g CONFIDENCE CEMENT LIMITEDAnnual| 2020 Report | 2021 4 “Tansmital Letter Notice of the 30th AGM ‘Company Profile Mission, Vion and Values of the Company ‘Corporate Directory Board of Directors Image Gallery BAPLC Certificate ‘Credit Rating Report Graphical Presentation of the Financial Highlighes Statement of Value Addition & Element of Total Cost ‘Other Financial Information, Ratio Analysis & Manpower Position Directors’ Report Directors’ Declaration Five Years Financial Highlights Meetings Information| Pattern of Shareholding Risk and Concern Management's Discussion and Analysis Unclaimed Dividend Statement Dividend Distribution Policy Declaration of Managing Director and Chief Financial Officer CCorticate of Corporate Governance Compliance ‘Corporate Governance Compliance Report ‘Audit Committee Report [Nomination and Remuneration Committee Report ‘Auditors’ Report Statement of Financial Position Statement of Profi or Loss and Other Comprehensive Income: ‘Statement of Changes in Equity Statement of Cath Flows Notes tothe Financial Statements Proxy FormCONFIDENCE CEMENT LIMITED Transmittal Letter cS “The valued Members Bangladesh Securities and Exchange Commission Registrar of Joint Stock Companies & Firms Dhaka Stock Exchange Limited CChitagong Stock Exchange Limited Subject: Annual Report forthe year ended 30 june 2021 Dear Sir(s) We are pleased to endose a copy ofthe Anal Report 2020-2024 comping the Nosce ofthe 300% Amun) Genera Metin, Directo’ Report, Andt Commie Report, NR Canmiee Report, Certs of Corporate Goverance Camplance Autor, Seautory Autos Report along withthe Adted Franca Satemensinlg Statmetof ancl Poston asa 30 ne 2021 and the Satement of Comprehensive Income, Satament of Changes in Equity and Statement of Cash lows for th year ened 30 June 2001 together wh Notes thereon and Pony Fm for our nfermaten and record “Thang You. Yours Scr DBye---~o 1a, Delowar Hosain ACS Company Serer November 30, 2021 > ANNUAL REPORT 2020-2021 = ANNUAL REPORT 2020-2021 ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED CORPORATE | DIRECTORY BOARD OF DIRECTORS Engr: Rezaul Karim Te Chairman Se a Sm (Mr. Imran Karim: t ‘Vice Chairman Ms. Runu Anwar t Director Mr, Salman Karim t Director Maj Gen Abul Kalam Mohammad Humayun Kabir, (Retd.) Independent Director Mr. Zahir Uddin Ahmed t Managing Director aearerrarraantiaeenr a Ms. Rabeya Jamali t Member Se ac Los, Mr, Shamsul Alam, BU 1 Member Maj Gen Abul Kalam Mohammad Humayun Kabir, (Retd.) 1 Member Mr. Md, Delowar Hossain, ACS I Secretary Mr. Zahir Uddin Ahmed t Managing Director & CEO Brig Gen (Retd,) Md Tanveer Iqbal t Deputy Managing Director eee , Contos oe See woe : Sor Se ac . Sone ss ens, ae ere ae ee ——— a See eee eee > ANNUAL REPORT 2020-2021 EeCONFIDENCE CEMENT LIMITED BANKERS & LEASING COMPANY, Prime Bank Limited Agrabad Branch, Chittagong Bank Asia Limited Agrabad Branch, Chittagong Eastern Bank Limited Agrabad Branch, Chittagong The City Bank Limited Agrabad Branch, Chittagong Mutual trust Bank Limited Agrabad Branch, Chittagong HSBC Bank Agrabad Branch, Chittagong Pubali Bank Limited Agrabad Branch, Chittagong Trust Bank Limited CDA Avenue Branch, Chittagong, One Bank Limited Agrabad Branch, Chittagong IPDC limited Chittagong Branch, Chittagong. CREDIT RATING AGENCY (cea Credit Rating Agencies Bangladesh ‘Confidence Heights Ispaani Building (3rd Floor) Madambibirha, Bhatiary Plot-I, Lane-|, Road-2, Block-L, 1415, Motiheel C/A, Draka, Siakunda, Chattogram, Hallshabar HIE Tel: 02-223382431 Tel :880-31.2781161-3, ‘Agrabad Access Road, Chattogram. 02-223354934 Fax: 880-031-2781 164 “el: 023333 11471-3, 023333 11475 Fax: 88-02-9104584 (023333 10386, 023333 18962 (PABX) Fax: 023333 11474 E-mail: info.ccl@eg:bd.com ited. > ANNUAL REPORT 2020-2021 EeCONFIDENCE CEMENT LIMITED Engr. Rezaul Karim Chairman EE: Raz arm ir Mechanical Engrg chats From BUET, butch of 1970, Soon rhe pusesen) rere perro political upheaval adng to 25th March, 1971 andthe eration war Aer apesenc, Eng Reza Korn embarked upon «bess iourney to manutactre a wide range of port substitute engnering prod for BADC, BPDB, BWDB and other Govt. agence, who. sree then busy recnstung our war tom mton Soon Eng. Rez Karim eabhed a aa fr Kinet angst al profesor ted users and peer. He moved rom Tela to Tele irackig the while country tying to understand the developers needs of cevergng Bandas He hen designed developed and manfred produce er prods to meet the nes of hi emerging ration, With this humble beginning, Engr Rezaul Karim embarked onto yet another industrial venture which no one could even conceive inthe late 80 - cement. He organized a group of entrepreneurs with engineering and successful business backgrounds, and spearheaded the inception ofthe cement industry in 1992. Henee, Confidence Cement Ltd. Became the pathfinder of all cement industries in Bangladesh, “Today Confidence Cement Ltd. has gone onto establishing is thid unit with an annual production capacity of 1.5 millon tons. Soon after ‘this was achieved, his leadership and vision motivated Confidence Group to organize a team to setup yet another new cement industry around Dhaka witha target production capacity of |.5 milion tons. From 1972 ll date, Engr: Rezaul Karim has relentlessly created new industrial ventures one after another: He ploneered impore substitute industries and manufactured engineering products and service products to name a few, He established the largest Steel Fabrication Industry with the biggest Galvanization Facility in Bangladesh, producing al types of galvanized steel power distribution poles. He also ‘established the largest manufacturing facility of electrical power transmission towers & telecom towers, Pre-oppressed Concrete Poles {for power distribution, all types of electrical power detrbution accessories all types of electrical power transformers, al types of screws and fasteners, Seool Bridges, Prefabricated Steel Building, handling turnkay Infrastructure Projects, River Dredging Operations with own imported high-tech dredgers from Denmark, IGX Telecom Gateway Operations, industrial and Marine paints under joint venture with ‘Asian Pants (Bangladesh) Lt. andthe lst shall continue to grow. Confidence Group has further added laurels ois hat by implementing 4 major turn-key power generation projects on BOO basis, toaling 400 MW, located in Chottogram, Bogura and Rangpur. Upon its full implementation, Confidence Group shal oin the prestigious league of businesses wth annual turnover exceeding 500 millon, ‘Apart from Confidence Cement Ltd., Hes also Director and Chairman of Confidence Infrastructure Ltd., Confidence Batteries Ltd. ‘& Confidence Steel Export Ltd, Diglcon Telecommunication Ltd., Confidence Power Holdings Lt, Confidence Power Bogra Ltd., Confidence Power Bogra Unit? Ltd, Confidence Power Rangpur Ltd., Zodiac Power Chittagong Ltd, MIME Multimedia Led,, Solaris Limited, Confidence Cement Dhaka Ltd, and Zodiac Logistics Led > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Mr. Rupam Kishore Barua Vice Chairman ML Rupam Kishore Barva, one of the directors of Confidence Group and Vice Chairman of Confidence Cement Limited, isan intrepid and industrious individual wh as worked hard al his Ife to achieve excellence, He obtained his graduation degree from Chitagong CCllege in 1968 and during his student life he was involved with various causes and organizations, making him a mulfaceted human being. During his student fe he was the vie president of Chattra League Chitagong City uni from 1969 to 1970 and was a frontline culural activist and organizer of many sociocultural organizations, Later in his Ife, he became the municipal commissioner of Chitagong ‘Municipaty and wae District Governor of Lions Clubs International, District 315-84 of Bangladesh Stil now Mr. Barua i involved with many social service organizations. "Mr. Rupam Kishore Barua is a man with immense patriotism. Due to his patritic zeal, imbued with the spirit of liberation struggle, he participated in te liberation war forthe freedom of our nation. After beration, in 1972, Mr. Barua entered profesional life and started his career with a shipping job in Atlas Shipping. Later in 1980 he joined Maritime Agencies Ltd. and became General Manager of that ‘company, In 1985 he started Confidence Shipping lines and in 1992, along with other entrepreneurs, he established the fist local cement ‘manufacturing industry inthe private sector of Bangladesh — Confidence Cement Limited. At present he is one of the Directors of Confidence Group Due to his vast contribution In sci service, Mr, Rupam Kishore Barua has been awarded the United Nations Award in 2002 for Socio Cultural Actives, the honor of DHAMMADUTA by International Brotherhood Mission India and the Melia Jones Fellowship Award from the Lion's Clb, |S for his personal life, Me. Rupam Kishore Barua was born in Chittagong, to a renowned Buddhist family, on 4th June 1948, His father, Late Phani Bhushan Barua BABL, was also an Ex. MLA ofthe then Pakistan and President of al Pakistan Buddhist Association ‘Apart from Confidence Cement Led, He is ako Director of Confidence Infrastructure Ltd, and Nominated Director of Confidence Batteries Le, and Confidence Cement Dhaka Led > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Mr. Imran Karim Vice Chairman A viserar entrepreneur at core, Me Ivan Karim completed his Bchelorof enc In Elec! aed Comper Enghering and he Bachelor of Ara a Ecorse 203 rom the Unversity of Rochester: Dating ths dine, be was vod tn repntation cad the "Who's Who of United Sates" that comprises ofthe top 0.5% of al univers students in USA. Subsequent, Mr Iran Karim ened CConenca Groin 2008 a tm Director of Contancn Caren id. Hower i fat eranvor ait pcal ome Neverthe he ded nce Yael tfc ofa wel fle, racer rope wr ablig for i eons eens erg oer te business development of Confidence Stl id In 2006, under his guidance, Confidence Steel started producing telecom towers and within the same year, bacame the market leader. ‘Currant, Confidence Steal Ltd has almost 70% of the market share in both transmission towers and telecom towers. After his fist successful endeavor he decided to expand into other sectors and with Confidence Group, in alliance with Energypac, opened an I MW. powerplant in 2008, followed by a 108 MW power plant in 2015. Currently under Confidence Power Holdings Ltd he group is developing 400MW of power plans In 2012 Confidence Group entered the telecommunication market, under the name Digicon Telecommunication. Under his leadership, Digicon took a ead role inthe formation of International Gateway Operators’ Forum (IOF), and made the sector profitable for everyone. Later, Confidence Group also ventured into battery manufacturing, quickly becoming a market leader inthe industry, He recently serving asthe President of Bangladesh Independent Power Producer Assocation, and san executive member of Telecom Infrastructure Operators ‘of Bangladesh In 2016, for hs outstanding entrepreneurial accomplishment, he was chosen as one of the winners of the JCI Ten Outstanding Young Persons of Bangladesh, an award given our by Junior Chamber International Bangladesh ‘Apart from Confidence Cement Ltd, He is also Director and Vice-Chairman of Confidence Infrastructure Led, Confidence Batteries Ltd, & Confidence Stel Export Ltd, Digicon Telecommunication Led, Confidence Power Holdings Lt, Confidence Power Bogra Ltd, ‘Confidence Power Bogra Unit? Ltd, Confidence Power Rangpur Led., Zodiac Power Chittagong Led., MIME Muleimedi Led, Solaris Limited, Confidence Cement Dhaka Ltd and Zodiac Logistics Led > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Ms. Runu Anwar Director Mr a Anwar; Director of Coftenc Corns Lind, Se sw fans Eng: Krush Arr - sponsor Draco of arkansas cetacean an un ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Mr. Salman Karim Director Mi. salman Karim is a profound pathfinder who has acquired vast amount of experience rom visting various companies’ factories abroad through business development and promotional programs. His career began with Confidence Group In 2008, where he was in charge of implementing the group's fist power plant in Habigan. During the same year Confidence Group was looking to expand into the Business Pracess Outsourcing (BPO) market and thus he was given the task of starting a trial project. However, due toa shit in goal ‘ofthe group, Mr. Salman Karim was appointed as the Director of Production of Confidence Steel and precast concrete production. Under his guidance a transformer unit was established in 2011, As the Director of Production, he improved the overall quality ‘management of the company and thus increased production efficiency by 20%, In doing so he enabled the company to compete incernaionaly by reducing production cost. When Confidence Group decided to enter the battery market he helped start the unt from scratch and in 2015 he was appointed asthe (CEO of Gaston Battery. Under his leadership, Confidence Electric and Gaston Battery have seen unprecedented growth and have become leading brands in the market. Me, Salman Karim eared his Bachelor of Sclence degree in Mechanical Engineering in 2008 from Universy of Texas, In addition to achieving the degree with honors, he was in the Dean's list fr si consecutive semesters. However, his greatest achievement il date is designing and optimizing a heat sink for computer video card of Advance Micro Device (AMD) series X1950, in which he takes great pride. He has bean honored with JCI TOYP 2019 Award for his Outstanding Contribution in Business, Economic and Entrepreneurial ‘Accomplishment forthe Nation Apart from Confidence Cement Lid, He is the Managing Director of Confidence Infrastructure Ltd, Confidence Batteries Ltd, & Confidence Steel Export Led. and a Director of Digicon Telecommunication Ltd., Confidence Power Holdings Ltd., Confidence Power Bogra Led, Confidence Power Bogra Unit-2 Led., Confidence Power Rangpur Ltd, Zodiac Power Chittagong Led., MIME Multimedia Led, Solaris Limited, Confidence Cement Dhaka Ltd, and Zodiac Logistics Led > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED hb Group Captain (Retd.) Shamsul Alam, Swachinota Pads, Br Uta, pc Pisce Group Captain (Retd.) Shamsul Alam, Swadhinota Padak, Bir Uttam, psc, has been nomited by Confidence Infrastructure Ltd. to represent as Director in the Board of Confidence Cement Limited, He is a member of the Audit Committee and Nomination and Remuneration Committee ofthe Company. He joined Pakistan Air Force In 1964 in GD (P) Branch to become a Fighter Plot, Bomber Pilot and Transport Plot. After 25th March, 1971 then Fit. Lt Shamsul Alam, while being posted at PAF Base, Chaklala, escaped from West Pakistan to join our freedom struggle. He was one of the key founding members of Bangladesh Air Force which was established in tle as KILO FLIGHT on 28th Sept, 1971 in India. He lead fist operational nigh strike mision from an airfld of eastern India with a converted Single Engined OTTER Aircraft with Rockets, Bombs and Guns on the night of 3rd December, 1971 to destroy al fuel storage tanks of Eastern Refinery, Chittagong at 00:10 hrs. mid right of 4th December, 1971. Alter this successful mission the total fuel supply source of Pakistani Miltary Establishments was neutralised from 4th December, 1971. For this act of valour and courage Ft Lt. Shamsul ‘Alam was awarded BIR UTTAM. Later for his further contribution in building Bangladesh Alr Force after independence right from the scratch and asa recognition to his work Group Captain (Retd,) Shamsul Alam further received SWADHINOTA PADAK in 2017. During his professional career in BAF he was responsible to establish and build the fist Tansport Flying Squadron of BAF. He was also axsigned with the responsibilty as a WIP Captain to fly the AN-24 airraft designated for our Father of Nation Bangabandhu Sheikh Mujbur Rahman, He commanded Transport Flying Squadron, Officer Commanding BAF Base Matiur Rahman, Commandant BAF Fling Training ‘Academy, BAF Matiur Rahman and held ther important professional assignment in Air HO, BAF before his voluntary retirement. ‘Atv taking voluntary retirement from BAF in 1984 as a Group Captain, Shamsul Alam entered into business world from 1985. After establishing and undertaking numerous successful trading business ventures dealing in imported FMCG, Food and Dairy Products of. Incernational brands, Shamsul Alam joined asa sponsor Director of Confidence Cement Led. right from is Inception and held is position as first founding Chairman. Subsequently he joined other commercial ventures of Confidence Group in phases. Group Captain Reta) Shamsul Alam is happily marred with wife and two children, He is actively involved in various socio-cultural activities and an ardent lover of music, spends his leisure time reading books > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Major General Abul Kalam Mohammad Humayun Kabir, (ret), SUP, ndu, pse Independent Director Mor Gane Abu Kam Mohamad Humapin Kab, (re, SUP i pa, frmer profesional itor fer with a sues eh ecpeted exo perigee 9 yaa RAY RRS acne tet eee URL ete ce and ried specu of onan ard trratoral arts He eared regdar comvnsoninBangadeh Ary on 21 Decaba 190 seeurg te ft peaoncbaing coveted ‘Chet of Army Sas Cane for outstanding performance He roe rough the ans tothe turer lvl of Gare] Ofer arvensis retin for sate aed argu parton rg lar cory cooperation ad haan resurcs developer Major General Kalam completed his SSC and HSC from Momenshahi Cadet College. He did his BSc, from Chittagong University, MOS from National Universy, MBA from Tenity University and College, Delaware, USA, Master of Science (MS) in National Strategy and Resource Management from United States National Defense University, USA. He superbly completed numberof professional courses both at home and abroad, He isa ‘Distinguished Alled Honour Graduate’ in Infantry Officers’ Advanced Courseof US Infantry School and an Honour Graduate of the United States Eisenhower School for National Security and Resource Strategy In his long Hlstrious career, he commanded swe infantry divisions and Army Training and Doctrine Command, an Infantry Brigade and a Battalion, a Sector and a batalion of BOR: Served as Commandant, the Schoo of Infantry and Tactics: General Staff Officer First Grade, Army Headquarters: Chief of Operations in UN Peacekeeping Mision in Mozambique. He contributed immensely s the Chairman, Sena Kalhyan Shangstha: Vice Chancellor, Bangladesh University of Professionals and as the Miltary Secretary tothe Honorable President. He served with istincton asthe High Commissioner Extra-Ordinary & Plenipotentiary to Kenya, Tanzania and Uganda and Permanent Representative to the United Nation's Ofces in Nairobi and was elected Vice Chair of the Committee ofthe Permanent Representatives ofthe United Nations Habitat in 2018-2019, He aso served as Adjunct Professor in BUR American International University of Bangladesh (AIUB) and is now in the Faculty of South East University teaching MBA student Leacership and Management, National Strategy, Security and Global Affairs, Human Resource Managemen, Operational and Strategie Management ete. He was an Instrictor Class A inthe Defense Services Command and Staff College, Mirpur, Instructor Clas A and B, Schoo! of Infantry and Tactics, Sylhet. Hes an International Fellow ofthe United States National Defense University, ‘Washington D.C. and a Fellow of the National Defense College, Mirpur. He regularly delivers lectures on various subjectsissues in ferent Universities and miltary institutions as guest speaker. Heis an Independent Director of Confidence Cement Limited ané the Chairman of the Audit Committee and a member of the Nomination and Remuneration Committee ofthe sad Company. Hei also an independent Director of Confidence Infrastructure Ltd, and Confidence Powe lng »> ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Ms, Rabeya Jamali Independent Director M6. Rabeya Jamal is an Advocate of the Supreme Court of Bangladesh and Partner, Jamali & Morshed, a law firm, She di her LLB, (Honours) from the University of Dhaka, Department of Law, Dhaka, Bangladesh and Master of Laws in Banking Law Studies from Boston University, Schoo! of Law, Boston, MA, USA. She is a member of the Bangladesh Supreme Court Bar Association. Ms. Jamal has core ‘expertise in Commercial Contracts, Construction Contracts, M & A, Joint Ventures, SPV relating to infrastructural development projects, Pharmaceutical Industries, Telecommunication related infrastructure, Power and Energy, Company Law, Financial and Banking Laws. She was appointed as Independent Director inthe Board of Directors of Confidence Cement Limited with effect from 01 December 2019, and assuming role as Chairman ofthe Nomination and Remuneration Comvmittee and a member ofthe Audit Committee She is also an Independent Director of IFIC Bank Limited, Bangladesh and a member of the Board of Directors of IFIC Securities Limited and IFIC Money Transfer (UK) Limited, > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED | i Mr. Zahir Uddin Ahmed Managing Director Mr. Zahir Usdin Atmed, Managing Director of Conldence Cement Lid completed his M.Com (Management n 1894 frm Unies of Chiagong Me vried his carer vith Connon Comer ined al nw serving th company Mag Decor He has completed the Executive Management Tianing from AOTS Japan in 2005. He vsted in Japan, Turkey, China, Singapore, Malaya, Ina, Thallnd, Srilanka, Maldives, Myanmar, Nepal, Bhutan, and Saudi Arabia, He isthe chef architect of Performance with Purpose of Confidence Cement’s pledge to do what's right for the business by being responsive to the needs of the demand af time. As part of Performance with Purpose, Confidence Cement is focusing on delivering sustained growth by making more qualtative products, pratecting the environment and empowering the employees and people in the communities we serve He is engaged with various socio cultural organizations. He isthe active member of International Lions Club. He was the Ex-President of Lions Club of Chittagong Karnafuly. He was the Ex- Cabinet Treasurer of Lions Club International District 315 B4.Me fea permanent rember of Chittagong Boat Club Currently, He is serving as Vice President of Bangladesh Cement Manufactures Association (BCMA), a. Nationa Trade Organization of ‘manufacturers and exporters of Portland Compasite Cement (PCC) and Ordinary Portland Cement (OPC) in Bangladesh > ANNUAL REPORT 2020-2021PICTURE OF OUR DECEASED SPONSOR DIRECTOR Mr. Shah Muhammed Hasan (21 APRIL 1949 TO 26 FEBRUARY 2021)CONFIDENCE CEMENT LIMITED View of 29th virtual Annual General Meeting 18 ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED __ ‘Our Honorable Chairman, Engr. Rezaul Karim awarded Our Honorable Vice Chairman, Mr. Imran Karim handed over as Highiest Tax Payer in Engineering Category 25,000 RT-PCR test kts to the Minicry of Health and Family Weare in ‘olboraton withthe Ministry of Power, Energy and Mineral Resource, Cm 1g Face Mask Distribution Campaign Food Distribution during Covid-19 among underprivileged ‘People sorrounding our Factory > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Jeiouay-Aueyaiag YY way “TZOZ 42gUIIACh »E JIUN ALN suipUiad awILfiza9 S1YT, ‘o1aay? Bururwuadde sabaioud puv srybu ays yo 01 paynaua si puv saluedwio3 pays!7 Ajaijqng Jo uoQelossy ysapelsueg fo saguayy Couipic uv st CaLINTT LNAWSAS JONICINOD qoys Cfigsaa 04 $1 sty], aed1V19) pamousy a> ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED (CREDIT RATING REPORT Confidence Cement Limited rm funded Hn “BOT 7765 milion agrepne sor term funded tin’ ST DT A750 milion apgregnte short enon Tuned 3 eras Date of Rating: 05 August 2021 Val: The ings re valld upt 30 June 2022 Tema Mot Sta 2021 bank bay poston a om 30 Ap 2021, onl other relevant quantitate & alate information upto the ‘anaes ‘Mohammed Nazrl slam Bhulyan razalacad comb (wus0r Tae 3019 change err ae as aN ama s581 A MTOR Tg ane ae A Ret ron gE Tao ea eunenhg Al son 508 aie oes 099 V ‘Speatng Gree Dont as 190 Rare Pn AT ua A Soren Fda FRTOR ai ‘Cah ow fam Oe Wa Ta ae Cah a7 a SA = “DePostiva V=Negatvn Ste ‘Cantsenze Cement Linited(herenair aa feeds {3 'CCL or Confidence Cement or the Company isthe Dioneer cement manufacturing Company iprvat sector ff Bangacesh which wat enablehed 198). and ommenced fs operon 1994 The Company Is ‘engaged in manufacturing of cement and Read ‘Concrete (MC), Present production capacty ofthe ‘Companys 1200000 MT of Cement and2. lion CFT ‘FRICpe year The factory athe company iloated at Madamolbrhat 3hatary,Stakunda,chattogram on Limited (O58) and Chitagong Stock Exchange Limes {CSB asa pully quoted company andthe st 50 3002 ‘erie cement manufacturing company n Bangladesh, ‘Great Rating Agency of Bangladerh Umea CRAB has asigned As Pronounced a¢ Double AThree} ‘ating te Confidence Cement Limited and AAS (L) ‘ating t OT 1.1080 millon long-term oustanding {S8720mllen nom hn bases It of he Company ‘The assigned ratings favorably consider CCU tong histor of operational performance contemporary mmanactring ities revere generation cai, {ot coverageinaeaors ana busines performance ‘of upcoming financial year The angs abo taveinto Strong equity base resulted from intemal capital ‘generation and satisfactory loan repayment history as postive factors However ratings ae contained io some extent by Iateral pie could eu lower margin Moreover, high inventory reserve requirement and ced sales created woring capil presure CCL ako experience quity pressure as caren ase are the competitive nature of busines resuting fom dloresiplayers and ar wall as world prominen erent makers andany urvaveurble change of ‘Soverens pokey hich may savers fect he boners of CL = gamers a> —___________ ANNUAL REPORT 2020-2021 eI E iB S E Ki i i Ha Hy cs Fs 5 sCONFIDENCE CEMENT LIMITED Graphical Presentation of the Financial Highlights EEEEEE ANNUAL REPORT 2020-2021 =a —_-CONFIDENCE CEMENT LIMITED CZ er Rea 01 July 2020 01 July 2019 te % © % 30 June 2021 30 June 2020 Value Added Amount in Tk. 9% — Amountin Tk. 9% Revenue 4.619313,869 3,947,575,496 Other Income Payment to suppliers for materials & other services T370.690,843_ "100100%_ Distribution a8 follows: Employee Cost 299,276,634 13.98% 258,602,302 18.8796 Directors 17,188,000 0.80% 20,738,400 1.5196 Govt. 108,852,461 5.09% 121,285,668 8.859%. Fioance Provider 2I73I7415, 18.43% Retained for Re-investment future growth Depreciation 253,189,205 17.43% ‘Amortization 4,056,138 030% Retained Earning 240,739,054 34.62% 52.34% Toxal 2,140,618,907 “100.00% _ 1,370,690,843 "100.00% a eg Fx lS 1 Employee Cost 1H Employee Cost H Directors 5 Directors 1 Government 1 Government 1 Financial Provider 1 Financial Provider 1 Depreciation 1 Depreciation 1 Amortization 1 Amortization 1 Retained Earing f= Retained Eatning > ANNUAL REPORT 2020-2021 = —-CONFIDENCE CEMENT LIMITED Others Financi: information, Ratio Analysis & Manpower position Cro Mc ce Coed © oO we. cy ec etc med r No. of share 78,234,731 74,509,268 64,790,668 53,992,224 44,993,520 44,993,520 Eaming per share Tk 1586 Tk637 TKS THAT TK9ZS TH TSS (Cath Dividend 25.00% 15.00% 15.00% 15.00% 15.00% 10.0096 Stock Dividebd = $00% 15.00% 20.00% + 20.00% Net Asset value per share Te7A26 Th 6470 T6839 TRAST BAO! «TH. 7372 Net operating Cath flow per share Tel T1745) TRO) TORS TR 7.84 Ratio Analysis : (Current Ratio on: o7: la 0.85:1 084: Lot Qik Ratio 08311 044! Lol:t 085:1 070:1 07:1 DebtEquiy ratio 0.99: 06:1 Loss1 ont oat Gross Profi to Sales 1o.14% 5.4296 7AI% 839% © 1751% 16.2296 Net Profi to Sales 263696 12.02% 8.05% 781% 15.17% 12.04% Return on Capital Employeed 213296 12.50% 10.2896 781% == 1389% 21.53% Return on Equity 15.09% 10.26% 9% 782% 14.03% «21.54% Price earning ratio asi 323 25.89 27.60 lass 545 Interest coverage ratio 733 times 3.17 times 264 times 2.91 eimes BB Imes 6.48 times Dividend coverage ratio Gitimes —32times——<20times_— 6 tmas_ 3 tes 0.39 times ‘Asset Turnover ratio 62times S2cimes_—79times——-BFcimes_——-9O Imes 1.53 times Market price per share Tk 135.00 T9700 Th 15560 Tk 15650 TK 11607 Tk. 80.07 Manpower Position : Managers & Officer 215 207 24 75 190 in Staffs 282 am 209 als 438 40 Workers les 87 14 190 259 240 ‘Total Manpower position el 66 —C~Ct‘ SO”*”*”*#*C*CTOOC*~*«~‘ SSC »> ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SS Directors’ Report tothe Members forthe year ended 30 June 2021 Ie isa pleasure and privilege on behalf ofthe Boar of Directors to presen the Directors’ and Auditor's Report together with the audited financial statements of Confidence Cement Limited fr the year ended 30 june 2021 “The Directors Repor is preparedin complance wth Section 184 of the Companies Act, 1994; Rule 12 ofthe Bangladesh Securities and Exchange ‘Commission Rules 1987, and the Listing Regulations of the Dhaka Stock Exchange (DSE) Limited and the Chitagong Stock Exchange (CSE) Limited and Bangladash Securities and Exchange Commission's Notification No. BSEC/CMRRCD/2006-1S8/207/Adminy80 dated 3 Jane 2018 ‘Cement Industry outlook in Bangladesh and possible future development “The World Bank Group in its Global Economic Prospect report has stated thatthe global economy is set to expand 5.6 percent in 202 -ts strongest post-recesion pace in 80 years. This recovery is uneven and largely reflects sharp rebounds in some major economies. ln any emerg Ing market and developing economies (EMDEs), obstacles to vaccination continue to welgh on act. By 2022, last year's per capita income losses will nt be fully unwound in about two-thirds of EMDES. The global outlook remains subject to signifcant downside risks, including the possibilty of addtional COVID-19 waves and nancial stress amid high EMDE debt loves. Policy makers wll need to balance the need to support the recovery while safeguarding price stably and fc surtsinabilty and to continue efforts toward promoting growah-enhancing reforms. Before the COVID-19 pandemic, Bangladesh exhibited a steady and high GDP growth, averaging 74 percent per year during FY 2015.16 to FY 2018-19 and reached arecord8.15 percent growth rate in FY 2018-19. The global economy came to stands due tothe COVID-19 pandemic, ‘hich has ao had a huge negative impact on the ecanomy of Bangladesh. According tothe final estimations of BBS, the GDP growth in FY 2019-20 has slowed to 3.5! percent. However, Bangladesh's economy is turning around in 2020-21, According tothe provisional estimates of BBS, che GDP growth in FY 2020-2 stood at 5.47 percent. Despite the stagnation inthe economy caused by the coronavirus, food production and supply chains romained unaflacted, leading to ination 2 5.56 percent in FY 2020-21. Both export and import in Bangladesh have showed a sign of recovery after a sharp dedi in FY 2019-20. In FY 2020-21, Bangladesh expatriates remictance stood at USS 24,777.72 milion, which ‘was signicanl higher (36.1056) than the previous fiscal year. In FY 2020-21, current account balance deft stood at US$ 3,808 millon on the back of robust remitance inflows compares to a USS 4,724 millon deficit the previous year. Financial account and capital account showed surpls during tis time. Therefore, the overall balance recorded the surplus of US$ 9,274 milion in FY 2020-21 compared to USS 3,169 millon surplus inthe previous year. Asa result, the foreign exchange reserves increased toa record USS 46.39 bilion at 30 June 2021 “The economic consequences ofthe Covid-9 outbreak are tough to handle asthe entire ofthe global supply chain has been interrupted due to worldwide transportation shutdown. The unprecedented Covd-I9 pandemic has largely unsettled global trade, business and education and Bangladesh has been equally affected by ths contagion, On the other hand large numberof people ive from hand to mauth and have no savings. “Ths large group of people is severely affected by this ongoing criss. “The major challenges now facing the economy ralates to recent pressure in foreign exchange reserves caused by sharp increase in imports and significant decne in remittances. This is leading to gradual deprecation ofthe taka against worl currancies. Inflation is now creeping up with ‘assve Increase in world commodity prices across font bei industrial or consumer product, This partly due to rebounding of warld econo ‘ies post resulting in resurgence of demand and partly due tothe steep escalation in international freight costs. Sharp increase in industrial raw ‘material cstis expected to result in margin erosion fr local industries especialy where the higher costs cannot be passed on to the consumers. However, export are buoyant with record orders coming for RMG. The country's fnancal sector i stl stressed with banks exhibiting lw levels ‘of Advance to Deposit ratio, Once loan classifiaton resumes, the resus of many banks could deteriorate Bangladesh’ cement industry has experienced some of the fstes: growth in recent years: the industry experienced an approximately 10% growth rae over the st decade, Backed by the county's economic development, rapid urbanization, government infrastructure projects and real estate sector growth, manufacturers are optimistic about the future prospect ofthe industry. The quik rebound ofthe sector from the COVID-19 pandemic testifies to thei postive outlook and the sectors resilence. Although the sector has sulerd from overcapacty and government levies, companies are continuing to invest. Despite he pandemi, the cement sectors market size reached 335 milion tonnes In 2020, a marginal degrowth of 0.50% compared to the previous calendar year. However, with the onset of the New Year, there was an unprecedented surge in cement deman that caught all the ‘coment players napping. This surge was caused by che pent up demand in the previous year when construction had slowed down due tothe pandemic. Asa result, in the frst quarter of 2021, cement market grew by 20.5% and by 35.696 by June 2021. Growth nthe second half wll not be the same asthe first hal'sine the market had grown very strongly in the second haf ofthe previous year, We sil expect thatthe industry will close with a growth of around 2596 compared to 2020, which will stand out asa record forthe industry. => ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED “The major challenge currently facing the industry isthe skyrocketing price of raw materials suchas clinker, slg, y ash imestone and gypsum, Margins are now severely eroded, Moreover, the existing overcapacity coupled with capacity expansion in anticipation of demand hike has put the whole industry under intonse ‘competive pressure leading ta price war undermining the sustainabilty ofthe sector. Consequently, the industry had to absorb the increased cost of input (gas) and logistics (transportation) resuking in erosion of profits. Overall, even though the outlook for cement demand growth is robust, profitability remains a concern for cement manufacturers, “The market has been squeezed by existing produces’ capacity expansion and entry of new producers make the market even more competitive cay by day. To tackle the challenge of gaining more marketshare, cement industry players are intting agressive marketing plans However, Your Company has been taken various marketing ad sles iniatves and deployed them to Increase our brand visibly and customers! loyalty. These intiaves helped us to be atthe top-of-mind ofthe consumers as well a to gin market share, We continue to invest in retaler loyaty programs and engaging with our key specter of cement so that chere is a sustainable demand far our product. ‘Segment wise performance “This contained inthe Note No, 39.00 ofthe Financial Seatements referred to page no~ 112. Risks and Concerns ‘A datas report on Risk and Concerns are given in Annexure-V, referred to page no 38 ncial Results “The operating nancial results ofthe Company forthe year ended 30 June 202! as compared to provious year are summarized hereunder: Figur in Talea Particulars 2020-2021 2019-2020 Revenue 4619313869 | 3,947 575.496 Cost of Goods Sold 4.151,067,651 | _3,733,608,647 Gross Profit 466,246,218 | 213,906.04 Net Profit (Before Tax) 77487,040,063 | __642,946,709 ‘Net Profit (After Tax) T.340,739,054 | 474 521,198 "Total Assots 11, 554,369,068 | 9,908,365.916 Net Assets Value 3,809,366,479 | _4,820,600,698 "Net Operating Cash Flow: 16 387.468 | 1,023.443.086 Earnings Per Share (EPS) 1586 637 Net Assets Value Per Share (NAVPS) 74.26 64.70 ‘Net Operating Cash Flow Per Share Zi 174 Gross Marain TO14%. 5 A% Net Margin (Before Tax) 32.19%, 76.2996 Net Margin (After Tax) 26.86% 12.0296 Discussion on Cost of Goods Sold, Gross Profit Margin and Net Profit Margin In the year 2020-2021, the Sales Revenue has increased by 17.02% compared to 2019-2020 mainly due to increase in sales volume by 16.8036, Cost of Goods Sold (COGS) has increased by I 1.1896 inthe year 2020-207 | ever previous year due to increase in sales volume. Percentage increasing of COGS is less compared to percentage increase of sles mainly due to lower cost of raw materi in international market. Factory overhead cost increased by 26.17 96 due to increase of depreciation, provision of gratuity and increase of stores and spares ‘consumed, electricity and gas consumption resuking from the increase of production volume, ‘The Earnings per Share (EPS) of the Company increased by Tk. 9.49 ie, 148,98% and stood at Tk. 15.86 in 2020-2021 where asin 12019-2020 i was Tk. 6.37 due to inerease in revenue resulting from volume growth, profit on galn onsale af shares of subsidiary company shares-Zodiac Power Chittagong Ltd, inrease of the share of profit from the associate companies by 39.76 % than that of the previous year, and decreate of operating cost cue to lower raw material cost and effective cost control nkiatve by management > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED “The Gross Profit increased by | 18.04% from Tk, 213.97 milion in 2019-2020 to Tk 468.25 milion in 2020-2021 and the Gross Profit Margin increased by 87.0896 in ine with the Gross Profle mainly due to increase in sales volume and the reason of lower cost of raw material as explained above, In 2020-2021, In spite of increase in sales volume, the Administrative Expenses was reduced by 4.30% due to decrease of directors remuneration and benefits. But Seling and Distribution Expenses increased by 32.3096 due to increase of sles commision Finance cost decreased by 13,9896 i, Tk, 35.32 millon due to decrease of interest rate as wel as decrease of loan lilies, ‘As arosut in 2020-2021, the Net Prof after tx) increased by 161.4796 from Tk. 474.52 milion to Tk. |,240.74 milion as well as Net Profi Margin (after tax) also increased by 123.46% than that of the previous year Share of profit from Associate Companies ‘You must be aware that the Company invested in two associates companies such as Confidence Batteries Limited and Confidence Power Holdings Limited. The share of raft from the associate companies has been increased by Tk. 30483 millon Le, 39.7696 and stood at Tk 1,071.56 milion in 2020-2021 where as in 2019-2020 ie was Tk. 766.73 milion. The details description and calculation of the associates companies have presented in the note |.03 and 4 ofthe francialstaternents. (Comparative statements of share of prafit from ascociates are sated below: ‘Company (3) ‘Ownership 2020-2021 2019-2020 TK Tk. (Confidence Bactaries Limited 2196 13,739,503, 21,954,722 Confidence Power Holdings Limited 3696 T,057,818.621 744,774,362 1,071,558,124 768,729,084 Production During the year under review the company was able to produce at cement plant 706,853 M.T as against 605,042 M.T in previous year and at Ready-mic plant 992,544 CFT as against |,020,43 CFT in previous period which is surmmarized inthe fllowing table: 2020-2021 72019-2020 Cement Plant Production mr 708,853 605,042 Capacity Uiization Ce a 30) Ready-mix Plant Production cer, 992,544 1.020.431 Capacity Utlization @) 41 #8 Sales “The overall sales performance for the year ended 30 June 2021 showed (Cement Plane by 16.80% in volume and 19.0896 in value, The company sustainable sales growth, consumers satisfaction a well a to gain market other side, sales also decreased at Ready-mix Plant by 2.73% in volume and 7.54% in value upward trand. During the year under review sales increased at has been tken various sales and marketing initiatives to ensure share which reflected the upward trend of sales volume. On the Particulars Unie 7020-2021 2019-2020 Growth 9 oy Tk oy Te ey | Te CemenePant | MT | 705053 | 4336744292 | c06s10 | 3641970811 | 1680] 19.08 Ready mixPan | CFT | 992.544 | 262.569,577 | loro4st | 305.604.0605 | a7] (754) 2» ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Extra-Ordinary Gain/Loss During the year under review, the Company has earned of Tk, 230,532,241 as profit on gin on sale of shares of ks subsidiary company Zodiac Power Chittagong Ltd. The Company had sold the entire shares ie. 0,400,000 ordinary shares of Tk. 10 each of Zodiac Power (Chitagong Led (ZPCL), a subsidiary ofthe Company, at an aggregate price of Tk 434,532,240/- as decided by the Board inits meeting held con anary 30, 202! and approved bythe members atthe 29th Annual General Mesting held on February 28, 2021 where company was able o-eamed of Tk, 230,532,24 | as profit on gan onsale of shares. Related Party Transaction, Dring the year the company carried out a numberof transactions with related parties inthe normal course of business and arm's length basis. The name ofthe rlated parties, relationship, nature of businoss and ther value has been shown in the Note No. 4l.0 ofthe Notes to the Financial Statements referred to page no. 113. ificant Variance between Quarterly Financial performance and Annual Financial Statements lars First Quarter | Second Quarter | Third Quarter | July 2020- a 2020-2021 2020-2021 | 2020-2021 June 2021 Revenue 66.408.105 [1 7ei77i6s7 | 3.274,117.509 _| 4619.313,868 Gross Prof 61,820.254 [179,092,295 | 363,728.464 | 468.246.2168 Prof Before Tax 790,621,215 | $92,398,964 | _1,266,733,131 | 1,487,040,063 Net Prati After Tax 252,599,513 | $18,316,081 | _1,107.552.277 | 1,240,739,054 Shareholders Equity 5.076.186.111 | 5,344,880,548 | 5.825,346,771 | 5.809,366.479 "oral Assets 70,220,865,966 | 10,515,866,530 | 10,720,110,681 | 11,554,369,068 "oral Current Ase 2,865,274.449 | 2.957,451.547 | 2,883.408.639 _| 3.168,967.654 “etal Current Lables 3,542.216.057 | _3.559,539.494 | _3.477,204,001 | 4.084.431 604 "oral Liabilities 5,144,699,855 | _5,170,977,982 | 494,763,910 | 5.745,002,569 Carrent Ratio (Time) oar oas 085 O78 Explanation on Significant Deviation from the Last Year's Operating Results Revenue: Revenue increased by Tk. 671.74 millon ie. 17.02% in 2020-2021 compared to last year due to increase of sales volume for overall demand Inthe market as well 2s various marketing and sles intative taken by the company. Cost of Goods Sold: Cost of Goods Sold (COGS) has increased by 1.18% in the year 2020-2021 over previous year due to increase in sales volume by 16.80%, Percentage increasing of COGS is less compared to percentage increase of sales mainly due to lower cost of raw material in international market Factory overhead cas increased by 26.1796 due to increase of depreciation, provision of gratuity and increase of store and spare consumed tlectricty and ges consumption resulting from the increase of production volume, Gross Profi {Gross Profle Margin increased by 87.0896 mally for increasing in sales volume and the reason of lower cost of raw materials, Operating Profit: Operating profit increased by 199.6996 i.e. Tk, 260.17 milion due to increase of sales volume and lower cost of raw materi in international market Earnings per Share (EPS During 2020-202, the EPS increased by 14896 .e. Tk 9.49 from the previous year due to increase in sales volume, profit on gain on sale of shares of subsidiary company shares-Zodiae Power Chittagong Ltd, increase ofthe share of profit from the associate companies by 39.76 96 than that ofthe previous year, and decrease of operating cost due to lower raw material cost > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED Remuneration to Directors “This information is incorporated inthe Notes 27.01 ofthe notes tothe fnancl statements referred tothe page no.- 107 with reference to the "Directors ‘remuneration ane benefits” figures concerning the Board of Directors inchiding Managing Director. Contribution to the National Exchequer ‘The company contributed total amount of Tk. I,017,56I,110 to the National Exchequer inthe form of Customs duty, Vat and Advance Income Tax duting the year under review. The break-up of these payments are shown in the table Govt. Revenue 2020-2021 | 2019-2020 Taka Taka Var 647,329,692 |_547,195,336 Customs day 257,988,225 | 236,621,220 ‘Advance Income tax 112,243,193 | 127,876,118 Total Taka 017,561,110 | 906,692,674 Dividend “The Board of Directors in its meeting held on 30 October 2021 has recommended 25% cash dividend Le, Tk 2.50 (Taka two and hall) per share of Tk. 10.00 (Taka ton) aggregating to Taka 195,5B6,827.50 forthe year ended 30 June 2021 subject to approval of the members at the 30th Annual General Meating scheduled to beheld on 2! Decernber 2021 Election of Directors "Me, Rupam Kishore Barua and Mr. Salman Karim wil retire from the office as per Article 132 ofthe Articles of Association at the 30th Annual General Meeting ofthe Company. Being eligible they have offered themselves for re-election, The Board recommends thelr reappointment, Brie resumed and other information ofthe above mentioned Directors are shown in the page no.- 09 & 12 ofthis annual report Appointment of Statutory Auditors “The Current Auditors of the Company- Mis. Hossain Farhad & Co., Chartered Accountants retires at the ensuing 30th Annual General "Mectng. Being cgble they offered themselves for reappointment. Pursuant to Bangladesh Securities and Exchange Commission (BSEC) Notification No. BSECICMRRCD/2006-158/208) Admin’ 8! dated 20/06/2018, the retiring Auditors are elle for reappointment 35 Statutory Auditors fr the year 2021-2022, The Audit Committee has recommended reappointing Mls. Hussain Farhad & Co, Chartered ‘Accountants as the Statutory Auditors of the Company forthe year 2021-2022-The Board of Directors endorsed the recommendation of the Audit Committee forthe reappointment of M/s. Hussain Farhad & Co., Chartered Accountants asthe Statutory Auditors ofthe Company for the year 2021-2022 subject tothe approval of the members atthe 30th Annual General Meeting, Appointment of Corporate Governance Compliance Auditors “The Current Corporate Governance Compliance Aueltors ofthe Company ofthe Company- Mis. A. Qasem & Co, Chartered Accountants retires at the ensuing 30th Annual General Meeting. Being slgble, they offered themselves for reappointment. Pursuant to Bangladesh Securities and Exchange Commission (BSEC)'s Notfication No. BSEC/CMRRCD/2006- 158/208) Admin’ 81 dated 20/06/2018, the retring Corporate Governance Compliance Auditors, Mis. A. Qasem & Co,, Chartered Accountants ar elgble for reappointment as Corporate Governance Compliance Auditors fr the year 2021-2022, “The Audit Committee recommended reappointing Mis. A. Qasem & Co., Chartered Accountants as Corporate Governance Compliance ‘Auditors ofthe Company forthe year 2021-2022. The Board of Directors endorsed the recommendstlon ofthe Aude Committee forthe reappointment of Mis. A. Qasem & Co., Chartered Accountants as the Corporate Governance Complance Auditors ofthe Company for the year 2021-2022 subject to approval ofthe members at the 30th Annual General Meeting. Audit Committee of the Board “The Audit Commitee reviews the quarterly, hal-yearly and annual Financial Statements and statements of related party transactions. Als, ic reviews adequacy and effectiveness of financial reporting process, accounting policies, internal cantral and risk management proces. Is also responsible for overseeing the management letter along with performance recommendation on appointment and re-appointment of External Auditors. Currently, Audit Committe consists ofthe following: > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SLNo | Name Status Position T Major General Abul Kalam Mohammad Humayun Kabir (Ret@) Chairman Thdependene Director 2 [Mr Shamsul Alm, BU Member Director TMs. Rabeya Jama Member Independent Director 4. [Pi Ma, Delowar Hossain, ACS Secretary ‘Company Secretary Nomination and Remuneration Committee of the Board In pursuance of the Bangladesh Securities and Exchange Commission's Notfieation No. BSEC/CMRRCD/2006 -15B/207/Admin/80 dated 3 june 2018, che Board of Direcors ofthe Company has constituted the Nomination and Remuneration Committe to sat the principles, parameters and governance framework or the nomination and remuneration af the Directors, Key Managerial Personnel, top-level Executives and other ‘employee comprising the senior management. The Composition ofthe Nomination and Remuneration Commitee is given below: SLNo | Name Status Position T Ms. Rabeya ama ‘Charman Tndepandent Director 2 [Pir Shamsul Alam BU Member Director T.___ | Maj Gen Abul Kalam Mohammad Humayun Kabir (Rata) Member Trdepencent Director 4. Mr. Ma, Delowar Hossain, ACS Secretary Company Secretary ‘Subsequent Events [Nothing happened affecting financial position of the company since end of the francil year under review save and except thatthe Board of Directors recommended 25% cash dividend for the year ended 30 June 2021 subject to approval ofthe members a the 30th Annual General Meeting. Human Resources [Now a days, Human Resources are treated as a strategic partner of managing organization's most valuable asset, I is considered asthe most important resource ofan organization comparing among the other resources such as human, physical, fancial and information resources. In May 2017, Human Resource Department started its journey at Confidence Cement with the aim ta make a people centric organization where employees are motivated to unleash thelr best performance and lead the organization to the path of being Employer of Choice HR Departmenthas developed a numberof plcies and procedure for the company. We aso amended the existing policies aligning them with the labor Iw. We keep updated the pay scales ater continuously scanning the market, During the pandemic situation, we took diferent precautions for our employees to ensure that they are protected from infection. We have facitated to our employees by providing special leave for Covic-9 affected and suspacted cases. We ensured hygiene factors ofice envron- ‘ment. We also provided financial suppor toward the employees for ther treatment. We encouraged ofice from home and we ensure trangpor- tation fact toa the levels of staffs, We have provided inivdval and group taining by incernaional& loca valner with the aim of employees’ cffcieny development. We have arranged sof skill behavioral improvernent, technical and job-related trainings within the company, within the country and even outside ofthe country a5 per Training Need Assessment (TNA. We have in-house trainer poo for development of sof sil, technical sil and job-related sls, We have aso introduced anine-base E-learning platform to boost up carporate ethics, manners and to ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SS The System of Internal Control Confidence Cement Led, being lated company has well-defined Inzrnal Contra System based on is high-tech large scale production capac to ensure the business operations. The ayia ensures reasonable atsrance ofthe inzrnal chacng system of monetary transactions and safeguarding of assets. The Interval Control Systems ae reviewed by the Internal Aut & Compliance Deparment ofthe company and reported tothe Audit Commit ‘ec, Anus planning defines budget on the basis of macroeconomic analyses based on market conditions and cost targets. The lteral Control System ensures raceiving of qualty raw mater, stores & spares and nan-crren assets and producing quay cement for the customers, Quay ofthe goods Is tested by recognized testing authors. In order to establish a strong Internal Control System inthe company, Statwiory Auditor’ playa wal role through reporting of true and far vew of income expense, sssts and lables of the Financial Satements, They ensure the increst ofthe Investor and sfeguaring ofthe company’s aces and lo ensure complete application of Corporate Governance vide Code No, BSEC/CMRACD/2006-158/207/Admin/80 dete 3 June 2018, The code of International Accounting Standards (IAS) and International Standards of Austin (SA) with stipulated diclosures of important tems of Financial Statements. Corporate Governance invalves decision making proces fr any gong concern corporate body fr the present and fture benef fal stakeholders. These aspects of governance are folowe by the Board of Directors, Management, Operetional prticpants and workers and ater in achieving common goals tke to increase inthe profit of the company. Dividend Distribution Policy “The Board of Directors has established a dvdend plc, compllance withthe BSEC’s Directive No, BSEC/CMARCO/202-38603 dated 14 January 2021, which forms the bass forthe proposals on dividend payments to che shareholders taking into consideration the business performance of the ‘company and is strategic initives, The Board balleves that tin the best interes ofthe company to craw up a long-term and predictable didend pole. The objective ofthe poly is to make informed te shareholders cowards the Investment decsons. The Board has approved Dividend Policy hasbeen enclosed herewith a Annexure - Vl referred to Page No~ 4. SR Activities Being a responsible corporat cizen, Confidence Cement ts, has been contributing offeren social cases to bring poste changes inthe society ‘over many years. Confidence Cement Led has been providing financial and other material sds to diferent organizations working forthe development cof underprivileged and transcended communities, atc and efferent challenged children in Bangladesh under umbrela of Confidence Group. In thie Covd- 9 pandemic station the Frontine Heras i. Heskhcare Professional, Police Offi, Armee Forces, journals, Reporters et, have all suffered a significant umber ofeassalies during the ongoing pandemic, To support their overwhelming encouragement, Confidence Group family handed over 15,000 PPE to the Hon'ble State Minter of Power, Energy and Mineral Resources and Bangladesh Police aiming to datbute al hospitals and agencies to combat ongoing coronavirus and PPEs alo handed over to Bangbanchu Sheh Mujb Madal Universty, Bangladesh Intute of Tropical and Infectious Diseases, Bangladesh Fire Services and Civ Defense, Chattogram» Medical College and Kuwat Bangladesh Matree Hospital We also donated S High Flow Natl Cannula and 5 Oxigen Concentrator and distributed 25,000 reuable and 70,000 surgical mask under Mask Distribution Campaign In continuation of providing support during te pandemic, four dnfected Chambers handed over at Sheikh Rasrel Gastro Liver Insttute & Hospitals [National Inseture of Neuroscience & Hospi, National Istute of Dseases ofthe Chest and Chatogram Ma-O.Shshs Hospital Confidence Group in callaboration with the ministry of power, energy and mineral resources imparted 25,000 RT-PCR test kits and handed over the same to IEDCR and moreover, donated BDT 20 Lac tothe Shakb Al Hasan Foundation to purchase corona virus texting kits tobe supplied to recognized hospitals and mesic intuitions. In addon, Our Honorable Vice Chatman, Mr Inran Karin handed over a cheque of BOT 3 Crore tothe Honorable Prime Minister's HPM Relet Fund to help fight agsnet Corona Virus, We alzo distributed 23,000 Food Packages to the underprivileged communities around our Plants ang Factories. “These intatives of Confidence Coment Lid under umbrella of Confidence Group have made a sigan benefialimpact inthe society. Our company recognizes the need for belng a responsible corporate ckzen. As apart of sustainable development, takes seriously ts corporate sol responsi Information Technology (IT) "Working fom hom" have bean the new normal during the lst fiscal year. Corporate throughout the world had to ensure optimize us oftheir resoures for smooth business operation to cope with the challenges. Du fo restrictions in shiping because of Coid-9 pandemic and shortage of supplies, the price of IT devices remained hgh, The member of Confidence Cement with atocation of the T Department of Confidence Group alo ensured avalablity ofall resources to overcome te challenge. Confidence Group T Team developed viral platform hse mimebd.com like as Zoom Platform to facitate the meeting which reduces the extra cos, t alo managed and ap ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SS maintained the hardware and software operations without support of third-parties, This reduced significant amount of operational cos During the las fiscal year, the IT Department provided support to all concerns of the group through remote communication platform. All units are now under surveilance and were able to reduce the response and support time by a significant margin. A great numberof IT devices ‘were upgraded through cost effective solution and those were delivered to all omer. Moreover, Confidence Cement Ltd plans to become papertess company by the year 2022 and developed ERP software. Corporate Governance and Compliance ‘Good governance and ethical conduct provide the foundation for everything we do at Confidence Cement Limited. They help us earn trust, manage risks, forter sustainable grovch and buld a resilient business, We aim to tackle challenging issues head on, make our communications and procestes simple, hold everyone accountable and empower all our employees to.do what's right. Our Code of Business Conduct a well ‘8 our internal ethics upkeeps and talored training, helps employees make ethical decisions. We believe continuous supervision in every business practice i the key to sustain ina leadership role. Therefore, CCL Board of Directors is ‘committed to meating the highest standard of corporate governance and disclosure. The Directors are conscious of their responsible in ‘supervision and direction of the afar of the Company inconformity with the practices of sound corporate governance In fulfilment of those responsibiltes the directors have setup for themselves the principles that willbe followed by their own invelvement in the corporate {unetion and in setting up clear guidelines forthe execikive management. We confirm that the Company has complied with most of the relevant condktions of Bangladesh Securities and Exchange Commission's (SEC) Notation no. BSEC/CMRACD/2006-158/207/Admin/80 dated 3 June 2018. The compliance report is appended herewith as. Annexure: C referred tothe page no 48, Further, a Cerificate of Compliance required under the said concitons, is provided by Mls. A. Qasem & Co., Chartered Accountants ‘enclosed as Annexure B referred to the page no. 47. Acknowledgement “The Company and its Board of Directors would like to extend its foremost regard and appreciation to the vakied members and other stakeholders ofthe Company for their present support and guidance to the Company that led co the cumulative achievements, They also ‘express their grattude to the Government of Peoples Republic of Bangladesh, National Board of Revenue (NAR), Registrar of Join Stock ‘Companies and Firms (RISC), Bangladesh Securities and Exchange Commission (BSEC), Central Depository Bangladesh Limited (CDBL), Dhaka Stack Exchange Ltd, (DSE), Chittagong Stock Exchange Ltd, (CSE), the Company's bankers and ether business partners for their ‘cooperation, postive support and guidance. We promise that we will continue aur journey towarde a bright future. We look forward to your continuing support in the coming years forthe smooth growth ofthe Company. Final, Members ofthe Board of Directors also put on record their deep appreciation and thanks to all Executives, Staffs and Workers for thelr hard work, dedication, sincerity and commitment that they have shown for steady growth of the Company. May Allah bless us al (On behalf ofthe Board be Engr. Rezaul Karim (Chairman (October 30, 2021 > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SSS Directors’ Declaration “The Directors also report that: “The Company is determined to ensure good governance by complying with all the applicable rulas and regulations of Corporate Gover- nance and the Directors are pleased to confirm te following 2) The financial statements together with the notes thereon have been drawn up in canformity with the Companies Act 1994 and Bangla- desh Securities & Exchange Rules 1987 and other applicable rules et. These statements present faily the company’s state of affairs, the result of ts operations, cash low and changes in equity. b) Proper books of account ofthe company have been maintained. ©) Appropriate Accounting policies have been consistently aplied in the preparation of financial statements and accounting estimates are bated on reasonable and prudent judgment. 4) The International Accounting Standards (VAS), or International Financial Reporting Standard (IFRS) as applicable in Bangladesh, have ‘been followed inthe preparation of financial statements ©) Thesystems of internal control ofthe company are sound and have been effectively implemented and monitored, 1) The minority sharcholers have been protected from abusive actions by, or inthe interest of, controling shareholders acting either directly oF indirectly and have effective means of redress. £8) There are no significant doubts upon the company’s abit to continue as a going concern. 1h) Key operating and financial data ofa least preceding five years i enclosed herewith as Annexure -I referred tothe page no 34 1) No bonus share or stock dividend has been declared as interim dividend during the period under review. |) The profitability ofthe company has increased. 1k) The number of board meetings and the attendance of directors during the period ended 30 June 2021 were shown as Annexure - II referred to the page no 36 1) Report on pattern on shareholding i enclosed herewith as Annexure - IV referred tothe page no.- 37 1m) Management Discussion and Analysis report signed by Managing Director is enclosed herewith ax Annexure - VI referred tothe page 040 1) Coreifcation by the CEO and the CFO is enclosed herewith as Annexure referred to the page no 46, > ANNUAL REPORT 2020-2021 —_—- ~SCONFIDENCE CEMENT LIMITED SSS Five years financial position Tain 000 ASSET: Properplnt and equipment 3.897595 3.967847 4093735 4,155.323, 1.766.555 1,853,306 igh of use assets 262273 - : Capital work in progress 236,783 152.641 86,686 90949 2.269.838 1,194,499 Investment 3,986,751 3,043,708 149,192 702.925, 602,794 522,760 “Total non-current assets ERAT IGS SG2LSTS 499,197 __—~ABD,IBT_‘SSTOSOS Investment in quoted share 238m 2,008 : : Inventories 559146 467,662 $81,687 756,294 524,280 381,682 “Tade Receivables 803342 692541 950.873 1022.014 859,585 762,689 ‘Advances, deposs and prepayments I.m24.0¢8 1,099,813 1.548.825 ——1,025,494 s7eas1 1,129,272 Other receivable 163.926 138.128 100,141 80.018 18,392 118.853 ‘Short term invesement in ied deposits 204.000 254.000 250,000 250.000 139,613 44599 Cash and cash equivalents 21218790853 113,779 49.426 853,557 138,340, Total Current assets TR 9672 7a SEAT IS 3,1 IAG _—_—*3084,868——* TSA “Total Assots TVSS4 369 9,908,365 9,160,926 6,T3EA3__T 734,055 6,246,000 EQUITY & LIABILITIES : Equity: ‘Share Capital 77 4S092—A7.906 39.92 449,935 449935 ‘Share Premium 658.089 658.090 «658.080 558.080 658.090 658,030 General reserve 371,862 371.863 «371.863 «371.863 371,883 371853, Revaluation reserve 495.097 462.121 497.952.537.636 s77.705 675261 Retained earings 3STIST| 2583434 2255510 _1927.454 726.156 1,163,470 “otal equity $809,366 4 820,600 AATI2 AOA, 9S TEST TH 6TF LIABILITIES: Non-current liabilities Long cer loans 975.429 1.234671 1.481.423, 39,6482 - 3,150 Lease Libiliies-non-curren portion 230,754 - : Defined benef obligation (Gratuity) 111,085 76471 65,892 56,765 49,696 Deffred tax lability 393302266602 231,406 210,836 235,426 “otal non-current liabilities Wee S70 TST TABTE 365 STS____267,301 288,27 Current Liabilities “Fade payable 456421333055 293,657 478.082 275,487 187692 ‘Shor term loans 2910012 2523.155 2.233.087 3,069,653 3,186,092 1,962,553 Current portion of log term term loans 28357 20357) (262.615 4,150 7280 Lease Liabilties-curent portion 40.148, - : Provision fr WPPF and wellare fund 21,867 5218 28,776 Current tax lability e045 133.237 60238 73409 12.413, Other tiabilty 244368 237,001 12592 123,629 260,395, ‘otal Current Liabilities 733965 3,673,005 ‘Total Labilicy 3,145,003 5,087,765 4,737,605 4,097,478 3,940,306 2,927,381 ‘Total equity and liabilities TTTS54369 9,908,365 9,160,926 6 T3Z443__‘7,724,055 6,246,000" »> ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SS Five Years Comprehensive Income Statement Taka in ‘000 oe a ora a ee Revenue 4619313 3947575 4832894 3,916,784 3,629,375 1,892,842 Cost of goods sold (4.151.087) (733,608) (4.474.550) 3,588,144) (2994028) (1,566,021) Gross Profit 468,246 213,967 358,344 ——2328,640_——«635,350_— 326,821 Selling & distribution expense (178733) 93.674) (100.053) (107.520) (98.094) (35.262) ‘Administrative expense (09.642) (135,101) (194,675) (192.191) (876.765) 44935) Other operating income 190,583 145,094 25,403, 8,195 5944 2032 “Trading Profit 390454 130286 69019 ~—~—«STI2A 166 a3 248,656 Finance cost (17317) (252.633) 238.096) (118.053) (732403672) Finance Income 30102 24,400 2332 7871 5267 6248 Non-operating income 234,110 (25.835) 2333 45322 213,713 15.214 Profit before workers profit participation fund 437,349 (123,782) (124412) ___@7,736)_—«N8O91—=—«86, AMG Contribution to WPPE (21,868) : : : G2I5)___(11,061) ‘Operating profit before income tax 4/5 (24412) G7 73) __—_—«s2BTD Share of prof loss) of associates (Net oftx) 071,559 766,728 «633.273 «369,974 237,760 Profit before income tax [487,040 642,946 322 350,632 Provision for income tax Current year (108,852) (121,285) (43,240) 3,895) (54.058) (51.824) Deferred tax (137,449) 47,140) 34.849) (12,477) 1,390 (9360) Net profit after tax 240739474 S21__—ABOTTZ_—«WO RE m4 _=aa9,84s Other comprehensive income : es ht wiles be recht pro ea tht are or maybe recs to prof orl Lowondlaonaleure rhe to iance fnew ahre (165,666) : : - : Adjsomantor as onaztociteb rend earings (656) : : - : Mpsmetirvepinprdueenssodterearetenie 15,363 : : - : (150,959) E SS ‘Total comprehensive income Earning per share 15.86 637, 6.65) 5.67, 923) 735) > ANNUAL REPORT 2020-2021 aCONFIDENCE CEMENT LIMITED SS Meetings Information ‘Attendance of the Board Meeting, Audit Commies Meeting and Nomination and Remuneration Commitee Meeting During the year ended on 30 June 2021, Board Meeting, Audit Committee Meeting and Nomination & Remuneration Commitee (NRC) Meeting were held ae per the compliance ofthe Corporate Governance Code and attendance of the Directors and Members ofthe Commit= ‘00s are shown below: Board Rowson Postion || Moats NRC Meeting Attendance dance Engr Rezaul Karim Chairman 5 - ir Rupam Khare Bara Viee Garman | _58 ; 7 rman Karim Viee Garman | __5i5 : : Late Shah Muhammed Hasan Director Ws - : (He died on Febrvary 26, 202| andthe Sirecorship of tim has ended onthe date of iNedemse) Me Rung Anwar Director 45 - - ir Salman Karim Director 55 - - ar Stamsul Air Director 55 a 3B Member. Audit Commitee ofthe Board Member- Nomination and Remimneration Commitee "MG Abul Kalam Mohammad Humayun Kabir, Rerd) | independent Drecor| SIS a 3% Chairman Audit Commie Member. Nomination and Remuneration Committee Ms Rabeya java Independent recor] 5/5 “ Fr CChairan- Nomination and Reneraton Committee Member Audt Committee Mr Zahir Uddin Abed anapng Director [55 a 3B Mr Md. Delowar Hossain, ACS ConpanySereary [5 a 3B > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SS Pattern of Shareholding as on 30 June 2021 “The name-wise details ofthe aggregate number of shares of the company held by:- 4) Parent or Subsidiary or Associated companies and other related partes: ‘The company is not ay subsidiary of any company ar not it has any parent company or any associates which holds share ofthe company to report 8) The Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and their spouse and minor children (name-wise detail) fh Number Sl.No. Names Position Ameer | Percentage =| nar Rezaul Karim Chairman 5.539.798 708 Spouse and Minor Children 20001 Ni 0 | Pr Rupam Kishore Baraa Vice chairman TH6S,061 Tes Spouse and Minor Children e000 Nil ° | Me ran Kari Viee chairman 27067 a Spouse and Minor Children e000 Nil 0 [Ms Rusu Anwar Director 2134051 TR Spouse and Minor Children e000 Nil 0 | Me Salman Karim Director T5B6534 703 Spouse and Minor Children 20001 Nil 0 | Mis. Confidence inirastructare Le Corporate Director 3555.19 734 Rep. by Mr. Shamsul Alar, BU - : @ | Fe ShamsulAlam, BU Nominated Direcior TATI3ET Ta Spouse and Minor Children 20001 Ni ° Ty) | MGAKM Humayan Kabir, (eed Tdependent Director Ni a Spouse and Minor Children oo Nil o | Me. Rabeya jamal Independent Director Ni 0 Spouse and Minor Children 20001 Ni 0 D | Me Zahle Uadin Ahmed Managing Director Ni 0 Spouse and Minor Children a Nit a 1) | Pir Newaz Mohammed Iqbal Youra? ‘Chief Financial Ofiear Ni 0 Spouse and Minor Children 20001 Nil 0 T)___| Mr Ml Delowar Hossain, ACS ‘Company Secretary Ni 0 Spouse and Minor Children 90601 Nil a = Me Md. Alamgir Head of nearnal Audit & Complance Nil 0 Spouse and Minor Children e000 Nil 0 ©) Executives - (Top 5 (ve) salaried employees ofthe company other than the Directors, Chief Executive Officer, Company Secretary, (Chief Financial Officer and Head of internal Audt & Compliance): i Number SI.No. Names Position umber | Percentage | Brig Gen Md Tanveer Iqbal (Red) Deputy Managing Director ° 0 Spouse and Minor Children 200001 ° o 2, | Me Faruk Ahmed ‘General Manager - Plant ° 0 Spouse and Minor Children e000 ° o 3.) Me Ma. Shahidu Blam ‘General Manager-S &M ° 0 Spouse and Minor Children os ° o 4] Ma Sheikh Sultan Ahmed Talukdar (etd) Dy GeneralManager- Transport ° 0 Spouse and Minor Children e010 ° o 5] Pe Adranal Hadi Shikdar ‘Senior Manager = SCI o 0 Spouse and Minor Children e000 ° 0 6) Shareholéers holding 1096 or more votng intrestin the company name-wise deal Ni 2» ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SSS RISK AND CONCERN Risk is defined as “the chance of exposure tothe adverse consequences of uncertain future event, This isan integral part of any business, (Over ourlong experience in the industry we have managed to signfcantly enhance and achieve avery robust and matured stage for our rs ‘management process, The CCL's risk management process is featured to estimate the probabilty of any uncertain events and provide adequate response for eliminating the consequence ofthat event. The overall risks and management process thereof i discussed as below: IDENTIFICATION OF RISK Prepare. lst of potential risk by refering ta the relevant business critical information which is abtaned from various reporting line and also by taking into consideration of various non-financial factors relating to current politcal and economic situations. ANALYSIS OF THE OUTCOME Priorities the potential risks by considering the possible likethood and impact on the Company's current and future prospects DESIGN POSSIBLE SOLUTIONS Prepare avoidance and contingency plans by establishing controls at different levels of business and also dacding of various strategies to mitigate the ris IMPLEMENTATION “The department heads then take al the necessary iniatives forthe implementation of the designed system, EVALUATION “The management always monitors the effectiveness ofthe designed systems through receiving various reports from diferent departments and if necessary then reanalyze, RISK ATTITUDE OF DIRECTORS Board of Directors continually evaluates their risk ateude based on varying circumstances, They essentially strke aright balance between being risk averse and risk takers demanded by the circumstances RISK FACTOR “There are various sk factors associated withthe nature ofthe activities ofthe Company. Although, the risks ofthe industry are continuously ‘evolving, the Company has taken reasonable steps to identify material risk that could have harnpered the Business ofthe Company and had adopted preventive measures inthis respect. &. CREDIT RISK CCredic risk isthe risk ofa financial oss to the company ifa customer ora counter party to a financial instrument fal to meet its contractual ‘obligations, and arise principally from company’s receivables from dealer. Management has a credit policy andthe expoture to credit risk Is monitored on an ongoing basis, b. LIQUIDITY RISK Liquidity risks the ris that the company willnot be able to mest its financial obligations as they fll due, The company’s approach to manag: Ing liquidity (cash and cash equivalents isto ensure, a far as possible, that it will always have sufficient lquidity to meet its labilties when due, under both normal and stressed conditions, without incurring unacceptable losses or risk of damage to the company's reputation. ‘Typiealy the company ensures that thas sufficient eash and cash equivalents to meet expected operational expenses, including financial ‘obligations through preparation of the cashflow forecast, based an time line of payment of financial obligations and accordingly arrange for sulfciee lquigyifund to make the expected payments within due dates. Moreover, the company seeks to maintain short term lines of credit with scheduled commercial banks to ensure payment of obligation in the event that there is isulicient cash to make the required payment “The requirements determined in advance through cash flow projections and credit lines with banks are negatiated accordingly «. MARKET RISK Market ris the rik that any change in market prices, such foreign exchange rates and interes ates wilalect the companys income or the vale of holings of fan nstrument > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED 4. CURRENCY RISK “The company is exposed to currency risk on certain purchase such as import of raw material. Majority ofthe company’ foreign currency transactions are denominated in USD and relae ta procurement of raw materials from abroad, «INTEREST RATE RISK Interest rate risks the risk that arises due to changes in incerest rates on borrowings. Short term bank borrowings ae, however No sigii= «any fected by fluctuations in interest rates. The company has not entered into any typeof derivative instrument in order to hedge interest rate risa a the reporting date {. PRICE RISK Price risk represents the risk thatthe fair value of future cath lows ofa financial statement wil uctuate because ofa change in market prices Finance department estimates the product cost and the marketing department, on comparing other sila industries determines the market price ofa praduct after adding reasonable profit to make f competitive. . OPERATIONAL RISK ‘Operational risk addresses the risks associated with fraud, forgery, unauthorized activities, error omission, system failure and external ‘events among others. Feld Supervisor's Checklist, Credit inspection Report, Hire Financing Documentation Checklist ete. ae in place cover- Ingall probable risks assciated with company's business and operations. Surprise audits and frequent inspections are also made on a regular basis to make sure that all contral tools ae functioning propery ‘ INDUSTRY RISK Ie results from change of market condition, competitor's behavior, and policy changes of the government are associated with those risks ‘CCL recognizes that good information is the key to forecast, assess and manage the risk “The management has overall responsibilty forthe establishment and oversight of the company's rik management framework. The compa y's risk management polices are establahed to identify and analyze the risks faced by the company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Rsk management policies, procedures and systems are reviewed regularly to reflect ‘changes in market conditions and the company activites. This note presents information about the company’s exposure to each ofthe following risks, the company's objectives, policies and processes fr measuring and managing risk, and the company's management of capital > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED CUT Tg od In compliance withthe Condition No. (100) of the Corporate Governance Code as issued by BSEC vide its notification dated 3 June 2018 brie Management analysis given on company’s position onthe operations and financial satements focusing, in particular, on the following, a) Accounting policies and estimation for preparation of financial statements MANAGEMENT'S DISCUSSION AND ANALYSIS The financial statements of the Company under reporting have been prepared on a going concern bass flowing accrual basis of accounting except for statement of cath lows in accordance with the Intemational Accounting Standards (ASs) and International Financial Reporting Standards (FRSs) a8 adopted in Bangladesh by the Instcue of Chartered Accountants of Bangladesh ((CA), The financial statements are prepared and presented for external users by the Company in accordance with ientied financial reporting framework. Presentation has been made in compliance withthe requirements of AS | —“Prasentation of Financial Statements ‘The financial statements have been prepared on going concern bass under the historical cost convention except for Investment in quoted shares, land and factory bullding, Statement of Cash Flows ie prepared principally in accordance with IAS-7 “Statement of Cash Flows and the cath flows from operating activites have been presented under direct method, A raconclation of net income or net profit with cash flaws from operating athvties ‘making adjustments for non-cash items, for non-operating tems and for the net changes in operating accruals as per requirement of Bangladesh Securities and Exchange Commission Rules, 1987. Unless otherwise stated, che accounting policies and methods of computation used in preparation of Financial Statements forthe year ended 30 june 2021 are consistent with those polices and methods adopted in preparing the financial statements forthe year ended 30 june 2020, The Company has adopted the amencments included in Amendments to References o the Conceptual Framework i IFRS Standards forthe first ime inthe current year and alo adopted the amendments to IAS | and IAS 8 for the ist time in the current year. Data of the significant accaunting policies are available in Note No. 3 of the Financial Statements 'b) Changes in accounting policies and estimation ‘The Company has adopted the amendments to IAS | and AS @ forthe fist ime in the current year. The nature and effect ofthe neviy adapted the amendments of IAS | and IAS @ are described in Note 3,02 of the Financial Statements ©) Comparative analysis (including effects of inflation) of financial performance or results and financial position as well as cash flows for current financial year with immediately preceding five years explaining reasons thereof has been described below: (Taka in 7000) Financial 01 July 20e0 | OF July 19¢0 | oF july 180 | OF July 17t0 | 01 July 16t0 | OF Jan. 160 Results 30June21 | 30June20 | 30June19 | 30 June 30June 17 | 30 June 16 Revenue asisaia | 3sa7s7s | 40364 | 3916704 | 3.629,375 1992.82 Gross Profi ean [213.967 358,344 328,640 635,350 326.821 Profit Before Tax ae7.o40 | 642,947 508,861 342.239 350/652 401,429 Net profi After Tax taaoras [474521 430,772 305,866 498,124 339,845 Shareholder Equity seosace | 4a20601 | 4asiam | 4034905 | 3.703.749 3.318.620 Total Assets rissa3es | 9908366 [9.160926 | aiszaea | 7.724056 6,246,000 Total Current Assets acess | 2.744170 | 3547313 | 3.183246 | 3,084,868 267535 Total CorrencLinbiies | 4084432 | 3510021 | 2988864 | 3,733,965 | 3673006 2,639,109 (Carrent rato (Time) 0.78: 0781 | 1181.00 | oa5:.00 | 0841.00 Tor:t.00| Revenue has increased by 17.02% compared to previous year mainly due to increase in sles volume by 16.80%. Gross Profle Margin increased by 87.08% compared to previous year mainly fr increasing in sales volume and the reason of lower cost of raw mater Net Prof er) mead by 1614795 om T4742 mon oT 1240.74 mon a la Net Prof Marg (er tm) a reed by 2b Acta of prvouryar “> ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED CASH FLOW MOVEMENT ‘The Board of Directors ints meeting held on 30 October 2021 per share of Tk. 10.00 (Taka ten) aggregating to Taka 195,586 827.50 forthe year 2t the 30th Annual General Mesting scheduled to beheld on 2! Decamber 2021 With this recommendation of proposed dividend, the summary of the ttal dividend is given below: has recommende: 1d 25% cash dividend @ ie, Tk. 2.50 ‘ended 30 June 2021 subject to approval ofthe member (Taka in 000) cash towm 01 July 20 to | OF July 190 | OF july 180 | OF july 17 to | 01 july 16¢0 | OF Jan. 160 sshfew Movement | zojune21 | 30june20 | 30june19 | 30junets | 30June 17 | 30June 16 [Net cashflows from opersng actin 166.967 | 1.023.443 | 423.19] (609.133) 420,706 163,658 ‘Net cash flows used in investing actos i319) | (046,784) | aziz) | @i3.tom)} 743.931) | 487.583), ‘Nat cashflows used im foancing scores (1,769) 382 708,986 62.184] 1,048,488 220,628 Not Tnrease/ecrease) n cash and cash ogee 21.298 (22.959) e4o17] (614.132) nsa2is (43.297) ‘Opening Cash and ash caves 90.854 113,780 49,426 363,558 138,340 181,636 Closing Cash and cash equvnlenes 212187 90,884 113,780 49,426 353,558 130,340 ‘Net Operating Cash Flow] Por Share (NOCEPS) 213 174 59) 0.43) 935 3.64 DIVIDEND (Taka to and hall) (Taka in 000) indicators 01 July 20t0 | OF July 190 | OF july 180 | or july 17t | OF july 16t0 | OF fan. 160 30June 21 | 30June20 | 30June19 | 30june18 | 30june 17 | 30 June 16 Net Profit After Tax 240739 | 474521 430,772 305,866 498,124 339,845 Earnings Per Share 586 oo os 5o7 oe Toa Gah Dividend 75.00% 150096 5.00% 15.0036 15.00% To.00% Seoek Dwvidend zi 500% 15.00% 70.00% 70.00% : ‘Nuraber of Shares Tanara | 7409268 | 479066 | S399RI24 | 4499SI0 | 44999.520 Cash Dividend per Share 25 1S 1S 1S 1S i peer industry scenari (@) Comparison of the financial performance or results and financial position as well as cash flows with the (Taka in 000) SI.No, tems cect | mice | pcm | ume. | Heer | mcm Act T NetProficAftr Tax | 1240,739 | 059222 | 651.681 | 1,983,982 | (60.839) 74377_| 20265 2 Dividend Wee | w%e | W%C| xe | WHC | SH CHSHE Ni 3 EPS sae | __579 68 es 2 | _o6 4 NAVPS 72s | 5269 | __7988 Tas | _ 66.10 Tom | _29.18 5 NOGFPS 23 | aaa 631 va | 2653 aes | ale “ip ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SS ‘CCL (Confidence Cement Limited), M. I. Cement Factory Led. (MICFL), Premier Cement Mills Ltd. (PCML), LafargeHolcim Bangladesh Led. (LHBL), Heidelberg Cement Bangladesh Led, (HCBL), Meghna Cement Mis Ltd, (MCML), Aramit Cement Led (ACL), EPS = Earnings per Share, NAVPS = Net Asset Value Per Share, NOCFPS = Net Operating Cash Flow Per Share, C= Cash Dividend and 8 = Bonus Share (Stock Dividend) (©) Financial and economic scenario of the country and the globe has been discussed briefly in the following. “The World Bank Group in its Global Economic Prospect report has stated that the global economy is set to expand 5.6 percent in 202 ts strongest postrecession pace in 80 yeas. This recovery is uneven and largely reflects sharp rebounds in some major economies. In many ‘emerging market and developing economies (EMDES), obstacles to vaccination continue to weigh on activi. By 2022, as year's per capita incame lasses will nat be fully unwound in about two-thirds of EMDEs. The global outlook remains subjact to significant downside rise, including the possibilty of additional COVID-19 waves and financial stress amid high EMDE debt levels. Policy makers will need to balance the need to suppore the recovery while safeguarding price stably and fiscal susainabilty and to continue efforts toward promoting growth-enhancing reforms. Before the COVID-19 pandemic, Bangladesh exhibited a steady and high GDP growth, averaging 74 percent per year during FY 2015-16 t0 FY 2018-19 and reached a record 8.15 percent growth rate in FY 2018-19, The global economy came to a standstill due to the COVID-I9 pandemic, which has also had a huge negative impact on the economy of Bangldash. According to the final estimations of BBS, the GDP growth in FY 2019-20 has slowed to 3.51 percent. However, Bangladesh's economy is turning around in 2020-21. According to the provisional ertimates of BBS, the GDP growth in FY 2020-21 stood at 5.47 parcant. Despite the stagnation in the economy caused by the ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SS Despite the pandemic, the coment sector's market size reached 33.5 millon tonnes in 2020, a marginal degrowth of 0.5096 compared to the fnted surge in comment demand that caught all the ‘cement players napping. This surge wa caused by the pent up demand in the previous year when construction had slowed down due tothe pandemic. Asa result inthe frst quarter of 2021, cement market grew by 20.5% and by 35.696 by une 2021. Growth inthe second half ‘wil nat be the same asthe frst half since the market had grown very strongly in the sacond haf ofthe previous year, We stillexpect that the previous calendar year. However, with the onset ofthe New Year, there was an unprec Industry wil close with a growth of around 25% compared to 2020, which will stand out asa record for the industry “The major challenge currently facing the industry s the skyrocketing price of raw materials such as clinker, slag, fy ash, limestone and _aypsur. Margins are now severely eroded, Moreover, the existing overcapacity coupled with capacyy expansion in anticipation of demand hike has put the whole industry under intense competitive pressure leading to price war undermining the sustainability ofthe sector. Consequently, the industry had to absorb the increased cost of input (gas) and logistics (transportation) resulting in erasion of profits. Overal, even though the outlook forcement demand _growthis robust, profitability remains a concern for cement manufacturers. “The market has been squeezed by exiting producers! capacity expansion and entry of new producers make the market even more competi- tive day by day. To tackle the challenge of gining more marketshare, cement industry layers are inating aggressive marketing plans. However, Your Company has been taken various marketing and sales intatives and deployed them to increase our brand visibility and customers’ loyalty. These intatves helped us to be at the top-of-mind of the consumers as well as to gain marketshare. We continue to invest in retalr loyalty programs and engaging with our key specifiers of cement so tha there isa sustainable demand for our product. (0 Risks and concerns issues related to the financial statements Confidence Cement Limited has exposure to the Counterpart isk, Financial Risk, Cree Risk, Liquidity Risk and Market Risk arising from the financial statements. The detail explanation of risk and concerns are explined inthe annexure-F in tis Report. Confidence Cement Limited has sufciant and effective measures/controls to mitigate the risk and concerns. (g) Future plan or projection or forecast “The Management of Confidence Cement Limited is very positive n adoption of necessary feasible plan and strategy in respect of sustainable {7 In ts performances & francial position and to continue the operations for Toreseeable future (October 30, 2021 > ANNUAL REPORT 2020-2021 iCONFIDENCE CEMENT LIMITED As at 30 June 2021 oar STE _ oe nT Soe a <0 DET <0 mae : sre T1stsen3t : eT) Ter : sRa0T2 S550 : SER8m 5400 vases s-3810 assyraon ssn SEY EA : song yu 19510 103 TT : Panacea sate] 44) ANNUAL REPORT 2020-2021 =eCONFIDENCE CEMENT LIMITED SS PMc A) Definitions : 1. Company ‘shall mean Confidence Cement Limited 2, “Members shall mean shareholders ofthe Company who hold shares of the Company. Dividend Distribution Policy B) Objective: “The objective ofthis document i to formulate policy for dividend distribution criteria ofthe Company. (©) Scope and Purpose : “The Bangladesh Securities and Exchange Commission issued a Directive No, BSEC/CMRRCD/2021-386i03 dated, |4 January 2021 which requires the Company to formulate and adopt a dividand distribution policy. which shall be disclosed in its annual report and on its website. Accordingly this dividend distribution policy has been adopted by the company. ) Financial Parameters tobe considered while declaring dividend The company sal consider the unconsidated PAT and the opportunites avaiable for ts growth and consider the expansion plans, Post consideration ofthese fats, the company wil take an informed decision about the dividend pay-out rato which shall be maintained to pay minimum 1056 ofthe consolidated net profi afer tax depending onthe financial heath and capt requirement of te Company with an am to have a consistent growth in dvidend payout. The DWidend may dedare in the {oem of Cash o tock or the combination both Cash and Stock. The Company can consider special dividend paymens such as intern didend subject to the company's business performance and ash availabilty Internal and External factors to considered : | Invert and Exeral Factors that shal be considered for declaration of Dividend, The Board and Management may decide to tlie ts profi for 1 Business Groweh i. Capital Expendiare i organic sroweh Iv Provision of Reserve Fund \: Acquistion of Technology 2. The level of competition ad the prospects of growth forthe sector may require te company to buffer up capital enhance operational eienc. 3. The ably ofthe company to rae funds in cost elective manner coupled wit the Iqudty scenario may also occasion ploughing back of profits 4. The company is exposed to operations, environmental regulatory, and legal ks, Poste adverse impact from these risks notwithstanding risk migration by the company can have bearing on died payout F) Circumstances under which the Members ofthe Company may or may not expect dividend! “The company shal declare a dividend for any financial year whenever there isnt profit afer tx forthe yar alter taking nko account the adjustments for previous years, write back of expenses, providing for depreciation ec. The company sal decare no dividend in case there insufficient net prot after tax forthe year after taking int account adustment or provious years rie back of expenses, proving for depreciation 1G) Policy as to how the retained earnings shall be utilized. “The retained earings wil be ulzed forthe main objects ofthe Company H) Parameters that shall be adopted with roar to various chsses of share the crmpany ony has one es of equity share and there reno shares wth diferent righ as to ekher voting or dvdend > ANNUAL REPORT 2020-2021CONFIDENCE CEMENT LIMITED SSS Annexure A, [As Per condition na. 1(5)Go07)] Declaration by the Managing Director and CI ief Financial Officer to the Board Date: October 30,2021 “The Board of Directors ‘Confidence Cement Limited Agrabad Access Road Chattogram ‘Subject : Declaration on Financial Statements for the year ended on June 30, 2021. Dear Sirs Pursuant to the condition No. | (S) (xe) imposed vide the cornmissios Notification No, BSEC/CMRRCD/2006-158/207/Admin/80 Dated 3 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that: (1). The Financial Statements of Confidence Cement Limited for the year ended on June 30, 2021 have been prepared in ‘compliance with International accounting Standard(IAS) or Intemational Financial Reporting tandarde(FRS), ae applicable in the Bangladesh and any departure there from has been adequately disclose: (2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, n order for the financial staternents to reveal a true and fir view: @)_ The form and substance of transactions and the Company's state of affairs have been reasorably and fairly presented in ts financial statements; (4) To-ensure above, the Company has taken proper and adequate care ininstaling a system of internal control and maintenance ‘of accounting records; (S) Our incernal auditors have conducted period audits to provide reasonable assurance that the established policies and procedures ofthe Compary ware consistently followed: And (6) The Managements use ofthe going concern basis of accountng in praparng the financial statements is appropriate and there ‘exists no material uncertainty related to events or conditions that may east signifant doubt on the Company's ability © continue asa going concern, In this regard, we also certify that (We have reviewed the financial statements for the year ended on June 30, 2021 and that to che best of our knowledge and belief: (a) these statements do not contain any materially untrue statement or omit any material fct or contain statements chat right be misleading (b these statements collectively present true and fair view of the Company's afars and are in compliance with existing accountng standards and applicable laws (i) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are ‘fraudulent, legal oF in voltion ofthe code for the company’s Board of Directors or ts member. Sincerely yours, Zahit Uddin Ahmed ‘Nowaz Mohammed Iabal Yousuf Managing Director Chief nancial Ofer “> ANNUAL REPORT 2020-2021 ANNUAL REPORT 2020-2021 aCONFIDENCE CEMENT LIMITED Ee =~ eee 12 1200) 13@) 1300) 13@)0i) 13e)09 130) 13@ 3@ “The post of independent director(s) cannot remain vacant for ‘more than 90 (ninety) days; and “The tenure of oie ofan independent director shal be for a period of 3 (three) years, which may extend for 1 (one) tenure only Provided that a former independent director may be considered for reappointment for another tenure after 2 time sap of one tenure, ie. three years from his or her completion ‘of consecutive two tenures [l.. six year) Qualification of independent Director: Independent Director shall be a knowledgeable individual with integrity who is able to ensure compliance with financial laws, regulatory requirements and corporate laws and can ‘make meaningful contribution tothe business. Independent Director shal have the fllowing qualifications: Business Leader who is or was a promater or director of an Lnlisted company having minimum paid-up capital of Tk. 100.00 milion or any sted company oF a member of any rational or international chamber of commerce oF business association; or Corporate Leader wha is or was a top level executive not lower than Chief Executive Officer or Managing Director or Deputy Managing Director or Chief Financial Ofcer or Head fof Finance or Accounts or Company Secretary or Head of Internal Audie and Compliance or Hiead of Legal Service or a candidate with equivalent postion of an unlisted company having minimum paid up capital of Tk. 100.00 milion or ofa listed company; or Former oficial of government or statutory or autonomous or regulatory body in the postion not below Sth Grade of the rational pay scale, whe has at least educational background of bachelor degree in economics or commerce or business or law: or University Teacher who has educational background in Economics or Commerce or Business Studies or Law: Professional who is or was an advocate practicing a least in the High Court Division of Bangladesh Supreme Court or a (Chartered Accountant or Cost and Management Accountant for Chartered Financial Analyst or Chartered Certified ‘Accountant or Certified Public Accountant or Chartered Management Accountant or Chartered Secretary or ‘equivalent qualification “The independent director shall have at least 10 (tn) years of ‘experiance in any field mentioned in clause (b) In spacial cases, the above qualifications or experiences may be relaxed subject to prior approval of the Commision. > Sao foment ae ANNUAL REPORT 2020-2021 =a Remarks ce) No such ease. No such ease No such cate. No such