UNITED INTERNATIONAL UNIVERSITY

Report on: Annual report analysis

Company List: 16-20

Course title: Advanced Financial Accounting 1

Course code: ACN 4136

Section: A

Submitted to

Mr. Mofijul Hoq Masum

Assistant professor

Submitted by

Group- 04

Name ID
Mahir Rahman Khan Niloy 114191004
Fatema Alam Bithy 114191010
Monira Akter 111191149

Date of submission: 20th May, 2022.

1
 Guideline for Report Writing

Course Title & Course Code: Advanced Financial Accounting 1 & ACN 4136
Section: A

Name: Mahir Rahman Khan Niloy Id: 114191004

Serial No. 14

Contribution of the Students:

Criteria for marks Marks Marks Comments

Assigned Obtained
Title Page 1
• Name of topics
• Submitted to
• Submitted by
• Date of submission

Letter of Transmittal 1
• Signature of team leader

Executive Summary 1

01. Introduction: 2

02. objectives of the study 2

• Broad objectives
• Specific objectives
03. Methodology of the study 3
• Data design: sources, collection process
• Sample design: size, techniques

04. Exploration of the assigned topics 2

• Research of similar items

05. Body of the report 5

- theoretical part
- quantitative part
-charts, graphs & other analytical tools

06. Findings and analysis 2

07. Conclusion 2

08. Recommendations 2

09. References 2

10. General guidelines* 5

Total Marks 30

2
 Guideline for Report Writing

Course Title & Course Code: Advanced Financial Accounting 1 & ACN 4136
Section: A

Name: Fatema Alam Bithy Id: 114191010

Serial No. 15

Contribution of the Students:

Criteria for marks Marks Marks Comments

Assigned Obtained
Title Page 1
• Name of topics
• Submitted to
• Submitted by
• Date of submission

Letter of Transmittal 1
• Signature of team leader

Executive Summary 1

01. Introduction: 2

02. objectives of the study 2

• Broad objectives
• Specific objectives
03. Methodology of the study 3
• Data design: sources, collection process
• Sample design: size, techniques

04. Exploration of the assigned topics 2

• Research of similar items

05. Body of the report 5

- theoretical part
- quantitative part
-charts, graphs & other analytical tools

06. Findings and analysis 2

07. Conclusion 2

08. Recommendations 2

09. References 2

10. General guidelines* 5

Total Marks 30

3
 Guideline for Report Writing

Course Title & Course Code: Advanced Financial Accounting 1 & ACN 4136
Section: A

Name: Monira Akter Id: 111191149

Serial No. 13

Contribution of the Students:

Criteria for marks Marks Marks Comments

Assigned Obtained
Title Page 1
• Name of topics
• Submitted to
• Submitted by
• Date of submission

Letter of Transmittal 1
• Signature of team leader

Executive Summary 1

01. Introduction: 2

02. objectives of the study 2

• Broad objectives
• Specific objectives
03. Methodology of the study 3
• Data design: sources, collection process
• Sample design: size, techniques

04. Exploration of the assigned topics 2

• Research of similar items

05. Body of the report 5

- theoretical part
- quantitative part
-charts, graphs & other analytical tools

06. Findings and analysis 2

07. Conclusion 2

08. Recommendations 2

09. References 2

10. General guidelines* 5

Total Marks 30

4
 Letter of transmittal

May 20, 2022

Mofijul Hoq Masum

Assistant Professor – Accounting

United International University

Subject: Report on annual report analysis.

Dear sir,

We are honoured to announce that we have prepared this report on five companies' annual
reports. We have followed the instructions you have given us. I hope you will approve our
report and give it its uniqueness.

We are grateful to our team members who helped to complete this report by gathering needed
information and offering valuable advice. We will be happy if you review the document
carefully.

Furthermore, we have given our due diligence to fulfil this task meaningfully and effectively
in a spirit of our kindness. In addition, we hope that our efforts will help you to get an idea of
our report. Furthermore, we have tried to provide ideal answers to all the questions that you
provided.

Sincerely yours,

Mahir Rahman Khan Niloy

On the behalf of my group

5
 Executive summary

This report is about the updates on five companies 2019-2020 annual report (ESQUIRENIT
Ltd, ETL Ltd, FAMILYTEX Ltd, FEKDIL Ltd and GENNEXT Ltd). The mission of
ESQUIRENIT (Esquire Knit Composite Limited) is to provide high-quality products and
services to customers in the quickest time feasible while maximizing resource usage for long-
term growth. EKCL wants to make sure that the company's overarching purpose and scope
are serving the needs of its stakeholders. ETL (Evince Textiles Limited) company’s mission
is that they strive to be the most admired organization in Bangladesh's apparel and textile
sector by providing high-quality products at reasonable costs to their clients while
maintaining an ethical corporate culture that benefits the communities in which we operate as
well as the economy as a whole. FAMILYTEX company’s mission is to be recognized as the
best supplier to the markets they serve by supplying high quality fabrics and other textile
products to meet their customers' needs. Their mission will be achieved through excellent
customer service, sales and manufacturing, backed by the teamwork of all employees.
FEKDIL company’s mission is to be a best-in-class manufacturer and employee, to manage a
sustainable and fair relationship with all buyers and wants to provide a healthy return to all
stakeholders to maintain their high ethical trading standards to ensure a safe and sustainable
environment for all employees to consistently contribute towards CSR activities. GENNEXT
company’s mission to maximize to quality product production and services strictly on ethical
and moral standards at minimum cost to the society ensuring optimum benefits to the
consumers, the shareholders and other stakeholders.

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Contents
Introduction ............................................................................................................................................ 8
Objectives of the study ........................................................................................................................... 9
Methodology of the study .................................................................................................................... 10
Data design ....................................................................................................................................... 10
Sample design ................................................................................................................................... 10
Exploration of the topics ....................................................................................................................... 11
Report body .......................................................................................................................................... 12
1. Basis of Accounting: Cash / Accrual ............................................................................................. 12
2. Inventory Valuation Technique: FIFO/ LIFO/Average/ Weighted Average/ NRV/ Others as per
the IAS#2 ........................................................................................................................................... 12
3. Preparation of Financial Statement: Vertical /Horizontal as per the IFRS #1 .............................. 13
4. Method of Depreciation: Straight Line/ Declining Balance/ Double Decline/ Sum of Year Digit/
Activity Method IAS#16. ................................................................................................................... 13
5. Method of Cash Flow Statement: Direct / Indirect as per the IAS#7........................................... 14
6. Methods of changing the accounting policies and estimates: Prospective application /
Retrospective application IAS#8 ....................................................................................................... 14
7. Reporting of Contingent Liability in the financial statements ...................................................... 15
8. Reporting of Intangible Asset in the financial statements............................................................ 17
9. Presentation of foreign currency operations in the financial statements as per the IAS#21 ....... 18
10. Presentation of the EPS: Basic EPS /Diluted EPS as per the IAS#33 ........................................... 18
Findings and analysis ............................................................................................................................ 19
Conclusion ............................................................................................................................................. 20
Recommendation.................................................................................................................................. 21
Reference .............................................................................................................................................. 22

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 Introduction

Esquire Knit Composite Limited was founded in 2001. Esquire Knit Composite Limited has
focused on its business and successfully established the name as a world-class Garment
Manufacturer under one roof, having a composite facility of Yarn dyeing, Knitting, Fabric
dyeing, and finishing; printing, embroidery, garment dyeing and washing up to Garment
making.

Evince Textiles Limited (ETL) began as a private limited company on June 3, 1999, then on
June 4, 2013, it became a public limited company. The company produces and exports yarn
dyed woven fabrics that are used by international brands and merchants.

Familytex (BD) Ltd is a 100% export-oriented clothing manufacturer based in CEPZ,

Chattogram. The production capacity is 960,000 pieces per month. Their main items are
sportswear, casual shorts and pants, swim shorts, jackets / vests, fleece tops and bottoms, and
micropoly tops and bottoms. Familytex is a 1,28,000 square foot five stored building. Their
main retail markets are the United States, Canada and Europe.

FEKDIL Ltd has evolved from a small garments manufacturing plant into one of the leading
composite textiles industries in the (BD) country, with integrated, knitting, high end dyeing,
finishing (tubular & open width), state of the art printing, pigment dyeing & garment washing
and embroidery.

GENNEXT Ltd engages in the design, manufacture and export of garments. The company
was founded on August 19, 2004 and is headquartered in Dhaka, Bangladesh. It offers
knitting, dyeing, producing of textile, and making various types of ready-made garments of
international standard.

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 Objectives of the study

Broad objectives: The overall goal of this research is to learn more about the accounting
processes of publicly traded companies in Bangladesh.

Specific objectives: The members of the group attempted to gather information from
company annual reports in order to achieve the following goals:

• Try to know their accounting basis

• Try to know their inventory valuation technique
• Try to know their preparation of financial statement
• Try to know their cash flow method
• Try to know their methods of changing the accounting policies and estimates
• Try to measure their financial performance and compare which one is in the better
position
• Try to know their presentation of foreign currency operations in the financial
statements

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 Methodology of the study

Data design
This term paper is about report analysis so we don’t need to collect any sample or
questionnaire. As per our topic, we have collected data from secondary sources like company
website and their annual reports.

Sample design
By searching the company websites and annual reports, we found out many questions and
collected some of the data. The queries type that we searched are-

• The way they show their Company financial statements

• Basis of accounting the company follows
• Amount of contingent liabilities that company follows
• The inventory valuation techniques they follow
• Method of depreciation they follow
• Method of cashflow statement they follow
• Methods of accounting changing policy and estimates

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 Exploration of the topics

ESQUIRENIT Ltd, ETL Ltd, FAMILYTEX Ltd, FEKDIL Ltd and GENNEXT Ltd.

These companies are listed companies and must follow the rules and guidelines of IAS, BAS,
BFRS and IFRS when preparing financial statements. A statistically representative was
shown on this study. Companies with high accrual liabilities may have errors in their
estimates. The due diligence of the result will be less when it mainly consists of accumulated
fees. In general, companies want to demonstrate that their earnings are stable and predictable
in order to attract analysts and investors, a type of income that includes high accruals cannot
do. increase the intrinsic value of the business.

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 Report body

1. Basis of Accounting: Cash / Accrual

Company 2020 2019
ESQUIRENIT (Esquire Knit Accrual Accrual
Composite Limited)
ETL (Evince Textiles Limited) Accrual Accrual
FAMILYTEX (Familytex BD Accrual Accrual
Limited)
FEKDIL (Far East Knitting & Accrual Accrual
Dyeing Industries Limited)
GENNEXT (Generation Next Accrual Accrual
Fashions Limited)

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

per the IAS#2
Company 2020 2019
ESQUIRENIT (Esquire Knit NRV NRV
Composite Limited)
ETL (Evince Textiles Limited) NRV NRV
FAMILYTEX (Familytex BD Weighted average Weighted average
Limited)
FEKDIL (Far East Knitting & - -
Dyeing Industries Limited)
GENNEXT (Generation Next Weighted average Weighted average
Fashions Limited)

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3. Preparation of Financial Statement: Vertical /Horizontal as per the IFRS #1
Company 2020 2019
ESQUIRENIT (Esquire Knit Vertical Vertical
Composite Limited)
ETL (Evince Textiles Limited) Vertical Vertical
FAMILYTEX (Familytex BD Vertical Vertical
Limited)
FEKDIL (Far East Knitting & Vertical Vertical
Dyeing Industries Limited)
GENNEXT (Generation Next Vertical Vertical
Fashions Limited)

4. Method of Depreciation: Straight Line/ Declining Balance/ Double Decline/ Sum of Year Digit/ Activity
Method IAS#16.
Company 2020 2019
ESQUIRENIT (Esquire Knit Declining Balance Declining
Composite Limited)
ETL (Evince Textiles Limited) Straight-line Straight-line
FAMILYTEX (Familytex BD Straight-line Straight-line
Limited)
FEKDIL (Far East Knitting & Double declining Double declining
Dyeing Industries Limited)
GENNEXT (Generation Next Straight-line Straight-line
Fashions Limited)

13
5. Method of Cash Flow Statement: Direct / Indirect as per the IAS#7
Company 2020 2019
ESQUIRENIT (Esquire Knit Direct Direct
Composite Limited)
ETL (Evince Textiles Limited) Direct Direct
FAMILYTEX (Familytex BD Direct Direct
Limited)
FEKDIL (Far East Knitting & Direct Direct
Dyeing Industries Limited)
GENNEXT (Generation Next Direct Direct
Fashions Limited)

6. Methods of changing the accounting policies and estimates: Prospective application /

Retrospective application IAS#8
Company 2020 2019
ESQUIRENIT (Esquire Knit Prospective Prospective
Composite Limited)
ETL (Evince Textiles Limited) Retrospective Retrospective

FAMILYTEX (Familytex BD Retrospective Retrospective

Limited)
FEKDIL (Far East Knitting & Prospective Prospective
Dyeing Industries Limited)
GENNEXT (Generation Next Prospective Prospective
Fashions Limited)

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7. Reporting of Contingent Liability in the financial statements

ESQUIRENIT (Esquire Knit Composite Limited)

Particulars 30-June-2020 30-June-2019

Short term loan 984,070,652 898,998,063
Current portion of long-term loan 465,013,712 184,459,567
Current portion of finance lease 28,370,223 8,797,815
obligation
Accounts payable 856,491,799 916,507,610
Liabilities for expenses 316,178,726 187,267,456

ETL (Evince Textiles Limited)

Particulars 30-June-2020 30-June-2019

Short Term Loan 942,253,654 1,104,079,665
Current Maturity of Long-Term 222,796,534 203,072,968
Loan
Accounts Payable 21,086,600 8,109,512
Liabilities for Expenses 184,534,639 87,803,789
Provision for Contribution to 17,088,097 15,484,312
WPPF & WF
Dividend Payable 650,086 155,111
Current Tax Liabilities 29,895,892 70,194,461

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 FAMILYTEX (Familytex (BD) Limited)

Particulars 30-june-2020 30-june-2019

Trade and other payables 51,618,510 35,955,432

Bank loan 319,819,908 190,373,353
Other payable 15,000,000 15,000,000
Refundable share subscription 72,415 72,415
money
Payable for other finance 14,651,974 20,839,517

Total current liabilities 401,162,807 262,240,717

FEKDIL (Far East Knitting & Dyeing Industries Limited)

Particulars 30-june-2020 30-june-2019

Current portion of long-term debt 84,458,100 87,448,083
Accounts payable 11,589,916 12,704,575

Deferred tax liabilities 66,271,695 58,181,893

Provision for expenses 10,368,441 22,063,129

Short-term loan 327,179,690 239,488,916

Accepted bills payable 376,432,877 752,730,018

Dividend payable 1,999,753 1,588,715

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 GENNEXT (Generation Next Fashions Limited)

Particulars 30-june-2020 30-june-2019

Accounts payable 72,238,084 94,689,622

Accrued Expenses 77,859,204 447,189,926

Bank overdraft 46,775,468 46,360,125

Short-term bank credit 571,160,749 835,973,142

Deferred L/C Liabilities 95,736,030 62,374,642

Share Money Refundable 2,682,934 2,641,876

Current maturity of long-term loan 428,989,358 276,777,997

8. Reporting of Intangible Asset in the financial statements

Company 2020 2019
ESQUIRENIT (Esquire Knit - -
Composite Limited)
ETL (Evince Textiles Limited) 6,913,022 -
FAMILYTEX (Familytex BD 1,490,295,972 1,458,982,389
Limited)
FEKDIL (Far East Knitting & 3,692,258 4,218,096
Dyeing Industries Limited)
GENNEXT (Generation Next - -
Fashions Limited)

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9. Presentation of foreign currency operations in the financial statements as per the IAS#21
Company 2020 2019
ESQUIRENIT (Esquire Knit (1,055,526) (14,814,717)
Composite Limited)
ETL (Evince Textiles Limited) 18,435,875 14,945,566
FAMILYTEX (Familytex BD (876,996) 564,252
Limited)
FEKDIL (Far East Knitting & (999,082) (627,876)
Dyeing Industries Limited)
GENNEXT (Generation Next (2,404,392) (5,177,478)
Fashions Limited)

10. Presentation of the EPS: Basic EPS /Diluted EPS as per the IAS#33
Company 2020 2019
ESQUIRENIT (Esquire Knit Basic Basic
Composite Limited)
ETL (Evince Textiles Limited) Basic Basic
FAMILYTEX (Familytex BD Basic Basic
Limited)
FEKDIL (Far East Knitting & Basic Basic
Dyeing Industries Limited)
GENNEXT (Generation Next Basic Basic
Fashions Limited)

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 Findings and analysis

ESQUIRENIT Ltd, ETL Ltd, FAMILYTEX Ltd, FEKDIL Ltd and GENNEXT Ltd.

These companies are listed companies and must follow the rules and guidelines of IAS, BAS,
BFRS and IFRS when preparing financial statements. All of the above companies' use
accrual basis of accounting in accordance with the IFRS rules for accounting. The company's
inventory valuation techniques are the weighted average method and NRV. The five
companies all produce financial reports in a vertical way. For depreciation accounting,
ESQUIRENIT company use the declining balance method and FEKDIL company use double
decline method and other three companies use straight line method. The companies use the
direct method to create a cash flow statement. It is highly valued by all types of accounting
standards. Only three companies have intangible assets and all five companies have
contingent liabilities. These entities must comply with IAS 33 when measuring EPS.
However, the EPS calculation of the five companies does not find diluted EPS. They may not
be selling their company's convertible bonds. also, all five companies have their foreign
currency operations.

19
 Conclusion

It can be said that it was an experience for us to work on the report of these five company and
gain knowledge from here. We learned a lot almost during the preparation of this report. We
believe that all these experiences will help us to build a good career in the future. All the
reputation these companies have gained over a relatively long existence is due to the
discipline, hard work and excellent authority strategies they have acquired. In this report,
although there were some limitations to the collection of accurate insider information, they
were carefully considered so as not to interfere with the results of the study. Last but not
least, it can be said that the ultimate success comes from having the dedication, commitment
and dynamic leadership of the management committee and they certainly will go far in the
future.

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 Recommendation

All companies are established enough. Therefore, it is very difficult to make

recommendations after the analysis of the report. Compared to the previous Annual Report,
we can see that all companies are making good profits. But they have some work for greater
financial terms. At this point in, in order to grow the business, the company needs to invest in
new sustainable projects by increasing the equity and debt financing. At the same time,
companies need to find ways to reduce cost of goods sold, such as: Just-in-time delivery of
products to reduce inventory costs is contracted with current suppliers.

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 Reference

ESQUIRENIT (Esquire Knit Composite Limited):

https://drive.google.com/file/d/1ME5wxo_MZkgFjgVLUEvc3J2H0yxV8d1e/view

ETL (Evince Textiles Limited):

https://drive.google.com/file/d/1Ty7MLlFdFq0IGniflWAMzduY2QgyVRCF/view

https://drive.google.com/file/d/1_NE8VqoNn8siEY4_0eawq2-cgZmhylkY/view

FAMILYTEX ltd.

https://www.scribd.com/document/225215822/Familytex-Bd-Ltd-Prospectus

https://familytexbd.com/investors-relation/

https://www.emis.com/php/company-profile/BD/Familytex__Bd__Ltd_en_4049370.html

FEKDIL LTD.

https://www.fareastknit.com/irpage.php

GENNEXT LTD.

https://www.gnf-bd.com/report/annual-report/annual-report-2019-2020.pdf

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