HR Textile Mills Limited 2014

Annual Repo
er
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IH.R.TEXTILE MILLS LIMITED
I I
I I I 1 Ari enterprise of PRIDE GROUP With public Participation
IL
Contents
Board of Directors & Corporate Information 1
Mission Statement 2
Photo Gallery of 29th AGM 3
Letter of Transmittal 4
Notice of 30th Annual General Meeting 5
Five Years Statistics 6
Message from the Chairman 7
Report of the Board of Directors 9
Audit Committee Report to the Shareholders 15
Declaration of CEO and CFO 16
Compliance Certificate on Corporate
Governance Guidelines to the Shareholders 16
Corporate Governance Compliance Report 17
Auditors Report to the Shareholders 19
Audited Financial Statements 20
Proxy Form 39
Chairman
Professor Mohammad Abdul Momen
Managing Director
Mr. Mohammad Abdul Moyeed
Directors
Professor (Dr.) Muhammad Abdul Moyeen

Ms. Ruhey Rawa
Ms. Sumbal Azwad Momen
Ms. Sana Kainat Moyeen
Independent Directors
Professor Mushtaque Ahmed

Mr. Mohammad Kabiruzzaman
A:
1110
Company Secretary
Md.Wali Ullah
Auditors
ATA KHAN & Co.

Chartered Accountants
67, Motijheel C/A
Dhaka-1000
Bankers
AB Bank Limited
Trust Bank Limited
Mutual Trust Bank Limited
The Honkong and Shanghai Banking Corporation Ltd.
Share & Corporate Office
Mirandel (2nd Floor)

House # 3, Road # 5
Block # J, Baridhara, Dhaka-1 212
Tel: 9899147, 9899149, 9899159
Operational Office & Factory
4, Karnapara (Near Bank Town)

Savar, Dhaka
Tel: (8802) 7748694 - 96
Fax: (8802) 7745819
MISSION
Be a caring company through enriching customer experiences
by providing innovative solutions & process excellence.
VISION
Be an industry thought leader.
20 H.R.Textile Mills Limited
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Photo Gallery of 29th AGM
General Meeting
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21St APT" 2014
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II,
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HR. Textile Mills Limited 03
Annual Report 2014 J
'U
Letter of Transmittal
All shareholders
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies and Firms
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited
Subject: Annual Report For the year ended on 30th September 2014
Dear Sir(s),
In terms of the Provisions of the Articles of Association of the company,l have the pleasure to
forward herewith a copy of the Annual Report of the company covering the Directors Report,
Audit Committee Report, Corporate Governance Report along with the Audited Financial
Statements of the company covering Statement of Financial Position as on 30th September
2014, Statement of Comprehensive Income, Statement of Cash Flow, Statement of Changes in
Shareholder's Equity together along with the Report of the Auditors on the financials of the
company for your Information and necessary action,
Thank you.
Yours sincerely,
OW4
Md.WaIi UIlah
Company Secretary
4 H.R. Textile Mills Limited
II,
I I I
Notice of the 30th Annual General Meeting
Notice is hereby given that the 3Qth Annual General Meeting of the Shareholders of H R. Textile
Mills Limited will be held on Tuesday, 31St March 2015, at Spectra Convention Centre Limited,
King's Hall, House # 19, Road # 7, Gulshan-1, Dhaka-1212 at 10:30 am., to transact the
following business:
Agenda
1. Confirmation of the minutes of the 29 11, Annual General Meeting of the Shareholders held on
21st April 2014.
2. To receive, consider and adopt the Directors Report and the Audited Financial Statements
for the year ended 301h September 2014 together with the Auditors report thereon.
3. To declare dividend for the year ended 30th September 2014 as recommended by the Board
of Directors.
4. To elect Directors in place of retiring Directors.
5. Re-appointment of the Managing Director as per clause 136 of the Articles of Association of
the Company.
6. To appoint auditors for the year 2015 and to fix their remuneration.
7. To transact any other business on the company with the permission of the Chair.
By Order of the Board
Date: 19/01/2015
4N
0
of^
Md. Wali Ullah
Company Secretary
Notes
HI
a.
Shareholders whose names appeared in cos/company's Register on the Record date of 12th February 2015 will be
eligible to attend the meeting and will be entitled for dividend for the year ended 30th September 2014.
b.
Member entitled to attend and vote at the annual general meeting may appoint a Proxy to attend and vote on
his/her behalf. The proxy form must be affixed with requisite revenue stamp and must be submitted to the
Corporate Office of the company not less than 48 hours before the time fixed for the annual general meeting.
C.
For smooth conduct of the meeting, members having queries on the audited accounts or on the Directors Report
are requested to submit the same to the office of the company at least 3 days ahead of the meeting.
H.R. Textile Mills Limited .5
General
1.
2.
3.
4.
Financial
Year of Incorporation
Converted into Public Ltd. Co.
Initial Public Offering of Share
Enlistment with DSE and CSE
Particulars
1984
1995
1996
1997
1. Authorised Capital
2. Paid up Capital
1,000 Million
253 Million
For the year ended 30 September (Tk. in '000)

2014
2013
2012
2011
2010
Operations Results
Turnover
Gross Profit
Operating Profit
1,550,954 1,780,820 1,618,091 1,787,093 1,192,399

232,020
263,536 240,413 261,344
178,398
60,875
70,013
64,689
70,651
38,137
Net Profit before tax
58,793
68,599
61,957
67,635
36,578
Net Profit after tax
49,974
58,309
52,663
57,489
31,091
Basic Earning per share ofTk. 10
1.98
2.30
2.08
2.61
1.55
Cash Dividend per share of (Tk.10)
1.25
-
1.50
-
1.50
0.50
-
1.50
176,624
179,578
75,837
141,676
49,972
Stock Dividend (for 10 shares)

Cash Inflows from Operating Activities
1.00
Financial Details
Total Assets
Fixed Assets - Net
Reserve and Surplus
Working Capital
Authorised Capital
1,273,244 1,233,793 1,203,178 1,154,709 1,102,704

506,239 489,057 392,857 432,858 474,645
156,786
144,762
56,176
14,862
124,403
106,332
50,412
35,300
1,000,000 1,000,000 1,000,000
6,271
500,000
(12,534)
500,000
Shareholders' Equity
409,787
397,762 377,403 326,334
270,412
Paid up Capital
Long Term Loan
253,000
253,000 253,000 220,000

97,041
44,727 110,736
200,000
143,513
193,918
Key Financial Ratios, Figures and Market Data

Current Ratio
1.02
1.02
1.05
1.01
0.98
Return on Investment (%)
3.92
4.73
4.38
4.98
2.82
15.72
14.92
14.83
13.52
Net Assets Value per share (Tk. 10)
15.72
Market value of share (at DSE)Tk.
25.90
Market value of share (at CSE) Tk.
26.00
Closing value per share ofTk. 10

Closing value per share of Tk. 10
Price Earning Ratio (Based on DSE price) (Times)
5.79
The Financial Express on 12th February 2015
Price Earning Ratio (Based on CSE price) (Times)
5.77
The Financial Express on 12th February 2015
Other
Number of shares - Paid-up (Figures in thousand)
25,300
25,300
25,300
22,000
20,000
Number of shareholders
13,421
13,549
13,837
13,246
13,111
6 H.R.Textjle Mills Limited
Annual Report
0TU
Message from the Chairman

For the year ended 30th September 2014
significantly, which had also negative impact on

the garments export earnings. Despite the above
mentioned odds, your company has fetched a
revenue worth of Taka 160 crores. However, the
above revenue was 14% less compared to the
previous year.
"Bismillah Hir Rahmanir Rahim"
Distinguished Shareholders
Assalamu Alaikum
I have the pleasure to welcome you all, in this
Annual General meeting of your company. I offer
my heartfelt gratitude to Allah Almighty who
allowed us to meet again. I am also offering my
prayers to Almighty Allah, for the salvation of
departed souls of our shareholders, whom we lost
during the year.
Taking the advantage of your presence, I would
like to inform you that, the year ending 30th
September 2014 was a very challenging year, for
the country as a whole, for various reasons. The
garment sector, as a whole, saw industrial unrest
for wages hike and other demand of the workers.
Many of the factories were shut down and back
log of orders were created, thus increasing the
cost of production. During the year under report,
the compliance issues, various types of
inspections played a significant role in the
operation. Bangladesh currency has appreciated
III]
I I 1 1
As per the Provision of the Articles of the

company, I have the pleasure to present before
you the Directors Report, the Audited Accounts of
the company, for the year ended 30th September
2014, along with the report of the auditors for
your consideration.
Bangladesh Apparel Industries and our Future
Programs
You must be aware that Bangladesh has been
occupying a significant position in the world
apparel industry. The growth rate has been
around 9% over the previous years which is
slightly less than the last five years average of
12%. The above decline is mainly due to several
factors such as Rana Plaza tragedy, energy crisis
etc. There is also scope to enter into new markets
like the Japanese market, as that country is
seeking to diversify its garments import base from
China. There are also scope for the garment sector
in Bangladesh to grow and capture an increasing
share of the world market. Bangladesh has been
H.R.Textile Mills Limited. 7
UAnnual Report 2014
enjoying about 5% of the World's Apparel market;

Vietnam is closing to Bangladesh having almost
5% of the same. If Bangladesh can address the
key constraints that are hindering the export, it
could take some of the market share from China, it
could double its present markets share. However,
if Bangladesh fails to act in time, other
competitors may take up the share, pushing
Bangladesh behind. Bangladesh could
potentially become an important player in world
RMG business, based on its comparative
advantages in this labour - intensive industry.
The future of Bangladesh RMG will be dependent
on capturing new market and increasing market
share in existing products. Since the new product
may take more time to develop and may grow
slowly, more rapid export growth of the existing
market may be instrumental for capturing higher
market share with the existing products, both in
the current market, as well as penetrating in new
markets such as Japan, China, ASEAN and India.
Bangladesh, however, must continue to work on
improving the infrastructure, ensuring power and
eco- compliances, maintaining a world class
working environment by creating [co-friendly
RMG factories.
Under the above backdrop, your company, with
long years of experience in the field, has created
a franchise value in the global market as a quality
exporter. The director, with their experience
supported by a professional team, has worked
hard to create this value. The Board has the
program to expand both horizontally and
vertically but cautiously, so that the history
created by the company with the support of
general shareholders can be continued with
confidence.
Conclusion
The Board of Directors of the company takes the
opportunity to express its sincere thanks and
appreciation to its valued shareholders, the
Bangladesh Securities and Exchange
Commission, Dhaka Stock Exchange, Chittagong
Stock Exchange, Government Agencies, Banks,
Financial Institutions, Contractors, Suppliers and
Auditors for their cooperation and support. We
offer our heartfelt thanks to our valued
international buyers and local buying houses who
have contributed significantly as our strategic
partners.
In conclusion, the Board offers its sincere thanks
to the professionals, whom the management
considers as the most valuable asset of the
company and hopes that they will continue to
keep the spirit of team work in the coming years
for the smooth growth of the company.
With best wishes for the time ahead.
assacl Abdul Momen

Chairman
Dated: January 19, 2015
II,
8 U H.R.Textile Mills Limited
I I I
Report of the Board of Directors

Compliance Issues
"Bismillah Hir Rahmanir Rahim"

Distinguished Shareholders
Assalamu Alaikum
On behalf of the Board of Directors I have the
pleasure to welcome you to the 30th Annual
General Meeting of your company and place
before you the Directors Report for the year
ending on 30th September 2014 for your
consideration.
Business Operations
Having many odds in the business environment,
the management has tried to keep the business
operation running at the same pace. The
summary result of business operation may be
stated as follows:
Taka in million
Particulars
2014
2013
Fabric Sale
817.92
717.27
14.03
Garments Sale
733.03 1,063.55
(31.08)
Cash Incentive
49.35
Increase
(decrease)
43.60
13.19
Total Revenue
1,600.30 1824.42
(12.28)
Cost of Goods Sold
1,368.28 1,560.88
(12.34)
Gross Profit
232.02
263.54
(11.96)
Administrative, Selling
and General Expenses
171.14
193.52
(11.56)
58.79
68.60
Net Profit Before Tax

Net Profit After Tax
Earning Per Share
49.97
58.31
1.98
2.30
Board of Directors
There is no change in the Board of Directors of the
company during the year. The two re-elected
Directors such as Ms. Ruhey Rawa and Ms. Sumbal
Azwad Momen have continued as Directors of the
company during the year. The Board consisted of
8 members including two independent Directors.
During the year the board organized five
meetings. The attendance was as follows:
SI
No
Name of
the Directors
No of
No of
Fee
meetings meetings Paid
held
attended Taka
1 Professor M.A Momen
15,000
2 Mr. M.A Moyeed
20,000
(14.30)
3 Professor Dr. M.A Moyeen
25,000
(14.30)
4 Professor Mushtaque Ahmed
25,000
(13.91)
5 Mr. Md. Kabiruzzaman
10,000
6 Ms. Ruhey Rawa
20,000
3 Ms. Sumbal Azwad Momen
15,000
8 Ms. Sana Kainat Moyeen
25,000
The above business operational result, reflects

that the company, even at the face of severe
unhealthy atmosphere, could maintain its
operational result unaffected to a great extent.
III
III
With the passage of time, the compliance issues in

all aspects of production, human resource
management, eco-friendly environment are
getting more and more priority from buyers as
well as from others regulatory agencies. H.R.
Textile Mills Limited, being a company having 30
years of its operation is complying with all
requirements. However, it needs to take a number
of steps, in the coming years to improve
production facilities, and to need the upgraded
compliance standards.
The Board remained vigilant on the overall

development of the garments sector in general, and
knit garments in particular, specially keeping an eye
on the changes that are taking place in the
environment, product demand, and compliance
issues, in addition to dealing with the business
policies, forecasts and in resolving operational
issues. The Board also dealt with negotiating issues
related to availing financial assistance from banks
and leasing companies, review of the cost reduction
programs, expansion of facilities, review of
compliance related issues etc. The Independent
Directors are also contributing significantly by taking
part in the policy issues and guiding the
management in order to keep the company on track.
Board Audit Committee
The Audit Committee of the company held four
meetings during the year under report. All the
committee members attended the above
meetings. The Audit Committee has been playing
significant role in guiding the internal
management. The Committee reviewed the draft
financial statements, financial position of the
company, and report of the Auditors and the
operational results of the company, from time to
time. A separate Report of the Audit Committee
to the shareholders is enclosed at Annexure-A.
Election of Directors
Pursuant to Article 102, 103 and 104 of the
company, Professor Mohammad Abdul Momen
and Ms. Sana Kainat Moyeen, Directors of the
company, will retire and being eligible, offer
themselves for re-election.
Re-appointment of Managing Director
As per clause 136 of the Articles of Association of
the Company and decision of 25th Annual
General Meeting, the tenure of the appointment
of Mr. Mohammad Abdul Moyeed, Managing
Director will expire on 31st March 2015, The
Managing Director has expressed his desire to be
re-appointed for a further period of 5 (five) years
with effect from 31st March 2015. The
10. H.R.Textile Mills Limited
re-appointment of the Managing Director of the

company is required to be approved by the
shareholders in this 30th Annual General Meeting
as per Section 110(3) of the Companies Act 1994.
Directors Remuneration
Other than the Managing Director all are
non-executive directors. The Managing Directors
is paid his monthly remuneration as shown in the
Financial Statements. Except the meeting
attendance fee of Tk. 5,000 per attendance,
non-executive directors including the
independent director(s) does not receive benefits
of any other kind.
Corporate and Financial Reporting
The Board of Directors is pleased to confirm that
a) The Financial statements together with the
notes therein have been drawn in conformity
with the companies Act 1994 and Bangladesh
Securities and Exchange Rules 1987. These
statements fairly present the company's
statementof affairs, the results of its
operations, cash flow and changes in equity
b) That proper books of account of the company
have been maintained.
That,
appropriate accounting policies have
c)
been consistently applied in preparation of
the financial statements and that the
accounting estimates are based on reasonable
and prudent judgment.
d) That, the International Accounting Standards,
as applicable in Bangladesh, have been
followed in preparation of the financial
statements and any departure there-from has
been adequately disclosed.
e) That, the system of internal control is sound in
design and has been effectively implemented
and monitored.
f) That, there are no significant doubts upon the
company's ability to continue as a going concern.
g) That, there are no significant deviations from
last year in operating results.
M.1
I I
Directors also report that the Managing Director

(Chief Executive Officer) and the Chief Financial
Officer have certified to the Board that they have
reviewed the Financial Statements for the year
30th September 2014 and to the best of their
knowledge and belief:
a. The Financial Statements present a true and
fair view of the affairs of the Company and are
in compliance with existing accounting
standards and applicable laws;
b. There is no statement which is materially
untrue or misleading and there is no omission
of facts in such statements; and
c. No transaction has been entered into by the
Company which are fraudulent, illegal or in
violation of the Company's code of conduct.
Chief Financial Officer, Head of Internal Audit

and Company Secretary
The Company has appointed Mr. Md. Abu Amur
Naheel, as Chief Financial Officer, Mr. Sumnoon
Moheb as Head of Internal Audit and Mr. Md. Wali
Ullah as Company Secretary of the Company as
per requirement of the Bangladesh Securities and
Exchange Commission's Corporate Governance
Guidelines.
Financial Performance
The financial performance of the company was
satisfactory. The summarized financial result of
the company is as follows:
Particulars
Amount in Taka (million)

2014
2013
Net Profit before Tax

Less: Provision for Income Tax
Net Profit after Tax
Add: Profit brought forward
from previous year
Profit Available for Appropriation
Recommended for Appropriations:
Proposed Dividend (Cash)
Un-appropriated Profit carried forward
Report of Chief Executive Officer and Chief

Financial Officer
The Managing Director (Chief Executive Officer)
and the Chief Financial Officer have performed
their duties as per the rules, responsibilities and
duties as detailed by the Board. Their report is
placed in Annexu re-B
58.79
68.60
(8.82) (10.29)
49.97
58.31
67.48
45.50
117.45 105.43
(31.63) (37.95)
85.82
67.48
Summary of key operating and financial data of preceding five years.

The directors are pleased to furnish the summary of the current year's key financial data, along with the
same for preceding five years, are furnished below:
Financial Details
Particulars
For the year ended 30th September (Tk. in '000)
2014
Total Assets
2013
2012
2011 -
2010
1,273,244
1,233,793
1,203,178
1,154,709
1,102,704
Fixed Assets - Net
506,239
489,057
392,857
432,858
474,645
Reserve and Surplus
156,786
144,762
124,403
106,334
50,412
Working Capital
56,176
14,862
35,300
6,270
(12,534)
1,000,000
1,000,000
1,000,000
500,000
500,000
Shareholders' Equity
409,787
397,762
377,403
326,334
270,412
Paid up Capital
253,000
253,000
253,000
220,000
20,000
Long Term Loan
143,513
97,041
44,727
110,736
193,918
Authorised Capital
FM
H.R.Textile Mills Limited 11
Business Risk Perception
Market Risk
Political Risk
The RMG export market is volatile. Since the

export market of the company is mainly within
Europe, and Europe is still under recession, the
market has potential risk. But our exports are the
low cost essential products and with the
increasing trend of labour cost in the Chinese
market, Bangladesh is the direct beneficiary.
However, the wage cost in Bangladesh is also
increasing. In order to keep the cost at minimum,
the company has been trying to increase the
efficiency of the workers. Therefore, although
there are market risks to some extent, the
management does not consider it to be very
significant.
The economy, as a whole, has been passing

through, a political turmoil which has been
hampering the operation and growth. The export
oriented industries are the most sufferer. The
above risk has substantial impact on the
operation of the company.
Going Concern Risk
H.R. Textile Mills Ltd has been operating as a
sustainable organization since 1984. The sponsors
having substantial equity in the company always
decides on operational and financial issues from
the perspective of going concern. Having its own
land, building and infrastructure, the company
has been operating in such an industry which is a
basic requirement of human being the
management does not see any risk of
continuance of the company as a going concern.
Operational Risk
Operational risk arises from internal
management, systems failure, maintenance
product of quality etc. The company, over a
period of time, has developed human resources,
systems and procedures, equipped the
production facilities with modern technology.
With the above, the company is now operating as
a quality product supplier with high franchise
value. It has developed a pool of quality human
resources who are capable to undertake any type
of export orders relating to knit garments.
Therefore, the management does not foresee any
significant operational risk.
Foreign Exchange Fluctuation Risk
The company is in the export business. The total
export is in foreign currency and most of the
imports required to execute the export, is also in
foreign currency. Since the exports are more than
the imports to the extent of value addition, and
the imports are mostly against back to back Letter
of Credit, the company does not have any foreign
exchange fluctuation risk.
Compliance Risk
In light of the recent incidences in some RMG
factories, the compliance requirement is
becoming more strict and there is the possibility
of imposing additional requirements for
compliance by buyers and regulators. The
management of the company has been
constantly keeping an eye to remain compliant
always and taking required measures to comply
with the buyer's requirements;
Interest Rate Risk
The interest rate of the banks and financial
institutions are quite high at present. The
company management has been trying to use
low cost funding to keep the financial service cost
as low as possible.
Dividend
During the year under report, the company
earned profit after tax of Tk. 49,974,020. Out of the
above the Board recommended a cash dividend
of Tk. 1.25 (i.e. 12.50%) per share of Tk. 10 against
15% cash dividend per share of Tk. 10 each in the
last year. The above would require a cash outflow
of Tk. 31,625 Million, The balance amount of Tk.
18,349 Million of un-appropriated profits will be
used to meet the working capital requirement of
the company as well to finance the
developmental works.
II,
I I
Shareholding Pattern
The shareholding of the sponsors remained at 51.04% without any change whatsoever. Out of the
balance shares, the institutions and ICB Unit Fund are holding 11.09%, which was 11.33% in the previous
year. The shareholding of the general public has increased to 37.87% compared to 37.63% in the
previous year, on the date of year closing. The above change was mainly due to sale of shares by
Financial Institutional shareholders. The shareholding pattern of the company as on 30th September
2014 has been shown at page 32 of this report.
Name of Shareholders
No. of Shares
Percentage
Nil
1.5) (xxi) a) Parent Company/Subsidiary/Associated Companies/

Other Related Parties:
1.5) (xxi) b) Directors, Chief Executive Officer, Company Secretary
Chief Financial Officer, Head of Internal Audit,
their Spouse and Minor Children:
Mr. Mohammad Abdul Moyeed
Professor Dr. M.A Moyeen
Professor M.A Momen
Ms. Ruhey Rawa
Ms. Sumbal Azwad Momen
Ms. Sana Kainat Moyeen
Mr. Md. Kabiruzzaman
Mrs. Rokeya Sultana
3,762,256
3,762,254
3,762254
507,285
507,285
507,285
Nil
Nil
40,320
15,812
15,812
15,812
3,870
3,870
3,870
3,870
Mrs. Umbrrin Moyeed

Dr. Shaheen Afroze
Mrs. Shiny Momen
Mrs. Rukhsana Sultana
Mrs. Umme Saleha
Mrs. Umme Salma
Ms. Sayma Rahman
Chief Financial Officer
Company Secretary
Head of Internal Auditor
Minor Children
Nil
Nil
Nil
Nil
12,911,855
Total Shares
14.87
14.87
14.87
2.01
2.01
2.01
0,15
0.06
0.06
0.06
0.02
0.02
0.02
0.02
51.04
Shareholding Pattern
General Public
37.87%
Sponsor/Directors
5104%
mwoo^
Institutions & ICR Unit Fund
11.09%
IIII]
I I I
Annual Report 2014
c) Non of the top executives of the company

other than Mr. Ziaul Haque, Manager, Income
Taxes and Mr. Kamal Ahmed, Manager,
Production, holds 1,000 share each which
was issued to them at the time of IPO from
employees quota.
d) Shareholders holding ten percent (10%) or
more votes' interest in the company (name
wise details):
Name
No. of shares
Mr. Mohammad A. Moyeed

3,762,256
Professor (Dr.) Muhammad A. Moyeen 3,762,254
Professor Mohammad A. Momen
3,762,254
Subsidiary Company
H.R. Textile Mills Limited does not have any
subsidiary company.
Extra-Ordinary Gain or Loss
There is no extra-ordinary gain or loss during the
financial year.
Related Party Transactions
H.R. Textile Mills Limited exports garments and
also fabric as "Deemed Export" to one concern,
namely, Fashion Knit Garments Limited. The Fashion Knit Garments Limited is owned by three
sponsor Directors of the company. The transactions between HR Textile Mills Limited and Fashion Knit Garments Limited are being transacted
on Arms Length Basis and at market price.
Corporate Governance Compliance Audit
In accordance with the requirement of the
Bangladesh Securities and Exchange Commission,
Notification No. SEC/CMRRCD/2006-1 58/134/
Admin/44 dated 7th August 2012, the company
appointed M/s N.MTareque and Associates, a firm
of Cost and Management Accountants to conduct
audit as per the requirement of the BSEC Rules.
The Report of the company is enclosed as
Annexure-C
Appointment of Auditors
The existing Auditor M/s. Ata Khan & Co, Chartered Accountants has been carrying out the
audit of the company for the last two years. The
audit company informed that, they like to retire
and unable to not work as auditors. Therefore the
shareholders are required to appoint new
auditors for the year of 30th September 2015. The
office has so far received few applications and
some are expected and in pipe line. All will be
placed for your consideration and appointment.
Conclusion
The Board of Directors of the company takes the
opportunity to express its sincere thanks and
appreciation to its valued shareholders, the
Bangladesh Securities and Exchange Commission,
Dhaka Stock Exchange, Chittagong Stock
Exchange, Government Agencies, Banks, Financial
Institutions, Contractors, Suppliers and Auditors
for their cooperation and support. We offer our
heartfelt thanks to our valued international
buyers and local buying houses who have
contributed significantly as our strategic partners.
In conclusion, the Board offers its sincere thanks
to the professionals, whom the management
considers as the most valuable asset of the
company and hopes that they will continue to
keep the spirit of team work in the coming years
for the smooth growth of the company.
For and on behalf of the Board of Directors
eed
Md Abdul
Managing Director& EQ
---
III
I I
Annexure - A
Audit Committee Report to the Shareholders

I am pleased to report before the shareholders as the Chairman of the Audit Committee of your
esteemed company. H.R.Textile Mills Limited is a public limited company having quite large number of
shareholders and stakeholders. It is an important responsibility of the Audit Committee to protect the
interest of stakeholders and the Committee is aware of its responsibilities to see in a greater detail, how
the financial operation of the company is taking place by complying with all rules and regulations. The
Committee, being constituted by the Board reports to the Board from time to time.
During the year, the Audit Committee hold a number of meetings. The committee was especially interested to see that the financial transactions of the company are being taking place for the purpose of the
company and for its smooth and effective operation, funds are appropriately deployed, internal audit is
carried out periodically. The meeting also reviewed the pre-audit reports, systems and procedures and
guided the board for further necessary action as and when needed.
The Audit Committee consisted of the following persons
Names
Designation
Chairman
Professor Dr. Muhamamd Abdul Moyeen
Member
Professor Mohammad Abdul Momen
Member
Mr. Mohammad Kabiruzzaman
Member
The Committee held 4 (four) meeting during the year. The meetings were also attended by the Company Secretary and Chief Financial Officer. The company Secretary is also working as the Secretary of
this Committee.
The Board Audit Committee expressed its sincere thanks to the members of the Board, Management,
and Auditors for their support in carrying out its duties and responsibilities effectively.
Pr6uAhmed
Chairman
Audit Committee
Date: January 19, 2015
II_ _
I
I_I
]
I
H.ftTexti!eMillsLimited .15
Annual Report 2014 N

Annexure - B
Declaration of CEO and CEO
to
the Board o Directors
Dated: 19th January 2015
To
The Board of Directors

H.R.Textile Mills Limited
Dear Sirs,
Compliance with the condition no. 6 imposed by Bangladesh Securities & Exchange Commission's Notification No.SEC/CMRRCD/2006-1 58/1 34/Admin/44 dated 7th August 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969 we do hereby certify to the Board that:
i) We have reviewed financial statement for the year ended 30th September 2014 and that to the best of our
knowledge and belief:
a) These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
These
statements together present a true and fair view of the Company's affairs and are in compliance
b)
with existing accounting standards and applicable laws.
ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the
year which are fraudulent, illegal or violation of the Company's code of conduct.
Sincerely yours,
Moha4mad Abdul f\Apyeed

Chief Executive Offker
Md. Ak heel
ficer
Chief
nc
Annexure - C
Compliance Certificate
on
Corporate Governance Guidelines to the Shareholders of
We have been appointed by the Management to carry out an Audit on the compliance status of the company
on the points specified vide Bangladesh Securities and Exchange Commission a Notification No.
SEC/CMRRCD/2006-1 58/Admin/44: dated 7th August 2012. Our views in the form prescribed by the BSEC on
the specific points is enclosed
We do hereby certify that we have examined the books and records of H.R. Textile Mills Limited specially
related the corporate governance areas. We are of the opinion that the company has complied with the Conditions of Corporate Governance Guidelines for the year ended 30th September 2014 as prescribed by the
above BSEC Notification.

N.M Tareque & Associates

Cost and Management Accountants
III
II I
Annexure - D
Corporate Governance Compliance Report

Status of compliance with conditions imposed by the Bangladesh Securities and Exchange Commissions,
Notification No. SEC/CMRRCD/ 2006-1 58/1 34/Admin/44: dated 7th August 2012 issued under section 2CC of the
Securities and Exchange Ordinance, 1969:
Report under Condition No. 7.00
Condition
No.
Compliance Status (Put 'in Remarks

the appropriate column)
(if any)
Complied Non-complied
Title
1 Board of Directors:
1.1 Board Size: Board members should not be less than 5 and more than 20
1.2(i) Independent Director at least 1/5th of the total number of directors
1.2 (ii) al Does not hold any share or holds less then 1% shares of the paid-up
1.2 lii( b) Not connected with any sponsor/director/shareholders who holds or
1.2 (ill c) Does not have any relationship, whether pecuniary or otherwise,
1.2 (9) d) Not a member, director or officer of any stock exchange
1.2 (ii) e) Not a shareholder, director or officer of any member of stock exchange
1.2 (ii) f) Not partner or an executive or was not a partner or an executive
1.2 (ii) g( Not be an independent director in more then 3 (three) listed companies
1.2 (ii) hI Not been convicted by a court of competent jurisdiction as a defaulter
1.2 (ii) i) Not been convicted for a criminal offence involving moral turpitude
1.2 (iii) Independent Directors has been appointed by the board of directors
1.2 (iv) Not remain vacant for more than 90 (ninety) days
1.2(v) Board shall lay down a code of conduct of all board members
1.2 (vi) Tenure of office of an independent director shall be for a period of
3 (three) year's, which may be extended for 1 (one) term only
1.3 (i) Independent Directors Knowledgeable individual with integrity to ensure compliance
1.3 (ii) Experienced and educational background of Independent Directors
1.3 (iii) Special cases for relaxation of qualification of Independent Directors
1,4 Individual Chairman of the Board and Chief Executive Officer )CEO(
1,5 (i) Industry outlook and possible future develo pments in the industry
1.5 (ii) Segment-wise or product-wise performances
1.5 (iii) Risks and concerns
1.5 (iv( Discussion on Cost of Goods sold,Gross Profit Margin and Net Profit Margin
1.5 (v) Discussion on continuity of any Extra-ordinary gain or loss
1.5 (vi) Basis for related party transactions
1.5 (vii) Utilization of proceeds from public issues, rights issues and or through any others
1.5 (viii) Explanation if the financial results deteriorate after the company goes for IPO, RPO etc.
1.5 (ix) Explanation about significant variance occurs between Quarterly Financial
1.5 (x) Remuneration to directors including independent directors
1.5 (xi) The financial statements present fairly its state of affairs, result of its operation
1.5 (xii) Maintenance of proper books of accounts
1.5 (xiii) Appropriate Accounting Policies and estimates have been applied
1.5 )xiv( Followed IAS/BAS/IFRS and BFRS in preparation of Financial Statements
1.5 (XV) Internal Control System has been effectively implemented and monitored
1.5 lxvii Ability to continue as a going concern
1.5 (xvii) Significant deviations from last year's in operation results
1.5 (xviii) Key operation and financial summarized data of at last preceding five year's
1.5 (xix) Reasons for not declared dividend
1.5 (xx) Number of Board Meetings held during the year and attendance by the Directors
1.5 (xxi) Shareholding pattern/position
1.5 )sxt) Appointment/re-appointment of Director
2 CFO, Head of Internal Audit and Company Secretary:
2.1 Appointment of CFO, HIA and CS
2.2 CEO and CS shall attend the meeting of the Board of Directors
I'll
I I I I
II
II
II
II
II
II
II
II
II
V
N/A
N/A
V
V
V
V
V
N/A
V
V
V
Annual Report 2014
Condition
No.
Compliance status (Put "in Remarks

(if any)
the appropriate column)
Title
3 Audit Committee
3.1 (ii Audit Committee composed of at least 3 (Three) members
3.1 (ii) Members of the audit committee have been appointed by the Board of Directors
3.1 (iii) Qualified members in audit committee
3.1 (iv) Term and conditions of service of audit committee members
3.1 (v( Secretary of the audit committee
3.1 (vi) Quorum of the audit committee
3.2(i) The Chairman has been selected by the Board of Directors
3,2 (ii) The Chairman of the audit committee present in the AGM
3.3 (i) Oversee the financial reporting process
3.3 (ii) Monitor choice of the accounting policy and principals
3.3 (iii) Monitor Internal Control Risk Management Process
3.3 (iv) Oversee hiring and performance of external auditors
3.3 (v) Review the annual financial statements before submission to the board for approv
3.3 (vi) Review of quarterly and half yearly financial statements before submission
3.3 (vii) Review of adequacy of internal audit function
3.3 (viii) Review statement of significant related party transaction
3.3 (ix) Review Management letters/Letter of internal control weakness
3.3 (x) Disclosure about the uses/applications of funds raised by IPO/RPO/Right issue
3.4.1 Reporting to the Board of Directors
3.4.1 (i) Activities of audit committee shall be reported to the Board of Directors
3.4.1 (li)a Conflicts of interest
3.4.1 )ii)b Suspected or presumed fraud or irregularity or material defect
in the internal control system
3.4.1 (f) c Infringement of laws, rules and regulations
3.4.1 (ii)d Any other mater disclosed to the Board of Directors
3.4.2 Reporting to the Authorities
3.5 Reporting to the Shareholders and General Investors
4 External/Statutory Auditor:
4(i) Appraisal or valuation services or fairness opinions
4 (ii) Financial information system design and implementation
4 (iii) Book-keeping or other services related to the accounting records
or financial statements
4 (iv) Broker-dealer services
4(v) Actuarial services
4 (vi) Internal Audit Services
4 (vii) Services that the Audit Committee determines
4 (viii) Audit firm shall not hold any share of the company they audit
4 (ix) Audit/certification services on compliance of corporate governance
as required under clause (i) of condition No.7
5 Subsidiary Company:
5(i) Composition of the Board of Directors to be holding company
5 )ii) At least 1 (one) independent director to be in both holding and subsidiary compa
5 (iii) Submission of Minutes subsidiary company to the holding company
5 (iv) Review of Minutes of subsidiary company by the holding company
5(v) Review of financial statements by the holding company
6 Duties of CEO and CFO:
6 )i)a Reviewed the materially untrue statement or omit any material fact
of the financial statement
6 )i)b Reviewed compliance and maintained existing accounting standards
6 (ii) Reviewed about no transaction entered by the company which were fraudulent,
illegal or violation of the company's _code of conduct
7(i) Obtain certificate regarding compliance of conditions of Corporate Governance GuidE
7 (ii) Annexure attached in the Director's Report
'7
'7
7
N/A
/
V
7
7
V
V
V
V
7
/
V
N/A
N/A
N/A
N/A
N/A
V
V
V
M
N.M Tareque & Associates

Cost and Management Accountants
II,
I
Annual Report 2014
ATA KHAN & Co.

Auditors' Report
to
The Shareholders of H.R. Textile Mills Limited
We have audited the accompanying financial statements of H.R. Textile Mills Limited (the Company) which comprise
the Statement of Financial Position as at September 30, 2014, Statement of Comprehensive Income, Statement of
Cash Flows, Statement of Changes in Equity and a summary of significant accounting policies and other explanatory
information disclosed in Notes 1-35 to the financial statements for the year then ended.
Management's responsibility for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements in
accordance with Bangladesh Financial Reporting Standards (BFRS); the Companies Act, 1994 and Bangladesh Securities and Exchanges Rules, 1987 and for such internal control as the management determines is necessary to enable
the preparation of financial statements that are free from material misstatements, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of
material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments,
we consider internal control relevant to the Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstance, but not for the purpose of expressing
an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of H.RTextile Mills
Limited as at September 30, 2014 and its financial performance and its cash flows for the year then ended in
accordance with Bangladesh Financial Reporting Standards and comply with the applicable sections of the Companies Act, 1994, the Bangladesh Securities and Exchange Rule, 1987 and other applicable laws and regulations.
We also report that
(a) We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of those books;
(c) The statement of financial position and statement of comprehensive income dealt with by the report are in
agreement with the books of account and returns; and
(d) The expenditure incurred was for the purposes of the Company's business.
ATA KHAN & Co.
Dated: Dhaka, January 19, 2015
III]
I I I I
....
H.R. Textile Mills Limited . 19
Annual Report 2014 I

Statement of Financial Position
As on 30 September 2014
CAPITAL EMPLOYED IN:

NON-CURRENT ASSETS:
Property, Plant and Equipment
Total Non-Current Assets
2013
Taka
2014
Taka
Notes
506,239,023
506,239,023
489,057,212
489,057,212
254,065,709
200,993,885
94,028,138
33,183,653
35,000,000
149,733,2J
767,005,114
207,252,615 I
340,320,542
84,747,154
34,1 58,014
CURRENT ASSETS:
Stocks and Stores
Trade Debtors
Export Incentive Receivables
Advances, Deposits and Prepayments
Dues from Related Parties
Cash and Bank Balances
Total Current Assets
LESS CURRENT LIABILITIES:
Bank Overdrafts - Secured
Liability against Trust Receipts
Creditors
Accrued Expenses
Provision for Taxation
Bills Receivable Discounted
Workers' Participation/Welfare Funds
Total Current Liabilities
3
4
5
6
7
8
78,258J
744,736,781
_5
710,828,647
35,975,524
16,706,788
536,789,159
35,077,1541
15,000,086
61,958,063
28,367,3j
729,874,096
56,1 76,467
562,415,490
14,862,685
503,91 9,897
253,000,000
6,956,752
22,378,988
10,000,000
105,427,165
397,762,905
9
10
11
12
13
14
15
35,251,371
WORKING CAPITAL
NET ASSETS
FINANCED BY:
SHAREHOLDERS EQUITY:
Share Capital
General Reserve
Tax Holiday Reserve
Dividend Equalisation Reserve
Unappropriated Profit
TOTAL SHAREHOLDERS EQUITY
17
18
19
20
253,000,000
6,956,752
22,378,988
10,000,000
117,451,185
409,786,925
LONG-TERM LIABILITIES:
Long-term Loans -Secured
Provision for Gratuity
22
23
143,513,139
9,115,426
97,041,5661
[9,115,426 I
I
152,628,565
106,156,992
562,4 1 5,490
503,919,897
16.20
15,72
Net Assets value per share ofTk.1 0

The annexed notes 1 to 35 form an integral part of these financial statements.
t
Wa UIIah
Md.
Director
Company Secretary
Signed in terms of our separate report of even date.
Dated: Dhaka
January 19, 2015
A.Moyeen
Director
Mo
Managing Directr
ATA KHAN &Co.
'H
Statement of Comprehensive Income

For the year ended 30 September 2014
Particulars
2014

Taka
Notes
Sales
Export Incentive
24
25
Turnover
Less:Cost of Goods Sold
Gross Profit
Less: Administrative, Selling and General Expenses
Operating Profit
Add: Other Income
Profit before Contribution to Workers Participation/Welfare Funds
Less: Contribution to Workers Participation/Welfare Funds
26
27
1,780,820,020
43,600,628
1,600,302,469
1,368,282,941
232,01 9,528
171,144,370
1,824,420,648
1,560,884,821
263,535,827
193,522,486
60,875,158
857,455
61,732,613
2,939,648
70,013,341
2,016,391
72,029,732
3,429,987
58,792,965
68,599,745
28
15
29
2013
Taka
1,550,954,308
49,348,161
Net Profit before Tax

Less: Provision for Income-tax
8,818,945
10,289,962
49,974,020
67,477,165
58,309,783
45,503,467
Transfer from Capital Reserve

Profit available for appropriations
Cash Dividend Declared
117,451,185
1,613,915
105,427,165
37,950,000
Unappropriated Profit carried forward
117,451,185
67,477,165
198
2.30
Net Profit after Tax

Unappropriated Profit brought forward
Earning per share (EPS) ofTk. 10
!liUIIa
Company Secretary
Director
A.Moyeen
Director
Mo
Managing Direct

Dated: Dhaka
January 19, 2015
I'll
I I I I
ATA KHAN & CO.

Annual Report 2014
Statement of Cash Flow


Particulars
2014

Taka
Notes
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and export incentives
Cash paid for goods and services
Cash from operation
Interest paid
Income-tax paid/deducted at sources
Net Cash inflows from operating activities
2013
Taka
1,731,205,597
1,997,743,173
(1,500,617,413)
(1,749,235,575)
230,588,184
248,507,598
(35,952,258)
(46,527,167)
(18,012,294)
(22,402,348)
176,623,632
179,578,083
CASH FLOWS FROM INVESTING ACTIVITIES:

2.2
Acquisition of fixed assets

Net Cash outflows from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Bank Overdraft received/(repaid)
Loans received/(repaid) against Trust Receipts
Dues (from) to Related Parties
Long Term Loans received/(repaid)
Lease Finance Received (repaid)
Cash Dividend paid
Net Cash inflow from financing activities
(81 , 178,010 )1
(153,283,890)
(81,178,010)
(153,283,890)
(13,195,930)
(1,945,888)
(13,91 5,448)
(35,000,000)
(15,500,750)
(1,618,940)
46,471,573
68,575,111
(16,261,055)
(20,627,052)
(13,947,825)
(23,970,349)
7,004,145
Net increase/(decrease( in cash and bank balances
71,475,273
33,298,338
Cash and bank balances on opening

Net increase/(decrease) in cash and bank balances
Cash and bank balances at closing - Note 8
Net operating cash flow per share (NOCFPS) ofTk. 10
78,258,456
44,960,118
33,298,338
78,258,456
7.10
71,475,273
149,733,729
6.98
The annexed notes ito 35 form an integral part of these financial statements.
AW
li

Company Secretary
A.Moyeen:2^M^A..Mo
Director Director
Manging Direct

Dated: Dhaka

January 19, 2015
.....,..
ATA KHAN & CO.

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IN
Annua l Report 2014
HR. Textile Mills Limited
Value Added Statement

Particulars
Turnover and other income
24,25 &28
Finished Stock differential
26.1
Value added
Value distributed:
To Lenders in the form of interest
2,562,559
11,294,48
Less: Bought-in goods and services
To Government in the form of income-tax
1,826,437,039
1,601,1 59,924
Output
To Employees in the form of salaries, wages and allowances
2013
Taka
2014
Taka
Notes
26.1 & 27.1

29

27.4
1,61 2,454,409
1,828,999,598
(1272,484,351)
(1,466,920,130)
339,970,058
362,079,468
204,582,311
201,588,419
8,818,945
35,952,258
10,289,962

46,527,167

37,950,000
37,950,000
To Shareholders in the form of dividend

2
For replacement of fixed assets as depreciation
57,083,902
63,996,199
(8,335,763)
For future growth as retained profit
339,970,058
5,646,126

362,079,468
Md. Wali Ullah

Company Secretary
A. Momenj
Director

Dated: Dhaka

January 19, 2015
'-'-_
A.Moyeen
Director
Mo
I Managing
Directr
ATA KHAN & CO.

us
_I I I
Notes to the Financial Statements

Forming an Integral Part of the Financial Statements
1. Notes - General
(a)Status and Activities:
This is a public limited company incorporated in Bangladesh under the Companies Act, 1913 on 3 December 1984 under the
entrepreneurship of the Pride Group.The other shareholders are the general public and local financial institutions. The shares of
the Company are listed with both the Dhaka and Chittagong Stock Exchanges in Bangladesh.The address of the registered office is
B-87, Malibag Chowdhury Para, Dhaka and the mills are located at 4, Karnapara, Savar, Dhaka.The Company owns textile mills and
its principal activities are knitting, processing and finishing of textile products and making garments.
(b)Components of the Financial Statements:
(i) Statement of Financial Position as on 30 September 2014;
(ii) Statement of Comprehensive Income for the year ended 30 September 2014;
(iii) Statement of Changes in Shareholders' Equity for the year ended 30 September 2014;
(iv) Cash Flows Statement for the year ended 30 September 2014;
(v) Value Added Statement for the year ended 30 September 2014 and
(vi) Notes to the Financial Statements for the year ended 30 September 2014.
(C) Reporting Period:
The financial period of the Company covers an accounting year from 1 October to 30 September next consistently.
(d)Reporting Currency:
The figures in the financial statements represent Bangladesh Taka currency, which have been rounded off to the nearest Taka,
except where indicated otherwise.
(e)Comparative information:
Comparative information have been disclosed in respect of the year 2014 for all numerical information in the financial statements
and also narrative and descriptive information when it is relevant to an understanding of the current year's financial statements.
Figures of the previous year have been re-classified whenever considered necessary to ensure comparability with the current
period.
(f) Statement of compliance with local laws:
The financial statements have been prepared in compliance with requirements of the Companies Act, 1994, Securities and
Exchange Rules, 1987 and other relevant laws as applicable. The cash flows from operating activities is computed by the direct
method as prescribed by the Securities and Exchange Rules, 1987.
(g)Statement of compliance with Bangladesh Accounting Standard (BAS) and Bangladesh Financial Reporting Standards (BFRSs):
The financial statements complied with requirements of Bangladesh Accounting Standards (BAS) and Bangladesh Financial
Reporting Standards (BFRS5) as issued by the International Accounting Standards Board (IASB) and as adopted by the Institute of
Chartered Accountants of Bangladesh (ICAB).
(h)Statement of Measurement Basis:
The financial statements have been prepared using the Historical Cost basis, except for the earlier revaluation of certain
non-current assets.
(i) Accrual basis Accounting:
The financial statements have been prepared, except for cash flows information, under the accrual basis of accounting.
(j)Statement of Specific Accounting Policies Applied:
(i) Revenue Recognition:
Sales are recognized at the time of delivery from godown.
(ii)Fixed Assets and Depreciation:
Fixed Assets i.e. Property, Plant, Equipment are stated at their historical cost less accumulated depreciation. No Depreciation
has been charged on land and land development and on the Capital Work in progress. Depreciation is charged on all other fixed
assets on straight-line method. Depreciation on "revaluation surplus" is charged to "Capital Reserve' The rates at which assets
are depreciated depend on the nature and estimated useful life of each asset, and are given below:
Item
Rate

Factory Building

Plant and Machinery

Factory Shed
Electric, Gas, Water, Steam and Telephone Installation,
Furniture & Fixture, Office Equipment, Factory Equipment and

Tools & Apparatus

Motor Vehicles
2,50%
7.00%
7.50%
10.00%
15.00%
Net carrying amounts (written down value) are arrived at after deduction of accumulated depreciation from gross carrying
amounts (cost).
The gross carrying amounts (cost) represent cost of acquisition or construction and capitalization of pre-production expenditure
including interest during construction period and lease payments.
Leased plant and machinery has been capitalized at 'Principal amount" thereof and proportionate interest thereof has been
charged to interest expenses in terms of BAS 17- "Lease".
(iii)Stocks and Stores:
Stocks and Stores are valued at lower of weighted average cost and net realizable value. Cost of work in process includes material
and proportionate conversion cost. Finished goods include material and conversion cost.
(iv)Provision for Income Tax:
Provision for current income-tax has been made during the year under review in respect of net profit at the rate of 15%. Provision
for deferred tax has been made at 15% on the timing difference relating to depreciation in terms of BAS 12 "Income Taxes".
(v)Foreign Currency Transaction:
Transactions in Foreign Currencies are translated into Bangladesh Taka at the rate of exchange ruling on the date of
transaction. Monetary assets and liabilities expressed in foreign currencies are translated into Bangladesh Taka at the rate
of exchange ruling at the date of Statement of Financial position.
vi) Translation of closing balances in foreign currencies:
These are converted into Bangladesh Taka at the exchange rate ruling on the date of Statement of Financial Position as follows:

2013
2014

Payables
Receivables
Payables
Receivables

Tk. 78.21
Tk. 78.05
Tk. 77,39
1 US Dollar
Tk. 77.00
(vii) Trade Receivables:
Trade Receivable are stated at their nominal value and considered good. No provision has been made for doubtful debt and no
amount was written off as bad.
(viii)Payables:
Trade payables are stated at their nominal value.
ix) Cash and cash equivalents:
Cash in hand and cash at bank have been considered as the cash and cash equivalents for the preparation of these financial
statements, which were held and available for use by the Company without any restriction and there was insignificant risk of
changes in value of these current assets.
(x) Related PartyTransaction:
The Company has some related party transactions at arm's length basis with its related parties.
xi) Earnings Per Share (EPS):
The Company calculates Earnings Per Share (EPS) in accordance with Bangladesh Accounting Standard, BAS-33, "Earning Per
Share".
xU) Retrial Benefits (Gratuity):
No further provision for retrial benefits (gratuity) has been made as no such provision is required under the Bangladesh Labour
Law.
26UH.R. Textile Mills Limited
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HR. Textile Mills Limited .27
2.3. Depreciation for the year is charged as below:

Particulars
2014
Taka
2013
Taka
Cost of Goods Sold - Note 26.1

57,596,579
Administrative and General Expenses - Note 27.1
6,399,620
63,996,199
3. Stocks and Stores
3.1 The make-up is as follows:
Item
Stock of Yarn - Note 3.2
Stock of Dyes and Chemicals - Note 3.3
Stock of Work-in-Process - Note 3.4
Stock of Finished Products - Note 3.5
Stock of Accessories
Goods in Transit
2014
51,375,512
5,708,390
57,083,902
2013
Quantity
(In Kg.)
Amount
(InTaka)
460,770
88,422
138,306,823
20,836,877
39,600,217
34,716,007
5,985,709
10,961,165
250,406,798
3,658,911
254,065,709
380,973
118,592
124,091,540
22,462,536
19,827,536
23,421,522
8,253,401
5,626,069
203,682,604
3,570,011
207,252,615
460,770
460,770
138,306,823
138,306,823
380,973
380,973
124,091,343
124,091,343
16,943
101,649
118,592
12,054,842
10,407,891
22,462,733
Stock of Spares
Amount
(In Taka)
Quantity
(In Kg.)
3.2 Stock of Yarn

Stock of Yarn
3.3 Stock of Dyes and Chemicals

14,470
Dyes
Chemicals
73,952
88,422
3.4 Stock in Work in Process
Cost of Materials
Cost of Conversion
3.5 Stock of Finished Products
Finished Garments
Knitted Fabrics
4. Trade Debtors
Export Sales Receivable
-
16,344
16,344
10,108,264

10,728,613

20,836,877
29,181,907
10,418,310
39,600,217
7,707,710
12,119,826
19,827,536
28,636,301
6,079,706
34,716,007
-
43,943
43,943
2014
Taka
US$
2,610,310
200,993,885
200,993,885
US$
4,363,647
7,495,476
15,926,046
23,421,522
2013
Taka
340,320,542
340,320,542
These are unsecured but considered good.

5. Export Incentives Receivables
Opening Balance
Less: Received
For the year
Closing Balance
2014
Taka
84,747,154
40,067,177
44,679,977
49,348,161
94,028,138
2013
Taka
64,879,600
23,733,073
41,146,527
43,600,627
84,747,154
The advances are unsecured but considered good.

Iti
6. Advances, Deposits and Prepayments

Advances:
Salary Advance
Operational Advance
Tax deducted at source
Deposits:
Security deposit
Bank Guarantee margin
Lease Deposit
L/C margin
2014
Taka
990,199
7,085,042
11,632,042
19,707,283
2013
Taka
951,100
7,677,000
14,641,584
23,269,684
6,416,121
1,085,070
6,41
1,1 76,989
3,295,220
5,975,179
13,476,370
33,183,653
10,888,330
34,158,014
The advances are unsecured but considered good.

7. Dues to Related Parties
The Company in normal course of business carried out a number of transactions with other entities that fall
within the definition of "related party" contained in Bangladesh Accounting Standard-24 "Related party
DiscIosures' Total balance Sheet exposure with the related parties as at 30th September 2014 is as under:

Name of the related party
Relationship
Nature of Transaction
2014
2013
Taka
Taka

Fashion Knit Garments Ltd
Common Director
Sale of Finished Fabrics
35,000,000
35,000,000
8. Cash and Bank Balances
Cash at Banks with Banks on Current Account:
BRAC Bank Ltd, Dhanmondi Branch, CD A/c
15,850,357
422,710
Islami Bank Bangladesh Ltd, FEX Branch CD A/c
508
Mutual Trust Bank Ltd, Gulshan Branch, CD A/c
221,845
474,369
Mutual Trust Bank Ltd, Guishan Branch, Dollar A/c
17,515,278
9,482,767
Mutual Trust Bank Ltd, Guishan Branch, ERQ A/c
176,523
222,805
HSBC Anchor Tower Branch, CD A/c
764,199
HSBC Anchor Tower Branch, FCY A/c
1,167,044
HSBC AnchorTower Branch, MDA Margin A/c
26,517,256
Trust Bank Ltd, SKB Branch, EURO A/c
915
915
Trust Bank Ltd, 5KB Branch, Dollar A/c
74,122,638
36,016,826
Trust Bank Ltd, SKB Branch, FCAD A/c
791,245
1,114,735
Trust Bank Ltd, 5KB Branch, L/C Margin A/c
752,000
142,000
AS Bank Ltd, Motijheel Branch, FCAD A/c
28,926
29,268
AS Bank Ltd, Motijheel Branch, Dollar A/c
14,091,459
AS Bank Ltd, Motijheel Branch, Back to Back A/c
93,870
AS Bank Ltd, Motijheel Branch, CD A/c
78,738
80,008
AS Bank Ltd, Motijheel Branch, CDA/c
6,807,988
AS Bank Ltd, Motijheel Branch, Notice A/c
2,952,141
1,850,137
AS Bank Ltd, Motijheel Branch, L/C Margin A/c
54,655
146,982,894
64,841,231
With Bank on ShortTerm Deposit Account:
AS Bank Ltd, Motijheel Branch, Dividend A/c
1,391,647
Mutual Trust Bank Ltd, Gualshan Branch, Fixed Deposit A/c
513,500
Mutual Trust Bank Ltd, Gualshan Branch, Fixed Deposit A/c
9,167,581
1,421,237
Trust Bank Ltd, SKB Branch, SND A/c
1,109,345
Southeast Bank Ltd, Principal Branch, STD A/c
865,205
903,638
2,324,875
13,047,278
Cash at Banks
149,307,769
77,888,509
Cash in hand
425,960
369,947
149,733,729
78,258,456
HR. Textile Mills Limited .29
lAnnual Report 2014
9. Bank Overdraft

Trust Bank Ltd, SKB Branch
HSBC AnchorTower Branch, Kawran Bazar,

AB Bank Ltd, Motijheel Branch

2014

Take

12,538,424
21,818,160
2013
Taka
15,275,755

20,699,769
35,975,524
34,356,584
These are secured
10. Loan against Trust Receipts

AB Bank Ltd, Motijheel Branch

Trust Bank Ltd, SKB Branch
These are secured

11. Creditors

For Import Purchases

For Local Purchases

For Buying House Commission

For Dividend Payable

For Staff Income Tax
For Refund Warrant
12,684,300
4,022,488
16,706,788

3,510,858

3,5 10,858
2014
US$

6,062,967

Taka

469,235753
2013
US$
6,016,816

15,635,749

835,822

62,319,489

93,780

371,469

548,492,062
Taka
470,575,169
19,535,284
1,1 35,821
44,996,542
174,874
371,469
536,789,159
These are unsecured but creditors for import purchases are against back to back L/cs.
Gas Expenses (Factory)

Electricity bill
Telephone
Salaries,Wages and Allowances
Insurance Premium for Factory
Security bill
Legal Fee
Auditors' Fee
AGM Expense
13.Provision for Taxation
13.1 The break-up is as follows:
Provision for current tax- Note 13.2
Provision for deferred tax-Note 13.3
13.2 The break-up of provision for current tax is as follows:
Opening balance
Provision for current Income-tax for the year- Note-29
Less: Paid during the year
Closing balance
30. H.R.Textile Mills Limited
667,525
60,000
100,000
1,000,000
35,251,371
2013
Take
11,355,484
46,500
45,633
16,411,845
5,286,027
771,665
60,000
100,000
1,000,000
35,077,154
15,799,329
(1,898,618)
13,900,711
15,976,112
(976,026)
15,000,086
15,976,112
9,741,537
25,71 7,649
(9,918,320)
15,799,329
10,425,309
11,550,803
21,976,112
(6,000,000)
15,976,112
2014
Take
16,650,779
74,136
24,611
16,674,320
12. Accrued Expenses
..,...
Annual Report 2014
13.3 The break-up of provision for deferred taxis as follows:

Opening balance
Provision for deferred tax for the year-Note
Closing balance
29
14 Bills Receivable Discounted

Opening balance
Add: Discounted during the year
Less: Collected during the year
Closing balance
15. Workers' Participation/Welfare Funds
Opening balance
Add: Contributions for the year
Add: Interest during the year
Closing balance
2014
Taka
(976,026)
(922,592)
(1898,618)
2013
Taka
284,815
(1,260,841)
(976,026)
61,958,063
257,963,575
319,921,638
279,102,870
113,734,359
328,781,272
442,515,631
380,557,568
40,818,768
61,958,063
28,367,322
2,939,648
3,191,323
34,498,293
22,41 5,582
3,429,987
2,521,753
28,367,322
No payment has been made from Workers' Participation/Welfare Funds.

16. Even after Balance Sheet date
The Board of Directors of the Company in its meeting held on January 19, 2015 (2013: 29 January 2014)
recommended 12.50% cash dividend i.e.Tk. 1.25 per share ofTk. 10.00 each (2013: 15% cash dividend) for all
shareholders of the company subject to their approval in the AGM.
17. Share Capital

17.1 Authorized:
100,000,000 Ordinary Shares ofTk. 10 each
17.2 Issued, Subscribed and Paid-up:

25,300,000 Ordinary Shares ofTk. 10 each fully paid-up
14,000,000 Ordinary Shares ofTk. 10 each fully paid-up in cash
6,000,000 Ordinary Shares oflk. 10 each issued as fully paid-up bonus shares
2,000,000 Ordinary Shares oflk. 10 each issued as fully paid-up bonus shares
3,300,000 Ordinary Shares ofTk. 10 each issued as fully paid-up bonus shares
25,300,000
I ll
Il l

2014

Taka

1,000,000,000
2013
Taka
1,000,000,000
253,000,000
140,000,000
60,000,000
20,000,000
33,000,000
253,000,000
253,000,000
140,000,000
60,000,000
20,000,000
33,000,000
253,000,000
031
Annual Report 2014
17.3 Composition of shareholdings:

2014
No. of Shares
12,911,855
980,400
163,000
122,220
243,236
1,297,115
9,582,174
25,300,000
Classes of Holdings
Sponsor/Directors
Financials Institutions
ICB
ICB Investors A/c
ICB Mutual Fund
ICB Unit Fund
General Public
Total
2013
51.04
3.88
0.64
0.48
0.96
5.13
37.87
100.00
No. of Shares
12,911,855
1,336,290
178,020
51.04
5.28
0.70
60,836
1,293,615
9,519,384
25,300,000
0.24
5.11
37.63
100.00
Distribution schedule - Disclosures Under the Listing Regulations of Stock Exchanges:

The distribution schedule showing the number of shareholders and their share holdings in percentage has been disclosed
below as a requirement of the"Listing Regulations of Dhaka and Chittagong Stock Exchange'
Shareholdings range in number of shares

00000000001 -00000000499
00000000500 - 00000000500
00000000501 -00000002000
00000002001 -00000005000
00000005001 -00000010000
00000010001 -00000050000
00000050001 -00000100000
00000100001 -00000250000
00000250001 -00000500000
00000500001 and above
Total
No. of
Shareholders
5,879
5,867
825
659
125
42
9
5
3
7
13,421
2014
No. of
Shares
1,258,964
2,933,500
975,023
1,726,300
1,146,921
521,700
955,326
715,409
961,123
14,105,734
25,300,000
Holdings
1%)
4.98
11.60
3.85
6.82
4.53
2.06
3.78
2.83
3.80
55.75
100.00
No. of
Shareholders
5,861
5,811
879
710
201
58
13
6
3
7
13,549
2013
No.of
Shares
1,254,737
2,905,500
884,250
1,727,500
1,154,500
528,000
952,015
840,000
951,264
14,102,234
25,300,000
Holdings
(%)
4.96
11.49
3.51
6.82
4.56
2.08
3.76
3.32
3.76
55.74
100.00
17.4 Option on unissued shares:

There is no option regarding authorized capital not yet issued but can be used to increase the issued, subscribed
and paid up capital through the issuance of new shares.
18. General Reserve
Opening and Closing Balance

2014
Take

6,956,752

6,956,752
.. ....
2013
Take
6,956,752
6,956,752
I I
19. Tax Holiday Reserve

Opening & Closing balance
2014
Taka
22,378,988
22,378,988
2013
Taka
22,378,988
22,378,988
10,000,000
10,000,000
10,000,000
10,000,000
20. Dividend Equalisation Reserve

Opening & Closing balance
21. Capital Reserve
Capital reserve represents re-valuation surplus arising out of revaluation of certain tangible fixed assets of the
company as of 30 September 1995 by a professional velour, following the replacement cost method less
depreciation adjusted there against.
The movement is as follows:
Revaluation surplus
Depreciation charged
Adjustment of revaluation surplus on Discarded Machines
Transfer to Retained Earnings
Closing balance
2014
Taka
52,227,962
(44,107,921)
(6,506,1 26)
(1,613,915)
2013
Taka
52,227,962
(44,107,921)
(6,506,126)
(1,613,915)
79,5 1 2,309
53,859,302
43,182,264
22. Long Term Loan

Long Term Loans - Note 22.2
Deferred L/C Liabilities - Note 22.6
Deferred L/C Liabilities - Note 22.7
22.2 The movement of loans is as follows:

16.50% Loan - Note 22,3
16.50% Loan - Note 23.4
5% Loan - Note 22.5

Opening balance
Loan re-paid
Closing balance
64,000,830
143,513,139
2014

Taka

974,783

78,537,526

79,512,309
2014
Taka
5,000,000
(5,000,000)
97,041,566
2013
Taka
5,000,000
388,767
48,470,535
53,859,302
2013
Taka
19,499,280
(14,499,280)
5,000,000
The loan has been taken from AB Bank Ltd, Motijheel Branch to meet working capital requirement.The loan carries interest
at 13.50% and is repayable in 120 days from the date of creation of each loan.The loan is secured by hypothecation of stock
and machinery, equipment and book debts.
IN....

Opening balance

Loan taken
Loan re-paid

Closing balance

2014

Taka

388,767
1,279,420

(693,404)

974,783

2013
Taka
8,967,175
(8,578,408)
388,767
The loan has been taken from Trust Bank Ltd, Motijheel Branch for import of Plant and machinery.The loan carries interest
at 16.50% and is repayable in 36 monthly installments, starting from 12 January 2014. The loan is secured by hypothecation
of stock, machinery, equipment and book debts.
2014
Taka
48,470,535
47,131,449
(17,064,458)
78,537,526
22.5 The movement of loan is as follows:

Opening balance
Loan taken
Loan re-paid
Closing balance
2013
Taka
48,470,535
48,470,535
The offshore term loan has been taken from The Honkong and Shanghai Banking Corporation Plc, Anchor Tower Branch,
108 Bir Uttam C.R. Dutta Road, Dhaka-1 205, Bangladesh, for import of Plant and Machinery.The loan carries interest at 5%
and is repayable in 16 monthly installments, starting from 1 January 2014.
2014

Taka

43,182,264
(43,182,264)
22.6 The movement of Deferred L/C Liabilities is as follows:

Opening balance

Liabilities paid

Closing balance
2013
Taka
43,182,264
43,182,264
The offshore term loan has been taken from Mutual Trust Bank Limited, MTB Centre, 26 Gulshan Avenue, Gulshan-1,
Dhaka-1 212, Bangladesh, for import of Plant and Machinery at 360 days deferred L/C payment.
2014
Taka
64,000,830
64,000,830
22.7 The movement of Deferred L/C Liabilities is as follows:

Opening balance
Closing balance
2013
Taka
-
The offshore facility has been taken from The Honkong and Shanghai Banking Corporation Plc, Anchor Tower Branch, 108
Bir Uttam C.R. Dutta Road, Dhaka-1 205, Bangladesh, for import of Plant and Machinery at 360 days deferred L/C payment.
23. Provision for Gratuity
Opening and Closing balance
24. Sales
Item
Export sales:
Knit fabrics
Garments
Total
Quantity
(In Kg.)
2014
Amount
(US$/EURO)
1,693,057 kgs 10,628,395

3,446,238 pcs
Amount
(In Taka)
817,924,404
9,51 9,869 733,029,904

20,148,264 1,550,954,308
Quantity
(In Kg.)
1,570,093 kgs
2014
Taka
9,115,426
2013
Taka
9,115,426
2013
Amount
(In USS/EURO)
Amount
(InTaka)
9,189,846 717,267,480
5,620,377 pcs 13,626,554 1,063,552,540

22,816,400 1,780,820,020
25. Export Incentives

Cash Incentive
26. Cost of Goods Sold

26,1 The break-up is as follows:
Materials Consumed - Note-26.2
Salary,Wages and Allowances - Note 26,3
Tiffin & Entertainment expenses
Depreciation - Note 2.3
Stores and Spares Consumed
Factory Conveyance
Power and Gas
Vehicle expenses
Repairs and Maintenance
Packing & Loading expenses
Import Landing, Clearing and Insurance
Factory Stationery expenses
Carriage Inward & Outward
Knitting, Sewing & Processing charge
Factory Insurance
Sewing Machine Rental
Miscellaneous
Total Manufacturing Costs for the year
Add:Opening Work in Process
Total Manufacturing Costs
Less: Closing Work in Process
Cost of Goods Manufactured
Add: Opening Finished Goods
Cost of Goods available for use
Less: Closing Finished Goods
Cost of Goods Sold
2014
Taka
49,348,161
49,348,161
2013
Taka
43,600,628
43,600,628
2014
Taka
1,055,003,405
151025,759
859,630
57,596,579
8,169,356
1,015,696
51,089,841
2,890,281
20,754,063
3,172,470
3,098,632
2,296,354
3,848,634
29,862,470
5,304,804
2,763,435
598,698
1,399,350,107
19,827,536
1,419,177,643
39,600,217
1,379,577,426
23,421,522
1,402,998,948
34,716,007
1,368,282,941
2013
Taka
1,199,021,896
154,046,441
886,694
51,375,512
12,810,884
1,117,808
46,861,468
3,747,032
25,948,258
3,853,602
3,856,930
3,270,264
4,430,324
43,558,336
6,251,783
3,323,288
659,860
1,565,020,380
18,254,536
1,583,274,916
19,827,536
1,563,447,380
20,858,963
1,584,306,343
23,421,522
1,560,884,821
26.2 Materials Consumed

2014
Quantity (Kg)

Yarn

Dyes

Chemicals
Accessories

Total Materials Consumption
FM
2,404,664
159,563
669,234
-

Taka
770,574,562

113,289,630

113,769,863

57,369,350

105 ,003,405
Quantity (Kg)

2,738,786

181,480

760,358
2013
Taka
877,643,818
128,850,740
129,260,895
63,266,443
1,199,021,896
26.3 Salaries, Wages and Allowances

Employees drawing Tk. 5,300 or more
Employees drawing less than Tk. 5,300
Total
2013
Taka
No.of Employee
76,859,300
625
77,187,141
1,245
154,046,441
1,870
2014
Taka
No.of Employee
78,356,983
627
72,668,776
1,230
151,025,759
1,857
2013
Taka
2014
Taka
27. Administrative, Selling and General Expenses

2,600,000
50,535,870
4,110,285
5,708,390
2,193,935
1,639,557
60,000
100,000
2,052,630
1,962,906
3,691,208
3,523,445
5,042,173
5,685,451
934,030
6,514,194
20,544,098
46,527,167
28,561,504
1,535,643
193,522,486
2,600,000
50,562,660
4,408,330
6,399,620
1,935,840
1,232,922
60,000
100,000
1,263,500
1,553,563
2,519,269
2,230,583
5,049,644
5,769,269
956,300
3,560,360
17,245,758
35,952,258
26,787,514
956,980
171,144,370
Directors' Remuneration - Note 27.2

Salaries and Allowances - Note 27.3
Security Service charge
Depreciation - Note 2.3
Postage, Courier,Telephone and Fax
Traveling and Conveyance
Legal and Professional expenses
Auditors' Fee - Note 27.2
A.G.M expenses
Registration and Fees
Staff welfare
Stationery expenses
Office Repairs and Maintenance
Vehicle expenses
Entertainment expenses
Buying House Commission
Freight Charges & Freight out
Interest expense- Note 27.4
Bank Charges
Miscellaneous
Total
27.2 No remuneration or fee, other than that specified in note 27.1, was paid to directors and auditors.
27.3 Salaries and Allowances:
Employees drawing Tk.5,300 or more
Employees drawing less than Tk.5,300
2014
Taka
No.of Employees
45,680,560
97
4,882,100
35
50,562,660
132
Interest on Lease Finance

Interest on Workers' Participation/Welfare Funds
Interest on Long Term Loans
Interest on Loan againstTrust Receipt and Bills Discount
Interest on Bank Overdraft

Rental income

Interest on fixed deposits with banks
29. Provision for Taxation

Current Tax expense

Deferred Tax expense
2013
Ta ka
2014
Taka
27.4 Interest expense is as follows:

Particulars
28. Others Income
2013
No.of Employees Taka
46,732,660
98
3,803,210
33
50,535,870
131
3,191,323
5,704,572
22,969,191
4,087,172
35,952,258
3,602,990
2,521,753
3,956,247
31,476,273
4,969,904
46,527,167

2014

Taka
365,400
492,055
857,455
2013
Taka
365,400
1,650,991
2,016,391

9,741,537

(922,592)

8,818,945
........ ,,
11,550,803
(1,260,841)
10,289,962
II
I I
30. Remuneration/Payments to Directors/Officers:

30.1 The aggregate amount paid/provided during the year in respect of directors and officers of the company as defined in the
Bangladesh Securities and Exchange Rules, 1987 are disclosed below:
2014
Particulars
Remuneration
Basic salary
House rent allowance
Other benefits and perquisites
Directors
Officers
2,600,000
-
-
-
2,600,000
30,337,590
15,168,795
5,056,275
50,562,660
Directors
2,600,000
-
-
-
2,600,000
2013
Officers
30,081,520
15,440,760
5,01 3,590
50,535,870
30.2 No compensation was allowed by the company to its Managing Director.

30.3 No amount of money was spent by the company for compensating any member of the board for services rendered
except as stated above.
31. The Company has obtained bank credit facilities from the following banks
Bank& Branch Name
Type of facility
I I I I
Utilised
Taka
500,000,000
50,000,000
100,000,000
20,000,000
5,000,000
45,000,000
15,000,000
68,390,740
803,390,740
Taka
-
-
-
-
-
-
-
-
-
- Unutilised
2014
2013
Taka
Taka
500,000,000 463,789,842
50,000,000 50,000,000
100,000,000 73,334,000
20,000,000
(699,769)
5,000,000
45,000,000 32,3 1 5,700
15,000,000
3,230,107
68,390,740 68,390,740
803,390,740 690,360,620
Back to Back Letter of Credit

IBP
Cash Letter of Credit
Trust receipt
Overdraft
Bank guarantee
Term Loan
450,000,000
100,000,000
45,000,000
40,500,000
20,000,000
1,000,000
2,500,000
659,000,000
476,415,480
40,818,768
7,520,000
3,510,858
12,338,424
-
1,279,420
542,082,950
(26,415,480) (75,844,668)
59,181,232 64,707,937
37,480,000 43,488,960
36,989,142 36,477,512
7,461,576
4,724,245
1,000,000
1,000,000
1,220,580 14,571,233
116,917,00 89,125,219

Sight L/C & EDF
280,000,000
100,000,000
380,000,000
23,751,825
87,448,360
111,200,185
256,248,175 148,953215
12,551,640 50,000,000
268,799,815 198,953,215
AB Bank Ltd.
Motijheel Branch, Dhaka

Cash Letter of Credit
IBP
Overdraft
Time Loan
Trust receipt
Bank guarantee
Term Loan
Trust Bank Ltd.

5KB Branch, Dhaka
Mutual Trust Bank Ltd.

Guishan Branch, Dhaka
HSBC
Foreign Exchange Limit
AnchorTower, 108 Bir Uttam Import Line (PRM)
C.R. Datta Road, Dhaka-1 205 Import Line
Overdraft
Bank guarantee
Term Loan
Export Cash Limit
Credit Card
I' '1
Limit
20,000,000
395,000,000
280,000,000
40,000,000
20,000,000
20,000,000
54,000,000
1,200,000
830,200,000
96,829,950
84,889,137
21,818,160
10,850,700
213,987,947
20,000,000 20,000,000
298,1 70,050 395,000,000
195,510,863 280,000,000
18,181,840 40,000,000
9,149,300 20,000,000
20,000,000 20,000,000
54,000,000
5,529,465
1,200,000
1,200,000
616,212,053 781,729,465
H.R. Textile Mills Limited . 37
Annual Report 2014
32. The analysis of consumption of materials and spares as to origin is as below

2014
Taka
%

343,913,271
32.35
Imported

719,259,490
67,65
Local
1,063,172,761
100,00
2013
Take
34.83
422,023,137
65.17
789,809,643
100.00
1,211,832,780
33. The capacity and actual production of the company are as follows
Item
Finished Garments (Lac Pcs.)
Knit Fabrics ( MIs.)
Capacity
84
Actual
Production
34.46 (2013:56.20)
Percentage (%)
of achievement
41.20 (2013:66.90%)
2,990
2,255 (2013:1,570)
75,41 (2013:52.51%)
34.The Company's transaction with the related parties are as follows

Related Party
Nature ofTransaction
Export Sale
2014
Taka
817,924,404
Receivable
35,000,000
2013
Take
689,626,316
35. General
35.1 There was no sum for which the company was contingently liable as on 30 September 2014 and 2013.
35.2 There was no claim, except an aggregate amount of Tk. 23,451,403(2013: 26,019,493) claimed by the Tax Authority
but appealed against by the company, not acknowledged as debt as on 30 September 2014 and 2013. Such claim,
being contingent liability, needs not be provided for.
35.3 There was no credit facilities available to the company, except trade credits and back to back L/c facilities, during the
years ended 30 September 2014 and 2013.
35.4 There was no foreign shareholder of the company as on 30 September 2014 and 2013 and no dividend was remitted
to any foreign shareholders during the years ended 30 September 2014 and 2013.
35.5 There was no capital expenditure contracted but not incurred or provided for at 30 September 2014 and 2013.
35.6 There was no capital expenditure authorised by the Board but not contracted for at 30 September 2014 and 2013.
The annexed notes ito 35 form an integral part of these financial statements.
4iUIIah
Company Secretary
Dated: Dhaka
January 19,2015
38 a H.R. Textile Mills Limited
Director
A.Moyeen
Director
Moyeedr
Managing Direct

Mandel (7th Floor), House # 3
Road # 5, Block # J, Baridhara, Dhaka-1 212
PROXY FORM
I/We .................................................................................... of........................................................................................................................
.........................................................being a shareholder of H.R. Textile Mills Limited here by appoint
Mr./Mrs/Ms.....................................................................................................of......................
as my proxy to attend and vote for me on my behalf at the 30th Annual General Meeting of the company to
be held on 31st March 2015 at 10:30 a.m. at the Spectra Convention Centre Limited, King's Hall,
House# 19, Road #7, Gulshan-1, Dhaka-1212 and at any adjournment thereof.
As witness my hands this ...................day of March 2015
Signature of Proxy ....................
Revenue
Stamp
Tk 10.00
Signature of Shareholder...............................................................
Registered Folio / BO No.
Important:
1. This Form of Proxy duly completed must be deposited at the Company's Dhaka Office at least 48 (forty eight) hours
before the meeting. The proxy will not be valid if it is not duly stamped and signed. Signature of the Shareholder(s)
and the Proxy must agree with the respective specimen signatures recorded with the Company.
2. A member of the Company may only be appointed as Proxy.
ATTENDANCE SLIP
Mr./Mrs . .............................................................................................. Folio / BO No.............
I hereby record my presence of the 30th Annual General Meeting of H.R. Textile Mills Limited to be
held on 31st March 2015 at 10:30 a.m. at the Spectra Convention Centre Limited, King's Hall,
House# 19, Road #7, Gulshan-1, Dhaka-1212.
Authorized Signature
Signature of Shareholder/ Proxy
Note: Shareholders attending the meeting in person or by proxy are requested to complete the attendance slip and
hand it over at the registration counter of the meeting hail. Valued shareholders may kindly note that the entry of non
members is restricted.
III]
I I I I..............................
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Annual Repo

IH.R.TEXTILE MILLS LIMITED

Professor Mohammad Abdul Momen

Mr. Mohammad Abdul Moyeed

Professor (Dr.) Muhammad Abdul Moyeen

Professor Mushtaque Ahmed

ATA KHAN & Co.

Share & Corporate Office

Mirandel (2nd Floor)

Operational Office & Factory

4, Karnapara (Near Bank Town)

20 H.R.Textile Mills Limited

21St APT" 2014

HR. Textile Mills Limited 03

Annual Report 2014 J

4 H.R. Textile Mills Limited

Notice of the 30th Annual General Meeting

H.R. Textile Mills Limited .5

For the year ended 30 September (Tk. in '000)

1,550,954 1,780,820 1,618,091 1,787,093 1,192,399

263,536 240,413 261,344

Net Profit before tax

Net Profit after tax

Basic Earning per share ofTk. 10

Cash Dividend per share of (Tk.10)

Stock Dividend (for 10 shares)

1,273,244 1,233,793 1,203,178 1,154,709 1,102,704

397,762 377,403 326,334

253,000 253,000 220,000

Key Financial Ratios, Figures and Market Data

Return on Investment (%)

Net Assets Value per share (Tk. 10)

Market value of share (at DSE)Tk.

Market value of share (at CSE) Tk.

Closing value per share ofTk. 10

Price Earning Ratio (Based on DSE price) (Times)

The Financial Express on 12th February 2015

Price Earning Ratio (Based on CSE price) (Times)

The Financial Express on 12th February 2015

6 H.R.Textjle Mills Limited

Message from the Chairman

significantly, which had also negative impact on

As per the Provision of the Articles of the

H.R.Textile Mills Limited. 7

UAnnual Report 2014

enjoying about 5% of the World's Apparel market;

assacl Abdul Momen

Report of the Board of Directors

"Bismillah Hir Rahmanir Rahim"

Cost of Goods Sold

Net Profit Before Tax

1 Professor M.A Momen

2 Mr. M.A Moyeed

3 Professor Dr. M.A Moyeen

4 Professor Mushtaque Ahmed

5 Mr. Md. Kabiruzzaman

6 Ms. Ruhey Rawa

3 Ms. Sumbal Azwad Momen

8 Ms. Sana Kainat Moyeen

The above business operational result, reflects

With the passage of time, the compliance issues in

H.R. Textile Mills Limited .9

The Board remained vigilant on the overall

10. H.R.Textile Mills Limited