments is not however
likely to be significantly different from the carrying amounts of respective instruments. Hence determination
of fair value is not performed as per the requirements of BFRS 7: Financial Instruments: Disclosures.
33. Capital Management

Capital management refers to implementing policies and measures to maintain sufficient capital,
assessing company's internal capital adequacy to ensure company's operation as a going concern.
Board of directors are charged with the ultimate responsibility for maintaining a strong capital base so
as to maintain investor, creditor and market confidence and to sustain future development of the
business. All major investment and operational decisions with exposure to certain amount is evaluated
and approved by the board. The Board of directors also monitor the return on capital, which the
company defines as result from operating activities divided by total shareholders’ equity. The Board of
directors also monitor the level of dividends to ordinary shareholders.
34. Related party transactions

34.1 Transactions with key management personnel
Key management personnel are those persons having authority and responsibility for planning, directing
and controlling the activities of the entity, directly and indirectly, including any director (whether
executive or otherwise) of that entity.
In addition to their salaries, the entity does not provide non-cash benefits to key management personnel
in cash or non cash mode. Key management personnel compensation as at 30 June 2019 & in 2018
comprised:
30-Jun-19 30-Jun-18
Taka Taka
Short Term Employee Benefits 25,648,200 21,036,600
25,648,200 21,036,600
34.2 Other related party transactions/balances
Nature of
Related Parties Relationship 30-Jun-19 30-Jun-18
Transaction
Investment in equity 69,700,000 69,700,000

Shasha Textiles Ltd. Subsidiary Company
Deposit for shares 238,500,426 238,500,426
Investment in equity 600,000 600,000

Shasha Apparels Ltd. Associates
Deposit for shares 201,818 201,818
Investment in equity 25,000 25,000

Shasha Spinnings Ltd. Associates
Deposit for shares 471,966 471,966

Cider Education Services Ltd. Associates
Telstar Communication Common Director Investment in equity 300,000 300,000

Energis Power Corporation Ltd. Subsidiary Company
Trade Matrix Bangladesh Ltd. Associates Investment in equity 300,000 300,000
Energis Holdings Ltd. Associates Investment in equity 350,000 350,000
Shasha Garments Ltd. Subsidiary Company Investment in equity 15,000,000 15,000,000
Form Icon Limited Associates Share Money Deposit 66,381,622 66,381,622
Shasha Denims Ltd., (unit-2) Associates Investment in equity 15,939,189 15,939,189
35. Payment of import bill of raw materail in foreign currency

The company disbursed the payment of imported the following items in foreign currency:
2019 2018
USD USD
Raw Materials 41,446,128 42,330,630
41,446,128 42,330,630
36 Events after the reporting period

For the year 2018-2019 the board has recommended a cash dividend _____ amounting to Tk _______/-
and stock dividend of ____ at the board meeting held on 28 October 2019.
37 General
37.1 Figures in these notes and in the annexed financial statements have been rounded off to the nearest
Taka.
37.2 These notes form an integral part of the annexed financial statements and accordingly are to be read in
conjunction therewith.

To The Shareholders of Energis Power Corporation Limited
Opinion Responsibilities of Management and Those
We have audited the financial statements of “Energis Charged with Governance for the Financial
Power Corporation Limited” which comprise the Statements
statement of financial position as at 30 June 2019 and the Management is responsible for the preparation and
Statement of Profit or Loss and Other comprehensive fair presentation of these financial statements in
income, Statement of Changes in Equity and Statement accordance with International Financial Reporting
of Cash Flows for the year ended and notes to the standards (IFRS), the companies Act 1994, and other
financial statements including a summary of significant applicable laws and regulations and for such internal
accounting policies and other explanatory notes. control as management determines is necessary to
enable the preparation and fair presentation of
In our opinion, the accompanying give true and fair
financial statements that are free from material
view, in all material respects, of the financial position of
misstatement, whether due to fraud or error; selecting
the company as at 30 June 2019 and of its financial
and applying appropriate accounting policies; and
performance and cash flows for the year ended and in
making accounting estimates that are reasonable in
accordance with International Financial Reporting
the circumstances.
Standards (IFRSs).
In preparing the financial statements, management is
Basis for Opinion
responsible for assessing the company’s ability to
We conducted our audit in accordance with continue as a going concern, disclosing, as
International Standards on Auditing (ISAs).Our applicable, matters related to going concern and using
responsibilities under those standards are further the going concern basis of accounting unless
described in the Auditors Responsibilities for the audit management either intends to liquidate the company
of the financial statements section of our report. We or to cease operations, or has no realistic alternative
remained independent of the company in accordance but to do so.
with the International Ethics Standards Board for
Accountants’ Code of Ethics for professional Those charged with governance are responsible for
Accountants (IESBA Code) together with the ethical overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of
financial statements and we have fulfilled our other
Financial Statements
ethical responsibilities in accordance with these
requirements and the IESBA Code. We believe that Our objectives are to obtain reasonable assurance
the audit evidence we have obtained is sufficient and about whether the financial statements as a whole are
appropriate to provide a basis for our opinion. free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes based on the audit evidence obtained. Our
our opinion. Reasonable assurance is a high level of conclusions are based on the audit evidence
assurance, but is not a guarantee that an audit obtained up to the date of our auditor’s report.
conducted in accordance with ISAs will always detect • Evaluate the overall presentation, structure and
a material misstatement when it exists. Misstatements content of the financial statements, including the
can arise from fraud or error and are considered disclosures, and whether the financial statements
material if, individually or in the aggregate, they could represent the underlying transactions and events in
reasonably be expected to influence the economic a manner that achieves fair presentation.
decisions of users taken on the basis of these
consolidated and separate financial statements. We communicate with those charged with governance
regarding, among other matters, the planned scope
As part of an audit in accordance with ISAs, we and timing of the audit and significant audit findings,
exercise professional judgment and maintain including any significant deficiencies in internal control
professional skepticism throughout the audit. that we identify during our audit. We however
We also observed continuing increase of receivable which need
be streamlined with relevant authorities in order to
• Identify and assess the risks of material
maintain smooth financial liquidity.
misstatement of the consolidated and separate
financial statements, whether due to fraud or error, Report on other Legal and Regulatory
design and perform audit procedures responsive to Requirements
those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our
We also report that
opinion. The risk of not detecting a material i. We have obtained all the information and
misstatement resulting from fraud is higher than for explanations which to the best of our knowledge
one resulting from error, as fraud may involve and belief were necessary for the purpose of our
collusion, intentional omissions, misrepresentations, audit and made due verification thereof;
or the override of internal control. ii. In our opinion, proper books of accounts as required
• Obtain an understanding of internal control relevant by law have been kept by the company and so far as
to the audit in order to design audit procedures that it appeared from our examination of those books;
are appropriate in the circumstances. iii. The Company’s Financial Position as at 30 June
• Evaluate the appropriateness of accounting policies 2019 and Statement of Profit or Loss and Other
used and the reasonableness of accounting estimates Comprehensive Income and its Cash Flows dealt
and related disclosures made by management. with by the report are in agreement with the books
of account and returns;
Place: Dhaka Pinaki & Company

23rd October 2019 Chartered Accountants
ENERGIS POWER CORPORATION LIMITED

as at 30 June 2019
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
Non-Current Assets
Current Assets 2,352,638,552 1,881,340,543

Accounts Receivables 5 1,695,825,768 1,219,114,115
Inventories 6 313,112,218 350,583,285
Advances, Deposits & Pre-payments 7 327,806,509 310,036,889
Cash & Bank Balances 8 15,894,057 1,606,254
TOTAL ASSETS 3,942,219,293 3,571,297,793
EQUITY & LIABILITIES

Shareholders' Equity 1,940,740,658 1,842,304,385
Share Capital 9 983,700,000 983,700,000
Share Money Deposit 10 623,395,011 623,395,011
Retained Earnings 333,645,648 235,209,374
Non-Current Liabilities 520,473,441 720,977,506

Term Loan-Long Term Portion 11 439,273,441 239,777,506
Financial Liabilities 12 81,200,000 481,200,000
Current Liabilities 1,481,005,193 1,008,015,903

Short Term Loan 13 483,834,937 456,415,560
Trade Payable 15 967,001,272 532,600,986
Other Accounts Payable 16 2,061,577 3,113,277
TOTAL EQUITY & LIABILITIES 3,942,219,293 3,571,297,793
Chief Financial Officer Director Managing Director


for the year ended 30 June 2019
Amount in Taka
Particulars Note
2018-2019 2017-206
Revenue 17 1,558,173,441 1,624,099,174
Less: Operational Expenses 18 1,331,230,703 1,328,204,969
Gross Profit 226,942,739 295,894,205
Less: General & Administrative Expenses 19 42,588,040 43,851,856
Add: Exchange Gain/(Loss) 1,934,083 4,365,625
Net Profit/ (Loss) before Tax 98,436,274 97,116,527
less: Income Tax - -
Net Profit/ (Loss) After Tax 98,436,274 97,116,527
Profit/Loss for the year 98,436,274 97,116,527


Statement of Changes in Shareholders Equity
2018 - 2019 Amount in Taka
Share Share Money Retained Revaluation

Particulars
Capital Deposit Earning Reserve
Balance as on June 30, 2018 983,700,000 623,395,011 235,209,374 1,842,304,385
Add : During the year - - - -
Net profit for the year - - 98,436,274 98,436,274


Particulars
Add : During the year - - - -
Net profit for the year - - 97,116,527 97,116,527


Amount in Taka
Particulars
2018-2019 2017-2018

Cash receive from coustomer 1,083,395,872 1,719,005,912
Payment for cost & other expenses (775,978,655) (1,242,120,463)
Income Tax Paid (685,718) (1,084,616)

Purchase of Assets (31,506,500) (47,059,989)

Share Money Deposit - -
Financial Liability (400,000,000) 44,800,000
Long Term Loan-Bank 199,495,936 (211,821,589)
Short-Term Loan 27,419,377 (107,135,501)
Cash and bank balances at beginning of the year 1,606,254 6,313,947
Cash and bank balances at period end 15,894,057 1,606,254


as at 30 June 2019
1 Reporting Entity preparing these financial statements to ensure

compliance with standards which are effective
1.1 Company Profile from earlier to this financial statements.
Energis Power Corporation Limited (the
2.2 Basis of Measurement
Company) was incorporated in Bangladesh on
All the elements of financial statements have been
December 28, 2008 as a Private Limited
measured on “Historical Cost” basis in accordance
Company. On April 20, 2009 the Company
with “The Framework for the Preparation and
registered itself as a Public Limited Company
Presentation of Financial Statements” issued by the
under the Companies Act, 1994.
Bangladesh Accounting Standards (BAS).
The principal activity of this Company is to set up
power plants for generation and supply of
electricity. The plant, capacity of 55 MW at The financial period of the company covers the
Sikalbaha, Chittagong has successfully period from July to 30 June.
commissioned on 10 January, 2010 and started
3 Significant Accounting Policies
its commercial operation from 6 May 2010 and
supplying to National Grid. The accounting policies set out below have
been applied consistently through out the
The company signed a Power Purchase period presented in these financial statements.
Agreement (PPA) with Bangladesh Power
Development Board (BPDB) on 28 December 3.1 Foreign currency
2008 for a term of 3 years to provide 55 MW net Foreign currencies are converted into Taka at
electricity to Bangladesh Power Development the rates ruling on the transaction dates.
Board (BPDB). This agreement is subsequently Monetary assets and liabilities are reconverted
renewed on 12 May 2014 for another 5 years for at the rates prevailing at the statement of
supplying 35 MW to 55 MW to the Natioal Grid. financial position date. Non-monetary assets
After expire of existing contract BPDB and liabilities are reported using the exchange
instructed to shutdown electric Generation. rate at the date of transaction. Differences
Accordingly EPCL’s electric Generation has arising on conversion are charged or credited to
been suspended since 11th July 2019. the statement of comprehensive income.
2 Basis of Preparation and Presentation of 3.2 Property, plant and equipment

the Financial Statements 3.2.1 Recognition and measurement
2.1 Statement of Compliance Items of property, plant and equipments are
measured at cost less accumulated
The financial statements have been prepared on
depreciation and accumulated impairment
going concern basis in accordance with
losses, if any.The cost of an item of property,
Bangladesh Financial Reporting Standards
plant and equipment comprises its purchase
(BFRS), Securities and Exchange Rules 1987,
price, import duties and non-refundable taxes
the Companies Act, 1994 and other laws and
and any costs directly attributable to bringing
regulations applicable in Bangladesh.
the assets to the location and condition
The following Bangladesh Accouting Standards necessary for it to be capable of operating in the
(BASs/BFRSs) have been newly adopted while intended manner.
3.2.2 Subsequent costs 3.2.3 Depreciation

The cost of replacing part of an item of Energis Power Corporation Limited uses the
property, plant and equipment is recognised in reducing balance method to depreciate each
the carrying amount of the item if it is probable item of property, plant and equipment. Using
that the future economic benefits embodied this convention, yearly reduced carrying
within the part will flow to the Company and its amount is being represented in the statement
cost can be measured reliably. The costs of of financial position.
the day-to-day servicing of property, plant and
equipment are recognised in the statement of
comprehensive income as incurred.
The rates of depreciation, applied on reducing balance method, for the current and comparative years
are as follows:
2019 2018
Generator 8% 8%
Turbine 8% 8%
Electrical Substation & Installation 10% 10%
Local Machinery & Installation 8% 8%
Building & Civil Construction 2.5% 2.5%
Motor Vehicles 20% 20%
Furniture & Fixtures 10% 10%
HFO Reservoir 10% 10%
Oil Tanker 20% 20%
Fire Equipments 20% 20%
Plant Office Interior 10% 10%
CC Cemera 10% 10%
3.3 Advance that an outflow of economic benefits will be

required to settle the obligation.
Advances are initially measured at cost. After
initial recognition advances are carried at cost 3.4.1 Provision for liquidation damage
less deductions, adjustments or charges to other
Provision for liquidation damage is created
account heads such as PPE or inventory etc.
against current year's receivable from BPDB
3.4 Provisions and net off with receivable classified as
disputed deduction-fuel. Actually due to density
A provision is recognized on the balance sheet
and evaporation issues on joint measurement
date if, as a result of past events, the Company
along with other technical measurement, BPDB
has a present legal or constructive obligation
was not paying the full bill amount though the
that can be estimated reliably, and it is probable
management of Energis Power Corporation
Limited was very positive to recover this. With 3.7 Taxation

this experience on the first contract,
The company is enjoying a tax holiday period
management decided to create rational
according to SRO no 211-Act/2013 dated, 1
provision to cover any risk associated with the
July 2013 of Income Tax Ordinance 1984.
recoverability of bill amount to BPDB.
3.5 Revenue Recognition 3.8 Cash flow statement

Revenue is initially recognized in the income
Cash flows from operating activities have been
statement upon supply of electricity based on
presented under dirtect method.
net energy output on a monthly basis. Net
energy output is determined by the Joint meter 3.9 Event after the balance sheet date
reading and verification committee consisting of Event after the balance sheet date that provide
EPCL personnel's and BPDB representatives. additional significant information about the
The measurement of the amount of revenue company's position at the balance sheet date
deriving through sale of energy is determined are reflected in the financial statements.
after necessary adjustment, due assurance Material events after the balance sheet date that
from BPDB regarding the recoverability of the are not adjusting events are disclosed in
revenue according to the Power Purchase seperate note (if any)
Agreement (PPA) with BPDB
3.6 Financial Expenses

Financial expenses comprise interest expense
on term loans, overdrafts or other financial
arrangements as well as bank charges.
as at 30 June 2019
04 Property, plant & equipment
Amount in Taka
Cost Depreciation Written

down
Balance
Particulars Balance Addition Total Charged Total Value
as at Rate
as at during the as at during the as at as at
30-06-19 %
30.06.18 year 30-06-2018 period 30.06.19 30.06.19
Generator 1,944,386,229 31,506,500 1,975,892,729 8% 940,569,723 80,305,320 1,020,875,043 955,017,686

Turbine 602,625,301 602,625,301 8% 330,922,945 21,736,188 352,659,133 249,966,168
Electrical Substation & Installation 177,050,423 177,050,423 10% 98,837,681 7,821,274 106,658,955 70,391,468
Local Machinery & Installation 246,284,056 246,284,056 8% 122,711,236 9,885,826 132,597,062 113,686,994
Building & Civil Construction 194,551,359 194,551,359 2.5% 36,247,079 3,957,607 40,204,686 154,346,673
Motor Vehicles 31,989,265 31,989,265 20% 21,264,169 2,145,019 23,409,188 8,580,077
Office Equipment 5,711,282 5,711,282 20% 3,542,338 433,789 3,976,127 1,735,155
Furniture & Fixtures 1,856,590 1,856,590 10% 795,201 106,139 901,340 955,250
HFO Reservoir 9,837,184 9,837,184 10% 5,665,333 417,185 6,082,518 3,754,666
Oil Tanker 22,452,405 22,452,405 20% 9,127,519 2,664,977 11,792,496 10,659,909
Deep Tube-Well 9,401,790 9,401,790 10% 4,773,850 462,794 5,236,644 4,165,146
Air Conditioner 3,421,500 3,421,500 20% 2,861,818 111,936 2,973,754 447,746
Fire Equipments 3,902,690 3,902,690 20% 3,261,910 128,156 3,390,066 512,624
Plant Office Interior 9,216,415 9,216,415 10% 4,245,501 497,091 4,742,592 4,473,823
CC Cemera 1,792,902 1,792,902 10% 1,032,550 76,035 1,108,585 684,317
Other Assets 18,140,373 18,140,373 10% 6,803,662 1,133,671 7,937,333 10,203,040
Total 3,282,619,764 31,506,500 3,314,126,264 1,592,662,514 131,883,009 1,724,545,523 1,589,580,741
Property,plant & equipment

as at 30 June 2018 3,235,559,775 47,059,989 3,282,619,764 1,452,596,214 140,066,300 1,592,662,514 1,689,957,250
Annual Report 2019
215

as at 30 June 2019
Amount in Taka
Particulars
30 June 2019 30 June 2018
5. Accounts Receivables 1,695,825,768 1,219,114,115

Bangladesh Power Development Board (BPDB):
Rental Bill 669,422,815 271,751,192
Energy Bill 24,692,403 28,139,222
Fuel Payment-HFO 78,828,851 -
Disputed Deduction-Fuel 849,459,265 849,459,265
6. Inventories 313,112,218 350,583,285

Lub Oil-HFO 294,820,345 324,690,912
Diesel oil 1,510,358 1,260,358
Lube oils & luke oils 10,961,818 13,962,318
Other graded Machine oil 765,880 615,880
Spare parts 5,053,817 10,053,817
The HFO presented as inventory is procured by the compnay to reduce the conventional fuel support cost
of BPDB. The HFO inventory which is received from BPDB is not recognised as inventory of the company
nor the revenue of the company. But the inventory procured by the compnay recognised in the inventory
as well as in the revenue.
6.1 Lub Oil-HFO

Opening Balance 324,690,912 515,837,418
Procured during the period 538,325,509 635,613,414
Consumed during the period 568,196,076 826,759,920
Closing balance of HFO 294,820,345 324,690,912
7. Advances, Deposits & Pre-payments 327,806,509 310,036,889

Advance Note- 7.1 244,349,706 221,048,634
Deposit Note- 7.2 4,516,929 8,793,339
L/C & Bank Gurarantee Margin Note- 7.3 78,939,875 80,194,916
Amount in Taka
Particulars
30 June 2019 30 June 2018
7.1 Advances 244,349,706 221,048,634

Energis Ventures Ltd. 46,209,189 46,000,114
New Project-HFO 138,665,180 133,452,070
Mohespur Enterprise 13,705,140 29,217,000
Trade Matrix for Spare Parts 10,178,382 -
SBS International 30,000 30,000
Cosmic Marine Service 1,350,510 950,510
Uni Marine Engineering 305,800 10,800
Mr. Javed Hosein (Rencon & Other) 20,125,000 -
Shah Amanat Machinery 747,800 -
Western Marine 274,855 -
Riant Engineering 75,050 -
Advance against supplies 251,947 6,730
Advance to employees 4,783,207 4,956,782
Against office work 2,236,130 1,698,830
AIT on Carrying 3,732,635 3,369,290
AIT 1,678,881 1,356,508
7.2 Deposits 4,516,929 8,793,339

Deposit to PDB 100,000 100,000
Deposit to IDLC - 508,050
Deposit to IDLC - 935,590
Deposit to IDLC - 2,832,770
Deposit to IDLC 61,010 61,010
Deposit to IPDC 991,419 991,419
Store Rent-Advance 2,850,000 2,850,000
Garage Rent-Advance 4,500 4,500
Advance for House Rent 510,000 510,000
7.3 L/C & Bank Gurarantee Margin 78,939,875 80,194,916

L/C Margin-PBL 3,964,301 5,257,817
L/C Margin-Agrani 28,350,000 28,311,525
IDLC 6,557,505 6,557,505
Bank Guarantee Margin-PBL 40,068,069 40,068,069
8. Cash & Bank Balances 15,894,057 1,606,254

Cash in Hand Note- 8.1 942,425 983,152
Cash at Bank Note- 8.2 14,951,632 623,102
Amount in Taka
Particulars
30 June 2019 30 June 2018
8.1 Cash in Hand 942,425 983,152

Cash in Hand-H/O 453,018 602,633
Cash in Hand-Plant 489,407 380,519
8.2 Cash at Bank 14,951,632 623,102

Agrani Bank CD-8652 519,810 2,790
Bank Asia CD-1208 49,190 49,190
Sonali Bank CD-705 46,938 46,938
Premier Bank CD-6886 1,434,741 250,617
DBBL CD-11820 19,703 22,733
Union Bank CD-1197 2,824 4,089
Pubali Bank CD-31950 2,771,841 75,450
City Bank CD-4001 3,390 3,390
Bank Asia CD-1829 98,316 163,026
DBBL CD-35950 2,355 2,355
IPDC (FDR) 10,000,000 -
Agrani Bank Escrow A/C 2,524 2,525
9. Share Capital
Authorised
200,000,000 Ordinary Shares of Tk. 10 each 2,000,000,000 2,000,000,000
100,000,000 Preference Shares of Tk. 10 each 1,000,000,000 1,000,000,000
Sub Total 3,000,000,000 3,000,000,000
Issued, Subscribed and Paid-up:

9,83,70,000 Ordinary Shares of Tk. 10 each 983,700,000 983,700,000
Shareholding Position at the reporting date:
Shareholdings Amount in Tk.

Name of shareholders
30.06.19 30.06.18 30.06.19 30.06.18
Shasha Denims Ltd. 99.9695 99.9695 983,400,000 983,400,000

Javed Hosein 0.0051 0.0051 50,000 50,000
Mrs.Nishat Nahrin Hamid 0.0051 0.0051 50,000 50,000
Parveen Mahmud 0.0051 0.0051 50,000 50,000
A.R.Jafree 0.0051 0.0051 50,000 50,000
Zareen Mahmud 0.0051 0.0051 50,000 50,000
Nazneen Rahman 0.0051 0.0051 50,000 50,000
Total 100.00 100.00 983,700,000 983,700,000
Amount in Taka
Particulars
30 June 2019 30 June 2018
10. Share Money Deposit 623,395,011 623,395,011

Shasha Denims Ltd 339,120,382 339,120,382
Tradematrix Bangladesh Ltd. 84,274,628 84,274,628
Energis Holdings Ltd. 200,000,000 200,000,000
11. Term Loan-Long Term Portion 439,273,441 239,777,506

Agrani Bank Ltd. - 42,092,947
Janata Bank Ltd. - 42,340,346
Sonali Bank Ltd. - 39,073,883
Premier Bank Ltd. - 6,816,850
Bangladesh Commerce Bank Ltd. - 9,217,211
South East Bank Ltd. - 8,966,284
UCB 206,772,295 -
UCB- RPS 98,000,000 -
IPDC 108,618,561 14,189,644
IDLC 25,882,585 77,080,342
12 Financial Liabilities 81,200,000 481,200,000

Balance As Per Last Account 481,200,000 436,400,000
Provision made this period - 44,800,000
Less: Other adjustment - -
Less: Paid Installment (400,000,000) -
13 Short Term Loan 483,834,937 456,415,560

Agrani Bank Ltd. Note-13.1 212,377,396 202,922,636
Premier Bank Ltd. 129,061,120 157,834,224
Others Loan 142,396,421 95,658,701
13.1 Agrani Bank Ltd. 212,377,396 202,922,636

Overdraft Balance 212,377,396 202,922,636
14 Liability for Expenses 28,107,407 15,886,079

Salary & Wages Payable 7,283,464 7,131,005
Audit fees Payable 207,000 172,500
Store Rent Payable-HFO 19,579,655 7,562,506
Tax Liability 256,498 256,498
Utility & Other Charges 780,790 763,570
15 Trade Payable 967,001,272 532,600,986

Adani Traders 967,001,272 532,600,986
Amount in Taka
Particulars
30 June 2019 30 June 2018
16 Accounts Payable 2,061,577 3,113,277

western Marine Services - 1,750
Falcon Security Ltd. 351,971 158,455
DHL - 13,229
Bismillah Traders 125,750 -
Gemini Freight - 37,840
Aamra Networks - 10,000
Chemitec 493,500 685,750
CRAB 23,050 -
A.S & Associates 65,000 70,000
Shohel & Brothers Pte.Ltd. 456,117 456,117
Safe Tech Security Ltd. 22,000 22,000
Creation 12,500 12,500
Creatrix Soft Tech Ltd. - 6,000
Chapal Trading - 49,621
FMS Marine Service 200,250 200,250
Asia Power Solution 47,200 47,200
Raka Enterprise 199,999 -
Shah Amanat Machinery - 87,200
SGS Bangladesh Ltd. - 630,001
Energypac Power Generation Ltd. 64,240 64,240
K.R Scientific Traders - 89,300
Amount in Taka
2018-2019 2017-2018
17 Revenue 1,558,173,441 1,624,099,174

Rental Received 858,907,615 682,405,590
Energy Sale 115,677,312 103,732,459
Fuel for Payment 568,196,076 826,759,920
18 Operational Expenses 1,331,230,703 1,328,204,969

Fuel,Lubricants & HFO 568,196,076 826,759,920
Fuel,Lubricants( Lub Oil & Diesel) 79,762,521 99,287,847
Repairing Expenses 62,622,580 66,118,949
Operational Expenses 3,954,624 14,750,617
Water Refinery Expenses 3,554,000 2,907,000
Wages & Allowance 72,603,191 68,882,965
Clearing Charge 4,087,594 4,271,615
Fuel & Water Test 72,204 371,534
Labour Bill 1,345,164 1,616,478
Amount in Taka
Particulars
2018-2019 2017-2018
Misc Expenses 919,214 1,072,132

Stationery 122,904 239,182
Communication Expenses 1,405,595 1,297,541
Entertainment 1,924,696 2,086,547
Local Conveyance 190,714 424,126
Accomodation Bill 160,751 198,769
Plant Office Expense 428,866 983,124
Land Rent-PDB 140,000 759,226
Liquidity Damage 395,747,981 92,560,822
Depriciation 131,883,009 140,066,300
19 General & Administrative Expenses 42,588,040 43,851,856

Salary & Allowance 25,810,285 22,320,703
Conveyance 2,525,100 1,562,940
Transport Expenses 3,930,743 4,632,830
Registration & Renewal Fees 372,958 654,388
Stationery 355,258 328,509
Misc.Expenses 2,175,225 7,486,952
Entertainment 1,522,727 1,669,528
Donation & Subscription 749,250 277,590
Fees & Forms 2,150,750 1,660,532
Joint Stock Companies Expenses 8,611 12,677
Professional Fees 172,500 172,500
Gift & Compliments 9,250 257,000
Office Expenses 1,195,698 1,249,186
Audit Fees 207,000 172,500
20 Financial Expenses 87,852,508 159,291,447

Interest on Long Term Loan 4,888,695 30,800,231
Interest on Short Term Loan 48,674,951 53,440,797
Bank Guarantee Commission 4,844,465 5,540,288
Foreign Bank Charge 248,213 344,876
Intt.on IDLC 6,535,053 7,996,879
Intt.on IPDC 15,749,357 2,641,018
Interest on UCBL-20.20 4,772,295 -
Interest on UCBL - 44,800,000
21 Event after Balance Sheet Date:

After expire of existing power supply agreement between EPCL & BPDB. The company has been suspended
power generation since July 11, 2019.

To The Shareholders of Shasha Garments Limited
Opinion: Responsibilities of Management and Those
We have audited the financial statements of “Shasha Charged with Governance for the Financial
Garments Limited” which comprise the statement of Statements
financial position as at 30 June 2019 and the Statement
Management is responsible for the preparation and fair
of Profit or Loss and Other comprehensive income,
presentation of these financial statements in accordance
Statement of Changes in Equity and Statement of Cash
with International Financial Reporting standards (IFRS),
Flows for the year ended and notes to the financial
the companies Act 1994, and other applicable laws and
statements including a summary of significant
regulations and for such internal control as management
accounting policies and other explanatory notes.
determines is necessary to enable the preparation and
In our opinion, the accompanying give true and fair fair presentation of financial statements that are free from
view, in all material respects, of the financial position of material misstatement, whether due to fraud or error;
the company as at 30 June 2019 and of its financial selecting and applying appropriate accounting policies;
performance and cash flows for the year ended and in and making accounting estimates that are reasonable in
accordance with International Financial Reporting the circumstances.
Standards (IFRSs).
In preparing the financial statements, management is
Basis for Opinion: responsible for assessing the company’s ability to
continue as a going concern, disclosing, as applicable,
We conducted our audit in accordance with
matters related to going concern and using the going
International Standards on Auditing (ISAs).Our
concern basis of accounting unless management either
responsibilities under those standards are further
intends to liquidate the company or to cease
described in the Auditors Responsibilities for the audit
operations, or has no realistic alternative but to do so.
of the financial statements section of our report. We
remained independent of the company in accordance Those charged with governance are responsible for
with the International Ethics Standards Board for overseeing the company’s financial reporting process.
Accountants’ Code of Ethics for professional
Auditor’s Responsibilities for the Audit of Financial
Statements.
financial statements and we have fulfilled our other Our objectives are to obtain reasonable assurance
ethical responsibilities in accordance with these about whether the financial statements as a whole are
requirements and the IESBA Code. We believe that the free from material misstatement, whether due to fraud
audit evidence we have obtained is sufficient and or error, and to issue an auditor’s report that includes
appropriate to provide a basis for our opinion. our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit based on the audit evidence obtained. Our
conducted in accordance with ISAs will always detect conclusions are based on the audit evidence
a material misstatement when it exists. Misstatements obtained up to the date of our auditor’s report.
can arise from fraud or error and are considered
• Evaluate the overall presentation, structure and
material if, individually or in the aggregate, they could
content of the financial statements, including the
reasonably be expected to influence the economic
disclosures, and whether the financial statements
decisions of users taken on the basis of these
represent the underlying transactions and events in
consolidated and separate financial statements.
a manner that achieves fair presentation.
We communicate with those charged with governance
professional judgment and maintain professional
regarding, among other matters, the planned scope
skepticism throughout the audit.
and timing of the audit and significant audit findings,
We also: including any significant deficiencies in internal control
that we identify during our audit.
• Identify and assess the risks of material misstatement
of the consolidated and separate financial Report on other Legal and Regulatory Requirements
statements, whether due to fraud or error, design
and perform audit procedures responsive to those We also report that:
risks, and obtain audit evidence that is sufficient and i. We have obtained all the information and
appropriate to provide a basis for our opinion. The explanations which to the best of our knowledge
risk of not detecting a material misstatement and belief were necessary for the purpose of our
resulting from fraud is higher than for one resulting audit and made due verification thereof;
from error, as fraud may involve collusion, intentional
ii. In our opinion, proper books of accounts as
omissions, misrepresentations, or the override of
required by law have been kept by the company
internal control.
and so far as it appeared from our examination of
• Obtain an understanding of internal control relevant those books;
to the audit in order to design audit procedures
iii. The Company’s Financial Position as at 30 June
that are appropriate in the circumstances.
2019 and Statement of Profit or Loss and Other
• Evaluate the appropriateness of accounting Comprehensive Income and its Cash Flows dealt
policies used and the reasonableness of with by the report are in agreement with the books
accounting estimates and related disclosures of account and returns;
made by management.

SHASHA GARMENTS LIMITED

as at 30 June 2019
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
NON-CURRENT ASSETS 78,364,877 51,869,747
Property, Plant & Equipment 4 75,143,675 30,559,951

Intangible Assets 5 624,416 693,796
Investment 6 2,596,786 20,616,000
CURRENT ASSETS 496,209,294 315,513,403

Inventories 7 22,180,733 46,935,909
Materials In Transit 8 17,216,673 -
Accounts Receivabl 9 138,354,849 120,518,359
TOTAL 574,574,171 367,383,150
CAPITAL & RESERVE 387,677,208 247,090,894

Share Capital 12 35,550,000 15,550,000
Retained Earnings 352,127,208 231,540,894
NON CURRENT LIABILITIES 506,132 405,470

Deferred Tax Liability 506,132 405,470
CURRENT LIABILITIES 186,390,831 119,886,786

Accounts Payable 13 5,326,168 6,419,260
Liability for L/C 15 144,832,799 78,864,872
Short Term Loan-Bank 16 9,888,508 7,860,889
TOTAL 574,574,171 367,383,150


Amount in Taka
Particulars Note
2018-2019 2017-2018
Revenue (Export) 1,041,736,093 745,908,349

Less: Cost of Goods Sold 18 976,299,002 680,797,860
Gross Profit 65,437,091 65,110,489
Less: Selling Expenses 20 10,018,535 7,965,409
38,940,890 46,005,697
Net Profit before Non-Operating Income 30,803,738 38,731,311
Add: Non-Operating Income 1,075,873 1,426,594
Net Profit/(Loss) before dividend income 31,879,612 40,157,905
Add: Dividend income 3,769,654 3,042,380
Add: Capital Gain/(Loss) 22 96,770,210 -
Net Profit/(Loss) before Central Fund (RMG-WPPF) 132,419,476 43,200,285
Less: Central Fund (RMG-WPPF-.03%) 308,338 208,574
Net Profit/(Loss) before Tax 132,111,137 42,991,711
Less: Income Tax
Current Tax 23 11,424,161 6,701,674
Deferred Tax 100,662 109,698
Net Profit/ (loss) for the period after Tax 120,586,314 36,180,339



Particulars
Balance as on 01.07.18 15,550,000 - 231,540,894 247,090,894

Add: New Allotment 20,000,000 - 20,000,000
Net profit for the period - - 120,586,314 120,586,314
Balance as on 30.06.19 35,550,000 - 352,127,208 387,677,208


Particulars
Balance as on 01.07.17 15,550,000 - 195,360,555 210,910,555

Net profit for the period - - 36,180,339 36,180,339
Balance as on 30.06.18 15,550,000 - 231,540,894 247,090,894


Amount in Taka
Particulars
2018-2019 2017-2018

Collection from Turnover 1,023,899,603 697,042,521
Non-Operating Income 1,075,873 1,426,594
Payment for cost & other expenses (965,896,853) (796,536,811)
Central Fund-RMG-WPPF-.03%) (308,338) (208,574)
Tax Paid (11,635,086) (7,040,642)
Net cash provided by operating activities 38,998,047 (112,591,298)
Cash flow from Investing activities

Fixed Assets (52,728,296) (7,369,817)
Investment Realized SDL 18,019,214 -

Share Capital 20,000,000 -
Dividend Income 3,769,654 3,042,380
Capital Gain 96,770,210 -
Short Term Loan-Bank 2,027,619 1,514,890
Net Cash provided by financing activities 122,567,483 4,557,269


as at 30 June 2019
1 Reporting Entity 3 Significant Accounting Polices

Shasha Garments Limited originally limited as a 3.1 Principal Accounting Policies
Private Limited Company on 18th November
Specific accounting policies were selected and
1991 under the companies Act.1913. Registered
applied by the company’s management for
office of the companies is at House # 07, Road #
significant transactions and events that have a
117, Gulshan, and Dhaka.
material effect within the framework of BAS-1
1.2 Nature of Business “Preparation of Financial Statement” in preparation
The main activities of the company were and presentation financial statements. The
concentrated in Manufacturing various types of previous period’s figures were presented
garments, shirt, children wear, female wear and according to the same accounting principles.
exporting the same. 3.2 Compliance with Local Laws
2 Basis of Preparation The financial statements have been prepared in
compliance with requirements of the Companies
2.1 Statement of Compliance
Act 1994, Securities and Exchange Rules 1987
The financial statements of the company under and other relevant local laws and rules.
reporting have been prepared under historical
cost convention in a going concern concept and 3.3 Recognition of Property, Plant &
on accrual basis in accordance with generally Equipment and Depreciation
accepted accounting principles and practice in Property, Plant & Equipment is stated at cost
Bangladesh in compliance with the Companies less accumulated depreciation in accordance
Act 1994, The Securities and Exchange Rules with BAS-16 “Property, Plant and Equipment”.
1987, International Accounting Standards (IAS) Costs represents cost of acquisition or
as adopted by the Institute of Chartered construction and include purchase price and
Accountants of Bangladesh (ICAB), as other directly attributable cost of bringing the
Bangladesh Accounting Standard (BAS) and assets to working conditions for its intended
other applicable laws and regulations. use. Depreciation on all fixed assets is
computed using the reducing balance method in
amount sufficient to write-off depreciable assets
This financial statement of the company covers over their estimated useful life.
the period from 1 July 2018 to 30 June 2019.
3.4 Statement of Cash Flows
2.3 Comparative Information
Statement of Cash Flows is prepared principally
Comparative information has been disclosed in in accordance with BAS-7 Cash Flow Statement
respect of the year 2016 for all numerical and the cash flows from operating activities have
information in the financial statements and also been presented under direct method.
narrative and descriptive information where it is
relevant for understanding of the current year’s 3.5 Cash and Cash Equivalent
financial statements. However, Comparative Cash and Cash Equivalent comprises both
figures have been changed where necessary. cash-in-hand and at bank.
3.6 Revenue Recognition 3.7 Maintenance and Repairs

Revenue from the sales is measured at the fair Routine maintenance and repairs are charged to
value of the consideration received or receivable. expenses as incurred expenditures, which
The company recognizes revenue when risk and enhance the value or extend the useful life of the
rewards associated with ownership has been related assets are capitalized.
transferred to buyer, which satisfied all the
condition for the revenue recognition as provided
in BAS-18 ‘Revenue Recognition’. Usually the
time of delivery is considered for revenue
recognition.

down
Particulars Balance Addition Total Cost Balance Charged Total Value
as at during the as at Rate as at during the as at as at
01.07.18 year 30.06.19 % 01.07.18 year 30.06.19 30.06.19
Land & Land Development 2,301,100 - 2,301,100 - - - - 2,301,100

Plant & Machinery & Others 51,826,804 43,162,350 94,989,154 15 37,345,682 4,975,838 42,321,520 52,667,634
Office equip. & Elec. 10,892,744 4,865,357 15,758,101 20 7,632,790 1,625,062 9,257,853 6,500,249
Boiler Machine 3,236,400 1,589,230 4,825,630 15 2,501,131 194,814 2,695,945 2,129,685
Furniture & Fixture 5,353,642 1,966,977 7,320,619 10 3,108,716 421,190 3,529,906 3,790,713
Crockaries & cutlaries 33,394 3,340 36,734 10 13,265 2,347 15,612 21,122
Floor Mat 14,680 121,550 136,230 10 8,574 12,766 21,339 114,891
Air Conditioner 319,800 - 319,800 10 135,694 18,411 154,105 165,695
Fire Door, Alarm & Extinguisher 7,467,386 949,492 8,416,878 10 1,734,688 668,219 2,402,907 6,013,971
Vehicles 1,973,077 - 1,973,077 10 1,497,973 47,510 1,545,484 427,593
Generator 3,706,590 70,000 3,776,590 15 2,587,152 178,416 2,765,568 1,011,022
Total 87,125,618 52,728,296 139,853,914 56,565,666 8,144,572 64,710,239 75,143,675
5 Intangible Assets

down
Particulars Balance Addition Total Cost Balance Charged Total Value
as at during the as at Rate as at during the as at as at
01.07.18 year 30.06.19 % 01.07.18 year 30.06.19 30.06.19
Softwear Development 1,118,600 - 1,118,600 0 424,805 69,380 494,184 624,416
Allocation of depreciation
30.06.2019
Factory 5,701,201
Total 8,213,952
Amount in Taka
Particulars
30 June 2019 30 June 2018
6. Investment
Shasha Denims Limited 2,596,786 20,616,000
2,596,786 20,616,000
7. Inventories
Fabric & Others Goods 22,180,733 46,935,909
8. Materials In Transit
LC.101019020069 Inv.FV.19/178 2,364,292 -
LC.101019010066 1,466,920 -
LC.101019020040 13,385,461 -
17,216,673 -
9. Accounts Receivable
L/C No. DOK0072A119UK Inv. SGL/ETOS/064/06/2019 7,798,791
L/C No. DOK0072A119UK Inv. SGL/ETOS/067/06/2019 1,739,793
L/C No. IPLC000147SEG Inv. SGL/GKS/043/07/2019 7,175,941
L/C No. DOK0057A119EW Inv. SGL/ETOS/065/09/2019 1,908,319
L/C No. 00243-01-0429125 Inv. SGL/GTA/066/10/2019 9,070,318
L/C No. 00243-01-0429624 Inv. SGL/ELS/077/12/2019 1,973,367
L/C No. 00243-01-0429624 Inv. SGL/ELS/081/12/2019 3,984,649
L/C No. 00243-01-0429624 Inv. SGL/ELS/085/12/2019 647,393
L/C No. 00420-01-0005925 Inv. SGL/SJA/068/13/2019 984,220
L/C No. 00420-01-0005925 Inv. SGL/JSA/080/13/2019 1,859,227
L/C No. 00243-01-0430444 Inv. SGL/LUS/072/14/2019 18,420,924
L/C No. 00243-01-0430444 Inv. SGL/LUS/073/14/2019 8,027,214
L/C No. 00243-01-0430444 Inv. SGL/LUS/075/14/2019 16,441,283
L/C No. 00243-01-0430444 Inv. SGL/LUS/076/14/2019 2,426,347
L/C No. 00243-01-0430444 Inv. SGL/LUS/079/14/2019 9,929,272
L/C No. 573501062638 Inv. SGL/DD/071/15/2019 9,919,013
L/C No. 573501062638 Inv. SGL/DD/074/15/2019 801,058
L/C No. 573501062638 Inv. SGL/DD/083/15/2019 575,107
L/C No. 00243-01-0432228 Inv. SGL/LUS/078/17/2019 8,608,578
L/C No. 00243-01-0432228 Inv. SGL/LUS/084/17/2019 6,878,829
L/C No. 00243-01-0432228 Inv. SGL/LUS/087/17/2019 6,054,732
L/C No. 00243-01-0432228 Inv. SGL/LUS/088/17/2019 13,130,473
138,354,849 120,518,359
10. Advance,Deposit and Prepayments

Advances Note: 10.01 140,656,321 100,087,438
Security Deposit Note: 10.02 616,820 438,820
Prepayments Note: 10.03 18,905,166 16,110,592
160,178,306 116,636,850
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
10.01 Advances
Bank Guarantee Margin- Titas 556,000 556,000
Advance Factory Rent 4,337,752 4,255,055
SIBSL 50,667,424 75,000,000
Hashem Plaza-Civil Work 9,235,243 7,276,383
140,656,321 100,087,438
10.02 Security Deposit
Security Deposit-Titas 331,250 331,250
Security Deposit-DPBS 283,570 105,570
Security Deposit-T & T 2,000 2,000
616,820 438,820
10.03 Prepayments
Advance against official work & Salary 2,482,188 1,908,531
Deposit and prepayments 78,200 78,200
Mobile Bill 147 -
L/C Margin 2,853,691 -
Tax Paid on Export & Others 11,635,086 11,428,147
Adv. Against Supply 1,855,853 2,695,713
18,905,166 16,110,592
11. Cash and Cash Equivalent 158,278,733 31,422,285

Cash in Hand 11.01 809,550 685,954
Cash at Bank 11.02 157,469,183 30,736,331
11.01 Cash in Hand 809,550 685,954
11.02 Cash at Bank

UCBL CD-120/18 338,267 268,284
UCBL Sundry Margin Account 59,490,027 19,300,099
UCBL ERQ A/C -129 4,989,934 5,969,938
IFIC Bank Ltd.-041 908,282 908,282
Premier Bank Ltd. CD-869 1,413,769 1,373,076
Bank Asia Ltd. SND-101 563,717 1,012,873
Bank Asia ,Uttara Branch RAD A/C 6,863,156 1,637,744
Bank Asia Ltd. ERQ A/C 14,931 -
UCBL SND-90 20,102,736 -
UCBL CD-247, Sonargaon Janapath Branch 62,784,366 266,035
157,469,183 30,736,331
Amount in Taka
Particulars
30 June 2019 30 June 2018
12. Share Capital

Authorized
50,00,000 ordinary shares of Tk. 10/- each 5,00,00,000 5,00,00,000
Total 5,00,00,000 5,00,00,000
Issued, Subscribed and fully paid up

35,55,000 ordinary shares of Tk. 10/- each 35,550,000 15,550,000
Shareholding Position
The Ordinary Shareholders of the Company along with their shareholding are as follows:
Name of Shareholders Nos. of Share % of Share Position Face Value
Anisul Islam Mahmud 1,025,000 28.83 10,250,000
Zareen Mahmud 515,000 14.49 5,150,000
Shams Mahmud 515,000 14.49 5,150,000
Shasha Denims Ltd. 1,500,000 42.19 15,000,000
Total 3,555,000 100 35,550,000
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
13. Accounts payable

Evermarch 3,700 3,700
M & U Packaging - 13,063
Karnaphuli Insurance - 253,689
Kavasji Nariman 322,386 272,147
RMG Transport 95,327 95,327
New Khan Transport 782,068 947,078
Nirapad Aluminium 31,245 31,245
Chantik Garments 1,305 -
Blue Creations Ltd. 146,041 -
DHL 214,826 664,059
Yang Faa International 22,745 16,410
Multitech Embroidery 70,474 -
G-Six Accessories - 78,611
Sanyo Ref. - 2,200
Royal Office - 4,100
Union Level & Accessories - 51,625
Tagline Accessories - 18,032
Rony Textile 97,344 -
SQ Wire Cable 4,409 -
Nushiba Textile Industries 11,226 -
Siam Enterprise 18,960 -
TUV Rheinland 1,106
Lux Washing Plant 410,390 141,206
Symantec Tech. 464,084 947,967
Karnaphuli Graphic & Printing 92,562 71,036
Nilorn Bangladesh 18,958 18,958
Dhaka Logistic Ltd. 296,492 595,575
Bhai Bhai Engr. 105,300 -
Bismillaha Electric 3,270 3,270
Montrims Ltd. 21 21
Jeans Galary - 1,284
Atlantic Industries 309,168 309,168
Violet Raw 883,549 883,549
Bengal Polymer Wares Ltd. 90,100 -
Lusury Distrubution 7,920 -
F.H Enterprise 4,097 261,087
Water Fall Denim 559,942 204,262
AGS Int. Ltd. - 162,647
UL VS Bangladesh 13,730 -
S Alam Trade 5,400 142,660
A-one Logistics 660 -
Naam Drinking Water 40,160 28,080
Fashion Trims 197,204 197,204
5,326,168 6,419,260
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
14. Liability for Expenses

Salary & Wages payable 11,237,804 9,198,538
Factory rent payable-Hashem Plaza 1,020,880 4,408,745
Revenue stamp payable 29,812 27,990
Electric bill payable 137,488 202,927
Gas Bill Payable 141,842 133,110
Tax Liability 2,257,568 -
Mobile Bill Payable - 1,399
Telephone bill payable 1,800 2,481
14,919,194 14,067,190
15. Liability for L/C

UD 35/18 336
UD 38/18 670,347
UD 41/18 10,499,764
UD 43/18 91,541
UD 02/19 5,028,981
UD 05/19 443,567
UD 06/19 5,145,633
UD 07/19 789,474
UD 09/19 600,406
UD 10/19 8,561,599
UD 11/19 7,998,501
UD 12/19 5,281,535
UD 13/19 4,746,894
UD 14/19 13,953,444
UD 15/19 6,170,168
UD 16/19 5,666,232
UD 17/19 22,309,643
LC Liability UPAS 46,874,734
144,832,799 78,864,872
16. Short Term Loan-Bank

Packing Credit - 1,297,169
FBN 9,888,508 6,563,720
9,888,508 7,860,889
17. Provision for Tax

As per last year 12,674,575 15,371,723
Add: Addittional Charge after F/Y (2014,2015 & June,16) 317,762 -
Less: Tax Paid F/Y (2014,2015 & June,16) - 9,398,821
Less: Tax Paid F/Y (2016-2017) 5,750,416 -
Less: Tax Liability F/Y (2016-2017) 1,401,722 -
Less: Tax Paid F/Y(2017-2018) 5,814,207 -
Less: Tax Adjustment (2017-2018) 25,991
11,424,162 12,674,575
Amount in Taka
Particulars Note
2018-2019 2017-2018
18. Cost of Goods Sold:

Opening Stock 46,362,718 40,209,460
Add: Materials Purchases 785,880,544 544,114,307
832,243,261 584,323,768
Less: Closing Stock 21,604,969 46,362,718
Cost of Materials Consumed 810,638,293 537,961,050
Add: Factory Overhead 18.1 165,660,709 142,836,810
Cost of Goods Sold 976,299,002 680,797,860
18.1 Factory overhead

Factory Wages & Allowance 122,995,034 101,005,215
Electric bill 3,255,452 3,044,239
Gas Bill 1,623,076 1,627,508
Electric goods 325,341 307,595
Spare parts 18.2 1,855,382 2,262,748
Factory rent-Hashem Plaza 14,400,000 14,400,000
Repair 1,558,415 1,442,181
Stationery 18.3 556,297 366,852
Diesel for Generator 448,500 461,500
CNG for Boiler 1,999,732 2,394,991
Night bill 396,025 673,400
Tiffin bill 731,877 1,009,634
Medical expenses 176,291 76,486
Entertainment 1,199,131 1,128,867
Carrying charges 58,150 91,030
Clearing charges 2,370,674 2,142,925
Carriage Inward 843,150 593,200
Labour charges 138,100 27,300
Courier Bill 4,539,332 5,995,332
Fabric Test 213,795 173,966
Insurance Premium 275,755 349,600
Depreciation 5,701,201 3,262,241
165,660,709 142,836,810
18.2 Spare Parts

Opening Stock 420,128 -
Add: Purchase 1,927,022 2,682,876
Less: Closing Stock 491,767 420,128
Spare Parts Consumption 1,855,382 2,262,748
Amount in Taka
Particulars Note
2018-2019 2017-2018
18.3 Stationery
Opening Stock 153,063 -
Add: Purchase 487,231 519,915
Less: Closing Stock 83,997 153,063
Spare Parts Consumption 556,297 366,852
19. Administrative Expenses

Salary & Allowance 5,474,000 4,447,300
Telephone bill 21,676 23,826
Mobile card 75,861 74,418
Non-judicial stamps 149,620 189,415
Forms & Others 1,191,552 691,371
Uniform & Liveries 62,700 5,050
Office Expenses - 287,862
Renewal & Registration 748,082 129,155
Local Conveyance 349,270 298,635
paper Bill 3,900 2,970
Credit Rating Fees-(including Vat) 107,000 115,000
Rent,Rates & Taxes 5,100 5,100
Audit Fees(Tk.80,000/- and Vat 12,000) 92,000 92,000
Car Fuel 166,010 79,077
Car Expenses 61,430 18,020
Vat 5,250 -
Tax Charge after Assesment 1,011,141 27,250
Photocopy 2,592 7,430
Buying House Commission 3,909,954 2,666,801
Misc.expenses 244,868 210,172
Depreciation 2,512,751 1,475,192
16,477,666 11,139,383
20. Selling Expenses
Carriage outward 3,013,420 2,423,050
Forwarding charges 3,205,479 2,716,510
Trade promotion 547,504 232,500
Freight charges 3,252,132 2,593,349
10,018,535 7,965,409
Amount in Taka
Particulars Note
2018-2019 2017-2018
21. Financial Expenses

Interest on PC & FBN 144,874 147,879
8,137,152 7,274,385
22. Capital Gain/(Loss)

Caspital Gain (SDL Share) 121,102,786 -
Realized Loss (24,332,576) -
96,770,210 -
23. Income Tax

Income Tax for Core business 3,797,110 4,732,427
Income Tax for Other Income 376,556 499,308
Tax charge after assesment - 861,475
Gain Tax 6,496,568 -
Income Tax for Dividend Income 753,927 608,464
11,424,161 6,701,674

To The Shareholders of Shasha Textiles Limited
Opinion: Responsibilities of Management and Those

We have audited the financial statements of “Shasha Charged with Governance for the Financial
Textiles Limited” which comprise the statement of Statements
financial position as at 30 June 2019 and the Statement Management is responsible for the preparation and fair
of Profit or Loss and Other comprehensive income, presentation of these financial statements in accordance
Statement of Changes in Equity and Statement of Cash with International Financial Reporting standards (IFRS),
Flows for the year ended and notes to the financial the companies Act 1994, and other applicable laws and
statements including a summary of significant regulations and for such internal control as management
accounting policies and other explanatory notes. determines is necessary to enable the preparation and
In our opinion, the accompanying give true and fair fair presentation of financial statements that are free from
view, in all material respects, of the financial position of material misstatement, whether due to fraud or error;
the company as at 30 June 2019 and of its financial selecting and applying appropriate accounting policies;
performance and cash flows for the year ended and in and making accounting estimates that are reasonable in
accordance with International Financial Reporting the circumstances.
Standards (IFRSs). In preparing the financial statements, management is
Basis for Opinion: responsible for assessing the company’s ability to
continue as a going concern, disclosing, as
We conducted our audit in accordance with
applicable, matters related to going concern and using
International Standards on Auditing (ISAs).Our
the going concern basis of accounting unless
responsibilities under those standards are further
management either intends to liquidate the company
described in the Auditors Responsibilities for the audit
or to cease operations, or has no realistic alternative
of the financial statements section of our report. We
but to do so.
remained independent of the company in accordance
with the International Ethics Standards Board for Those charged with governance are responsible for
Accountants’ Code of Ethics for professional overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of
Financial Statements
financial statements and we have fulfilled our other
ethical responsibilities in accordance with these Our objectives are to obtain reasonable assurance
requirements and the IESBA Code. We believe that about whether the financial statements as a whole are
the audit evidence we have obtained is sufficient and free from material misstatement, whether due to fraud
appropriate to provide a basis for our opinion. or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of based on the audit evidence obtained. Our
assurance, but is not a guarantee that an audit conclusions are based on the audit evidence
conducted in accordance with ISAs will always detect obtained up to the date of our auditor’s report.
a material misstatement when it exists. Misstatements • Evaluate the overall presentation, structure and
can arise from fraud or error and are considered content of the financial statements, including the
material if, individually or in the aggregate, they could disclosures, and whether the financial statements
reasonably be expected to influence the economic represent the underlying transactions and events in
decisions of users taken on the basis of these a manner that achieves fair presentation.
consolidated and separate financial statements.
We communicate with those charged with governance
As part of an audit in accordance with ISAs, we regarding, among other matters, the planned scope and
exercise professional judgment and maintain timing of the audit and significant audit findings, including
professional skepticism throughout the audit. any significant deficiencies in internal control that we
We also: identify during our audit. We located a significant amount
of advance against land registration.
• Identify and assess the risks of material
misstatement of the consolidated and separate Report on other Legal and Regulatory Requirements
financial statements, whether due to fraud or error, We also report that:
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is i. We have obtained all the information and
sufficient and appropriate to provide a basis for our explanations which to the best of our knowledge
opinion. The risk of not detecting a material and belief were necessary for the purpose of our
misstatement resulting from fraud is higher than for audit and made due verification thereof;
one resulting from error, as fraud may involve ii. In our opinion, proper books of accounts as required
collusion, intentional omissions, misrepresentations, by law have been kept by the company and so far as
or the override of internal control. it appeared from our examination of those books;
• Obtain an understanding of internal control relevant iii. The Company’s Financial Position as at 30 June
to the audit in order to design audit procedures that 2019 and Statement of Profit or Loss and Other
are appropriate in the circumstances. Comprehensive Income and its Cash Flows dealt
• Evaluate the appropriateness of accounting policies with by the report are in agreement with the books
used and the reasonableness of accounting estimates of account and returns;
and related disclosures made by management.

SHASHA TEXTILES LIMITED

as at 30 June 2019
Amount in Taka
Particulars Note
30 June 2019 30 June 2018
Non-Current Assets 1,108,001,238 1,107,963,208

Property, plant & equipment 4 1,108,001,238 1,107,963,208
Current Assets 87,554,649 87,559,449

Advance for Land & Land Development 5 86,143,863 86,143,863
Total 1,195,555,887 1,195,522,657

Capital & Reserve 1,181,397,885 1,182,462,727
Share Capital 7 70,000,000 70,000,000
Retained Earning (4,770,636) (3,705,794)
Share Money Deposit: 8 238,500,426 238,500,426
Revaluation reserve 877,668,095 877,668,095
Non Current Liabilities - -

Current Liabilities 14,158,002 13,059,930
Temporary Loan 1,098,072 -
Liability for Expenses 9 57,500 57,500
Others Payable 10 13,000,000 13,000,000
Provision for Tax 2,430 2,430
Total 1,195,555,887 1,195,522,657


Amount in Taka
Particulars Note
2018-2019 2017-2018
Revenue - -
Less: Operating Expenses 11 714,028 48,314
Gross Profit (714,028) (48,314)
Less: Administrative Expenses 12 346,014 489,333
Operating Profit (1,060,042) (537,647)
Less: Financial Expenses 13 4,800 7,300
Profit/(Loss) before Non-Operating Income (1,064,842) (544,947)
Add: Non-Operating Income - -
Profit/(Loss) before Income Tax (1,064,842) (544,947)
Less: Income Tax - -
Net Profit/ (loss) for the period after Tax (1,064,842) (544,947)



Particulars Total
Balance as on 30.06.18 70,000,000 238,500,426 (3,705,794) 877,668,095 1,182,462,727
Profit during the year - - (1,064,842) - (1,064,842)
Balance as on 30.06.19 70,000,000 238,500,426 (4,770,636) 877,668,095 1,181,397,885


Particulars Total
Balance as on 30.06.17 70,000,000 224,917,779 (3,160,847) 877,668,095 1,169,425,027
Add/Less: during the Year - 13,582,647 - - 13,582,647

Profit during the year - (544,947) - (544,947)
Balance as on 30.06.18 70,000,000 238,500,426 (3,705,794) 877,668,095 1,182,462,727


Amount in Taka
Particulars
2018-2019 2017-2018

Collection from Turnover - -
Payment for cost & other expenses (1,060,042) (537,647)
Financial expense (4,800) (7,300)
Net cash provided by operating activities (1,064,842) (544,947)

Acquisition of Fixed Assets (38,030) (28,083,555)
Advance for Land & Land development - 2,038,555
Net Cash provided by investing activities (38,030) (26,045,000)

Temporary Loan 1,098,072 13,582,647
Others Payable - - 13,000,000
Loan from Director - -
Net Cash provided by financing activities 1,098,072 26,582,647
Increase/ (decrease) in cash and bank balances (4,800) (7,300)


1 Reporting Entity 3.1 Compliance with Local Laws

Shasha Textiles Limited was originally incorporated The financial statements have been prepared in
as a Public Limited Company on 18th September compliance with requirements of the Companies
2003, Regd. No. C-50512(807) under the Act 1994 and other relevant local laws and rules.
companies Act 1994. Registered office of the
company is at House # 07, Road # 117, Gulshan;
3.2 Property plant and equipment
Dhaka. It is a subsidiary company of Shasha Property plant and equipment includes mainly the
Denims Limited. freehold land and land development. The company
performed a revaluation of this land in 2012
1.2 Nature of Business through professional valuer named M/S. M.M.
The main activities of the company were Rahman & Co Chartered Accountants.
concentrated in Textile and Textile related
business.
3.3 Revaluation reserve
The company performed revaluation of its freehold
2 Basis of Preparation land and recognized revaluation reserve as a part of
equity separately in the statement of financial
2.1 Preparation and Presentation of Income
position since 2012.
Statement
The Company has presented the statement of 3.4 Advance for land & land development
comprehensive income in these financial statements Advance for land and land development comprises
without any comparative statements. As the amount disbursed to the local solicitor of land in
company has not yet started any operation, the Trishal, Mymensingh where the company is in the
statement of comprehensive income only includes process of acquiring some land in the same location.
the administrative expenses and some operative
development expenses. 3.5 Cash and Cash Equivalent
Cash in hand and Bank Balances have been
considered as cash and cash equivalents.
Financial statements of the company cover from 01
July 2018 to 30 June 2019 3.6 Comparative information’s
Comparative figures have been changed where
3 Significant Accounting policy
necessary.
as at 30 June 2019

down
Total Cost
Particulars Balance Addition Balance Charged Total Value
as at Rate
as at during the as at during the as at as at
30.06.19 %
01.07.18 year 01.07.18 year 30.06.19 30.06.19
Land & Land Development 1,107,748,845 - 1,107,748,845 - - - 1,107,748,845
Other Assets 214,363 38,030 252,393 - - - 252,393
Total 1,107,963,208 38,030 1,108,001,238 - - - 1,108,001,238
Annual Report 2019
245

Amount in Taka
Particulars
30 June 2019 30 June 2018
05 Advance for Land & Land Development

Advance for Purchases & Registration Fees 86,059,023 86,059,023
Advance for Office Employee 84,840 84,840
86,143,863 86,143,863
06 Cash and Cash Equivalent 1,410,786 1,415,586
Cash In Hand 405,034 405,034
Cash at Bank 1,005,752 1,010,552

The Premier Bank Ltd.CD-010211100007609 1,002,257 1,005,907
United Commercial Bank Ltd. CD-105-440 3,495 4,645
07 Share Capital
Authorized Capital
50,000,000 Ordinary Shares of Tk. 10/= each 500,000,000 500,000,000
Issued, Subcribed and fully Paid up:

7,000,000 ordinary shares of Tk. 10/= each 70,000,000 70,000,000
Shareholding Position:
The Ordinary Shareholders of the Company along with their shareholding are as follows:
Name of Shareholders Nos. of Share % of Share Position Face Value

Mr. Anisul Islam Mahmud 5,000 0.07% 50,000
Mrs. Parveen Mahmud 5,000 0.07% 50,000
Mrs. Zareen Mahmud 5,000 0.07% 50,000
Mr. Shams Mahmud 5,000 0.07% 50,000
Nishat Narhrin Hamid 5,000 0.07% 50,000
Shasha Garments Limited 5,000 0.07% 50,000
Shasha Denims Limited 6,970,000 99.57% 69,700,000
Total 7,000,000 100 70,000,000

as at 30 June 2019
Amount in Taka
Particulars
30 June 2019 30 June 2018
08 Share Money Deposit

Shasha Denims Limited 238,500,426 238,500,426
238,500,426 238,500,426
09 Liability for Expenses

10 Others Payable
Shasha Garments Ltd. 13,000,000 13,000,000
11 Operation Expenses
Land, Rates, Tax & Others 707,839 41,820
714,028 48,314
12 Administrative Expenses
Fees & Form 14,000 5,026
Office Expenses - 520
Travelling & Entertainment 11,600 11,718
Survey Bill 59,000 85,500
Salary 84,000 200,000
Conveyance 52,800 4,800
RJSC Fees 11,268 -
Audit Fees 57,500 57,500
Carrying Charge - 2,700
Misc. Expenses 55,846 121,569
346,014 489,333
Bank Charge 4,800 7,300
SHASHA
DENIMS

Head Office, House # 23, Road # 129, Gulshan-1, Dhaka.
PROXY FORM
I/We --------------------------------------------------------------------------------------------------------------------------------------
of ----------------------------------------------------------------------------------- being a shareholder of Shasha Denims Limited
and entitled to vote, hereby appoint Mr./Mrs./Miss ----------------------------------------------------------------------------------
-------------------------------------of-----------------------------------------------------------------------------------------------------
as my/our proxy to attend and vote for me/us and on my/our behalf at the 22nd Annual General Meeting of the Company
to be held on 19th December, 2019 at 10.30 a.m. at Trust Milonayatan, Dhaka Cantonment, Dhaka or at any adjournment
thereof or at any ballot to be taken in consequence hereof.
Signed this--------------------------------------------, Signature of proxy ------------------------------------------------------------

day of -------------------------------------------------, 2019
Signature of Shareholder Revenue Signature of Proxy

Stamp
BO ID:
No. of Shares ------------------------------------------------
Note :
1) This form of proxy, duly completed and signed must be deposited at least 48 hours before the meeting at the
Company’s registered office. Proxy is invalid if not signed and stamped as explained above.
2) Signature of the Shareholder must be in accordance with Specimen Signature recorded with the Company.
SHASHA
DENIMS

Head Office, House # 23, Road # 129, Gulshan-1, Dhaka.
ATTENDANCE SLIP
I hereby record my attendance at 22th Annual General Meeting of the Company being held on 19th December, 2019 at
10.30 a.m. at the Auditorium of Trust Milonayatan, Dhaka Cantonment, Dhaka.
Name of the Member/Proxy ----------------------------------------------------------
BO ID:
Signature of Shareholder---------------------------------- Signature of Shareholder ----------------------------------

Date ---------------------------------------------------------
N.B. Shareholder attending meeting in person or by Proxy are requested to complete the Attendance Slip and deposit
same at the entrance of the meeting.
www.shashadenims.com
HEAD OFFICE Please Visit Us

House # 23, Road # 129, Gulshan-1, Dhaka-1212.
www.shashadenims.com
Tel: 88 02 9850548, 9855263, 9854679, 9856327
Fax: 88 02 9851698
Email: info@shashabd.com
FACTORY
Plot # 184-193 & 277, DEPZ (Ext.) Savar
Dhaka, Bangladesh
+88-02-7789188, 7789302, 7789303, 7789304 7789305
Fax: +88-02-9851698

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Joining hands together aiming

for a sustainable world

Shasha Denims embraces its responsibility-as a

Blue is the new Green is a part of Shasha’s philosophy and unique

Since start, Shasha Denims Ltd. (SDL) is highly conscious on sustainability.

Realizing the importance of a living friendly planet, the Company is

SDL strictly complies with environment-related laws and regulations in each

BOARD OF DIRECTORS & MANAGEMENT 25

AUDITORS’ REPORT AND FINANCIAL STATEMENTS 127

Dear Sir (s),

Annual Report for the year ended June 30, 2019.

Aslam Ahmed Khan FCA

Chairman : Barrister Anisul Islam Mahmud

Authorized Capital (Ordinary Share Capital) : BDT. 2000 million

Auditors : M/S S F Ahmed & Co.

Rating Agency : Credit Rating Agency of Bangladesh

Registered Office : House # 7, Road # 117, Gulshan, Dhaka.

Corporate Office : House # 23, Road # 129, Gulshan-1,

Factory Address : Plot # 184-193 & 277, DEPZ (Ext.)

Web Address : www.shashadenims.com

Email Address : info@shashabd.com

LEAD BANKERS : The Premier Bank Ltd., Bank Asia Ltd.

The Company has scored first position and

Company (financial years 2011-12, 2012-13 & 2013-14)

Overview (Silver)’ for the financial year (2016-17) for its

Subsidiary Companies Current Production Capacity

National Export Trophy (Gold) 2011-2012

National Export Trophy (Gold) 2012-2013

National Export Trophy (Gold) 2013-2014

National Export Trophy (Silver) 2016-2017

ICSB National Award 2016 (Silver)

Shasha Denims Limited has been rated as AA3 (pronounced as Double

Rating CRAB considered financial performance, revenue, export,

Long term Short term Date of

AA3 ST2 Stable 29 June, 2020

Metropolitan Chamber of International Chamber of

Dhaka Chamber of Federation of Bangladesh Chamber

Bangladesh Philippines Chamber of

Notice of the 22nd

• To elect Directors as per Articles of Association of the Company.

• To appoint auditors and fix their remuneration.

• To transact any other business with permission of the Chair.

For and on behalf of the Board

Date: 28 November, 2019 Aslam Ahmed Khan FCA

• Annual Report–2019 is available in http://shashadenims.com/investors/documents/annual-reports/annual-report-2019.

We also use branded fibers from Lenzing Modal® and TENCEL®

To expand business by increasing capacity

 To focus on regular expansion of the project

 To protect shareholders’ interest as well as

 To maintain a congenial working

 To practice good governance in every

 To fulfill the responsibility to the nation

Since inception, Shasha Denims Ltd.

CONDUCT that everyone can be benefited from

THE CODE OF ETHICS AND BUSINESS CONDUCT OF THE COMPANY

1 Compliance with Laws, Rules and Regulations

3 Accuracy of Records and Reporting

4 Equal Employment Opportunity

We are committed to advance Shasha’s business. Employees shall not compete