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Annual Report 2010

BEXTEX LIMITED

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Mission

Each o our activities must beneft and add value to

the common wealth o our society. We frmly believe

that, in the fnal analysis we are accountable to each o

the constituents with whom we interact; namely: our

employees, our customers, our business associates, our

ellow citizens and our shareholders.

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2 Notice o the wenty-Seventh Annual General Meeting

3 Board and Management

4 Chairmans Statement

6 Corporate Governance

7 Report o the Directors

9 Corporate Governance Compliance Report

10 Five Years Statistics

11 Value Added Statement12 wenty-Sixth Annual General Meeting

14 Report o Auditors to the Shareholders

15 Statement o Financial Position

16 Statement o Comprehensive Income

17 Statement o Changes in Equity

18 Statement o Cash Flows

19 Notes to the Accounts

Proxy Form and Attendance Slip

Contents >>

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BEXTEX LIMITED17 DHANMONDI R.A, ROAD NO. 2, DHAKA-1205

NOTICE OF THE

TWENTY-SEVENTH ANNUAL GENERAL MEETING

Notice is hereby given that the WENY-SEVENH ANNUAL GENERAL MEEING o the Shareholders o Bextex Limited will be heldon Tursday, the 30th June 2011 at 1:00 pm at Beximco Industrial Park, Sarabo, Kashimpur, Gazipur to transact the ollowing business:

AGENDA

1. o receive, consider and adopt the Audited Financial Statements o the Company or the year ended 31st December 2010 together withreports o the Auditors and the Directors thereon.

2. o elect Director.

3. o declare 15% Stock Dividend.

4. o appoint Auditors or the year 2011 and to x their remuneration.5. o transact any other business o the Company with the permission o the Chair.

By order o the Board,

(MD. ASAD ULLAH, FCS)Executive Director-Corporate Aairs

Dated: May 18, 2011 & Company Secretary

NOTES:(1) Te Shareholders whose names appeared in the Share Register o the Company or in the Depository Register on the record date i.e. 11th May 2011,

will be entitled to attend at the Annual General Meeting and to receive the dividend.

(2) A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. Te Proxy Form, dulystamped, must be deposited at the Registered Oce o the Company not later than 48 hours beore the time fxed or the meeting.

(3) Admission to the meeting room will be strictly on production o the attendance slip sent with the Notice as well as verifcation o signature oMember(s) and/or Proxy-holder(s).

(4) No gi or beneft in cash or kind shall be paid to the holders o equity securities in terms o Clause (c) o the Notifcation No. SEC/SRMI/2000-953/1950 dated 24 October 2000 or attending the AGM o the Company.

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BOARD AND MANAGEMEN

BOARD OF DIRECTORS

A S F RahmanChairman and Managing Director

Salman F RahmanVice Chairman

M A QasemDirector

A B Siddiqur RahmanDirector

Md. Asad Ullah, FCSCompany Secretary

MANAGEMENT TEAM

Syed Naved HusainChie Executive Ofcer

Sardar Ahmed KhanChie Operating Ofcer

Ajay Pratap SinghChie Financial Ofcer

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CHAIRMANS SAEMENDea Shaoldr,

I take this opportunity to welcome you all onbehal o the Board o Directors to this 27thAnnual General Meeting o your company andto present to you the Auditors Report whichincludes the Audited Financial Statements andthe Directors Report or the year ended 31stDecember 2010.

Te Board o Directors o Beximco Limitedand Bextex Limited unanimously approvedon 11 May 2011 the amalgamation o BextexLimited with Beximco Limited, subject tolegal/regulatory approvals, recommending anexchange o 5 (Five) ordinary shares o BextexLimited or 1 (One) ordinary share o BeximcoLimited, based on the weighted average value

o a share o Beximco Ltd and Bextex Ltd ataka 222.06 and aka 40.36 respectively. TeHigh Court Division o Te Supreme Courto Bangladesh admitted on 16 May 2011the Petition or the aoresaid amalgamation,requiring the aoresaid companies to hold EGMor approval o the aoresaid amalgamationwithin 30th June 2011. Te amalgamationsnancial benets, based on the nancialstatement o Beximco Limited and BextexLimited or the year ended 31st December2010, are as ollows:

Earning Per Share (EPS) to increase byaround 323%.

Debt Percentage to fall by approximately39%.

OperationI am happy to report that the year 2010 showedcontinued progress on all ronts. Te revenueincreased by 85% to k. 1457 crores andprotability by 117% to k. 203 crores. Tiswas a result o all the dierent initiatives takenby the management o which I spoke aboutlast year. Our conversion to 2 shis operationin garment manuacturing has been a greatsuccess. So, also introduction o improvedERP Systems have helped. Te initiative isan ongoing one and we are upgrading our

present Computer having 3 gigabytes memoryto one having 192 gigabytes. Similarly theprocessing speed is increasing rom 1500 CPWto 16,700 CPW. Tis will enable tremendousenhancement in our ERP System, keeping inline with the growth o our operations and toallow us to eciently manage this growth.

Another important initiative I wish to mentionis that we have successully networked withthe leading design schools o the world suchas the Fashion Institute o echnology (FI)and Parsons School o Design in New York,London College o Fashion and Royal Collegeo Art in London, Rhode Island Institute oDesign (RISD), Academy o Art University,

San Francisco and many others. We recruitull-time designers and merchandisers romthese schools as well as interns who come to

Dhaka or three to six month periods. Tesegied recruits greatly strengthen our alreadyindustry-leading design capabilities not onlyby the talent and skills that they posses butalso by their deep understanding o the newesttrends and concepts that are taking root inthe retail environments o the US and Europe.Tey reinorce the close relationships we havewith our international clients who rely on usto understand the subtleties o their designvocabulary. Another benet o this initiative isthat it increases the awareness and recognitiono Bangladesh and Bextex in these leadingashion schools where the cream o the cropo the next generation o Western Fashion

Designers and Buyers is being trained.We have continued to leverage the large scale,vertical inrastructure, world class talentand management/ technical best practicesto create competitive advantage, outperormcompetition and expand market share.

Accordingly, we commenced executiono aggressive growth plans to expand ourvertical knit acilities to over 100 tons perday and around 500,000 garments per day.Apart rom the best European processing andnishing machines, rotary and automatic fatbed printing will also be added. Tis wouldposition us to be South Asias largest and most

versatile vertical knitting complex.MarketingIt was very gratiying to see that the pillars oour business model speed and innovationachieved with world class talent and a highlyecient vertical production inrastructurehave proven to be extremely solid. All majorretailers and brands nd these acilities andresources unique in the world and are excitedto partner with Bextex .

In 2010 we targeted and were able to makea direct entry into one o UKs most iconicashion retailer River Island. Similarly, directorders were obtained rom American Eagle,an iconic US retailer.Business was expanded with our existingcore customers Zara, Philips Van Huesen andJC Penney, by obtaining orders in dierentcategories such as knits, and bottoms or bothmen and women as well as dierent privatebrands apart rom the ones we regularlysupply.

EnvironmentTe company is very committed to preservehealthy and pollution ree environment. Ithas very ecient waste collection and deposalsystem. In order to reduce air pollution by

exhaust o gas rom engine generators, itmaintains a costly plant that uses the exhaustgas to generates steam or chilling unit. Above

measures not only help keep the water & airree rom pollution but also help save costo water treatment & air conditioning. Yourcompany uses only AZO-ree dyes and isdedicated to ensure a healthy and eco-riendlyenvironment.

During the year the Company obtained theGlobal organic extile Standard Certicationrom Control Union o Netherlands. Tisenables us to produce and sell Green organiccotton products to leading Retailers like Zara.

Future PlanOur competitive position as one o worldsleading vertical manuacturer o ashion apparelhas never been better. We have the people,partners, inrastructure, scale and nancialstrength to outperorm the competitionand continue to gain market share. We lookorward to continuing to create value or ourstock holders in the years to come.

DividendIn comparison to the previous years, this yearthe net operational results have been better.Keeping in view the perormance o thecompany the Board o Directors recommended15% stock dividend or the year ended 31stDecember 2010.

ConclusionI would like to take this opportunity to show myappreciation and sincere gratitude to the valuedshareholders, government agencies, employees,banks, nancial Institutions, suppliers andto our customer or their unorgettable co-operation. In act, you are the real strengthto overcome the challenges in our way. I amcondent, that with your understanding andsupport we will continue to build on ourcapabilities or sustained high perormance inuture. Again I oer my heartiest thanks to allshareholders or the support during the year.

A S F RahmanChairman

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BEXEX Limited is a trend-setting pioneer in corporate governancein the country and enjoys reputation as a world-class producero yarn, abric and apparel that is admired worldwide or theirquality and design. A team o highly qualiied and experienced andcommitted proessionals under the guidance o top management othe company has achieved admirable measure o success in a shortspan o time. his has been possible because the company nevercompromises on quality and settles or nothing but the best.

ransparency and air business practices coupled with strict qualitycontrol regimen have inspired the conidence o internationallyreputed buyers like PVH, Perry Ellis, Wal-Mart, JC Penny,

Philippine Van Heusen, Zara o Spain Kid Headquarter, to name aew, to enter into business partnership with BEXEX.

he company, as part o its corporate responsibility, shares itsexperience with others, especially educational and training instituteslike the National Deense College (NDC), Ordnance School,Marine Academy which send trainees rom time to time to visitthe companys plants, which stand as symbols o the nations marchtowards high-tech industries. BEXEX also receives students romdierent institutions as interns and on industrial attachments toenable them to gain irst hand knowledge on corporate managementpractices.

An important hallmark o the companys policy is talent hunting.

It goes or the best talents in the country and outside; and throughintensive training programme expands their perspectives and honetheir thinking. raining programmes are specially designed toprepare them to take over and conidently discharge managementresponsibilities. owards this end, BEXEX has hired competentproessionals rom India, China, Pakistan, Sri Lanka, thePhilippines, et al.

All the eorts o BEXEX in hiring best talents, providing besttraining and ensuring best quality production aim at one goal: putBangladesh on the global map as the producer o quality goods.he export strategy o the company is not proit motive; it is gearedto ostering economic growth o the country.

he company abides by all relevant Health, Saety and EnvironmentConservation Rules; Fire and Boiler maintenance instructions andall relevant policies o the government, as is evident throughout theentire Industrial Park where BEXEX plants are located.

Suicient Personal Protective Equipment (PPE), Saety Equipment,signs and symbols etc. are made available throughout the plants.Necessary training is also imparted to all the workers on the use othis equipment so that they are able to use them, i required, andmeet the health, saety & hygiene requirement properly. Necessaryplantation, treatment, control measures etc. are also properlyensured as per the guidelines o the World Bank, Department

o Environment and other concerned bodies. It also ollows theBuyers Code o Conduct and satisactorily meets the buyers setstandard o compliance. he certiication o compliance rominternationally reputed companies bear testimony to BEXEXscompliance o global standard.

BEXEX Limited can conidently say that earning admirationrom around the globe are the benchmarks o the success o thecompany. his success has been earned by ensuring the highestlevel o human resources management and conorming to variouscompliance issues at the level o international standard. BEXEXsHuman Resources eam Management is way ahead o others in theindustry. Herein lies the strength o the company and explains inno uncertain manner why it has achieved unparalleled success.

he team o Human Resources Department in BEXEX consistingo highly qualiied and vastly experienced personnel havingappropriate training at home and abroad, made the departmentequipped with necessary policies, guidelines, standard operatingprocedures (SOPs), job descriptions training materials, code oconducts (COC). Continuous development o human resources isalso taking place simultaneously in each and every section o thecompany.

CORPORAE GOVERNANCE

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Dea Shaoldr,

he Directors are pleased to present the Audited FinancialStatements o the Company or the year ended 31 December 2010,together with the Directors and Auditors Reports thereon.

Principal Activityhe principal activity o the Company in the period under reviewwas that o production and sale o high quality yarns and woven,denim & knit abrics.

Working ResultsThe working results o the Company or the year under review areas ollows:

aka in million2010 2009

Net Proit/(Loss) ater income tax 2,031.79 933.45

Proit brought orward (408.26) (1,341.71)Proit avaiable or appropriations 1,623.53 (408.26)

he Directors recommended the ollowing appropriation:Proposed Stock Dividend (Bonus Share)

or the year 2010 at 15% (699.67) (608.41)Proit/(Loss) carried orward 923.86 (1,016.67)

Dividendhe Board o Directors have recommended 15% stock Dividend(Bonus share); i.e., 15 (iteen) bonus share or every 100 (hundred)ordinery shares held, ully paid up, or the approval o theshareholders or the year ended 31 December 2010.

DirectorMr. M A Qasem, Director retires by rotation as per Articles 126and 127 o Articles o the Association o the Company and beingeligible oers himsel or re-election.

Board Meeting and AttendanceDuring the year 8 (Eight) Board Meetings were held. The attendancerecord o the Directors is as ollows:

Name o Directors Meetings Attended

A S F Rahman 8Salman F Rahman 8M A Qasem 8A B Siddiqur Rahman 8

Board Audit Committee

he company has an audit committee, which met our times duringthe year 2010, to consider irst quarter, hal-yearly, third quarterand annual accounts ended 31st December 2010 and also auditorsreport on the annual accounts.

Corporate & Financial Reportinghe Company has complied with all the requirements oCorporate Governance as required by the Securities and ExchangeCommission.

Accordingly, the Directors are pleased to conirm the ollowing:

(a) he inancial statements together with the notes thereon havebeen drawn up in conormity with the Companies Act, 1994and Securities and Exchange Rules, 1987. hese statementspresent airly the Companys state o aairs, the result o itsoperations, cash low and changes in equity.

(b) Proper books o accounts o the Company have beenmaintained.

(c) Appropriate Accounting Policies have been consistentlyapplied in preparation o the inancial statements and that theaccounting estimates are based on reasonable and prudentjudgement.

(d) he International Accounting Standards, as applicable inBangladesh, have been ollowed in preparation o the inancialstatements.

REPORT OFTHE DIRECTORSFor the year ended 31 December 2010

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(e) he systems o internal control are sound and have beeneectively implemented and monitored.

() here are no signiicant doubts upon the Companys ability tocontinue as a going concern.

(g) he key operating and inancial data or the last ive years isAnnexed.

he pattern o shareholding:

Name-wise details Shares held

(i) Parent, Subsidiary, Associate Companies and other relatedparties:

Bangladesh Export Import Co. Ltd. 29,914,365Beximco Holdings Ltd. 26,078,734Beximco Apparels Ltd. 763,015Beximco Pharmaceuticals Ltd. 302,783New Dacca Industries Ltd. 15,944,661Shinepukur Ceramics Ltd. 9,448,840

(ii) Directors, Chie Executive Oicer, Company Secretary, ChieFinancial Oicer, Head o Internal Audit and their spouses andminor children:

Mr. A S F Rahman, Chairman 43,576,371Mr. Salman F Rahman, Vice Chairman 50,421,580Chie Executive Oicer, spouse and minor children NilCompany Secretary, spouse and minor children NilChie Financial Oicer, spouse and minor children NilHead o Internal Audit, spouse and minor children Nil

(iii) Executives Nil

(iv) Shareholders holding ten percent (10%) or more voting interestin the Company:

Mr. Salman F Rahman, Vice Chairman 50,421,580(mentioned in Sl. No. (ii))

Corporate Governance Compliance ReportIn accordance with the requirement o the Securities and ExchangeCommission, Corporate Governance Compliance Report is alsoAnnexed.

Auditorshe Directors hereby report that the existing Auditors, M. J.Abedin & Co. Chartered Accountants, National Plaza, (3rd Floor),109, Bir Uttam C.R. Datta Road, Dhaka-1205, who were appointedas Auditors o the Company in the wenty-Sixth Annual GeneralMeeting o the Company has carried out the audit or the year

ended 31st December 2010.M. J. Abedin & Co. Chartered Accountants, the Auditors o theCompany retire at this meeting and have expressed their willingnessto continue in oice or the year 2011.

On behal o the Board,

A S F RahmanChairman

April 28, 2011

Dhaka.

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Corporate Governance

COMPLIANCE REPOR AnnexureStatus o compliance with the conditions imposed by the Commissions Notifcation No. SEC/CMRRCD/2006-158/Admin/02-08 dated20th February 2006 under section 2CC o the Securities and Exchange Ordinance, 1969: (Report under Condition No. 5.00).

ConditionNo.

Title

Compliance Status(Put in the appropriate column)

Explanation ornon-compliance

with the conditionCompiled Not Compiled

1.1 Boards Size 1.2 (i) Independent Directors 1.2 (ii) Independent Directors Appointment

1.3 Chairman & Chie Executive 1.4 (a) Directors Report on Financial Statements 1.4 (b) Books o Account 1.4 (c) Accounting Policies 1.4 (d) IAS Applicable in Bangladesh 1.4 (e) System o Internal Control 1.4 () Going Concern 1.4 (g) Deviations in Operating Results 1.4 (h) Key Operating and Financial Data 1.4 (i) Declaration o Dividend 1.4 (j) Number o Board Meetings 1.4 (k) Pattern o Shareholders

2.1 CFO, HIA & CS Appointment 2.2 Board Meeting Attendance 3.00 Audit Committee 3.1 (i) Composition o Audit Committee 3.1 (ii) Audit Committee Members Appointment 3.1 (iii) erms o Service o Audit Committee 3.2 (i) Chairman o Audit Committee 3.2 (ii) Audit Committee Chairmans Qualiication 3.3.1 (i) Reporting to the Board o Directors 3.3.1 (ii) (a) Report o Conlicts o Interest 3.3.1 (ii) (b) Deect in the Internal Control System 3.3.1 (ii) (c) Suspected inringement o laws

3.3.1 (ii) (d) Any other matter 3.3.2 Reporting to the Authorities 3.4 Reporting to the Shareholders 4.00 (i) Appraisal or Valuation Services 4.00 (ii) Financial Inormation System 4.00 (iii) Book Keeping or other services 4.00 (iv) Broker Dealer Services 4.00 (v) Actuarial services 4.00 (vi) Internal audit services 4.00 (vii) Any other services

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FIVE YEARS SAISICS2010 2009 2008 2007 2006

Results o Operations:

* Revenue 14,572,837 7,866,258 4,760,237 4,267,027 5,201,514

* Gross Proit 5,118,972 2,929,568 1,670,052 1,245,302 2,030,146

* Operating Proit 4,537,900 2,615,780 1,409,417 996,034 1,774,503

* Net Proit/(loss) beore tax 2,288,795 1,098,173 (608,656) (983,404) (200,709)

* Net Proit/(loss) ater tax 2,031,787 933,447 (608,656) (994,072) (208,649)

** Basic Earning per share 4.36 4.16 (3.23) (5.28) (1.11)

Stock Dvidend in % 15 15 10 - 10* Cash Generated rom/(Used in) Operating Activities 4,043,967 (775,747) (1,134,776) (407,370) 269,201

Financial Position:

* otal Assets 25,406,627 22,155,834 19,086,298 14,738,938 14,956,940

* Fixed Assets - Gross 22,916,498 19,678,904 12,915,855 11,579,984 11,431,174

* Fixed Assets - Net 15,964,189 13,416,140 11,805,281 6,805,566 7,293,540

* Financial Assets 5,476,875 5,056,866 3,812,236 3,492,995 3,458,925

* Reserve and Surplus 8,005,060 6,581,683 1,469,666 46,824 1,248,829

* Gross Working Capital 9,031,548 8,677,167 7,230,983 7,881,489 7,572,906

* Net Working Capital 3,238,566 1,993,905 (675,955) (177,009) 1,611,525

* Authorised Capital 8,000,000 5,000,000 3,000,000 3,000,000 3,000,000* Share holders Equity 12,669,535 10,637,748 3,552,512 1,929,670 2,960,507

* Paid up Capital 4,664,475 4,056,065 1,882,846 1,882,846 1,711,678

* otal Long erm Debt 5,792,982 6,683,262 7,826,849 4,735,768 6,020,051

Key Financial Ratios, Figures and Market Data:

Current Ratio 1.30 : 1 1.79 : 1 0.92 : 1 0.98 : 1 1.27:1

Debt Equity Ratio 0.46 0.63 2.33 2.45 2.03

Return on Investment 8.00% 4.21% -3.19% -6.74% -1.39%

** Net Assets Value per Share 27.12 26.18 59.37 35.48 52.55

** Market value o share (at DSE) 76.30 81.40 23.90 18.90 22.50

** Market value o share (at CSE) 76.00 81.70 23.80 18.75 22.50Price Earning Ratio (Based on DSE price) (imes) 17.50 19.57 (7.40) (3.58) (18.44)

Price Earning Ratio (Based on CSE price) (imes) 17.43 19.64 (7.37) (3.55) (18.44)

Others:

Number o shares 466,447,477 405,606,503 188,284,625 188,284,625 171,167,841

Number o shareholders 100,829 50,826 37,216 37,929 36,470

No. o Employees 8,055 7,189 5,230 5,181 6,206

* Figures in housand aka** Figures in aka

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2010 2009

Tk. in 000 % Tk. in 000 %

urnover 14,572,837 - 7,866,258 -

Brought-in-materials and services (9,112,256) - (4,691,120) -

5,460,582 100.00 3,175,138 100.00

Govt - as Duties and taxes 257,008 4.71 164,726 5.19

Employees - as Salaries, wages and allowances 1,043,145 19.10 617,366 19.44

Lenders - as Financial Charges 1,445,098 26.46 688,668 21.69

2,745,251 50.27 1,470,760 46.32Depreciation and retention 2,715,331 49.73 1,704,378 53.68

5,460,582 100.00 3,175,138 100.00

VALUE ADDED SAEMEN

LendersEmployees

GovernmentDepreciation & Retention

201049.73%

26.46%

19.10%

4.71%

200953.68%

21.69%

19.44%

5.19%

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he wenty Sixth Annual General Meeting (AGM) o

shareholders o BEXEX Limited was held on 17th June2010 at 11:30 am at Beximco Industrial Park, Sarabo,Kashimpur, Gazipur. A large number o shareholdersattended at the AGM.

Mr. Salman F Rahman, Vice Chairman o the Board oDirectors o the Company, presided over the meeting.Mr. M A Qasem, Mr. A B Siddiqur Rahman were alsopresent in the meeting. Verses rom the Holy Quaranalong with its translation in Bengali were recited at the

very outset o the meeting.

he Chairman o the meeting welcomed the shareholdersin the AGM. With the permission o the Chair, the

meeting began and the shareholders expressed their

valued opinion on the audited inancial statements othe Company or the year ended 31 December 2009 andalso on their aairs.

Mr. Salman F Rahman, Chairman o the meetingreplied to the queries and explained various commentso distinguished shareholders. He also gave hints outure activities o the Company.

Ater approving the audited inancial statements,declaring dividend (stock dividend @15%), electingdirectors, appointing auditors and ixing their

remuneration by the shareholders, the meeting endedwith a vote o thanks to and rom the Chair.

WENY-SIXH AGM

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Financials

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Auditors Reporto the shareholders o Bextex Limited

Introduction

We have audited the accompanying Financial Statements o theBextex Limited, which comprise the Statement o Financial Positionas at 31December 2010, and the Statement o ComprehensiveIncome, Statement o Changes in Equity and Statement o CashFlows or the year then ended, and a summary o signiicantaccounting policies and other explanatory notes.

Managements responsibility or the inancial

statementsManagement is responsible or the preparation and air presentationo these inancial statements in accordance with InternationalFinancial Reporting Standards (IFRS), Bangladesh FinancialReporting Standard (BFRS), the Companies Act 1994, theSecurities and Exchange Rules 1987 and other applicable laws andregulations. his responsibility included designing, implementingand maintaining internal control relevant to the preparation andair presentation o inancial statements that are ree rom materialmisstatements, whether due to raud or error; selecting and applyingappropriate accounting policies; and making accounting estimatesthat are reasonable in the circumstances.

Auditors responsibilityOur responsibility is to express an opinion on these inancialstatements based on our audit. We conducted our audit in accordancewith International Standards on Auditing (ISA) and BangladeshStandards on Auditing (BSA). Those standards require that we complywith relevant ethical requirements and plan and perorm the audit toobtain reasonable assurance whether the inancial statements are reerom material misstatement.

An audit involves perorming procedures to obtain audit evidenceabout the amounts and disclosures in the inancial statements. heprocedures selected depend on the auditors judgment, includingthe assessment o the risks o material misstatement o the inancial

statements, whether due to raud or error. In making those riskassessments, we consider internal control relevant to the entityspreparation and air presentation o the inancial statementsin order to design audit procedures that are appropriate in thecircumstances, but not or the purpose o expressing an opinionon the eectiveness o the entitys internal control. An audit alsoincludes evaluating the appropriateness o accounting policiesused and the reasonableness o accounting estimates made bymanagement, as well as evaluating the overall presentation o theinancial statements.

We believe that the audit evidence we have obtained is suicientand appropriate to provide a basis or our audit opinion.

Opinion

In our opinion, the inancial statements prepared in accordancewith International Financial Reporting Standards (IFRSs) andBangladesh Financial Reporting Standards (BFRSs), give a true andair view o the state o the companys aairs as at 31 December 2010and o the results o its operations and cash lows or the year thenended and comply with the Companies Act 1994, the Securities andExchange Rules 1987 and other applicable laws and regulations.

We also report that:

(a) we have obtained all the inormation and explanations whichto the best o our knowledge and belie were necessary or thepurposes o our audit and made due veriication thereo;

(b) in our opinion, proper books o account as required by lawhave been kept by the company so ar as it appeared rom ourexamination o these books;

(c) the statement o inancial position ( balance sheet) andstatement o comprehensive income (proit and loss account)dealt with by the report are in agreement with the books oaccount; and

(d) the expenditure incurred was or the purposes o the companys

business.

Dhaka M. J. ABEDIN & CO.28 April 2011 Chartered Accountants

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BEXEX LIMIED

Statement o Financial PositionAs at 31 December 2010

Amount in aka

Notes 2010 2009

ASSETS

Property, Plant and Equipment-Carrying ValueLong erm Security DepositsDeerred Assets

456

15,964,189,093393,740,686

17,150,081

13,416,139,55043,530,68618,997,013

Total Non-Current Assets 16,375,079,860 13,478,667,249

Current Assets 9,031,547,621 8,677,166,758

Inventoriesrade DebtorsAdvances, Deposits and PrepaymentsCash and Cash Equivalents

789

10

2,994,596,7465,040,220,480

953,816,89242,913,503

2,742,675,6004,986,086,053

921,155,43327,249,672

Total Assets 25,406,627,481 22,155,834,007

EQUITY AND LIABILITIES

Shareholders' Equity 12,669,534,736 10,637,748,057

Issued Share CapitalReserves & Surplus

11 4,664,474,7708,005,059,966

4,056,065,0306,581,683,027

Non-Current Liabilities 5,792,982,042 6,683,261,956

10% Debentures - Net o Current Maturity (Secured)Long erm Loans-Net o Current Maturity (Secured)Security Deposit rom Distributor

121314

696,841,0185,081,141,02415,000,000

871,051,2725,797,210,68415,000,000

Current Liabilities 6,944,110,703 4,834,823,994

Short erm Loans10% Debentures - Current Maturity (Secured)Long erm Loans - Current Maturity (Secured)Creditors & Accruals

15161718

2,503,100,263174,210,254

1,688,623,0652,578,177,121

2,704,930,953173,888,054

1,393,544,111562,460,876

Total Shareholders' Equity and Liabilities 25,406,627,481 22,155,834,007

Te notes are an integral part o the Financial Statements.

Approved and authorized or issue by the board o directors on 28th April, 2011 and signed or and on behal o the Board.

A S F Rahman Salman F Rahman Ajay Pratap SinghChairman and Managing Director Vice Chairman Chie Financial Ocer

Per our report o even date.

April 28, 2011 M.J. Abedin & Co.Dhaka. Chartered Accountants

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BEXEX LIMIED

Statement o Comprehensive IncomeFor the year ended 31 December 2010

Amount in aka

Notes 2010 2009

Revenue 19 14,572,837,380 7,866,257,822

Cost o Revenue 20 (9,453,865,395) (4,936,690,149)

Gross Prot 5,118,971,985 2,929,567,673

Operating Expenses (581,072,159) (313,997,191)

Administrative Expenses

Distribution (Selling) Costs

23 (539,159,608)

(41,912,551)

(294,146,231)

(19,850,960)Prot beore Interest, Tax & Depreciation 4,537,899,826 2,615,570,482

Financial ExpensesDepreciation

244

(1,445,098,454)(683,543,985)

(688,667,966)(770,931,098)

Prot beore Contribution to WPWF 2,409,257,387 1,155,971,418

Contribution to Workers' Participation/Welare Fund (120,462,869) (57,798,571)

Net Prot beore tax 2,288,794,518 1,098,172,847

Income ax Provision 25 (257,007,839) (164,725,927)

Prot afer tax or the year 2,031,786,679 933,446,920

Other Comprehensive Income - -

Total Comprehensive Income or the year 2,031,786,679 933,446,920

Earnings Per Share (Par value Tk.10/-) (Adjusted EPS o 2009) 26 4.36 2.00






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BEXEX LIMIED

Statement o Changes in EquityFor the year ended 31 December 2010

Amount in Taka

ParticularsShare

Capital

Share

Premium

Capital

Reserve

on Marger

Revaluation

Surplus

Retained

Earnings

Total

Reserve

and surplus

Total

Balance as on 31 December 2009 4,056,065,030 4,628,570,522 329,879,705 2,031,497,144 (408,264,344) 6,581,683,027 10,637,748,057

Total Comprehensive Income for 2010:

Profit for the year - - - - 2,031,786,679 2,031,786,679 2,031,786,679

Transaction w ith Shareholders:

Issue of Bonus Shares of the prior period (2009) 608,409,740 (608,409,740) - - - (608,409,740) -

Total Balance as on 31 December 2010 4,664,474,770 4,020,160,782 329,879,705 2,031,497,144 1,623,522,335 8,005,059,966 12,669,534,736

he notes are an integral part o the Financial Statements.


A S F Rahman Salman F Rahman Ajay Pratap Singh

Chairman and Managing Director Vice Chairman Chie Financial Ocer



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BEXEX LIMIED

Statement o Cash FlowsFor the year ended 31 December 2010

Amount in aka

2010 2009

Cash Flows rom Operating Activities:

Cash Receipts rom Customers and OthersCash Paid to Suppliers and Employees

14,518,702,953(8,986,611,903)

6,646,084,391(5,359,326,918)

Cash Generated rom Operations 5,532,091,050 1,286,757,473

Interest PaidIncome ax Paid & Deducted at Source

(1,445,098,454)(43,025,787)

(2,006,166,127)(56,338,512)

Net Cash (Used in) / Generated rom Operating Activities 4,043,966,809 (775,747,166)

Cash Flows rom Investing Activities:

Acquisition o Property, Plant and Equipment (3,231,593,528) (2,381,789,851)

Net Cash Used in Investing Activities (3,231,593,528) (2,381,789,851)

Cash Flows rom Financing Activities:

New Allotment o Shares including PremiumIncrease in Long erm BorrowingsIncrease in Short erm Borrowing

-(594,878,760)(201,830,690)

6,351,789,302(1,605,294,361)(1,578,840,462)

Net Cash Generated rom/(Used in) Financing Activities (796,709,450) 3,167,654,479

Increase in Cash and Cash EquivalentsCash and Cash Equivalents at Beginning o Year

15,663,83127,249,672

10,117,46217,132,210

Cash and Cash Equivalents at End o Year 42,913,503 27,249,672






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BEXEX LIMIED

Notes to the Financial StatementsAs at and or the year ended 31 December 2010

1.00 The background and activities o the company

1.01 Status o Company

Bextex Limited is a Public Limited Company incorporated in Bangladesh in 1984 under the Companies Act, 1913. Itlaunched its manuacturing operation in 1990. he company listed its share with Dhaka Stock Exchange in 1992 and withChittagong Stock Exchange in 1995 on its debut.

During the year 2006, the company took over, under a Scheme o Amalgamation, erstwhile Beximco extiles Ltd., BeximcoKnitting Ltd. and Beximco Denims Ltd., the three listed companies o the Beximco Group engaged in manuacturing andmarketing o high quality woven, knit and denim abric that are consumed by the export oriented garments industries o

Bangladesh.he registered oice o the company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. he industrial unitsare located at atki o Narayanganj and Beximco Industrial Park in Sarabo o Gazipur.

1.02 Principal Activities

It is engaged in manuacturing and marketing o yarn that are consumed by weaving mills o Bangladesh including itsown weaving mills producing and marketing o high quality abric, that are eventually consumed by the export orientedgarments industries o Bangladesh including the garments actories o Beximco Group.

2.00 Bases o Financial Statements Its Preparation and Presentation

2.01 Bases o Measurement

he inancial statements have been prepared on the Historical Cost basis except or certain ixed assets that were restatedat replacement costs, and thereore, do not take into consideration the eect o inlation except that the Lands, Buildingsand Plant & Machinery as o 31st December, 2010 are re-stated at current cost.

Accordingly, historical cost is employed to determine the monetary amounts at which the elements o the inancialstatements are to be recognized and carried in the balance sheet and income statement.

Under the Historical Cost, assets are recorded at the amount o cash or cash equivalents paid or the air value o theconsideration given to acquired them at the time o their acquisition. Liabilities are recorded at the amount o proceedsreceived in exchange or the obligation, or in some circumstances (or example, income taxes), at the amounts o cash orcash equivalents expected to be paid to satisy the liability in the normal course o business.

2.02 Reporting Framework and Compliance Thereo

he inancial statements have been prepared in compliance with the requirements o the Companies Act 1994, the Securities& Exchange Rules 1987, the Listing Regulations o Dhaka and Chittagong Stock Exchanges and other relevant local laws

as applicable, and in accordance with the International Financial Reporting Standards (IFRSs), and Bangladesh FinancialReporting Standards (BFRSs).

2.03 Presentation o Financial Statements

he presentation o these inancial statements is in accordance with the guidelines provided by IAS 1: Presentation oFinancial Statements.

he Financial Statements comprises:

(a) a statement o inancial position as at the end o the year 2010; (b) a statement o comprehensive income or the year 2010; (c) a statement o changes in equity or the year 2010; (d) a statement o cash lows or the year 2010; and (e) notes, comprising a summary o signiicant accounting policies and explanatory inormation.

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2.04 Compliance o International/Bangladesh Reporting Standards (IFRSs/BFRSs)

Name o the accounting standards Re. No Status o Application

First-time Adoption o International Financial Reporting Standards IFRS/BFRS-1 Not ApplicableShare-based Payment BFRS-2 Not ApplicableBusiness Combinations BFRS-3 Not ApplicableInsurance Contracts BFRS-4 Not ApplicableNon-current Assets Held or Sale and Discontinued Operations BFRS-S Not ApplicableExploration or and Evaluation o Mineral Resources BFRS-6 Not ApplicableFinancial Instruments: Disclosures BFRS-7 ApplicableOperating Segments BFRS-8 Not ApplicablePresentation o Financial Statements. IAS/BAS-1 ApplicableInventories BAS-2 ApplicableCash Flow Statements BAS-7 ApplicableAccounting Policies, Changes in Accounting Estimates and Errors BAS-8 ApplicableEvents Ater the Reporting Period BAS-l0 ApplicableConstruction Contracts BAS-11 Not Applicable

Income axes BAS-12 ApplicableProperty, Plant and Equipment BAS-16 ApplicableLeases BAS-17 ApplicableRevenue BAS-18 ApplicableEmployee Beneits BAS-19 ApplicableAccounting or Government Grants and Disclosure o Government Assistance BAS-20 Not Applicablehe Eects o Changes in Foreign Exchange Rates BAS-21 ApplicableBorrowing Costs BAS-23 ApplicableRelated Party Disclosures BAS-24 ApplicableAccounting and Reporting by Retirement Beneit Plans BAS-26 Not ApplicableConsolidated Financial Statements BAS-27 Not ApplicableInvestments in Associates BAS-28 Not ApplicableInterests in Joint Ventures BAS-31 Not Applicable

Financial Instruments: Presentation BAS-32 ApplicableEarnings Per Share BA5-33 ApplicableInterim Financial Reporting BAS-34 Not ApplicableImpairment o Assets BAS-36 ApplicableProvisions, Contingent Liabilities and Contingent Assets BAS-37 ApplicableIntangible Assets BAS-38 Not ApplicableFinancial Instruments: Recognition and Measurement BAS-39 ApplicableInvestment Property BAS-40 Not ApplicableAgriculture BAS-41 Not Applicable

2.05 Reporting Periodhe inancial statements cover one calendar year rom 1st January 2010 to 31st December 2010.

2.06 Authorization or issuehe inancial statements have been authorized or issue by the Board o Directors on 28 April 2011.

2.07 Functional and Presentation CurrencyThe inancial statements are prepared and presented in Bangladesh Currency (Taka), which is the companys unctional currency.All inancial inormation presented has been rounded o to the nearest Taka except where indicated otherwise.

2.08 Comparative Inormation

Comparative inormation has been disclosed in respect o the year 2009 or all numerical inormation in the inancialstatements and also narrative and descriptive inormation where it is relevant or understanding o the current yearsinancial statements.

Figures or the years 2009 have been re-arranged wherever considered necessary to endure better comparability with thecurrent year.

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2.09 Use o Estimates and Judgments

he preparation o inancial statements in conormity with IFRSs including IASs require management to make judgments,estimates and assumptions that aect the application o accounting policies and the reported amounts o assets, liabilities,income and expenses, and or contingent assets and liabilities that require disclosure, during and at the date o the inancial

statements.Actual results may dier rom these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.Revisions o accounting estimates are recognized in the period in which the estimate is revised and in any uture periodsaected.

In particular, the key areas o estimation, uncertainty and critical judgments in applying accounting policies that have themost signiicant eect on the amounts recognized in the inancial statements include depreciation, inventory valuation,accrued expenses, other payables and deerred liability or gratuity.

3.00 Signiicant Accounting Policies

he accounting policies in respect o material items o inancial items o inancial statements have been set out below:

3.01 Revenue Recognition

In compliance with the requirements o IAS 18: Revenue, revenue rom receipts rom customers against sales is recognizedwhen products are dispatched to customers, that is, when the signiicant risk and rewards o ownership have beentranserred to the buyer, recovery o the consideration is probable, the associated costs and possible return o goods can beestimated reliably, and there is no continuing management involvement with the goods.

Revenue rom sales is exclusive o vat.

Cash dividend income on investment in shares is recognized on approval o said dividend in the annual general meeting.Stock dividend income (Bonus shares) is not considered as revenue.

3.02 Property, Plant and Equipment

3.02.01 Recognition and Measurement

his has been stated at cost or revalued amount less accumulated depreciation in compliance with the requirementso IAS 16: Property, Plant and Equipment. he cost o acquisition o an asset comprises its purchase price and anydirectly attributable cost o bringing the assets to its working condition or its intended use inclusive o inward

reight, duties and non-reundable taxes.3.02.02 Pre-OperatingExpensesandBorrowingCosts

In respect o major projects involving construction, related pre-operational expenses orm part o the value oassets capitalized. Expenses capitalized also include applicable borrowing cost considering the requirement oIAS 23: Borrowing Costs.

3.02.03 Subsequent Costs and Maintenance Activities

The company recognizes in the carrying amount o an item o property, plant and equipment the cost o replacingpart o such an item when the cost is incurred, it is probable that the uture economic beneits embodied with theitem will low to the company and the cost o the item can be measured reliably. Expenditure incurred ater theassets have been put into operation, such as repair and maintenance is normally charged o as revenue expenditurein the period in which it is incurred. In situation where it can be clearly demonstrated that the expenditure hasresulted in an increase in the uture economic beneit expected to be obtained rom the use o ixed assets, the

expenditure is capitalized as an additional cost o the assets. All other costs are recognized to the proit and lossaccount as expenses i incurred. All up-gradation/enhancement are generally charged o as revenue expenditureunless they bring similar signiicant additional beneits.

3.02.04 Software

Sotware is generally charged o as revenue expenditure. Purchased sotware that is integral to the unctionalityo the related equipment is capitalized as part o that equipment.

3.02.05 DisposalofFixedAssets

On Disposal o Fixed Assets, the cost and accumulated depreciation are eliminated and gain or loss on suchdisposal is relected in the income statement, which is determined with reerence to the net book value o theassets and net sales proceeds.

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3.02.06 DepreciationofFixedAssets

Depreciation is provided at the ollowing rates on straight-line basis over the periods appropriate to the estimateduseul lives, in accordance with the provisions o IAS 16: Property, Plant and Equipment.Factory Building and Other Construction 2% - 10%

Plant & Machinery 5% - 10%Furniture & Fixtures 10%ransport & Vehicle 20%Equipment 10% - 20%

3.02.07 Retirements and Disposal

On disposal o ixed assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposalis relected in the income statement, which is determined with reerence to the net book value o the assets andnet sales proceeds.

3.03 Lease Assets

In compliance with the IAS 17: Leases, cost o assets acquired under inance lease along with related obligation has beenaccounted or as assets and liabilities respectively o the company, and the interest element has been charged as expenses.

3.04 Financial Instruments

A Financial instrument is any contract that gives rise to a inancial asset o one entity and a inancial liability or equity oanother entity.

3.04.01 Financial Assets

Financial assets o the company include cash and cash equivalents, accounts receivable and other receivables.

he company initially recognizes receivable on the date they are originated. All other inancial assets are recognizedinitially on the date at which the company becomes a party to the contractual provisions o the transaction. hecompany de recognizes a inancial asset when, and only when, the contractual rights o probabilities o receivingthe cash lows rom the asset expire o it transer the rights to receive the contractual cash lows on the inancialasset in a transaction in which substantially all the risk and rewards o ownership o the inancial assets aretranserred.

3.04.01(a) Accounts Receivable

Accounts Receivable are recognized at cost which is air value o the consideration given or them.3.04.01(b) Advance, Deposits and prepayments

Advances are initially measured at cost. Ater initial recognition, advances are carried at cost lessdeductions, adjustments or charges to other account heads.

Deposits are measured at payment value.

Prepayments are initially measured at cost. Ater initial recognition, prepayments are carried at costless charges to proit and loss account.

3.04.01(c) Cash and Cash Equivalents

Cash and Cash Equivalents are carried in the balance sheet at cost and include cash in hand and withbanks on current and deposit accounts, which are held and available or use by the company withoutany restriction. here is insigniicant risk o change in value o the same.

3.04.02 Financial LiabilityFinancial liabilities are recognized initially on the transaction date at which the company becomes a party tothe contractual provisions o the liability. he company derecognizes a inancial liability when its contractualobligations are discharged o canceled or expire.

Financial liabilities include payable or expenses, liability or capital expenditure and other current liabilities.

3.05 Impairment

(a) Financial assets

Accounts receivable and other receivables are assessed at each reporting date to determine whether there is anyobjective evidence o impairment. Financial assets are impaired i objective evidence indicates that a loss event hasoccurred ater the initial recognition o the asset, and that the loss event had a negative eect on the estimated uturecash lows o that asset, that can be estimated reliably. Objective evidence that inancial assets are impaired can includedeault or delinquency by a debtor, indications that a debtor or issuer will enter bankruptcy, etc.

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(b) Non-inancial assets

An assets impaired when its carrying amount exceeds its recoverable amount. he company assesses at each reportingdate whether there is any indication that an asset may be impaired. I any such indication exists, the company estimatesthe recoverable amount o the asset. he recoverable amount o an asset is the higher o its air value less costs to sell

and its value in use. Carrying amount o the asset is reduced to its recoverable amount by recognizing an impairmentloss i, and only i, the recoverable amount o the asset is less than its carrying amount. Impairment loss is recognizedimmediately in proit or loss, unless the asset is carried at revalued amount. Any impairment loss o a revalued assetshall be treated as a revaluation decrease.

3.06 Inventories

Inventories are carried at the lower o cost and net realizable value as prescribed by IAS 2: Inventories, Cost is determinedon weighted average cost basis. he cost o inventories comprises o expenditure incurred in the normal course o businessin bringing the inventories to their present location and condition. Net realizable value is based on estimated selling priceless any urther costs expected to be incurred to make the sale.

3.07 Provisions

A provision is recognized in the statement o inancial position when the company has a legal or constructive obligationas a result o a past event, it is probable that an outlow o economic beneits will be required to settle the obligation and a

reliable estimate can be made o the amount o the obligation. Provision is ordinarily measured at the best estimate o theexpenditure required to settle the present obligation at the date o statement o inancial position. Where the eect o timevalue o money is material, the amount o provision is measured at the present value o the expenditures expected to berequired to settle the obligation.

3.08 Income Tax Expense

Income tax expense is recognized in proit and loss account and accounted or in accordance with the requirements o IAS12: Income tax.

(a) Current ax has been provided at 15% tax rate applicable or textile industries.

(b) Deerred ax income is not provided as it is probable that uture taxable proit will not be available against whichtemporary dierences can be utilized.

3.09 Borrowing Costs

his has been dealt with the requirement o IAS 23: Borrowing Costs.Borrowing costs relating to projects in commercial operation are recognized as expenses in the year in which they areincurred. In respect o projects that have not yet commenced commercial production, borrowing costs are debited tocapital work in progress.

3.10 Employee Beneits

he company maintains deined contribution plan or its eligible permanent employees. he eligibility is determinedaccording to the terms and conditions set orth in the deed.

he company has accounted or and disclosed o employee beneits in compliance with the provisions o IAS 19: EmployeeBeneits.

The costs o employee beneits are charged o as revenue expenditure in the period to which the contributions relate.

he companys employee beneit includes the ollowing:

(a) Deined Contribution Plan (Provident Fund)he company contributes to a registered provident und scheme (Deined Contribution Plan) or employees o thecompany eligible to be members o the und in accordance with the rules o the provident und constituted underan irrevocable trust. All permanent employees contribute 10% o their basic salary to the provident und and thecompany also makes equal contribution.

he company recognizes contribution to deined contribution plan as expenses when an employee has renderedservices in exchange or such contribution. he legal and constructive obligation is limited to the amount it agrees tocontribute to the und.

(b) Short terms employee beneits

Short terms employee beneits include salary, bonuses, leave encashment etc. obligations or such beneits aremeasured on an undiscounted basis and are expensed as the related service is provided.

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(c) Contribution to Worker Proit Participation/Welare Funds

his represents 5% o net proit beore tax contributed by the company as per provisions o the Bangladesh Labor Law,2006 and is payable to workers as deined in the said scheme.

3.11 Share Premium

he Share Premium shall be utilized in accordance with the provisions o the Companies Act, 1994 and as directed by theSecurities and Exchange Commission in this respect.

3.12 Statement o Cash Flows

The Statement o Cash Flows has been prepared in accordance with the requirements o IAS 7 : Statement o Cash Flows.

he cash generating rom operating activities has been reported using the Direct Method as prescribed by the Securitiesand Exchange Rules 1987 and as the benchmark treatment o IAS 7 whereby major classes o gross cash receipts and grosscash payment rom operating activities are disclosed.

3.13 Proposed Dividend

he amount o proposed dividend has not been accounted or but disclosed in the notes to the accounts along with dividendper share in accordance with the requirements o Para 125 o International Accounting Standard (IAS) 1: Presentationo Financial Statements. Also, the proposed dividend has not been considered as Liability in accordance with the

requirements o Para 12 & 13 o International Accounting Standard IAS 10: Even ater the Reporting period, because noobligation exists at the time o approval o accounts and recommendation o dividend by the Board o Directors.

3.14 Earnings Per Share (EPS)

his has been calculated in compliance with the requirements o IAS 33: Earnings Per Share by dividing the basic earningsby the weighted average number o ordinary shares outstanding during the year.

BasicEarnings(Numerator)

his represents earnings or the year attributable to ordinary shareholders. As there was no preerence dividend, minorityinterest or extra ordinary items, the net proit ater tax or the year has been considered as ully attributable to the ordinaryshareholders.

Weighted Average Number o Ordinary Shares outstanding during the year (Denominator)

Current Year (2010)

his represents the number o ordinary shares outstanding at the beginning o the year plus the number o ordinary sharesissued during the year multiplied by a time-weighting actor is the number o days the speciic shares are outstanding asa proportion o the total number o days in the year. However, the Bonus Shares issued during the year 2010 were treatedas i they always had been in issue. Hence, in computing the Basic EPS o 2010, the total number o bonus shares has beenconsidered.

Earlier Year (2009)

The number or shares outstanding beore the bonus shares issue has been adjusted or the proportionate change in thenumber o shares outstanding as i the bonus issues had occurred at the beginning o the earliest period reported (2009),and accordingly, in calculating the adjusted EPS o 2009, the total number o shares including the subsequent bonus issue in2010 has been considered as the weighted average number o shares outstanding during the year 2009.

he basis o computation o number o shares as stated above is in line with the provisions o IAS 33: Earnings PerShare. he logic behind this basis, as stated in the said IAS is that the bonus shares are issued to the existing shareholders

without any consideration, and thereore, the number o shares outstanding is increased without an increase in resourcesgenerating new earnings.

Diluted Earnings Per Share

No diluted EPS is required to be calculated or the year as there was no scope or dilution during the year under review.

3.15 Foreign Currency Transactions

he inancial records o the company are maintained and the inancial statements are stated in Bangladeshi aka. Foreigncurrency transactions are recorded at the applicable rates o exchange ruling at the transaction date.

he monetary assets and liabilities, i any, denominated in oreign currencies at the balance sheet date are translated at theapplicable rates o exchanges ruling at that date. Exchange dierences are charged o as revenue expenditure in compliancewith the provisions o IAS 21 : he Eects o changes in Foreign Exchange Rates.

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4 Property, Plant and Equipment : Tk. 15,964,189,093

he movement in Property, Plant and Equipment is as ollows:

Particulars Land

Building

& OtherConstruction

Plant &Machinery Equipment

Furniture& Fixtures

Transport& Vehicles

Capital

Work inProgress

Total Taka

Cost / Valuation as at 1 January 2010 3,984,365,328 3,422,714,137 11,122,152,382 138,892,425 124,569,110 36,211,116 850,000,000 19,678,904,498

Addition During the year 2010 1,300,000 - 1,084,489,339 29,893,204 6,074,985 59,836,000 2,050,000,000 3,231,593,528

At 31 December 2010 3,985,665,328 3,422,714,137 12,206,641,721 168,785,629 130,644,095 96,047,116 2,900,000,000 22,910,498,026

Accumulated Depreciation

At 1 January 2010 - 773,744,885 5,221,285,186 111,640,223 122,215,539 33,879,115 - 6,262,764,948

Depreciation charge for 2010 - 79,469,078 585,083,910 5,714,541 842,856 12,433,600 - 683,543,985

At 31 December 2010 - 853,213,963 5,806,369,096 117,354,764 123,058,395 46,312,715 - 6,946,308,933

Carrying Amount at 31 December 2010 3,985,665,328 2,569,500,174 6,400,272,625 51,430,865 7,585,700 49,734,401 2,900,000,000 15,964,189,093

Carrying Amount at 31 December 2009 3,984,365,328 2,648,969,252 5,900,867,196 27,252,203 2,353,571 2,332,001 850,000,000 13,416,139,550

Property, Plant & Equipment at cost includes k. 143,703,483 acquired under inance lease, the written down value o which was k.126,553,402 as at 31 December 2010.

5 Long Term Security Deposits : Tk. 393,740,686 2010 2009 Amount in aka Amount in aka

his represents the amount deposited with utility providers in respect o :

Rural Electriication Board (REB) or Electricity 1,896,983 1,896,983Dhaka Electric Supply Authority (DESA) or Electricity 1,072,000 1,072,000Bangladesh elegraph and elephone Board (BB) or elephone 50,000 50,000itas Gas ransmission & Distribution Co. Ltd. or Gas 23,221,703 23,011,703Bank Guarantee or Power Plant 17,500,000 17,500,000Share money or Power Plant 350,000,000 -

393,740,686 43,530,686

6 Deerred Assets : Tk. 17,150,081

his consists o :

Deerred Loss on Asset Sale and Lease Back 17,150,081 18,997,013

17,150,081 18,997,013

7 Inventories : Tk. 2,994,596,746

his consists o :

(a) Raw Material -Fibre, Yarn, Gray Fabric, Dyes & Chemicals 962,711,786 723,864,801

(b) Work In Process 1,064,383,006 999,753,470(c) Finished Goods 799,057,324 862,921,128(d) Packing Materials 3,734,414 1,468,328(e) Stores and Spares 164,710,216 154,667,873

2,994,596,746 2,742,675,600

8 Trade Debtors : Tk. 5,040,220,480

his is considered good, and is alling due within one year.

No amount was due by the Directors (including Managing Director), Managing Agent, Managers and other oicers o the Companyand any o them severally or jointly with any other person.

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9 Advances, Deposits and Prepayments : Tk. 953,816,892 2010 2009 Amount in aka Amount in aka

his consists o :

Advances : 359,419,867 411,364,143

Suppliers 276,894,050 285,987,564Salaries 44,244,247 34,169,872Mill Petty Expenses 163,811 2,250,938Other Suppliers 17,854,876 6,458,796Expenses 20,238,060 45,898,732Duty & Clearing Advance 24,823 36,598,241

Deposits : 551,371,238 431,931,555

L.C. Margin 295,690,700 266,626,149Guarantee Margin and Miscellaneous Deposits 255,680,538 165,305,406

Advance Taxes 43,025,787 77,859,735

953,816,892 921,155,433

(a) No amount was due by the Directors (including Managing Director), Managing Agent, Managers and other oicers o thecompany and any o them severally or jointly with any other person.

(b) he advances are good and unsecured.

10 Cash and Cash Equivalents : Tk. 42,913,503

his consists o :

(a) Cash in Hand 3,823,732 7,575,139

(b) Cash at Banks: 39,089,771 19,674,533

In Current Accounts 37,873,409 18,961,112In SD Accounts 1,216,362 713,421

42,913,503 27,249,672

11 Share Capital : Tk. 4,664,474,770

(a) Authorised Capital:800,000,000 (2009 shares 500,000,000 )Ordinary Shares o k 10 each 8,000,000,000 5,000,000,000

(b) Issued, Called-up and Paid-up Capital:466,447,477 (2009 shares 405,606,503) Ordinary Shares o k 10 each 4,664,474,770 4,056,065,030

466,447,477 Ordinary Shares o Tk 10 each 4,664,474,770 4,056,065,030

(c) Composition o shareholdings

Particulars 2010 2009Number o Shares % Number o Shares %

Sponsors:

1. A S F Rahman 43,576,371 9.34 37,892,497 9.34

2. Salman F Rahman 50,421,580 10.81 43,844,853 10.81

Associates 82,452,398 17.68 107,589,392 26.53

ICB Including ICB Investors Account 13,209,493 2.83 8,057,692 1.99

General Public & Institutions 276,787,635 59.34 208,222,069 51.33

Total 466,447,477 100 405,606,503 100

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(d) Distribution Schedule - Disclosures Under the Listing Regulations o Stock Exchanges

he distribution schedule showing the number o shareholders and their Share holdings in percentage has been disclosedbelow as a requirement o the Listing Regulations o Dhaka and Chittagong Stock Exchanges.

Share holdings rangein number o shares

Number oshareholders

Number o shares % o totalshareholders

2010 2009 2010 2009 2010 2009

1 to 499 55897 32436 10,774,884 4,952,316 2.31 1.22

500 to 5,000 40220 15984 61,056,294 25,086,805 13.09 6.19

5,001 to 10,000 2659 1211 19,609,396 9,014,619 4.20 2.22

10,001 to 20,000 1101 551 15,749,543 8,174,707 3.38 2.02

20,001 to 30,000 351 213 8,103,207 5,353,098 1.74 1.32

30,001 to 40,000 148 99 5,143,902 3,500,842 1.10 0.86

40,001 to 50,000 79 68 3,666,137 3,185,917 0.79 0.79

50,001 to 100,000 157 120 11,387,091 9,435,870 2.44 2.32

100,001 to 1,000,000 184 114 52,031,407 36,659,240 11.15 9.04

over 1,000,000 33 30 278,925,616 300,243,089 59.80 74.02

Total 100829 50826 466,447,477 405,606,503 100 100

(e) Option o Unissued Shares

here is no option regarding authorised capital not yet issued but can be used to increase the issued, subscribed and paid-upcapital through the issuance o new shares.

() Market Price

he shares o the company are listed with in the Dhaka and Chittagong Stock Exchanges and quoted at k. 76.30 (in 2009:k. 81.40) per share and k. 76.00 (in 2009: k. 81.70) per share in the Dhaka and Chittagong Stock Exchanges respectively

on 30 December, 2010.

(g) Voting Rights

he rights and privileges o the shareholders are stated in the Bye-laws (Articles o Association) o the Company.

12 10% Debentures-Net o Current Maturity (Secured) : Tk. 696,841,018

his is redeemable ater twelve months rom the date o Statement o Financial Position.

he Debentures are secured by irst paripassu charge on all the ixed assets o the Company along with Bangladesh DevelopmentBank to other creditors on the assets o the Company on liquidation/ winding up .

On 24.11.2008, a meeting was held between the Company, the institutional debentureholders and the Investment Corporationo Bangladesh, the trustee o debentures, in which decision was taken to consider re-scheduling the principal and interest on the

outstanding debentures o Bextex Ltd on such terms and conditions as decided in the meeting .

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13 Long Term Loans - Net o Current Maturity (Secured) : Tk. 5,081,141,024

his represents that portion o long term loans which is repayable ater twelve months rom the Statement o Financial Positiondate.

2010 2009 Amount in aka Amount in aka

Secured Loans rom Banking Companies and other Financial Institutions :Local Banks : 5,050,708,433 5,744,295,326

Sonali Bank Ltd. - IBP Loan 695,868,148 707,324,558Sonali Bank Ltd. - PAD Block 1,444,149,140 1,467,532,189Sonali Bank Ltd. - Interest ree 82,104,181 100,349,531Sonali Bank Ltd. - Interest bearing Block A/C (CCP & CCH) 628,435,140 670,772,451Rupali Bank Ltd. -erm Loan 1 313,140,000 354,892,000Rupali Bank Ltd. -erm Loan 2 207,780,000 235,484,000Rupali Bank Ltd. - Interest Free Block Loan 159,126,902 180,346,902Rupali Bank Ltd. - PAD Segregation A/C (Force Loan) 638,763,210 666,973,987Rupali Bank Ltd. - CCP & CCH Segregation A/C 644,100,000 776,523,280

Bangladesh Development Bank (Former BSB) - erm Loan 80,636,856 92,236,856Bangladesh Development Bank (Former BSB) - Interest Block 46,901,596 52,501,596Citibank NA - erm Loan PML 30,858,260 92,574,778IFIC Bank Ltd. - erm Loan (PAD) - 88,690,742IFIC Bank Ltd. - erm Loan - 143,954,916he City Bank Ltd. 78,845,000 97,040,000Janata Bank Ltd. - CCH Block - 3,366,000Janata Bank Ltd. - PAD Block - 5,366,000National Bank Ltd. - 8,365,540Lease Finance : 30,432,591 52,915,358

International Leasing And Financial Services Ltd 9,265,823 14,323,333First Lease International Ltd 21,166,768 38,592,025

5,081,141,024 5,797,210,684Nature o Security :

Pursuant to supplemental Lenders Paripassu Security Sharing Agreement between the Company and the Lenders, the loans aresecured by :(i) irst paripassu charges o immovable property o present and uture; and(ii) irst paripassu charge by way o hypothecation on all other assets o the company both present and uture erms o

Repayment.

14 Security Deposit From Distributor : Tk. 15,000,000

his was received rom Bangladesh Yarn Syndicate, the distributor o the company.

15 Short Term Loans : Tk. 2,503,100,263

his consists o : SecuredLoansfromBanks:Standard Chartered Bank Plc -CCH 29,405 42,462,221Citi Bank NA - Cash Credit - 84,895,736Rupali Bank Ltd. - Overdrat 889,817,263 889,116,120Rupali Bank Ltd. - CCP 103,391,044 102,869,790Sonali Bank Ltd. - CCH 584,376,013 602,082,218Sonali Bank Ltd. - CCP 517,107,703 530,494,266Sonali Bank Ltd. - Cash Subsidy - 52,142,906State Bank o India - CCH 116,805,848 122,056,754Janata Bank Ltd. - Cash Subsidy 12,800,000 -Janata Bank Ltd. - CCH 278,772,987 278,810,942

2,503,100,263 2,704,930,953

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16 10% Debentures - Current Maturity (Secured) : Tk. 174,210,254

his is redeemable within twelve months rom the date o Statement o Financial Position.

17 Long Term Loans - Current Maturity (Secured) : Tk. 1,688,623,065

his represents that portion o long term loans which is repayable within twelve months rom the Statement o Financial Positiondate and includes the ollowing:

2010 2009 Amount in aka Amount in aka

Local Banks: 1,659,599,500 1,340,773,622

Sonali Bank Ltd. - IBP Loan 209,916,431 251,373,957Sonali Bank Ltd. - PAD Block 435,252,646 521,985,570Sonali Bank Ltd. - Interest ree 22,806,693 9,122,686Sonali Bank Ltd. - Interest bearing Block A/C (CCP & CCH) 266,879,085 152,313,720Rupali Bank Ltd. -erm Loan 1 90,915,738 28,999,505Rupali Bank Ltd. -erm Loan 2 64,707,779 19,114,886Rupali Bank Ltd. - Interest Free Block Loan 26,525,000 10,610,000

Rupali Bank Ltd. - PAD Block Loan 147,750,587 42,584,214Rupali Bank Ltd. - CCP & CCH Segregation A/C 254,336,543 42,940,000Bangladesh Development Bank (Former BSB) -erm Loan 11,952,362 11,600,000Bangladesh Development Bank (Former BSB) - Interest Block 11,466,587 5,600,000Citibank NA - erm Loan PML 61,944,098 77,145,649IFIC Bank Ltd. - IDBP - 33,572,255IFIC Bank Ltd. - erm Loan - 46,856,030Standard Chartered Bank plc - Fixed Loan - 15,458,000he City Bank Ltd. - erm Loan 31,803,754 32,290,442Janata Bank Ltd. - CCH Block 3,642,357 6,872,393Janata Bank Ltd. - PAD Block 11,334,300 15,747,700National Bank Ltd. -erm Loan 8,365,540 16,586,615Lease Finance: 29,023,565 52,770,489

IIDFC Ltd. - 25,747,523International Leasing And Financial Services Ltd. 5,088,988 6,167,449First Lease International Ltd. 23,934,577 20,855,517

1,688,623,065 1,393,544,111

18 Creditors and Accruals : Tk. 2,578,177,121

his is alling due within one year.

19 Revenue : Tk. 14,572,837,380

his is arrived at as ollows:Sales o Yarn & Fabrics 13,952,434,280 7,453,942,462Cash Subsidy 216,212,310 196,739,439Sale o Waste 399,710,572 160,852,404

Commission Work 4,480,218 54,723,51714,572,837,380 7,866,257,822

20 Cost o Revenue : Tk. 9,453,865,395

his is arrived at as ollows :Material Consumed (Note - 21) 8,178,218,611 4,136,120,997External Processing cost 373,913,499 38,436,155Manuacturing Overhead (Note - 22) 902,499,017 787,188,865Manuacturing costs or the year 9,454,631,127 4,961,746,017

Work in Process Inventory Dierential (64,629,536) 28,198,288Cost o Goods Manuactured 9,390,001,591 4,989,944,305

Finished Goods Inventory Dierential 63,863,804 (53,254,156)Cost o Revenue 9,453,865,395 4,936,690,149

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21 Material Consumed : Tk. 8,178,218,611 2010 2009 Amount in aka Amount in aka

his is arrived at as ollows :Cotton 5,145,378,803 2,177,145,514

Yarn 1,581,112,163 1,086,618,352Gray Fabric 745,297,248 414,799,422Dyes & Chemical 706,430,397 457,557,709

8,178,218,611 4,136,120,997

22 Manuacturing Overhead : Tk. 902,499,017

his consists o :Wages & Allowances 471,881,027 344,194,410Power and Gas 385,637,825 297,041,718Indirect Materials 614,970 70,147,202Insurance premium 7,880,103 2,422,368Repairs & Maintenance 30,614,950 67,417,103

Medical Expenses & Others 547,841 1,015,426ravel, raining & Conveyance 1,257,247 487,487elephone, elex & Fax 62,551 71,673Printing & Stationery 1,041,455 1,127,001Miscellaneous Overhead 2,961,048 3,264,477

902,499,017 787,188,865

23 Administrative Expenses : Tk. 539,159,608

his consists o :Salary & Allowances 450,800,814 215,372,910Oice Rent 1,704,372 1,675,284raveling and Conveyance 36,179,668 21,999,927

Entertainment 2,787,684 4,019,394elephone, elex, Fax and Postage 11,861,951 11,293,819Vehicle Upkeep & Fuel 19,556,350 14,508,611Utilities 661,129 569,920AGM and Secretarial expenses 3,802,630 3,629,750Auditors Remuneration (Audit ee) 690,000 522,500Directors Board Meeting Fee 24,000 3,000Insurance Premium 14,578 7,319,401Repairs & Maintenance 3,793,046 4,147,224Printing, Stationery & Photocopy 3,780,398 487,862Write o Deerred Loss on Asset Sale and Lease Back 1,846,932 1,846,932Other Expenses 1,656,056 6,749,697

539,159,608 294,146,231

24 Financial Expenses : Tk.1,445,098,454

his is made up as ollows :Interest on Long erm Loans 835,176,147 756,213,213Interest on Short erm Loan 334,889,410 409,433,530Bank Charges & Commission 275,032,897 130,022,323

1,445,098,454 1,295,669,066

Interest Waived on Final settlement o Foreign Loan & Interest - (607,001,100)1,445,098,454 688,667,966

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25 Income Tax Expenses : Tk. 257,007,839 2010 2009 Amount in aka Amount in aka

Current ax @15% on Net Proit Beore ax 343,319,178 164,725,927Less: Excess ax Charges 2009 86,311,339 -

257,007,839 164,725,927

26 Basic Earnings Per Share (EPS) : Tk. 4.36

(a) Proit ater tax 2,031,786,679 933,446,920(b) Weighted average number o shares in issue 466,447,477 466,447,477Basic EPS (a/b) (Adjusted EPS o 2009) 4.36 2.00

27 Contingent Liabilities

here was no contingent liability as on 31 December, 2010.

28 Capital Expenditure Commitment

Amount contracted but not provided or in these inancial statements. Nil NilAmount authorised by the board o directors but not contracted or. Nil Nil

29 Un-Availed Credit Facility

here was no credit acility available to the company under any contract, but not availed o as on 31 December, 2010 other than tradecredit available in the ordinary course o business.

30 Foreign Exchange Earned

he Company had deemed export and as such, no oreign exchange was earned against sales. No other oreign exchange wasearned or received by Company during the year 2010.

31 Payment in Foreign CurrencyIn 2010, the Company remitted oreign currency in respect o the ollowing:

(a) Repayment o loans and interest:

Lenders

2010 2009

Foreign Currency Totalin Taka

Foreign Currency Totalin TakaPrincipal Interest Principal Interest

CDC Group Plc. : GBP - - - 3,151,862 - 355,687,627

DEG : Euro - - - 3,280,762 - 340,302,944

AFIC : US$ - - - - - -

Marubeni : JPY - - - 2,310,667,000 - 1,848,797,631

(b) Payment against Imported Raw Material & Spares:

2010 2009

Foreign Currency In Taka Foreign Currency In Taka

US$ 25,578,302 1,790,481,127 US$ 13,353,401 934,738,280

(c) No other expenses including royalty, technical expert and proessional advisory ees etc. was incurred or paid by the companyin oreign currency, during the year 2010

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32 Payments/Perquisites to Directors/Oicers

(a) he aggregate amounts paid/provided during the year in respect o directors and oicers o the Company as deined in theSecurities and Exchange Rules 1987 are disclosed below:

Particulars 2010 2009Directors Oicers Directors Oicers

Board Meeting Fees 24,000 - 3,000 -

Basic Salary - 123,599,224 - 81,700,382

Provident und Contribution - 11,215,894 - 7,339,141

House Rent Allowance - 61,020,490 - 27,233,461

Total Tk. 24,000 195,835,608 3,000 116,272,984

(b) No compensation was allowed by the company to the Managing Director o the company.

(c) No amount o money was spent by the company or compensating any member o the Board or special services renderedexcept as stated above.

33 Events Ater The Reporting Period

Subsequent to the Statement o Financial Position date, the directors recommended 15% stock dividend (bonus share) subject toshareholders approval at the orthcoming Annual General Meeting.

Except the act stated above, no circumstances have arisen since the Statement o Financial Position date which would requireadjustments to, disclosure in, the inancial statements or notes thereto.

A S F Rahman Salman F Rahman Ajay Pratap SinghChairman and Managing Director Vice Chairman Chie Financial Oicer

April 28, 2011Dhaka.

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Company profile

Ct Hdquts:17 Dhd r/a, rd n. 2, Dhk-1205, Bgdsh, T: 8611891-5,

8618220-7, 9677701-5, 7701165, e- : [email protected], Wb : www.bxc.c

ot Hdquts: Bxc idust pk, Sb, Kshu, Gzu, Bgdsh,

T: 8611891, 8618220, 9677701, 7701165Busss l:muctug d mktg y,

Wv, Kt d D fbcsDt ict:13 m 1984Cc pduct:

1990 lstg Sttus: pubc lstd C Stck exchg lstg: Dhk d Chttgg

authzd Ct: 5,000 m Tk pd-u Ct: 4,056.065 m Tk nub

Shhds:50,826nub es:7,189nub Sds istd:119,520nub

Wv l istd:293nub Ccu Ktt mch istd:30nub D

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SHareHolDerS informaTion

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fx : 88-02-8617681, e-: [email protected] advss:m/S. Huq & C., 47/1 pu

pt, Dhk-1000Bks:Sonali Bank Janata Bank Rupali Bank Ltd. The City Bank Ltd.

Citibank, N.A. Standard Chartered Bank IFIC Bank Ltd. State Bank of India Bank AsiaLtd. South East Bank Ltd.rgstd oc:17 Dhd r/a, rd n. 2, Dhk-1205,

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