KYCR Coil Industries Ltd. - Dhaka Stock Exchange

INFORMATION MEMORANDUM 

OF 

KYCR COIL INDUSTRIES LIMITED 

for 

Public offering of 30,000,000 ordinary shares of Tk. 10/- at an issue 

price of Tk. 90 each including premium of Tk. 80 per share 

under book building method. 

Credit Rating Status 

Rating Company Credit Rating Information and Services Limited 

(CRISL) 

Long Term AA- 

Short term ST-3 

Date of Rating: 01 November 2010 

Manager to the Issue 

Rahman Chamber (3 rd floor) 

12-13 Motijheel C/A, Dhaka- 1000 

Tel: 9515468,9515469 

Fax: 88-02-9515467

TABLE OF CONTENTS 

Section I: Definition and Elaboration 

Page No 

5 

General information 7 

Section II: Capital Structure & Use of IPO Proceeds 7 

Summary of Annual General Meeting of KYCR Coil Industries Limited 8 

Use of IPO proceeds and utilization plan 8 

Section III : Description of business 10 

Overview of the Group 10 

The Project 10 

Nature of Business 11 

Description of Products 11 

Process Flow Charts 12 

Details of Manufacturing of Products (Galvanized Products) 14 

Market Overview 16 

Strengths of KYCR Coil Industries Limited 17 

Internal Controls & Corporate Practices 20 

Relative contribution of Products contributing more than 10% of the total revenue 20 

Associate, Subsidiary/Related Holding Company 21 

Competitive condition in business 21 

Sources and availability of raw materials and principal suppliers 21 

Distribution of product/services 22 

Sources of, and requirement for power, gas and water or any other utilities 22 

Customers providing 10% or more revenues 22 

Contract with principal customers and suppliers 22 

Material patents, trademarks, licenses or royalty agreements 23 

Number of Employees 23 

Capacity and current Utilization 23 

Section IV: Description of property 24 

Section V: Financial Condition and Plan of Operation 25 

Internal and external sources of fund 25 

Material Commitment for Capital Expenditure 25 

Causes for any Material Change from Period to Period 25 

�� 27 

Known trends, events or uncertainties 27 

Changes in the assets of the company used to pay off any liabilities 27 

Loan taken from holding/parent company or subsidiary company 27 

Loan given to holding/parent company or subsidiary company 27 

Future capital expenditure 28 

VAT, income tax, customs duty or other tax liability 28 

Operating lease agreement 28 

Financial lease and other financial commitment 28 

Personnel related scheme 28 

Revaluation of Assets 29 

Transaction with subsidiary/holding company or associate companies 29 

��ing allotment of shares to sponsor shareholders 30 

Material information which is likely to have an impact 30 

Section VI: Directors and officers 31 

Information regarding directorship 31 

Directors' involvement in other organization 31

TABLE OF CONTENTS 

Family relationship among Directors and top five officers 

Page No 

32 

Short bio-data of the directors 32 

Credit Information Bureau (CIB) report 32 

Description of senior executives and department heads 33 

Section VII: Involvement of Directors and officers in certain legal proceedings 34 

Certain Relationships and Related Transactions 34 

Directors' facilities 35 

Executive Compensation 35 

Remuneration paid to top five salaried officers 35 

Aggregate amount of remuneration paid to directors and officers 35 

Remuneration paid to directors who was not an officer of the company 35 

Future compensation to Directors or Officers 35 

Options granted to Directors, officers and employees 36 

Transaction with the Directors and subscribers to the Memorandum 36 

Tangible assets per share 36 

�� 36 

Shares held by Directors/shareholders 36 

Shareholding structure for 5% or more 37 

Securities owned by the officers 37 

Section VIII: Determination of offering price 38 

Indicative Price for Book Building Purpose 38 

Determining price under Book Building Method 42 

Section IX: Allotment, Subscription and Market 44 

Market for the securities being offered 44 

Description of Securities outstanding or being offered 44 

Debt securities 45 

Section X: Risk factors & management perceptions about the risks 46 

Section XI: Corporate Directory 49 

Section XII�� 50 

Audited Financial Accounts 51 

��I of schedule III to 

Companies Act, 1994 

80 

Ratio Analysis 84

SECTION I 

DEFINITION AND ELABORATION 

Term Description 

AGM Annual General Meeting 

Banker to the Issue 

means banks so named in the Information Memorandum to collect 

money as subscription against security 

Bidder 

means the eligible institutional investors; 

Book Building means the process by which an issuer attempts to determine the price 

Method 

to offer its security based on demand from institutional investors; 

CDBL Central Depository Bangladesh Limited 

CI Corrugated Iron 

CIB Credit Information Bureau of Bangladesh Bank 

Commission/fees 

means any money paid to any person in connection with public offering 

of security under these Rules; 

CR Cold Rolled 

CRCA Cold Rolled Close Annealed 

CRFH Cold Rolled Full Hard 

CSE Chittagong Stock Exchange Limited 

Cut-off Price 

means the lowest price offered by the bidders at which the total issue 

could be exhausted; 

DSE Dhaka Stock Exchange Limited 

EGM Extra Ordinary General Meeting 

EIIs Eligible Institutional Investors 

EPS Earnings Per Share 

Floor price 

means the lowest price of the price band within which the eligible 

institutional investors shall bid for security under Book-Building Method 

GCI Galvanized Corrugated Iodized 

HR Hot Rolled 

means the price which the issuer indicates in the draft Information 

Indicative price Memorandum taking input from the eligible institutional investors on 

which the bidders bid for final determination of price; 

Initial Public 

Offer/IPO 

means first offering of security by an issuer to the general public 

ISSUE Book Building of Shares of KYCR 

KW Kilo Watt 

KYCR KYCR Coil Industries Limited 

NAV Net Asset Value 

Non-Resident 

Bangladeshi (NRB) 

NOF 

means an expatriate Bangladeshi or who has dual citizenship or 

possesses a foreign passport bearing an endorsement from the 

concerned Bangladesh Embassy to the effect that no visa is required for 

him to travel Bangladesh 

Non-Oxidizing Furnace

Term Description 

means a method of determining the price for a specific security through 

Price Discovery 

demand and supply factors related to the market 

means any document prepared for the purpose of communicating to the 

Information 

general public an issuer's plan to offer for sale of its security under the 

Memorandum 

prescribed Regulations; 

means public issue of security through initial public offering or repeat 

Public Issue 

public offering 

R & D Research & Development 

means the merchant banker or any person employed by the issuer 

registered with or approved by the Commission for carrying on the 

activities in relation to an issue including collecting applications from 

investors, keeping record of applications and money received from 

Registrar to the 

investors, keeping record of applications and money received from 

Issue 

investors or paid to the seller of security, assisting in determining the 

basis of allotment of security, finalizing the list of persons entitled to 

allotment of security and processing and dispatching allotment letters, 

refund orders or certificates and other related documents 

RJSC Registrar of Joint Stock Companies & Firms 

Road Show 

means presentation by an issuer of security to potential investors about 

its issuance of security 

SEC The Securities and Exchange Commission 

Securities Shares of KYCR 

Securities Market The Stock Market of Bangladesh 

VAT Value Added Tax

General information 

i. Alliance Financial Services Limited (AFSL) have prepared the Information 

Memorandum based on information provided by KYCR Coil Industries Limited (KYCR) 

(the Issuer Company) and also upon several discussions with the Chairman, Managing 

Director, Directors and concerned executives of the issuer company. The Directors of 

KYCR Coil Industries Limited and Alliance Financial Services Limited collectively and 

individually, having made all reasonable inquiries, confirm that to the best of their 

knowledge and belief, the information contained herein is true and correct in all 

material aspects and that there are no other material facts, the omission of which 

would make any statement herein misleading. 

ii. No person is authorized to give any information or to make any representation not 

contained in this Information Memorandum and if given or made, any such 

information and representation must not be relied upon as having been authorized by 

the issuer company or issue manager. 

iii. The Issue as contemplated in this Information Memorandum is made in Bangladesh 

and is subject to the exclusive jurisdiction of the Courts of Bangladesh. Forwarding 

this Information Memorandum to any person resident outside Bangladesh in no way 

implies that the issue is made in accordance with the laws of that country or is 

subject to the jurisdiction of the laws of that country. 

iv. A copy of this Information Memorandum may be obtained from the Corporate Head 

Office of KYCR Coil Industries Limited, Alliance Financial Services Limited, the 

Underwriters and the Stock Exchanges where the securities will be listed.

SECTION II 

CAPITAL STRUCTURE & USE OF IPO PROCEEDS 

Particulars No of shares Amount 

Paid up Share Capital as on 31 December 2009 65,120,000 651,200,000 

Bonus Share Issued in 2010 65,120,000 651,200,000 

Paid up share Capital as on 31 October 2010 130,240,000 1,302,400,000 

Proposed IPO (Initial Public Offering) 30,000,000 300,000,000 

Total Capital after IPO 160,240,000 1,602,400,000 

Summary of Annual General Meeting of KYCR Coil Industries Limited 

AGM Date of AGM AGM Date of AGM 

1 st AGM 31 December 1996 9 th AGM 30 December 2004 

2 nd AGM 31 December 1997 10 th AGM 29 September 2005 

3 rd AGM 31 December 1998 11 th AGM 18 September 2006 

4 th AGM 31 December 1999 12 th AGM 30 September 2007 



7 th AGM 31 December 2002 15 th AGM 25 August 2010 

8 th AGM 31 December 2003 

USE OF IPO PROCEEDS AND UTILIZATION PLAN 

Entire proceeds of the IPO shall be utilized for the proposed addition of CR Coil unit-2, 

introduction of Color Coating Line, expansion of Galvanizing Line and the balance amount shall 

be used as working capital as well as repayment of bank loan of the company. 

CR Coil Mill 

The new unit will be equipped with 1250mm single stand 6hi CVC cold rolling mill with annual 

rated capacity of 120,000 MT per annum. This will increase the current capacity by two fold and 

will allow KYCR to provide wider ( 1250mm) width material for better positioning in the 

International market for wider width product range. Currently, no other mill in Bangladesh 

offers 1250mm CR and honing into this capacity and product range expansion, KYCR will be 

able to market its product for more diverse customer and product range, domestically and 

globally.The plant will be installed in the same site of the existing one, to be imported from 

Deniali, Italy as a turnkey basis. Total cost of the plant estimated to be Tk 1509.68 million and 

expected to commence operation within December 2012.

Color Coating Line 

Colour coated sheets will allow KYCR to offer a product base that has a specialized market. In 

addition, having colour coated product in the existing product portfolio will allow the Company to 

capture more market share of our dealers and customers, which is currently being catered by 

other colour coated manufacturers. The state of the art colour line will also have the technology 

to offer panel and other household finished application that will allow KYCR to offer higher value 

added products to its market. The line will have production capacity of 36,000 TPA based on ref. 

size of 0.50 mm thickness X 1250 mm wide @20.4 mm line speed @ 6000 working hours. It will 

also be installed in the same factory site at an estimated cost of Tk 510.16 million. 

Galvanizing Line 

A second unit of fourth generation NOF ( Non Oxidized Furnace) technology having wider width 

and heat based Coat Galvanizing Line with Strip thickness from 0.10 to 0.60 and strip width of 

650 mm to 1250 mm to be implemented. Machineries of the plant will be brought from 

Germany/India at an estimated cost of Tk 485.65 million. This plant will not only produce 

superior quality galvanized sheet, but will also meet the �� drive to offer fully 

environment-friendly product as well as manufacturing process. It is expected to go into 

operation within December 2011. 

Proposed expenditure plan is summarized as follows: 

Sl. 

No. 

Utilization of Funds 

Amount 

(million) 

Tk. 

Implementation 

Target 

1 CR Mill-2 nd unit 1,509.68 December 2012 

2 Color Coating 510.16 December 2011 

3 Galvanizing Line 485.65 December 2011 

4 

Working Capital/ re-payment of bank 

loan 

Balance amount Continuous

SECTION III 

DESCRIPTION OF BUSINESS 

Overview of the Group 

KDS Group is one of the most renowned business and industrial conglomerates of Bangladesh, 

based mainly in the port city of Chittagong having extensive operations throughout the country. 

It has also established offices and agencies in Singapore, Hong Kong and is expanding into 

United Kingdom, thereby paving the path into becoming a Bangladeshi based multinational. 

The group was founded in 1983, through the establishment of one of the first garments 

industries of Bangladesh, and over the last 27 years, through innovation, dynamism, untiring 

effort and dedication, the business in terms of assets and revenues have grown exponentially by 

sometimes over 500% a year. The fields of business have also extended from being just apparel 

exports to a whole array of other industries. Today the total group can proudly declare over USD 

350 million of annual revenues in total, with over 8000 employees, staff and workers. 

KDS values human capital and is therefore committed to attract, groom and nurture talent 

through competitive compensations and benefit packages apart from investing in training of its 

potential employees under local as well as foreign trainers. KDS has engaged the internationally 

�� 

Resource Management practices such as appraisal through the Balance Score Card method, 

talent mapping, etc. 

The Group adheres to international compliance requirements closely, and has taken many social 

initiatives for the betterment of the lives of its workforce, going even beyond foreign 

requirements. KDS is always keen on taking new challenges and initiatives supported by the 

robust financial appetite it enjoys along with the open support of all major financial institutions 

in Bangladesh based on their healthy business track record with each of them. 

KDS group has interests in various sectors that includes but does not limit by the following: 

Apparel/Garments Other trading operations Insurance 

Private Port � Inland Container Information & Communication Investment 

Depot 

Technologies 

Management 

Textiles IT Training Services Banking 

Apparel Trims & Packaging Shares and securities trading Steel 

The Group is also extensively involved with a large number of activities in relation to corporate 

social responsibility and philanthropic initiatives. 

The Project 

The Compa�� th November 

1995 as a Private Limited Company registered under the Company Act, 1994 bearing 

registration number CHC-��i 

Chowdhury Road, Khatungonj- Chittagong, with factory at Boro Kumira, 25 kilometers away 

from Chittagong main city. 

The plant has been setup as a backward integration effort to provide necessary raw material for 

��l as the surplus to other consumers in the industry. 

The plant notably is the only European plant of its kind in the country, supplied by SMS

DEMAG Germany, a world leader in this sector. The brand name of its corrugated sheet product 

is popularly known as �� 

The Complex which is built on a 11.0421 acre site, houses pickling line, 6 Hi CVC cold rolling Mill 

Slitting and rewinding line with an annual capacity of 120,000 Metric Tons of CR Coil,100% 

Hydrogen based 4-base Annealing with 21,000 Mt. annual capacity, 4-hi Skin Pass mill,multislitter 

line and Coil to coil/coil to sheet fully automated NOF TYPE Galvanizing plant for 70000 

MT. Commissioned under direct supervision and technical assistance of SMS DEMAG Germany, 

the result is a continuous and efficient supply of flawless quality product unrivalled by any other 

in the industry, thus enabling us to be the most reliable supplier of cold rolled sheet in the 

region. The Company has got its office in Chittagong city and also got liaison office at Dhaka. 

Sales are generally done through more than 800 active dealers across the country. 

Events Dates 

Incorporation as a Private Company 04 November 1995 

Acquisition of CR Coil Plant (SMS, Demag, Germany) 2001 

Commercial Operation of CR Coil Plant 01 February 2002 

Commercial Operation of NOF Plant 2008 

Entry to Export Market 2005 

Conversion into Public Limited Company 31 July 2010 

Nature of business 

The main objectives of the company is to own and establish mills, factories and workshop for 

manufacturing CR Coil, GCI Sheet, Galvanized plain Sheet etc. of all kinds and description; and 

to purchase or import raw materials to manufacture the same and its by-products and marketing 

the products and by-products locally and abroad. 

Description of Products 

The Company maintains its standards in the manufacturing of the products. The Company 

ensures qualities to meet the international standards such as ASTM, JIS, SI & BS etc. The 

Company produces various types of steel products that are as follows: 

Sl. 

No. 

Product Form/Grade Thickness Width 

1 Cold Rolled Full Hard Coil/JIS G 3141 SPCC - 0.095 mm 762 MM. to 

(CRFH) 

1B/1D for base metal uses 

(main input) of galvanizing 

to 0.45 mm 1050 MM. 

plant to produce GP/GCI 

2 Cold Rolled Close Annealed 

sheet to use for roofing and 

fencing/doors etc 

Coil and Sheet/ JISG 3141 0.3 MM to 660 mm to 

(CRCA) 

SPCC-SD/SB for various 1.6 MM 1050 mm 

appliances like barrels & 

drum/containers, automobile 

body, electric panels and 

engineering fabrications. 

3 Galvanized steel sheet in Sheet & Coil/ JIS G3302 0.11 MM to 762 MM to 

coil and sheet 

SGCH FULL HARD ZINC 0.5 MM 1050 MM 

COATED Z- 90GSM TO Z-180 

GSM, REGULAR SPANGLE, 

CHROMATED 

DRY,BRIGHT FINISH. 

AND

4 Galvanized Plain and 

Corrugated Sheet 

Process Flow Charts 

Iron ore/ limestone etc. 

NOT IN BANGLADESH 

Galvanized 

Corrugated Sheet 

Steel Manufacturing 

Plant 

Cold Rolled Coil 

Galvanization Plant 

NOF 

Sheet/ JIS G3302 SGCH FULL 

HARD ZINC COATED Z- 

90GSM TO Z-180 

GSM,REGULAR 

SPANGLE,CHROMATED AND 

DRY,BRIGHT FINISH. 

Hot Rolling 

Plant 

Cold Rolling Plant 

0.11 MM to 

0.5 MM 

Zinc for galvanization 

Hot Rolled COIL 

600 MM to 

815 MM 

where length 

�� 

Following flowchart shall explain the broad path of formation of GCI (Galvanized Corrugated 

Iodized) sheet starting from the iron ore. 

As shown above, Hot Rolled coils that are imported goes through cold rolling plant to produce 

cold rolled coils. The coils are then taken for galvanizing in the galvanizing plant along with zinc 

�� 

ft.(L)Again, these cut sheet goes to FORMING MACHINE where GCI(CORRUGATED SHEET) are 

produced as a final product to use for roofing and fencing etc.. �� 

Galvanizing NOF Line 

BP coils are used as raw materials for galvanizing under NOF technology. Following such, surface 

cleaning is done by non-oxidizing furnace at 950 deg C. Then it goes through molten zinc bath 

for galvanizing at 460 deg C. For non-oxidization, it goes into the passivation section and after 

drying, it is recoiled or sheared. Finally, corrugation is carried out in different width as per 

parties demand.

EDD Grade HRC 

Input 

Process Flow Chart for CRCA Product 

(Cold Rolled Sheet in Coil JISG 3141 SPCC � 1B/1D ) 

Hot Rolled Coils are used as input (raw materials) for manufacturing Cold Rolled Close Annealed 

(CRCA) product. Following thus, pickling and mill rolling is carried out followed by rewinding, 

annealing, Skin Pass, and Cold Rolled Slitting. 

Hot Rolled Coils are pickled (Acid cleaning that removes Scale from the surface of the strip) and 

processed into cold rolled (reducing the thickness) sheets. Annealing is carried out in a closed 

atmosphere of hydrogen and/or other non-oxidizing gases. It softens the product back up whilst 

protecting it from oxidization. 

The product then goes through Skin Pass Mill (process of removing yield point elongation of 

Annealed sheet) for improving surface finish and flatness of the strip. In this phase, rust 

preventive oil is used and also the shape is controlled. 

RIM Grade 

HRC Input 

Pickling 

6 HI Mill 

Rolling 

CRCA 

Coil(Output) 

Packing 

Rewinding 

CR Slitter 

Process Flow Chart for RIM Product 

Pickling 6 HI Mill 

Rolling 

Annealing 

Output 

Packing 

Annealing 

4 Hi Skin Pass 

4 Hi Skin Pass 

CR Multi Slitter

It is a similar process as CRCA product manufacturing except the input material which is RIM 

grade HRC input, no rewinding, and it goes through CR Multi Slitter. 

Process Flow Chart for CRFH Coil (End Use Galvanizing): 

Pickling 6 HI Mill Rolling 

Rewinding & Side 

Trimming 

DD/EDD Grade 

HRC Input 

To manufacture CRFH Products, rolling is carried out after pickling the raw materials and 

following such, Rewinding & side trimming is carried out in order to produce the output. 

Currently, the company is manufacturing CRFH, CRCA, GPFH, GP, and GCI products. It is 

producing corrugated galvanized sheets from Cold Rolled (CR) Steel Sheets of various 

thicknesses, length and width. Presently, the company has got four manual and an automatic 

galvanizing lines with a total production capacity of about 70,000 MT of galvanized sheets of 

various sizes per annum. GCI (Galvanized Corrugated) sheets are being widely used in 

Bangladesh as roofing materials and also for making the sidewalls of the huts. Present annual 

quantity of production of the company is approximately 60,000 Metric Tons of corrugated sheet. 

The primary raw materials for production are Cold rolled sheet and Zinc to provide anticorrosive 

coating on that sheet. 

The CR (Cold Rolled) sheet is the product of Cold Rolling mill. Only few companies established 

CR mills earlier in the country and KYCR was one of the followers. Previously, all the GCI sheet 

manufacturers used to import CR sheet as raw material. Recently, few indigenous sources are 

available for the CR Sheet. CR sheets are produced from HR (Hot Rolled) sheets which are the 

output of full-fledged steel plant. Till date no such plant is available in the country and 

companies manufacturing CR sheet, imports the HR sheet from foreign countries like Japan, 

Thailand, China and Korea. 

Details of Manufacturing of Products (Galvanized Products) 

Corrugated galvanized sheet is fabricated from the Cold rolled steel sheet of varying 

thicknesses. Some of the specifications of the HR Coil, being imported by the CR Plant are as 

follows. 

i) 1.6 mm x 800 mm 

ii) 1.8 mm x 915 mm 

iii) 2.0 mm x 915 mm 

Output CRFH Coil 

Packing

In the Cold rolling plant the HR Coils are rolled in the room temperature to reduce the thickness. 

The degree of reduction depends on the number of passes, i.e. the number of times the sheet is 

rolled. For example the 1.8 mm HR sheet may be converted into CR sheet of following thickness 

in mm. 

0.156 0.160 0.170 0.176 0.180 0.186 0.190 0.196 0.200 0.210 

If the thickness of the sheet is 2.0 mm or 1.6 mm then reduction of thickness may take place as 

follows. 

For 1.6 mm thick sheet 

0.120 0.125 0.130 0.140 0.150 

For 2.0 mm thick sheet 

0.220 0.230 0.240 0.250 0.260 0.270 0.280 0.290 0.300 0.310 

0.320 0.330 0.340 0.350 0.360 0.370 0.380 0.390 0.400 

There is no scope of change of the original width i.e. 840 mm in the first case and the original 

width of CR coil would be carried throughout the entire transformation. So it is clear that the 

width of the galvanized sheet would be identical as that of the CR coil. Once galvanization 

process is complete, the sheet is passed through the corrugation machine and then effective 

width of the coil is reduced by some proportion as explained below. 

840 mm 

720 mm 

(approx.) 

The reduction of width will depend on the depth of corrugation, but we can assume a reduction 

of 12%-15% of the original width. The depth of corrugation is varied as per the requirements of 

the final width. However it may be mentioned that for effectiveness, a minimum corrugation is 

required beyond which the sheet will not serve its purpose of protection. 

The range of thickness for the CR sheet starts from as low as about 0.095 mm and ends at 0.45 

mm depending on the thickness of original HR sheet used. The lower thickness variety is 

generally used for sidewalls, boundaries etc. whereas comparatively thicker materials are used 

for construction of roof. Sheets are available in five lengths between 6 ft and 10 ft, with 

increment of 1 foot. Width of the sheet also varies from 27 inch to 32 inch as explained above. 

Generally the width increases with the thickness as we can see that 1.6 mm HR has got a width 

of 780/800 mm whereas width of 2.0 mm HR sheet is 915 mm. 

Normally the sheets are sold in pieces, Baans, and Pcs Tons. Baan is a unit exclusively used for 

corrugated sheets, which denotes a running length of 72 feet. In case of 6 ft sheet, 12 sheets 

make a Baan. However, for 7 feet sheets, only 10 sheets make a Baan using rounding off 

technique.

Galvanization is done by platting a very fine zinc layer on the sheets to protect corrosion. There 

are two types of galvanization as per the technology of galvanization line. One is continuous and 

another is discrete type of operation, called CGL and GL respectively. CGL manufacturing is 

continuous operation with very little manual interference. The entire roll of CR sheets are 

galvanized and then cut into pieces with required length. Whereas in GL, roll of sheets are cut 

first and then galvanized manually controlling the zinc consumption. 

Market demand also varies for different types of thicknesses. Demand of lower thickness is 

higher in the market compared to thicker variety. If we consider sheet thickness up to 0.2 mm, 

the market share will be about 70% of the total, when remaining 30% will cater for the balance 

part. 

As already mentioned that Galvanized Corrugated sheets are widely used in Bangladesh 

primarily as roofing materials. At least 75% of the household uses GC sheets for some 

application or the other. These sheets are also used for making wall of the houses, boundaries 

etc. being the most economic option. 

CONTROLLED ANNEALING 

The CRFH coils coming out from 6 HI Mill exhibit high hardness of the order of 90 to 95 HRB, 

which is practically impossible for the forming industry to go for their application. The material is 

then subjected to ANNEALING to get following properties: 

1. Required ductility is achieved to facilitate drawing or any other kind of forming operations. 

2. Uniform grain size imparts uniform properties through out the Sheet (recovery, recrystallization 

& grain growth takes place) 

3. Required mechanical & physical properties are achieved. 

(The tight wound coils are annealed in a protective atmosphere in a Bell Type annealing furnace 

where temperature and protective gas are controlled through high-tech electronic instruments to 

ensure perfect grain refinement and brightness to the strip) 

SKIN PASS MILL 

The purpose of skin passing is to give a controlled light cold reduction. Generally 1% to 3% cold 

reduction is given to the strip by this operation. Gauge correction is never the intension of skin 

passing operation. When annealed strip is given skin pass reduction, the operation imparts to 

the annealed strip a certain degree of hardening while restoring the softness of the core. Also 

the surface finish of the strip is improved by skin passing operation. 

CR SLITTER 

CR Slitter and side trimming line ensures different widths of the coils, tailor made by the 

customer's use with crack free edges. The sheet surfaces are continuously and meticulously 

checked to keep up the standard of quality. 

MARKET OVERVIEW 

This is a product for consumption by the masses, since 75% household uses GC sheet in some 

form or other. There are not many distinctive factors with respect to quality of the product for

major five/six manufacturers and hence main criterion for decision making is the price. 

Unhealthy price war is always going in the market and the market is mainly controlled by the 

dealers and not the manufacturers. 

�� 

market vis-à-�� 

Brand Name of the Manufacturer 

GARU Abul Khair Steel Mills Limited 

HORSE PHP NOF Continuous Galvanizing Mills Limited 

MURGI KYCR Coil Industries Limited 

MORUG S. Alam Steels Limited 

RANI Apollo Ispat Complex Limited 

TOP Karnafully Galvanizing Mills Limited 

Total number of Corrugated Galvanized sheet manufacturer is more than forty in Bangladesh. 

However, only about 25% of them are major suppliers in the market. Rests are either local or 

insignificant players. Following are the names of some major manufacturers in the market in 

order of market share. We have formulated the market share % of each company in terms of 

their Capacity as well as production. 

Name of the 

Organization 

Capacity 

(MT) 

Productio 

n 

(MT) 

AK steel 240,000 200,000 

PHP 200,000 120,000 

KYCR 120,000 75,000 

S.Alam 100,000 50,000 

Apollo 100,000 50,000 

Karnafully 60,000 50,000 

Source: BCRCMEA (Bangladesh C.R. Coil Manufacturers & Exporters Association) Report 

The brand is of more significance than the company to the customers. A single manufacturer 

may produce more than one brands and supply those in the markets concerned. Popularity or 

market share of the brand/manufacturer varies from one region to another. Moreover the 

product is highly seasonal as the consumption picks up during the months November to April. 

Price varies throughout the year as the product is seasonal. Market Price practically does not 

seemingly move in a logical sequence. Manufacturers revise their price every now and then 

depending on their stock and booking position. As a result competition is very high in this 

market and margins also coming down sharply. 

Strengths of KYCR Coil Industries Limited 

The Company has latest machineries and equipment to carry out the factory operations as well 

as administrative activities. The Company has a great amount of investment in the machineries 

and equipment that are productive and effective as well. The CR plant that is unique in the 

country gives the company an edge over its competitors. Besides, NOF technology and heavy 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

Capacity/ Production 

AK steel PHP KYCR S.Alam Apollo Karnafully

capital expenditures on brand new machineries provide the company with competitive edge in 

the industry. 

Existing Controls used in Operations 

AEC: Automatic Edge Drop Control 

AFC: Automatic Flatness Control 

AGC: Automatic Gauge Control 

ATC: Automatic Temperature Control 

CVC: Continuous Variable Crown 

HGC: Hydraulic Gap Control 

IRB: Intermediate Roll Bending 

MZC: Multi Zone Cooling 

WRB: Work Roll Bending 

�� 

1. Human Capital 

i. Appropriate Skills employed for each functional activity that is being benchmarked 

against the best in the industry. 

ii. Suitability of employee and the designated tasks are always monitored. 

iii. A pool of experienced professionals is available with the Company as its management 

carries out extensive programs to recruit, train, select and motivate individuals of 

various backgrounds across the country. 

2. Financial Resources 

i. It has very well-built relationship with the providers of finances to the company. 

ii. Effective Management is carried out for Cash and other resources. 

3. Machinery and Equipment 

i. The company has all brand new machineries purchased from various sources. The 

Plant that was imported from Germany. 

ii. ��ed economic useful 

life and its price competitiveness in the respective marketplace. 

iii. At regular intervals, maintenance and necessary shut-down is carried out. 

4. Material 

i. Backward integration has already been carried out in order to get the accurate raw 

materials at the right time and place. 

ii. Relationship with the suppliers of HR coil has been very sound in the long run so far. 

iii. Low cost of raw materials result in more added profits in the financial context. 

iv. Accurate and timely supply of the raw materials has always been the quest for the 

company and it has enjoyed smooth supply of such materials over the last few 

decades and remained unchanged. 

5. Process 

i. Traditional method such as manual involvement is being focused into sophisticated 

processes whilst the company is expanding its base where large sum of capital 

expenditures are incurred for capital intensive facilities/equipment.

ii. Quality certificate i.e ISO certificate is available with the Company and up to date. 

Quality does bring a change among the consumers regarding the preference in the 

marketplace and hence Total Quality Management practice is carried out as a part of 

contemporary management practices. Quality is never compromised so that the 

customers receive value added products from the Company. 

6. Management Information System 

i. Information is sought out at every layer of the organization on a regular basis and 

timely accurate information serves the key turn for every successful decision 

preciously and concisely. 

ii. For catering the information requirement, the company employed required hardware 

equipment and software facilities; which are KICKS and Troyee. The software serves 

various modules and applications throughout the functional departments. 

iii. The information can be filtered as ERP system is available for a bird eye view as well 

as close watch on each and every transaction and it captures information processed in 

each and every functional area and matches with decision support system and 

management information system. ERP system at the Company brings all the activities 

in a single tray and helps management take prompt yet an informed strategic 

decision. 

7. Management 

i. Management delegates the authority and responsibility to the subordinates who in 

turn execute the actual implementation. Even though this has become a practice, the 

Company has advanced itself by capturing raw data and information from the bottom 

layer of the organization. In this way, it works as a feedback mechanism which would 

ultimately work as feed-forward. 

8. Culture 

i. Organizational Culture is made up of the individuals working in the Company. The 

norms, ethics, value, etc. fall in the category in which normal practices such as 

working hours, approaches in the meeting/seminar/discussion, etc. are evaluated and 

compared with the competitors whilst keeping in mind the welfare of the consumers 

�� 

Besides, the Company has heavy capital investment for the development of Information 

Technology. The IT development in the Company has been provided below: 

Information Technology 

The Company uses total 384 KBPS dedicated internet bandwidth in factory and Head office. The 

head office and factory are connected via radio link. The intranet bandwidth of this connectivity 

is 2 mbps. 

ERP Software: The company uses an ERP (Enterprise Resource Planning) named KICKS 

and TROYEE which are Integrated Client Server Application for assisting all the departments of 

KYCR Steel Industry for precise and instantaneous reporting, decision making, optimizing 

business cost and interdepartmental coordination. Oracle 9i database is used in backend and 

Oracle developer 2000 is used as front end of Kicks and troyee is in SQL server.

Corporate Social Responsibility, Philanthropic Initiatives & Other Significant 

Involvement 

For the last two decades, the current Managing Director of the Group �� has 

been involved in various organizations, clubs & societies and founded school, college and other 

learning centers. He founded Khalil Mir Girls School, Khalil Mir Degree College, Khalilur Rahman 

Shishu Niketon, Saberia Khalilia Senior Madrasha, Khalilur Rahman Mohila Degee College, 

Khalilur Rahman students Welfare Trust and Shandhir Gousia Tayobia Dilwara Begum Senior 

Madrasha, etc. Furthermore, he is a member of few governing bodies; namely S A Noor High 

School, Hulain Saleh Noor College, and Mafijur Rahman Girls High School. 

Besides, He is holding membership with Chittagong Metropolitan Chamber, Chittagong Press 

Club, Chittagong Club, Chittagong Institute, and Bhatiary Golf & Country Club, Chittagong. He is 

the President of Amir Market & Khatnganj business Community as well as Patya Foundation; Exvice 

President of BGMEA (Bangladesh Garment Manufacturer & Export Association); Chairman of 

Pragati Insurance Company Limited, Bangladesh CI Sheet Manufacturers & Exporters Association 

and Bangladesh CR Coil Manufacturers & Exporters Association; Executive Member of 

Bangladesh CI Sheet & GP Sheet Manufactures Association. 

Internal Controls & Corporate Practices 

The Company KYCR Coil Industries Limited employs robust internal controls: 

(1) Supervision at each layer of the Organization 

Management has delegated certain skilled individuals to ensure that the new entrants 

including rookies in the Company are well trained and motivated on a continuous basis. 

Factory Supervision is crucial for the company and therefore the Company employed 

experienced personalities recruited locally and internationally as well. 

(2) Operations 

Operations are handled by the experienced individuals and reporting is made at every 

single interval. The procedures for operational activities are identified and strictly 

adhered to as per guidance provided by the middle layer of the management. 

(3) Accounting 

Inventory calculation, Customer Records, Credit Status, Sales Ledger, etc. are carried 

out through software applications which integrate all the business processes in a chain. 

(4) Physical Assets 

These are safeguarded by the security locks, passwords, locks on doors and other 

defense mechanism. Regular Checks are also carried out in order to ensure that the 

assets are safe and the registered individual is responsible in answering the risk and 

expected outcome if need arises. 

(5) Management Review 

Management review is carried out on appropriate intervals so as to prevent, detect and 

correct any error that has occurred or may occur in the forthcoming period. The review 

can be either financial or non-financial or a combination of both.

(6) Information Strategy 

The Company has its own strategy of being up to date in the industries concerned so 

that more significant contribution can be made for the shareholders of the company as 

well as other stakeholders. 

Relative contribution of Products contributing more than 10% of the total revenue 

The relative contribution to sales and income of each product that accounts for more than 10% 

��31 October 2010 are mentioned below: 

As on 31 October 2010 

Sl. No. 

Name of the 

products 

Contribution to sales (Tk.) 

Local Export Total 

(%) 

1 CRC 1,261,691,967 40,012,038 1,301,704,005 24% 

2 

CI & GP 

Sheet 

3,562,380,936 565,303,265 4,127,684,201 76% 

Total 4,824,072,903 605,315,303 5,429,388,206 100% 

Associate, Subsidiary/Related Holding Company 

The company has no associates, subsidiary/related holding company. 

Competitive condition in business 

Major competitors of the Company with their capacity and production are given below: 

Name of the Organization Capacity (MT) Production (MT) 

1.AK steel Products Ltd 240,000 200,000 

2. PHP Re-Rolling Mills 200,000 120,000 

3. KYCR Coil Industries Ltd 120,000 75,000 

4. S.Alam Cold-Rolled Mills Ltd. 100,000 50,000 

5. Apollo Ispat Ltd 100,000 50,000 

6. Karnafully Steel Mills Ltd 60,000 50,000 

Total Capacity 

Production 

& 

820,000 545,000 

Source: BCRCMEA (Bangladesh C.R. Coil Manufacturers & Exporters Association) Report 

Sources and availability of raw materials and principal suppliers 

Sl 

no 

1 

2 

Name of Principal 

suppliers 

KOBE STEEL/ Metal 

One Corporation 

Steel Authority Of 

India Ltd 

Address 

3-23-1, Shiba, Minato-Ku, Tokyo 

105-0014 Japan. 

Central Marketing Organisation 

Ispat Bhawan" 40, Jawaharlal 

Nehru Road Kolkata-700 

071,India 

Name of the raw 

Materials 

Prime Hot Rolled Steel 

Sheet in Coil (HR Coil) 


Sheet in Coil (HR Coil)

3 

4 

5 

6 

NIPPON STEEL 

JAPAN/Marubeni- 

Itochu Steel Inc. 

POSCO/Sk Networks 

Co Ltd 

Stemcor (S.E.A) Pte 

Ltd. 

Eco Tropical Resources 

Pte Ltd 

7 G-Steelmet Pte Ltd 

Distribution of product/services 

Nihonbashi 1-Chome Bldg, 4-1 

Nihonbshi 1-Chome, chuo-Ku, 

Tokyo, 103-8247, Japan 

Sk Myung-Dong Bld, 199-15, 

Ulchi Ro 2-Ga, Chung-Gu, Seoul, 

korea 

350 Orchard Road Unit 20-04 

Shaw House Singapore 

531 Upper Cross Street 03-45 

Hong Lim complex, Singapore 

050531.3Shenton Way, Shenton 

House 08-09, Singapore 068805 







Lme Registered Brand SHG 

Zinc Ingots 

Lme Registered Brand SHG 

Zinc Ingots 

The product distribution is mainly depends on the dealers, distributed within the country. The 

�� 

Then they distribute products amongst sub-dealers who in turn sell those to retailer. 

Presently at the time of preparation of this manual there are more than 800 active dealers in the 

country, who do business with KYCR throughout the year, irrespective of season. Besides, there 

are some who do business during the season only, i.e. between December and May. The Region 

wise number of dealers are given below: 

Belts Region Number of Parties 

Sylhet B.Baria, Hobigong, Sylhet 97 

Bogra Bogra, Pabna 53 

Rajshahi Nator, Noagaon, Nababgong 30 

Barishal Barishal, Perozpur, Faridpur, Patuakhali 65 

Dhaka Dhaka, Narayangonj, Gazipur 96 

Mymenshing Mymenshing, Tangail 40 

Chittagong �� 142 

Rangpur Rangpur, Thakurgaon 47 

Comilla Comilla, Noakhali 147 

Faridpur Razbari, sariatpur 33 

Khulna Khulna, Jessore, Meherpur, Kustia, Chuadanga, 

Magura, Jhenaidha 

51 

Sources of, and requirement for power, gas and water or any other utilities 

Power is very much essential for the factory operation. Any power interruption may cause the 

Company to lose smooth production. 

Power: The Company has accorded consent from Power Development Board (PDB) for a 

capacity of 10 MW. Besides, HT line 33 KV is also available for the Company. For NOF plant, 

captive power plant (by Gas Generator) having capacity of 2 MW was installed and currently 

running at 50% utilization. 

Gas: Karnafully Gas Distribution Company Limited provides uninterrupted gas supply to the 

Company. 

Water: The Company has unlimited water supply from own installed deep tube-well at all times 

throughout the factory and office premises.

Customers providing 10% or more revenues 

No single customer provides 10% or more of the total revenue generated by the Company. 

Contract with principal customers and suppliers 

The company does not make any specific agreement with the suppliers. However, when the 

purchase order is raised, contract is made specifying the delivery amount, timing of delivery, 

advance deposit amount, credit terms and other conditions. 

However, it has contracts with its specific customers; usually having one year of validity of 

agreement. Currently, the company has 89 numbers of customers who are from different 

regions/belts but have contractual agreements with the Company on following conditions as on 

31 October 2010. 

Nature of Credit: Cheque, Bank guarantee, FDR 

Limit: Tk. 500,000 to Tk. 15,000,000 

Material patents, trademarks, licenses or royalty agreements 

The Company has numerous licenses including patent/trademark for the �� 

��. Fire License is available with Company that is up to date. Moreover, it complies with 

the environmental compliances as it obtains environmental certificate from time to time. 

Also, to run the factory operations, management updates the Factory license regularly. 

Besides, Boiler License is also updated by the Company at regular intervals. 

Every year the Company updates Trade License from the respective regulatory authority at 

regular intervals. Trademark license has always been updated on a year to year basis. In 

addition, the Company has ISO certification that is valid up to February 07, 2012. 

It is also worth mentioning that the Company has updated license for warehousing (Bond) 

after the HR Coil is imported from abroad. 

Number of Employees 

Number of Employee 

31.10.2010 

Number of employees whose salary below Tk 3,000 per month - 

Number of employees whose salary above Tk 3,000 per month 380 

Total 380 

Capacity and current utilization of the facility 

CR Plant 31.10.2010 

Installed Capacity (MT) Annual 120,000 

Installed Capacity (MT) for the period 100,000 

Actual Equivalent production (MT) 60,095 

Capacity Utilized 60.10% 

NOF Plant 

Installed Capacity (MT) Annual 70,000 

Installed Capacity (MT) for the period 58,333 

Actual Equivalent production (MT) 45,410 

Capacity Utilized 77.85%

SECTION IV 

DESCRIPTION OF PROPERTY 

A) The Company owns the following fixed assets at written down value as on 31 October 2010 

Name of the Assets 

(As per audited accounts) 

Written Down Value after revaluation 

As on 31 October 2010 

Free Hold Land 772,947,000 

Building and civil construction 686,666,575 

Plant & Machinery 819,679,874 

Office Equipment 483,530 

Computer 2,959,009 

Electric Installation & Air condition 24,572,040 

Fire Extinguisher 109,461 

Weight Scale 1,513,728 

Furniture & Fixtures 2,201,115 

Motor Vehicles 17,494,866 

Total 2,328,627,198 

B) All the above-�� Factory site at Juramtal ,Baro 

Kumira, Sitakunda, Chittagong, Bangladesh as well as at head office premises and are in good 

operating condition. 

C) All the assets of the company are in its own name except 10.5921 acres of land out of 

11.0421 acres, Capital Machinery , factory building with related structure are mortgaged with 

following Banks: 

Janata Bank Limited AB Bank Limited State Bank of India 

Mutual Trust Bank Limited South East Bank Limited Mercantile Bank Limited 

Standard Chartered Bank 

Limited 

Jamuna Bank Limited 

Social Islami Bank Limited Shahjalal Islami Bank Limited 

D) No assets were taken under lease agreement. 

E) No reconditioned or second hand plant and machinery are being used by the company.

SECTION V 

FINANCIAL CONDITION AND PLAN OF OPERATION 

Internal and external sources of fund 

(as per audited accounts) 

Internal Sources of Cash 

31-10-2010 

Taka 

31-12-2009 

Taka 

31-12-2008 

Taka 

31-12-2007 

Taka 

Paid-up Capital 1,302,400,000 651,200,000 651,200,000 651,200,000 

General Reserve - 202,085,763 - - 

Retained Earning 1,139,748,194 1,251,145,146 999,618,113 872,487,020 

Tax holiday reserve - - 202,085,763 202,085,763 

Sub Total: 2,442,148,194 2,104,430,909 1,852,903,876 1,725,772,783 

External Sources of 

Cash 

Long term Liabilities - - 126,220,207 85,389,163 

Short term Bank Loan 3,395,411,672 3,045,195,337 2,503,498,192 2,261,790,781 

Sub Total 3,395,411,672 3,045,195,337 2,629,718,399 2,347,179,944 

Grand Total 5,837,559,866 5,149,626,246 4,482,622,275 4,072,952,727 

Material Commitment for Capital Expenditure 

The company does not have any such commitment for capital expenditure except capital 

expenditure that is expected to be incurred with the financing from IPO proceeds . 

Causes for any Material Change from Period to Period 

(as per audited accounts) 

Particulars 31-10-2010 31-12-2009 31-12-2008 31-12-2007 

Taka 

Taka 

Taka 

Taka 

Sales 5,429,388,206 4,348,942,559 2,582,068,789 2,117,127,407 

Less: Cost of sales 4,782,515,074 3,917,942,273 2,354,515,889 1,930,323,567 

Gross profit 646,873,132 431,000,286 227,552,900 186,803,840 

Less: Administrative, Finance 

& Selling Expenses 

101,473,697 33,314,790 26,398,252 16,169,477 

Less: Amortization of 

Preliminary Expenses 

- 593,574 - 

Other Income 5,395,907 5,392,528 2,255,101 

Net Operating Profit before 

WPPF 

550,795,342 402,484,450 203,409,749 

Less: WPPF 27,539,767 

Profit/(Loss) before Taxes 523,255,575 402,484,450 203,409,749 170,634,363 

Less: Income tax expenses 185,538,290 150,957,417 76,278,656 63,987,886 

Profit/(Loss) After Tax 337,717,285 251,527,033 127,131,093 106,646,477 

The last three years and ten ��s financial performance shows a gradual growth on a year to 

year basis clearly demonstrating success in perusing aggressive growth plan by the Company. 

The turnover of the company has been increasing constantly and the gross profit has also been 

increased substantially. WPPF has been charged in the year 2010 when it was implemented. 

Profit After Tax is also showing a positive trend over the last years as mentioned above.

Graphical Presentation of KYCR��5 to 2010 

Year NAV 

2005 20.88 

2006 24.85 

2007 26.50 

2008 28.45 

2009 32.32 

31 October 2010 29.74 

Net Asset Value (NAV) 

Explanation on the Graphical Presentation (as above) 

Since the year 2005 until 2009, the share capital of the company remained the same; i.e. 

Tk.651,200,000. In 2010, share capital of the company was increased to Tk.1,302,400,000 

which has been reflected in the Financial Statements of October 2010. 

Net Asset Value has been calculated for all the years from 2005 till 2010 and it shows a steady 

and consecutive growth over the years until the year 2009. Due to issue of bonus shares in the 

year 2010 that is reflected in the October 2010 Accounts, NAV has declined slightly; since the 

denominator (number of shares) has been increased significantly. Nevertheless, NAV of 2010 

(for the 10 month period) seems to be very much strong if compared to the previous years as 

shown above. 

Year EPS 

2005 2.77 

2006 3.97 

2007 1.64 

2008 1.95 

2009 3.86 

31 October 2010 2.59 

Earnings Per Share (EPS) 

4 

3.5 

3 

2.5 

EPS 2 

1.5 

1 

0.5 

0 


NAV 

32.32 

35 

26.5 28.45 29.74 

30 24.85 

25 

20 

20.88 

NAV 

15 

10 

5 

0 

2005 2006 2007 2008 2009 31-Oct- 

10 

Basic Earnings Per Share (EPS) for the years 2005 was Tk.2.77 and increased to Tk.3.97 in the 

year 2006 due to the tax holiday. However, in 2007, the tax holiday was expired and taxation 

was charged on the earnings which is one of the critical factors that triggered EPS to decline to 

Tk.1.64. Movement in the cost of production does not necessarily trigger any significant 

variation compared to all the years listed above. Following the year 2007, EPS strengthened 

throughout the years until 2009. Also, the EPS reported for 10 month period stands at Tk.2.59 

�� 

the very same year 2010. 

2.78 

3.97 

EPS 

1.64 

Year 

1.95 

3.86 

2.59 

2005 2006 2007 2008 2009 31 Oct 

2010 

Year

Turnover (ml) 

6000 

5000 

4000 

3000 

2000 

1000 

0 

3354.16 

2013.9 

Turn over (million) 

2117.13 

2582.07 

4348.94 

Turnover 


The Sales revenue was decreased in 2006 as compared to the performance in 2005, but took a 

positive upturn since 2006 and showed continuous growth until the year 2009. Sales revenue for 

only 10 month period as on 31 October 2010 is still showing upward trend compared to 2009. 

�� 

The product is highly seasonal; consumption picks up from the month of November to April and 

pick comes during January-February. It then starts declining from June onwards which continues 

till September. Being seasonal, price also varies widely throughout the year. Prices become high 

and sometime go bizarre without logic during the season, and sharp fall may be noticed, once 

season is over. 

Known trends, events or uncertainties 

5429.39 

2005 2006 2007 2008 2009 31 Oct 2010 

Year 

Known events that may affect the business operations of the company are: 

1. Introduction of Government policy that may have adverse impact on the company operations. 

2. Shortage of supply of power and other utilities required for the manufacturing of products. 

3. Political and Labor Unrest 

4. Natural Disaster 

5. Entrant of Financially viable entities in the sector 

6. Government intervention at different stages of the relevant industry. 

7. Implementation of new legislati�� 

8. The unavailability of raw materials on a regular basis (Level of scarcity of resources must be 

taken into consideration) 

Changes in the assets of the company used to pay off any liabilities 

No asset of the company used to pay off any liabilities. 

Loan taken from holding/parent company or subsidiary company 

No loan was received from any holding/parent company or subsidiary company. 

Loan given to holding/parent company or subsidiary company 

Year Turn over (million) 

2005 3354.16 

2006 2013.9 

2007 2117.13 

2008 2582.07 

2009 4348.94 

No loan has been given to any holding/ parent company or subsidiary company.

Future capital expenditure 

No future capital expenditure is planned except as noted under the heading �Material 

�� 

VAT, income tax, customs duty or other tax liability 

VAT 

The Company has 18 cases pending with the VAT authority against disputes arose during the 

period from 2005 to 2010. All the cases relate to Duty differences, Audit demand, Price 

declaration, Tariff value, etc. The Honorable High Court issued stay order against all of them 

except 3 cases which are in Appellate Tribunal and awaits for final hearing. A provision for 

contingent liability has been created against these cases. 

Income tax 

The IT assessment for the all years to 2008 (IT Assessment year 2009-2010) have been 

completed and agreed with the Tax Authorities while the return for 2009 has been filed and 

pending for assessment. Company paid Tk 167,507,130 as advance, which will be adjusted with 

above provision on finalization of assessment for the year 2009. 

Customs duty or other liabilities 

No customs duty or similar liabilities of the company are outstanding as on 31st October 2010 

except for the normal course of business. 

Operating lease agreement 

KYCR Coil Industries Limited did not have any operating lease agreement with any organization 

on 31st October 2010. 

Financial lease and other financial commitment 

KYCR Coil Industries Limited did not have any Financial Lease agreement with any organization 

at 31st October 2010. 

Personnel related scheme 

The Company believes in supporting its employees and is offering incentives and motivation for 

its continued profitability and prosperity. It provides the employees the following schemes & 

benefits: 

(a) EBF (Employees benefit fund) 

The management of the Company contributes 2% and the employees contribute 5% for the 

entitlement of the benefits. The benefits are only for the employees who work more than 5 years 

in the Company. 

(c) W�� 

In the year 2010, the Company �� which 

is reflected in the 31st October 2010 Accounts. 

(a) Other Benefits and Allowances

The Company provides medical allowances to its employees. Furthermore, it also allows leave 

encashment benefits, insurance, etc. to the employees. 

Revaluation of Assets 

The Company made revaluation of its assets in FY 2010 and reflected in the Financial 

Statements of that year. Particulars of the valuer and summary of report are as follows: 

Name : Shafiq Bashak & Co. 

Qualification : A firm of Chartered Accountants 

Work done (report date) : 20 September, 2010 

Reason for Revaluation : To incorporate the fair present value of the major 

assets of the company in the financial statements. 

Other major works done by the valuer 

As a Chartered Accountants Firm it did valuation jobs in addition to normal audit works namely : (i) IFIC Bank 

Ltd (ii) Desh Garments Ltd (iii) Pacific Industries Ltd (iv) Therapeutics (BD) Ltd (v) National Banks Ltd (vi) 

Lloyds (vii) Land & Building of Glaxo Wellcome Bd. Ltd (viii) Merimo Ltd .CEPZ (ix) Bangladesh Welding 

Electrodes Ltd. (x) Land & Building of Hoechst Bangladesh Ltd. 

Itemizing showing comparison Itemizing showing comparison 

Particulars 

Asset Value 

Before 

Revaluation 

(Tk.) 

Revalued 

Amount (Tk.) 

Revaluation 

Surplus 

(Tk.) 

Free Hold Land 30,607,953 772,947,000 742,339,047 

Building and civil construction 198,978,066 704,840,300 505,862,234 

Plant & Machinery 641,683,119 826,497,512 184,814,393 

Electric Installation &Air 

condition 

12,534,784 25,000,000 12,465,216 

Weight Scale 508,852 1,540,000 1,031,148 

Motor Vehicles 17,796,359 17,812,935 16,576 

Total 902,141,429 2,348,637,747 1,446,528,614 

Methodology of Valuation 

There are a couple of internationally recognized methodologies commonly applied for valuation 

of property, plant & equipment. Out of these, market value method, considered most 

appropriate, was applied for revaluation of KYCR Coil Industries Ltd. market value method 

essentially estimates the cost of replacing the tangible assets of business. The replacement cost 

takes into account the market value of various assets required to be acquired to create the 

infrastructure exactly similar to that of the company being revalued. Alternatively, this 

methodology can also determine the money value which can be realize by selling off all tangible 

assets of a company. 

Transaction with subsidiary/holding company or associate companies 

The Company carried out a number of transactions with related parties in the normal course of 

business.

Sl Name of Parties Relationship 

1 KY Steel Mills Ltd. 

2 Steel Accessories Ltd. 

Sister 

Concern 

Sister 

Concern 

Types of 

Transaction 

Sales of 

CR Coil 

Loan and 

Investment 

31.12.06 Taka 31.12.07 Taka 31.02.08 Taka 

(as per Audited Accounts) 

�� 

shareholders for any consideration other than in cash. 

This is to certify that as per share register and other relevant records maintained by KYCR Coil 

Industries Limited, the company did not allot any shares for consideration other than in cash to 

any shareholders including its promoters and/or sponsor shareholders up to 31 October 2010 

except 65,120,000 bonus share. 

Sd/- 

Dated, Chittagong Hoda Vasi Chowdhury & Co 

03 January 2011 Chartered Accountants 

Material information which is likely to have an impact 

31.12.09 

Taka 

321,634,359 485,945,210 351,131,079 173,788,110 

39,855,679 

62,134,505 

81,226,526 

There is no other material information which is likely to have an impact on the offering or 

change the terms and conditions under which the offer has been made to the public. 

31.10.10 

Taka 

368,362,261 

163,350,778 148,826,920

SECTION VI 

DIRECTORS AND OFFICERS 

Information regarding directorship 

Sl 

No. 

Name of Director 

Position 

Age 

(Years) 

Date of 

becoming 

director for the 

first time 

Date of 

expiry of 

current term 

1 Mr. Khalilur Rahman 

Managing 

Director 

65 Since Inception * 

2 Mr. Salim Rahman Chairman 37 Since Inception * 

3 

Ms. Tahsina Rahman 

Director 29 13.07.2010 * 

*According to Articles of Association of the company, one-third of the directors or if their 

number is not three or multiple of three then the number nearest to one-third shall retire from 

office by rotation at the Annual General Meeting. 

Directors' involvement in other organization 

Name of the directors Name of the Company Relationship 

Mr. Khalilur Rahman 

Mr. Salim Rahman 


KDS Garments Ltd 

KDS Apparels Ltd 

KDS Hi-tech Garments (BD) Ltd 

KDS Fashion Ltd 

KDS Textile Mills Ltd 

KDS Cotton Poly Thread Ind. Ltd 

KY Steel Mills Ltd 

Steel Accessories Ltd 

KDS Logistics Ltd 

Vortex Multi Ind. Ltd 

Sykes Securities Ltd 

KIY Steel Ind. Ltd. 

KDS Garments Ltd 

KDS Apparels Ltd 

KDS Hi-tech Garments (BD) Ltd 

KDS Fashion Ltd 

KDS Textile Mills Ltd 

KDS Accessories Ltd 

KDS Poly Industries Ltd 

KDS Cotton Poly Thread Ind. Ltd 

Steel Accessories Ltd 

KDS Logistics Ltd 

Vortex Multi Ind. Ltd 

Sykes Securities Ltd 

N/A N/A 

Chairman 

Chairman 

Chairman 

Chairman 

Managing Director 

Managing Director & Chairman 

Chairman 

Chairman 

Chairman 

Chairman 

Director 

Chairman 





Director 

Chairman 

Chairman 

Director 



Director 

Chairman

Family relationship among Directors and top five officers 

Name Position Relationship 

Mr. Khalilur Rahman MD Father of Mr. Salim Rahman 

Mr. Salim Rahman Chairman Son of Mr Khalilur Rahman 


Short bio-data of the directors 

Mr. Khalilur Rahman, Managing Director 

Directors Wife of Mr. Salim Rahman 

MR. KHALILUR RAHMAN is a seasoned and experienced businessman. He is running several 

industrial units as their Managing Director viz. (1) KDS Garment Industries Limited (2) KDS 

Cotton Poly Thread Industries Limited (3) KYCR Coil Industries Limited (4) KDS Textile Mills 

Limited. Besides, he has got a enormous experience in various manufacturing sectors as a 

Chairman viz., Garment Division, Accessories Division, Steel Division, IT Sector, Textile, Agro 

processing Sector, Telecommunication Sector, Power Plant Sector, Shipping (Inland Container 

Depot), Fuel & Oil Sector, Securities Sector, Banking Sector, Insurance Sector. 

He has been rewarded different types of award from home and abroad for his valuable 

contribution in industrial sector of Bangladesh i.e. (1) President Gold Trophy for Highest Export 

in Readymade Garments from 1985 to 1998. (2) Supplier of the year 2005 Award Received 

from WALMART, CANADA, and WALMART, UK GEORGE. (3) VENDOR EXCELLENCE AWARD - 2004 

from Charming Shoppes, Inc. USA (4) Business Innovative Director, Texas, USA (5) Award of 

KMART Apparels Corporation, USA 1998,1999 & 2000 etc. 

A large number of non-profit and entirely charitable educational institutions has been founded 

by Mr. Khalilur Rahman. He is a resourceful member of the company and enjoying his status as 

a CIP which is recognized by Bangladesh Government. He is an ex-vice president of BGMEA 

(Bangladesh Garment Manufacturer & Export Association). 

Mr. Salim Rahman, Chairman 

He has completed MBA from USA and acting as a Director in the company. He has been actively 

involved with different sectors like Garment, Accessories, steel, IT, Textile, Agro processing, 

telecommunication, Power plant, Shipping, Fuel & oil, Securities, Banking and Insurance. 

Besides KDS Group, he is also working as a Managing Director viz., (1.) DK Power Plant Limited 

(Proposed), (2) Raman CNG Co. Ltd., (3) SKY Securities Limited. He is also involved with many 

social organizations and activities. 

Ms. Tahsina Rahman, Director 

She is a graduate from University of Science and Technology Center. Currently, she is doing her 

MBA at IUB. She has approximately five years of experience with different organizations and 

currently holding the responsibility as a director of the Company. 

Credit Information Bureau (CIB) report 

Neither the company nor any of its directors or shareholders who holds 5% or more shares in 

the Paid in Capital of the issuer is loan defaulter in terms of the CIB report of Bangladesh Bank.

Description of senior executives and department heads 

Name Designation Education Qualification Experience 

Mr. Khalilur Rahman MD B.Com (Management) 

The founder of 

KDS Group 

Mr. Munir Hussain Khan Director & CEO 

MBA from University of 

Phoenix, Arizona 

17 Years 

Mr. Gurdeep Singh Head of Plant 

Graduate-Mechanical 

Engineer 

29 Years 

Mr. Moddassar Ahmed 

Siddique 

Sr. General Manager- 

Finance & Accounts 

Chartered Accountant 

(FCA) 

14 Years 

Mr. M.A. Chowdhury 

General Manager- 

Sales & MKT 

M.A. (Political Science) 10 Years 

Mr. Amir Hossain 

Plant Head- 

Galvanizing Plant 

BSC in Engineering & 

Technology- BUET 

25 Years

Section VII 

Involvement of Directors and officers in certain legal 

proceedings 

No director or officer of the Company was involved in any of the following types of legal 

proceedings in the last ten years: 

(a) Any bankruptcy petition filed by or against company of which any officer or director of the 

issuer company filing the Information Memorandum was a director, officer or partner at 

the time of the bankruptcy. 

(b) Any conviction of director, officer in a criminal proceeding or any criminal proceeding 

pending against him. 

(c) Any order, judgment or decree of any court of competent jurisdiction against any 

director, officer, permanently or temporarily enjoining, barring, suspending or otherwise 

limiting the involvement of any director or officer in any type of business, securities or 

banking activities. 

(d) Any order of the Securities and Exchange Commission, or other regulatory authority or 

foreign financial regulatory authority, suspending or otherwise limiting the involvement of 

any director or officer in any type of business, securities or banking activities. 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 

Transaction with related parties 

Neither any proposed transaction nor had any transaction during the last two years, between the 

issuer and any of the following persons: 

(a) Any director or executive officer of the issuer; 

(b) Any director or officer; 

(c) Any person owning 5% or more of the outstanding shares of the issuer; 

(d) Any member of the immediate family (including spouse, parents, brothers, sisters, children, 

and in-laws) of any of the above persons. 

(e) Any transaction or arrangement entered into by the issuer or its subsidiary for a person who 

is currently a director or in any way connected with a director of either the issuer company or 

any of its subsidiaries/holding company or associate concerns, or who was a director or 

connected in any way with a director at any time during the last three years prior to the 

issuance of Information Memorandum. 

(f) Any loan either taken or given from or to any director or any person connected with the 

director, any loan taken from any such person who did not have any stake in the issuer, its 

holding company or its associate concerns prior to such loan. 

(g) Any director holding any position, apart from being a director in the issuer company, society, 

trust, organization proprietorship or partnership firm.

Except the transactions shown under ��-27 of audited 

accounts 31 October 2010 and directors facilities shown hereunder. 

Sl. 

No 

Name of the 

Parties 

Relationship 

Types of 

Transaction 

Closing 

Balance 

as at 

31.10.2010 

Taka 

Closing 

Balance 

as at 

31.12.2009 

Taka 

1 KY Steel Mills Ltd. Sister Concern Sales of CR Coil 368,362,261 173,788,110 

2 

Steel Accessories 


Sister Concern 

Loan and 

Investment 

148,826,920 163,350,778 

Total 517,189,181 337,138,888 

Directors' facilities 

The Directors of KYCR does not enjoy any facilities except Board meeting fee and full time car 

facilities . 

EXECUTIVE COMPENSATION 

Remuneration paid to top five salaried officers 

Sl. 

No. 

Name Designation 

From 01.01.10 to 31.10.10 

Amount in Tk. 

1 Mr. Munir Hussain Khan Director & CEO 20,90,000 

2 Mr. Gurdeep Singh Plant Head 35,00,000 

3 

Mr. Moddassar Ahmed 

Siddique 

Sr. General Manager- 

Finance & Accounts 

10,00,000 

4 Mr. M.A. Chowdhury 

General Manager- 

Sales & MKT 

10,72,560 

5 Mr. Amir Hossain 

Plant Head- Galvanizing 

Plant 

7,37,800 

Aggregate amount of remuneration paid to directors and officers 

(As per audited accounts) 

Group 

Amount paid 

01.01.10 to 

31.10.10 

Amount paid 

01.01.09 to 

31.12.09 

Directors� Remuneration 320,000 384,000 

Officers� salaries, benefits & bonuses including 

management emoluments 

60,836,555 65,227,425 

Remuneration paid to directors who was not an officer of the company 

None of the directors enjoys any remuneration except board meeting fees. 

Future compensation to Directors or Officers 

There is no contract with any director or officer for future compensation. 

Pay increase intention 

The company is yet to finalize its personnel policy. However, Periodical review of salaries and 

��

OPTIONS GRANTED TO DIRECTORS, OFFICERS AND EMPLOYEES 

The company has not granted any option to directors, officers or employees. 

TRANSACTION WITH THE DIRECTORS AND SUBSCRIBERS TO THE MEMORANDUM 

(a) The Directors and subscribers to the memorandum have not received any benefits 

except board meeting fees, directly or indirectly during the last five years. The issuer also 

has not received any assets, services or other considerations from its Directors and 

subscribers to the memorandum expect fund against allotment of shares. 

(b) No assets were acquired or are planned to be acquired from the Directors and 

subscribers to the memorandum. 

TANGIBLE ASSETS PER SHARE 

Particulars 31-10-2010 

Taka 

Share Capital (As per B/S) 1,302,400,000 

Revaluation Reserve 1430576602 

Retained Earnings 1,139,748,194 

General Reserve - 

Net Assets 3,872,724,796 

Less: Intangible Assets ( Preliminary Expenses) - 

Net Tangible Assets 3,872,724,796 

Total Ordinary Shares 130,240,000 

Net tangible assets per share ( Tk. 10 per Share) 29.74 

O��S SECURITIES AS ON 31ST OCTOBER 2010 

Shares held by Directors/shareholders 

Sl. No 

Names of the 

Shareholders 

Status 

Total No. of 

Share Issued 

Shareholding 

Position 

1 Mr. Khalilur Rahman MD 12,000,000 9.21% 

2 Mr. Salim Rahman Chairman 18,000,000 13.82% 

3 Mr. Tahsina Rahman Director 10,000,000 7.68 % 

4 

KDS Hi - Tech Garments 

(BD) Ltd. 

Shareholder 28,000,000 21.50 % 

5 

KDS Garments Industries 


Shareholder 22,240,000 17.08 % 

6 KIY Steel Industries Ltd. Shareholder 3,000,000 2.30% 

7 KY Steel Mills Ltd. Shareholder 37,000,000 28.41 % 

Total 130,240,000 100%

Shareholding structure for 5% or more as on 31 October 2010 

Sl. No 

Names of the 

Shareholders 

Status 

Total No. of 

Share Issued 

Shareholding 

Position 

1 Mr. Khalilur Rahman MD 12,000,000 9.21% 

2 Mr. Salim Rahman Chairman 18,000,000 13.82% 

3 Mr. Tahsina Rahman Director 10,000,000 7.68 % 

4 KDS Hi - Tech (BD) Ltd. Shareholder 28,000,000 21.50 % 

5 

KDS Garments Industries 


Shareholder 22,240,000 17.08 % 

6 KY Steel Mills Ltd. Shareholder 37,000,000 28.41 % 

Securities owned by the officers 

Total 127,240,000 

No officer own shares of the company as on 31 October 2010 except Mr. Khalilur Rahman , 

Managing Director.

Section VIII 

DETERMINATION OF OFFERING PRICE 

The Fair Value will be determined by the Issuer in consultation with Issue Manager on the basis 

of assessment of market demand for the offered Equity Shares by the Book Building Process. 

The face value of the Equity Shares is Tk. 10/- . Investors should read the following summary 

along with the risk factors and the details about the Company and its financial statements. 

Indicative Price for Book Building Purpose 

The following Quantitative and major Qualitative factors should be considered in assessing the 

Fair Price of the shares of KYCR Coil Industries Limited and accordingly the indicative price may 

be quoted. 

QUALITATIVE FACTORS 

Professional Management 

The management recruits, employs, trains and motivates a pool of employees who carry out the 

operations at every layer of the organization. The process of manufacturing of KYCR products 

are operated by skilled professionals who are of various backgrounds such as engineering, etc. It 

also has experienced marketing team and technicians. Their activities are driven with the 

direction from the board of directors who have long years of exposure in the industry. The 

background and activities of the board of directors must also be taken into consideration as it 

counts a great deal for the efficiency and effectiveness of business operations. 

Capital Equipments 

KYCR owns and employs modern, specialized and critical equipments which are essential to 

execute projects effectively. KYCR has the Cold Rolling Plant that is one of the most advanced 

plant in Bangladesh; imported from Germany. Besides, the Company uses brand new 

machineries and equipments for production of the products. 

Quality Control 

KYCR employed skilled staff for maintenance of quality and improvement of such over the period 

of time. Continuous improvement while eliminating waste has always been the target of the 

functional individuals involved. The Company has ISO certification and maintains its standards 

as per local as well as international requirements. 

Brand Value 

�� 

by the consumers and presently being one of the strongest and renowned five major brands 

known throughout the country. �� 

parts of the country even though other brands play their roles in a competitive manner in other 

territories across various regions in the country.

QUANTITATIVE FACTORS 

KYCR Coil Industries Limited is a growing company and the relevant highlights have been 

provided below: 

Financial Year Turnover (Tk.) Profit after Tax Fixed Assets NAV per EPS 

(Tk.) 

(Tk.) 

share 

October -2010 (10 

Months) 

5,429,388,206 337,717,285 2,328,627,198 29.74 2.59 

2009 4,348,942,559 251,527,033 953,004,172 32.32 3.86 

2008 2,582,068,789 127,131,093 1,009,134,700 30.39 1.95 

2007 2,117,127,407 106,646,477 667,122,786 27.81 1.64 

2006 2,013,900,743 258,686,924 748,488,626 27.27 3.97 

2005 3,354,160,882 180,636,178 842,461,940 25.80 2.77 

The following methods have been applied to obtain the fair price. The Prices derived from each 

method have been averaged in order to minimize influence of any unusual factor, if any, in 

obtaining the weighted average price as under: 

Particulars 

Amount 

(Tk.) 

Method 1: Net Asset Value 29.74 

Method 2: Historical Earnings based value per share 78.80 

Method 3: Market Price based value per Share 123.02 

Method 4: Valuation with reference to P/E of similar stocks 159.20 

Method 5: Valuation with reference to P/BV of similar stocks 208.77 

Average 119.90 

Based on conservative estimate fair price of KYCR Coil Industries Limited stands at Tk. 119.90. 

However considering the attractiveness for the investors the management of KYCR in 

consultation with the issue manager expects its share price at Tk. 90/- each. However, 

indicative price will be fixed on the basis of price quoted by the EIIs. 

VALUATION AND THE PROCEDURES USED 

Valuation is an estimation of the market value of an entity. It differs from an appraisal which 

only takes tangible assets into account. However, it is important to consider the relevant factors 

relating to the firm in order to derive a value, which is relatively close to the actual worth of the 

company. The valuation for KYCR Coil Industries Limited has been carried out based on 

accumulated information; taken from internal and external sources that are reliable. 

Few different methods have been used to determine the value of the shares of KYCR Coil 

Industries Limited under book building method, each of which provides different types of values 

�� 

to avoid the effect of differences in results produced in the methods, we have taken average of 

the results with weight assigned for each method. The management always considered using 

approaches which are reasonable so as to arrive at a justified price of the shares of the 

company. However, the interpretation of the pricing methods by the investors is very subjective 

in nature and may vary from one to another.

CALCULATIONS OF METHODOLOGIES 

Method 1: Net Asset Value 

Particulars 31-10-2010 

Taka 

Share Capital (As per B/S) 1,302,400,000 

Revaluation Reserve 1430576602 

Retained Earnings 1,139,748,194 

General Reserve - 

Net Assets 3,872,724,796 

Less: Intangible Assets ( Preliminary Expenses) - 

Net Tangible Assets 3,872,724,796 

Total Ordinary Shares 130,240,000 

Net tangible assets per share ( Tk. 10 per Share) 29.74 

Method 2: Historical Earnings based value 

Earnings based Value method is also based on historical performance sourced from previous 

audited financial statements and statistics from Dhaka Stock Exchange. The value is calculated 

by taking average of periodic EPS during last five years eight months based on current share 

capital. To arrive at earning based value average, EPS is multiplied by average P/E ratio of DSE 

during last twelve months. 

Earning based valuation are appropriate for any matured company. KYCR has already proved 

�� 

out below the calculation: 

Year NPAT EPS 

Oct-2010 (annualized) 405,260,742 3.11 

2009 251,527,033 3.86 

2008 127,131,093 1.95 

2007 106,646,477 1.64 

2006 258,686,924 3.97 

Average EPS 2.91 

Earning based value per share 

(EPS X Average DSE P/E for last one year*) 

78.80 

Note: Average Price to Earnings ratio (P/E) for all companies listed with DSE during the same 

one year period from September, 09 to October, 10 was 25.73 as illustrated in the calculation 

below: 

Month P/E Ratio Month P/E Ratio 

November,09 25.00 May,10 27.73 

December,09 25.65 June,10 24.08 

January,10 29.35 July,10 24.55 

February,10 30.58 August,10 25.81 

March,10 27.59 September,10 26.29 

April,10 29.88 October,10 28.46 

Average 

Source: DSE monthly Review 

27.08

Valuation with reference to Similar Stocks 

Following assumptions were taken to find out the representative Price/earning (P/E) for 

valuation of KYCR shares: 

1. Analyzed the distribution of P/E multiples of the companies listed with Dhaka stock exchange. 

2. Steel & steel related manufacturing companies are taken as similar company. 

3. To remove the impact of regular price variations, average price of last 12 months (November 

2009 to October 2010) has been taken in determining P/E multiples. The price of the 

comparables at Dhaka Stock Exchange is used for this purpose 

Method: 3 Market price based value per share 

Sl. No. Company Name 12 Month Avg. Price 

1 S Alam Cold Rolled Steels Ltd. 780.65 

2 BSRM Steels Limited 1679.83 

Total 2460.48 

Average (Face Value Tk. 100) 1230.24 

Average (Converted face value of Tk. 10) 123.02 

Method: 4 Valuation with reference to P/E of similar stocks 

Sl. No. Company Name 12 Month Avg. Price EPS P/E Ratio 

1 S Alam Cold Rolled Steels Ltd. 780.65 14.57 53.58 

2 BSRM Steels Limited 1679.83 34.43 48.79 

Total 2460.48 102.37 

Average 1230.24 51.19 

Taking the weighted average P/E of S. Alam Cold Rolled Steels Limited and BSRM Steels Limited 

for the period of 01 November, 2009 to 31 October, 2010 (workings above) value stands at: 

Average DSE P/E X Annualized EPS of KYCR = 51.19 X 3.11 = Tk. 159.20 

Method 5: Valuation with reference to P/BV of similar stocks (P/BV) 

Sl. No. Company Name 

12 Month 

Avg. Price 

NAV Per 

Share P/BV Ratio 

1 

S Alam Cold Rolled Steels 

Ltd. 780.65 111.13 7.02 

2 BSRM Steels Limited 1679.83 8.62 194.88 

Total 2460.48 201.9 

Average 1230.24 100.95 

P/BV ratio of BSRM Steels Limited is abnormally high. To represent conservative valuation, 

BSRM Steels is excluded and only the weighted average P/BV ratio of S. Alam Cold Rolled Steels 

Limited is considered. Accordingly value stands at: 

Average P/BV ratio of S Alam Cold Rolled Steels Ltd X NAV of KYCR = 7.02 X 29.74 = Tk. 

208.77

Determining price under Book Building Method: 

Book Building is a process through which an issuer attempts to determine the price to offer its 

security based on demand from institutional investors. Under the process, the price of an IPO 

share will be determined through an automated bidding to be participated by different financial 

institutions and then the share will be opened for the IPO participant at the cut-off price 

determined during the book building process. The bidding will be handled through a uniform and 

integrated automated system of the stock exchanges, or any other organization as decided by 

the Commission, especially developed for book building method. The entire procedure of price 

discovery under book building method is delineated below. 

(a) The issuer/issue manager shall issue invitation to the eligible institutional investors, both in 

writing and through publication in at least 5 (five) widely circulated national dailies, giving at 

least 10 (ten) working days time, to attend the road show/presentation/seminar indicating time 

and venue of such event. The invitation letter shall accompany an information document 

containing all relevant information covering the proposed issue of the issuer. The eligible 

institutional investors shall submit indicative price to the issuer/issue manager, signed jointly by 

the Chief Executive Officer (CEO) and the Financial Analyst, highlighting the factors taken into 

consideration in support of the indicative price, within the next 3(three) working days of the said 

road show/presentation/seminar; 

(b) The Information Document (ID) Shall be sent to the following institutions/ associations, 

unless otherwise directed by the Commission, at least 5(five) working days prior to the road 

show/ presentation/ seminar: 

(i) Stock Exchanges 

(ii) Bangladesh Association of Publicly Listed Companies (BAPLC) 

(iii) Bangladesh Me�� 

(iv) Bangladesh Association of Banks (BAB) 

(v) Bangladesh Leasing and Finance Companies Association (BLFCA) 

(vi) Bangladesh Insurance Association (BIA) 

(vii) Registered asset management Companies; 

(c) Participation of the representatives of the stock exchanges and Bangladesh Merchant 

�� 

(d) The issuer, in consultation with the issue manager, shall quote its own indicative price in the 

prospectus based on the indicative prices so obtained from the eligible institutional investors: 

Provided that the quote of the indicative price in the prospectus shall not exceed the arithmetic 

mean of the price offers so obtained from the eligible institutional investors; 

(e) The prospectus shall simultaneously be submitted to the Commission and the stock 

exchanges along with the due diligence statements issued by all concerned; 

(f) If any issue fails to get indicative prices from at least 15 (fifteen) eligible institutional 

investors covering at least 3 (three) categories, including at least 5 (five) registered merchant 

bankers, the whole process shall be cancelled, which may be repeated with prior permission of 

the Commission. 

(g) Rationale for the indicative price must be included in the prospectus i.e. the issuer is 

required to disclose in detail about the qualitative and quantitative factors justifying the 

indicative price; 

(h) The indicative price shall be the basis for formal price building with an upward and downward 

band of 20% (Twenty Percent) of indicative price within which eligible institutional investors 

shall bid for the allocated amount of security.

(i) Eligible institutional investors bidding shall commence after getting consent from the 

Commission for this purpose. 

(j) Institutional bidding period shall be 2(two) successive working days, which may be changed 

with the approval of the Commission. 

(k) The issuer and the issue manager shall submit the status of bidding and the cut off price, 

along with the draft prospectus, simultaneously to the Commission and the stock exchanges 

within 3(three) working days from the closing day of the bidding. 

(l) If institutional quota is not cleared at 20% (Twenty Percent) below indicative price, the issue 

will be considered cancelled unless the floor price is further lowered within the face value of 

�� 

(m) Prospectus will be posted on the Websites of the Commission, stock exchanges, issue 

manager and issuer at least 2 (two) weeks prior to the start of the bidding to facilitate investors 

to know about the company and all aspect of offering. 

(n) No institutional investor shall be allowed to quote for more than 10% (Ten Percent) of the 

total security offered for sale, subject to maximum of 5 (Five) bids. 

(o) The bidding will be handled through a uniform and integrated automated system of the stock 

exchanges, or any other organization as decided by the Commission, especially developed for 

book building method; 

(p) The volume and value of bid at different prices will be displayed on the monitor of the said 

system without identifying the bidder. 

(q) The institutional bidders will be allotted security on pro-rata basis at the weighted average 

price of the bids that would clear the total number of securities being issued to them. 

(r) Institutional bidders shall deposit their bid with 20% (Twenty Percent) of the amount of bid 

in advance to the designated bank account and the rest amount to settle the dues against 

security to be issued to them shall be deposited within 5 (Five) working days prior to the date of 

opening subscription for general investors. 

(s) In case of failure to deposit remaining amount that is required to be paid by institutional 

bidders for full settlement of the security to be issued in their favor, 50% (Fifty Percent) of bid 

money deposited by them shall be forfeited by the Commission. The securities earmarked for 

the bidder who defaulted in making payment shall be added to the general investor quota. 

(t) General investors, which include mutual funds and NRBs shall buy at the cut-off price; 

(u) There shall be a time gap of not more than 15 (fifteen) working days or as may be 

determined by the Commission, between closure of bidding by eligible institutional investors and 

subscription opening for general investors; 

(v) Subscription for general investors shall remain open for the period as specified by the 

Commission; 

(w) General investors shall place their application through banker to the issue; and 

(x) All application money shall be kept in a separate escrow account opened with a designated 

bank with prior intimation to the Commission. Issuer will not be allowed to utilize such money 

until all the process ��

Section IX 

Allotment, Subscription and Market 

MARKET FOR THE SECURITIES BEING OFFERED 

The issuer shall apply to the following two Stock Exchanges within 7 (seven) working days from the date of consent 

accorded by the SEC to issue the prospectus: 

Declaration about listing of shares with the stock exchange(s) 

None of the stock exchanges(s), if for any reason, grants listing within 75 days from the closure 

of subscription, any allotment in terms of this Information Memorandum shall be void and the 

company shall refund the subscription money within fifteen days from the date of refusal for 

listing by the stock exchanges, or from the date of expiry of the said 75 (seventy five) days, as 

the case may be. 

In case of non-refund of the subscription money within the aforesaid fifteen days, the company 

directors, in addition to the issuer company, shall be collectively as well as separately liable for 

refund of the subscription money, with interest at the rate of 2% (two percent) per month above 

the bank rate, to the subscribers concerned. 

The issue manager, in addition to the issuer company, shall ensure due compliance of the above 

mentioned conditions and submit compliance report thereon to the Commission within seven 

days of expiry of the aforesaid fifteen days time allowed for refund of the subscription money. 

Trading and settlement 

Dhaka Stock Exchange Limited 

9/F, Motijheel C/A, 

Dhaka-1000 

and 

Chittagong Stock Exchange Limited 

CSE Buildng, 1080 Sk. Mujib Road 

Agrabad, Chittagong-4100 

Trading and settlement regulation of the stock exchanges shall apply in respect of trading and 

settlement of the shares of the Company. 

DESCRIPTION OF SECURITIES OUTSTANDING OR BEING OFFERED 

Dividend, voting and pre-emption rights 

The Share Capital of the Company is divided into Ordinary Shares, carrying equal rights to vote 

and receive dividend in terms of the relevant provisions of the Companies Act 1994 and the 

Articles of Association of the company. All shareholders shall have the usual voting right in 

person or by proxy in connection with, among others, election of Directors & Auditors and other 

usual agenda of General Meeting � Ordinary or Extra-ordinary. On a show of hand, every 

shareholder present in person and every duly authorized representative of a shareholder present

at a General Meeting shall have one vote and on a poll every shareholder present or by proxy 

shall have one vote for every share held by him or her. 

In case of any additional issue of shares for raising further capital the existing shareholders shall 

be entitled to Right Issue of shares in terms of the guidelines issued by the SEC from time to 

time. 

Conversion and liquidation rights 

In terms of provisions of the Companies Act 1994, Articles of Association of the Company and 

other relevant rules in force, the shares of the Company are freely transferable. The Company 

shall not charge any fee for registering transfer of shares. No transfer shall be made to a firm, 

an infant or person of unsound mind. 

Dividend policy 

(a) The profit of the Company, subject to any special right relating thereto created or 

authorized to be created by the Memorandum and subject to the provisions of the Articles 

of Association, shall be divisible among the members in proportion to the amount of 

capital paid-up on the shares held by them respectively. 

(b) No large dividend shall be declared than is recommended by the Directors, but the 

Company in its General Meeting may declare a smaller dividend. The declaration of 

Directors as to the amount of Net profit of the Company shall be conclusive. 

(c) No dividend shall be payable except out of the profits of the Company or any other 

undistributed profits. Dividend shall not carry interest as against the Company. 

(d) The Directors may from time to time pay the members such interim dividend as in their 

judgment the financial position of the Company may justify. 

(e) A transfer of shares shall not pass the right to any dividend declared thereon before the 

registration of transfer. 

(f) No limitation in payment of dividend is stipulated in any debt instrument or otherwise. 

Other rights of stockholders 

In terms of the provisions of the Companies Act 1994, Articles of Association of the Company 

and other relevant rules in force, the shares of the Company are transferable. The Company 

shall not charge any fee, other than Government duties for registering transfer of shares. No 

transfer shall be made to a minor or person of unsound mind. 

The Directors shall present the financial statements as required under the law & International 

Accounting Standard. Financial statements will be prepared in accordance with the International 

Accounting Standards consistently applied throughout the subsequent periods and present with 

the objective of providing maximum disclosure as par law and International Accounting Standard 

to the shareholders regarding the financial and operational position of the company. The 

shareholders shall have the right to receive all periodical statement and reports, audited as well 

as un-audited, published by the company from time to time. 

The shareholder holding minimum of 10% shares of paid-up capital of the company shall have 

the right to requisition extra ordinary General Meeting of the company as provided for the 

section 84 of the Companies Act 1994. 

DEBT SECURITIES 

There is no debt securities issued or plan to issue by the company within 6 (six) months.

Section X 

RISK FACTORS & MANAGEMENT PERCEPTIONS ABOUT THE RISKS 

Investors should be aware that there are risks associated with a particular investment in the 

company. These risks may result in loss of income or capital investment. Investors should 

carefully consider all the risks and uncertainties associated to the company along with all the 

information provided in this Information Memorandum before taking decision to invest in shares 

of KYCR Coil Industries Limited. 

1. Interest Rate 

Fluctuation of the interest rates (Cost of borrowed funds) in a country affects the profitability as 

well as liquidity position of a company. (It is relevant for the companies having loans/borrowings 

from banks/other financial institutions and significant for those with large loans/borrowings.) A 

favorable movement in the interest rates for the company results in positive effect on 

profitability of that company and an adverse volatility in such rates results in a negative 

consequence thereof. 

Management Perception 

Interest charges are incurred by the Company for different types of loans taken from 

Banks/Financial Institutions and these charges are negotiated by the Company with the 

respective loan providers at regular intervals. A very competitive rate is attained by the 

Company as it has very well-established goodwill in the marketplace in terms of loan 

repayments in time. The confidence level of the loan providers is raised by the management of 

the Company as it pursues growth and prosperity in terms of sales, assets, and other positive 

qualitative and quantitative factors on a gradual basis. 

2. Foreign Exchange rate 

The project may face some degree of foreign exchange rate fluctuation risk as the Company 

imports raw materials against payment of foreign currency and exports the products for receipts 

of the same. Devaluation in the local currency may have significant impact on the profitability of 

the Company. 


Hedging mechanisms are employed by the company on a regular basis. If the price of the 

foreign currency appreciates against the local currency during import and/or depreciates during 

export, there will be a nationwide impact which would lead to market adjustment in the end 

product prices. 

3. Industry Risk 

a. Volatility in the Earnings 

Raw materials for the steel mill is fully imported and price in the international market is always 

volatile. Effect of volatility in price seriously affects the profitability of the company. 


KYCR imports most of the raw materials from abroad and exposed to such kind of risk. However, 

this risk would affect the industry as a whole and after a certain period of time, the costs are 

adjusted in prices offered by all companies operating in the industry. Furthermore, the company 

has continuous monitoring, reporting and control to make the exposure below or within the 

standards set by the industry. 

b. Market is highly competitive 

Some of the competitors of the Company are larger than the Company and have vast financial 

resources that may enable them to deliver products on more attractive terms or to invest large 

amounts of capital into their business, including greater expenditure for better and more

efficient production capabilities. These competitors may limit the opportunity of the Company to 

�� 

condition and prospects of the Company could be adversely affected if it is unable to compete 

with its competitors and sell its products at competitive prices. 


Few companies with famous brands are the key players in the industry. The Company markets 

�� 

market share in the industry. Besides, it has established the brand name across various 

territories in the country that is believed to be a positive indicator for the Company in order to 

grasp more market shares in the near future. 

4. Technology 

The technology used for manufacturing of steel determines not only the quality of steel 

produced but also the cost of production. The more sophisticated the manufacturing process, the 

lower will be the cost of production and therefore, higher the profitability. 

Management perception 

Highly automated and competitive machineries are available with the company for the 

manufacturing of steel. In Bangladesh, the Company has so far been one of the pioneers in 

setting up Cold Rolled Mill with State of the Art European Technology for further processing of 

the input materials. Moreover, the company has NOF plant that gives the Company a 

competitive edge as galvanization of steel is carried out rarely by companies in Bangladesh. 

5. Potential and Existing Government Regulations 

The company operates under The Companies Act, Taxation Policy adopted by NBR, Regulations 

of Securities and Exchange Commission (SEC) and rules adopted by other relevant regulatory 

organizations. Any abrupt changes in the policies formulated by those bodies may leave adverse 

impact on the business of the Company. 


�� 

operation and hence affect the profitability in turn. The management of the Company is aware of 

the recent guidelines prescribed by all the relevant authorities and complies with such from time 

to time whilst enhancing the performance of the Company. 

6. Raw materials supply 

Steady supply of raw materials is important to the steel industry since steel manufacturing is a 

continuous process. Companies which have control on over supply of their raw materials are 

more capable of being cost efficient than the others which do not possess such control. The 

control on over supply could be in the form of long-term supply contracts with suppliers. 


Management has long years of experience in this arena and also they have maintained a very 

strong positive relationship with various suppliers (Large Supplier Base) where raw materials are 

sourced at competitive prices. Main raw material of KYCR is the Hot Rolled Sheet and Zinc which 

are imported from different sources. Over the last decade, the company has enjoyed continuous 

flow of supply of raw materials in time and it has nevertheless forecasted better improvement in 

the near future. For ensuring regular supply, the Company has MOU with leading global 

suppliers like POSCO and HYUNDAI. 

7. Power and Other Utilities 

Power is an important factor in the steel manufacturing industry. Interruption of power supply 

affects the flow of steel manufacturing. Companies with uninterrupted power supply can get 

competitive edge over their competitors if such supply is in shortage in the overall industry.


The company has supply of power from PDB for 10 MW, 33 KV HT line for operation of the 

factory. Besides, the company has captive power plant having capacity of 2 MW (approx.) which 

is used for NOF plant to ensure uninterrupted continuous line production. 

8. Working capital management 

Due to the long working capital cycle of the steel industry, efficient working capital management 

to be an important factor for steel manufacturers. The management of working capital is very 

much crucial for the profitability of the Company. 


�� 

preparing the working capital budgets at regular intervals & also monitoring the actual 

movement in the working capital movement against the standards set. In case of any significant 

and unexpected variation, the Company takes necessary action after identifying the permanent 

and floating working capital separately. 

9. Distribution network 

Distribution channel in the supply chain is very crucial in terms of marketing of products among 

�� 

competitiveness in the marketplace and hence may also affect the profitability in turn. 


The Company has more than 800 active/seasonal dealers in different belts across the country. 

The Company believes that this network and the cordial relationships that it enjoys with the 

dealers/distributors/agents, enables it to market and distribute its steel widely and efficiently all 

over the country. Moreover from FY 2005 the Company has started to export CR Coil which 

currently comprises about 15% of its total sales quantity. 

10. History of non-operation 

Since inception , the company did not experience any closure of operation except for the 

requirement of maintenance. 

11. Implementation of proposed New project 

The company proposed to invest its IPO proceeds for implementation of its new facilities to 

increase value added products. Any new project carries some inherent risks and may not be 

successful or may take long time to secure sustained profitability. 

�� 

KYCR started its commercial operation on 01 February 2002 and subsequently increased its 

production capacity by smooth implementation of NOF Plant. It is expected that the proposed 

expansion can be done smoothly based on experience of the sponsors in establishing project of 

this kind.

Section XI 

CORPORATE DIRECTORY 

Registered Office 

Auditor 

Manager to the Issue 

Valuer 

Credit Rating 

�� 

Officer 


Factory: Juramtal, Baro Kumira, Sitakunda, Chittagong, 

Bangladesh. 

Head Office: 255 Nasirabad I/A, Chittagong 4211, 

Bangladesh 

Phone: 880 31 681241-4 | 682474-8 Fax: 880 31 682836 | 

681398, Web: www.kdsgroup.net 

Hoda Vasi Chowdhury & Co. 

Delwar Bhaban (4 th floor) 

104, Agrabad C/A 

Chittagong-4100 

Alliance Financial Services Limited 

Rahman Chamber (3 rd floor) 

12-13 Motijheel C/A, Dhaka- 1000 

Tel: 9515468, 9515469 

Fax: 88-02-9515467 

web: www.allfin.org 

Shafiq Basak & Co. 

National House (1st floor) 

109, Agrabad Comercial Area 

Chittagong-4100 

Tel: 880-031-711561 

Fax: 880-031-723680 

E-mail: shafiq_basak@ctpath.net 

Credit Rating Information and Services Limited (CRISL) 

Nakshi Homes (4 th floor) 

6/A Segunbagicha 

Dhaka-100 

Tell: 880-2-7173700-1 

Fax:880-2-9565783 

E-mail:crisl@bdonline.com 

Mr. Moddassar Ahmed Siddique FCA 

CFO

Section XII 

�� 

OF 


We have audited the accompanying balance sheet of the KYCR Coil Industries Limited as at 

31 October 2010 and the related income statement to the period from 1 January to 31 October 

2010, statement of cash flow and statement of changes in equity for the period then ended 

together with the notes numbering 1 to 35 annexed thereto. The preparation of these financial 

�� 

an independent opinion on these financial statements based on our audit. 

Scope: 

We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those 

standards require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free of material misstatement. An audit includes 

examining, on a test basis, evidence supporting the amounts and disclosures in the financial 

statements. An audit also includes assessing the accounting principles used and significant 

estimates made by management, as well as evaluating the overall financial statement 

presentation. We believe that our audit provides a reasonable basis for our opinion. 

Opinion: 

In our opinion, the financial statements, prepared in accordance with Bangladesh Accounting 

Standards (BAS), give a tr�� 

�� 

with the Companies Act 1994, the Securities and Exchange Rules 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 purposes 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) �� 

by this report are in agreement with the books of account and returns. 

(d) �� 

Sd/- 

Chittagong, 3 January 2011 Chartered Accountants 

Hoda Vasi Chowdhury & Co


BALANCE SHEET 

AS AT 31 OCTOBER 2010 

31-Oct-10 31-Dec-09 

ASSETS & PROPERTIES Notes Taka Taka 

NON CURRENT ASSETS & 

PROPERTIES 

2,615,018,054 1,007,786,722 

Property, Plant & Equipment 3.1 2,328,627,198 953,004,172 

Capital Work-in-Progress 3.3 - 7,715,050 

Investment 4 286,390,856 47,067,500 

Preliminary Expenses 5 - - 

CURRENT ASSETS & PROPERTIES 5,056,888,229 4,446,151,159 

Inventories 6 2,306,672,032 1,971,870,331 

Receivables 7 1,756,020,785 1,744,751,099 

Due from Sister Concern 8 517,189,181 337,138,888 

Advances, Deposits and 

Prepayments 

9 351,964,090 316,920,642 

Cash and Bank Balances 10 125,042,141 75,470,199 

TOTAL ASSETS & PROPERTIES Taka 7,671,906,283 5,453,937,881 

SHAREHOLDERS' EQUITY & 

LIABILITIES 

SHAREHOLDERS' EQUITY 3,872,724,796 2,104,430,909 

Share Capital 11 1,302,400,000 651,200,000 

General Reserve 12 - 202,085,763 

Revaluation Reserve 13 1,430,576,602 - 

Un-appropriated Profit 1,139,748,194 1,251,145,146 

CURRENT LIABILITIES 3,799,181,487 3,349,506,972 

Current Portion of Long Term Loan 14 - 126,220,207 

Creditors and Accruals 15 114,514,696 13,087,676 

Short Term Loan 16 3,395,411,672 2,918,975,130 

Income Tax Provision 17 289,255,119 291,223,959 

Taka 7,671,906,283 5,453,937,881 

NET ASSETS VALUE PER SHARE 

(Basic) 

28 29.74 323.16 

NET ASSETS VALUE PER SHARE (Restated) 29.74 16.16 

CONTINGENT LIABILITIES & 

34 

COMMITMENTS 

These financial statements should be read in conjunction with the annexed notes 

and were approved by the Board of Directors on 02 January 2011 

and were signed on its behalf by : 

Sd/- Sd/- Sd/- 

COMPANY SECRETARY 

DIRECTOR 

MANAGING DIRECTOR 

Signed in terms of our separate report of even date annexed 

Sd/- 

Chittagong, 3 January 2011 CHARTERED ACCOUNTANTS


INCOME STATEMENT 

FOR THE PERIOD FROM 1 JANUARY TO 31 OCTOBER 2010 

31-Oct-10 31-Oct-09 

Notes Taka Taka 

Net Turnover 18 5,429,388,206 3,647,818,018 

Cost of Goods Sold 19 (4,782,515,074 

) 

(3,283,839,993) 

Gross Profit 646,873,132 363,978,025 

Operating Expenses 

Administrative Expenses 20 (37,038,571) (23,165,331) 

Selling and Distribution Expenses 21 (38,931,647) (6,500,898) 

Trading Profit 570,902,914 334,311,796 

Financial Expenses 22 (25,503,479) (939,037) 

Gross Operating Profit 545,399,435 333,372,759 

Amortization of Preliminary Expenses 5 - (527,439) 

Profit after amortization of 

Preliminary Expenses 

545,399,435 332,845,320 

Other Income 25 5,395,907 2,778,077 

Net Operating Profit before WPPF 550,795,342 335,623,397 

Provision for WPPF (27,539,767) - 

Net Operating Profit before Income 

Tax 

523,255,575 335,623,397 

Provision for Income Tax 17 (185,538,290) (125,858,774) 

Profit after Income Tax 337,717,285 209,764,623 

Earning Per Share (Restated) 29 2.59 1.61 

Earning Per Share (Annualized) 3.11 1.93 




Sd/- Sd/- 

COMPANY SECRETARY 

DIRECTOR 

Sd/- 

MANAGING DIRECTOR 

Signed in terms of our separate report of even date annexed 

Sd/- 

Chittagong, 03 January 2011 CHARTERED ACCOUNTANTS


CASH FLOW STATEMENT 

FOR THE PERIOD ENDED 31 OCTOBER 2010 

31-Oct-10 31-Oct-09 

Notes Taka Taka 

CASH FLOW FROM OPERATING ACTIVITIES 

Cash received from customers & others 8,15,18,25 5,328,621,073 3,916,956,486 

Cash paid to suppliers & employees 

6,7,9,17,19,20,2 

1 

(5,338,199,439) (3,191,355,982) 

Cash received / (payment) from short term bank loan 15 476,436,542 (119,628,096) 

Financial Expenses 21 (25,503,479) (939,037) 

Cash Inflow / (Outflow) from Operating Activities 441,354,697 605,033,371 

CASH FLOW FROM INVESTING ACTIVITIES 

Purchase of Fixed Assets 3.1 (33,954,242) (54,412,030) 

Addition of Capital Work in Progress 3.3 7,715,050 (5,104,550) 

Investment 4 (239,323,356) (98,659,191) 

Cash Inflow / (Outflow) from Investing Activities (265,562,548) (158,175,771) 

CASH FLOW FROM FINANCING ACTIVITIES 

(Repayment) / Receipt of Term Loan 14 (126,220,207) (428,689,483) 

Cash Inflow / (Outflow) from Financing Activities (126,220,207) (428,689,483) 

Net Increase/ (Decrease) in Cash & Cash Equivalents Taka 49,571,942 18,168,117 

Cash and Cash Equivalents at the beginning of the period 10 75,470,199 47,212,862 

Cash and Cash Equivalents at the end of the period Taka 125,042,141 65,380,979 

Operating Cash Inflow / (Outflow) Per Share (Basic) 30 3.39 92.91 

Operating Cash Inflow / (Outflow) Per Share (Restated) 3.39 4.65 


AUDITORS' REPORT TO THE SHAREHOLDERS 

See Annexed Report 


COMPANY SECRETARY DIRECTOR MANAGING DIRECTOR


STATEMENT OF CHANGES IN EQUITY 

FOR THE PERIOD 31 OCTOBER 2010 

Amount in Taka 

Total Equity 

Unappropriated 

Profit 

Revaluation 

Reserve 

Particulars Share Capital General 

Reserve 

Balance at the beginning of the period 651,200,000 202,085,763 - 1,251,145,146 2,104,430,909 

- - - 337,717,285 337,717,285 

Net Profit (after tax) transferred from Profit & 

Loss Account 

Revaluation Reserve from Revaluation Surplus - - 1,430,576,602 - 1,430,576,602 

Bonus Share(Unappropriated Profit) 449,114,237 - - (449,114,237) - 

Bonus Share(General Reserve) 202,085,763 (202,085,763) - - - 

Balance at the end of the period 1,302,400,000 - 1,430,576,602 1,139,748,194 3,872,724,796 

FOR THE PERIOD 31 OCTOBER 2009 

Amount in Taka 

Tax Holiday Unappropriated 

Particulars Share Capital Total Equity 

Reserve 

Profit 

Balance at the beginning of the period 651,200,000 202,085,763 999,618,113 1,852,903,876 

Net Profit (after tax) transferred from Profit & 

- - 209,764,624 209,764,624 

Loss Account 

Balance at the end of the period 651,200,000 202,085,763 1,209,382,737 2,062,668,500 


AUDITORS' REPORT TO THE SHAREHOLDERS 

See Annexed Report 


COMPANY SECRETARY DIRECTOR MANAGING DIRECTOR

KYCR COIL INDUSTRIES LTD 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE PERIOD ENDED 31 OCTOBER 2010 

1 THE COMPANY & IT'S OPERATIONS 

The Company was incorporated in Bangladesh on 04 th November 1995 as a Private Company registered under the 

Companies Act, 1994 bearing registration number CHC - �� 

Hajji Amir Ali Chowdhury Road, Khatungonj - Chittagong with factory office at Jouramtall, Bara kumira, 

Sitakunda. The main objectives of the company is to own and establish mills, factories and workshop for 

manufacturing CR Coil, CI Sheet, Galvanizing Sheet, Plates etc. of all kinds and descriptions and to purchase or 

import raw materials to manufacture the same and its by-products and marketing the products and by-products 

locally and internationally. The Company started commercial production on 1 st February 2002. Subsequently the 

Company was converted into Public Limited Company, along with the subdivision of face value of shares from Tk 

100 to Tk 10 each and enhancement of Authorized Capital from Tk 1,000,000,000 to Tk 5,000,000,000 as per 

special resolution passed in the Board of Directors meeting held on 31 July 2010. 

2 SUMMARY OF SIGNIFICANT ACCOUNTING AND VALUATION POLICIES 

2.1 Basis of preparation and presentation of the financial statements 

The financial statements have been prepared and the disclosures of information made in accordance with the 

requirements of the Companies Act 1994 and in compliance with the International Accounting Standards (IASs) 

adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), Bangladesh Accounting Standard (BAS) 

& Bangladesh Financial Reporting Standard (BFRS). The balance sheet and profit & loss account have been 

prepared accordin�� 

following going concern assumption under Generally Accepted Accounting Principles (GAAP) in Bangladesh and 

�� 

2.2 Accounting convention and assumption 

The financial statements are prepared in accordance with the historical cost convention. 

2.3 Principal accounting policies 

The specific accounting policies have been selected and applied by the Company�� 

significant transactions and events that have a material effect within the Framework for the Preparation 

and Presentation of Financial Statements. Financial Statements have been prepared and presented in 

compliance with BAS 1 Preparation of Financial Statements. The previous years figures were prepared 

according to the same accounting principles. Compared to the previous period/year, there were no 

significant changes in the accounting and valuation policies affecting the financial position and 

performance of the company. However, changes made to the presentation are explained in the note for 

each respective item. 

2.4 Application of Standards 

The following BASs are applied to the financial statements for the year under review: 

BAS 1 Presentation of Financial Statements 

BAS 2 Inventories 

BAS 7 Cash Flow Statements 

BAS 8 Accounting policies, changes in accounting estimates and errors 

BAS 10 Events after the Balance Sheet date 

BAS 12 Taxation 

BAS 16 Property, Plant & Equipment 

BAS 18 Revenue 

BAS 24 Related Party Disclosures 

BAS 33 Earnings Per Share 

BAS 34 Interim Financial Reporting 

BAS 37 Provisions, Contingent Liabilities and Contingent Assets

2.5 Property, Plant and Equipment 

2.6 Inventories 

Property, Plant and Equipment are shown at historical cost less depreciation thereon. 

Depreciation is charged on diminishing balance method on all Property, Plant & Equipment 

�� 

irrespective of the date(s) of acquisition. Revalued amount was incorporated on 31 st August 

2010 and depreciation will be charged from that date. Depreciation on revalued amount for 

two months has been adjusted with revaluation surplus. 

Rates of depreciation on various categories of Property, Plant and Equipment are as follows: 

Particulars Rate of Depreciation 

Factory Building 15% 

Plant & Machinery 10% 

Equipment & Appliance 10% 

Furniture & Fixtures 10% 

Motor Vehicles 10% 

Inventories are stated at the lower of cost or net estimated realizable value in compliance with 

the requirements of para 21 and 25 of BAS 2. 

Category of Inventories Basis of valuation 

Stores and Spares Weighted average (moving average) cost 

Inventories-in-Trade: 

Raw Materials Weighted average cost 

Finished Products At lower of cost or net estimated realizable value 

Stores and Spares Cost value 

Materials-in-Transit At cost 

2.7 Trade Receivables 

Trade Receivables are recognized at cost which is the fair value of the consideration given. 

2.8 Cash and cash equivalents 

Cash and cash equivalents include cash in hand, cash at banks, term deposit, government Treasury bill 

which are available for use by the company without any restrictions. 

2.9 Foreign currency transaction 

Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction 

date in accordance with BAS 21 the effect of changes in Foreign Exchange rates. Foreign currency 

transactions are translated at the exchange rate ruling on the date of transaction. 

2.10 Creditors and Accrued Expenses 

2.10.1 Trade and other payables 

Liabilities are recorded at the amount payable for settlement in respect of goods and services received by 

the company.

2.10.2 Provision 

The preparation of financial statements is in conformity with Bangladesh Accounting Standards BAS 37 

provisions, contingent liabilities and contingent assets requires management to make estimates and 

assumptions that affect the reported amounts of revenues and expenses, assets and liabilities during and 

at the date of financial statements. 

In accordance with the guidelines as prescribed by BAS 37 provisions were recognized in the following 

situation: 

� When the company has a present obligation as a result of past events; 

� When it is probable that an out flow of resources embodying economic benefits will be 

required to settle the obligation; and 

� Reliable estimates can be made of the amount of the obligation. 

We have shown the provisions in the balance sheet at an appropriate level with regard to an adequate 

provision for risks and uncertainties. An amount recorded as a provision represented the best estimate of 

the probable expenditure required to fulfill the current obligation on the balance sheet date. 

Other provisions are valued in accordance with BAS 37 Provisions, Contingent Liabilities and Contingent 

Assets and, if required, in accordance with BAS 19 Employee Benefits. Other Provisions comprise all 

recognizable risks from uncertain liabilities and anticipated losses from pending transactions. 

2.11 Taxation 

2.11.1 The Company was allowed tax holiday for a period of five years from 1 st January 2002 to 

31 December 2006. 

2.11.2 Appropriate provision has been made for Income Tax on the Operating income of 

the Company during the period under report. 

2.11.3 Deferred income tax 

Deferred Tax has not been considered consistently. 

2.12 Contingent liabilities and assets 

Contingent liabilities are current or possible obligations, arising from past events and whose existence is 

due to the occurrence or non occurrence of one or more uncertain future events which are not within 

the control of the company. In accordance with BAS 37 Provisions, Contingent Liabilities and 

Contingent Assets they are disclosed in note - 34 to the financial statements. 

2.13 Revenue Recognition 

In compliance with the requirements of BAS 18 Revenue, revenue is recognized only when; Sale is 

completed and final. 

2.14 Financial Expenses 

According to BAS 23 borrowing cost that are directly attributable to the acquisition, construction or 

production of qualifying assets from part of the cost of that assets, other borrowing cost are recognized as 

an expenses. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready 

for its intended use or sale. Inventories that require a substantial period of time to bring to a salable 

condition can be regarded as qualifying assets for the purposes of this standard. 

Imported HR Coil of various thickness and sizes stored in bonded warehouse for long period of time for 

uninterrupted production and supply. Accordingly the financial expenses incurred for procurement of raw 

�� attributable cost in conformity with 

the BAS 2 and BAS 23. 

��inancial ��

2.15 Earning per share 

The Company calculates Earning per Share (EPS) in accordance with BAS 33. Earning per Share has been 

shown on the face of Profit and Loss Account. 

2.15.1 Basic earnings 

The Company calculates earnings for the year attributable to the ordinary share holders. As there is no 

preference dividend, minority interest or extra ordinary items, the net profit after tax for the period has 

been considered as fully attributable to ordinary shareholders. 

2.15.2 Basic earning per share 

This has been calculated by dividing the basic earnings by the number of ordinary shares outstanding 

during the period under report. 

2.15.3 Annualize earning per share 

The financial period of the company covers from 01 January to 31 October 2010. For better 

understanding compare with yearend proportionate of annual earnings per share has been disclosed. 

2.16 Revaluation of Fixed Assets 

The increased value of assets arised due to revaluation of assets has been credited to equity under 

heading of Revaluation Surplus / Reserve as per BSA - 16: Property Plant & Equipment. 

2.17 Workers Profit Participation Fund 

The Company makes provision @ 5% on Net Operating Profit with effect from 01 January 2010 in 

compliance with the Companies Profits (Workers Participation) Act, 1968 as amended in 1985. 

2.18 Reporting Period 

The financial period of the Company covers from 01 January to 31 October 2010.

3 PROPERTY, PLANT & EQUIPMENT 

Depreciation (Amount in Taka) 

3.1 Operating Fixed Assets - at Cost Less Accumulated Depreciation - note 2.5 

Cost (Amount in Taka) 

Written 

Down 

Value as on 

31.10.2010 

(Taka) 

Closing 

Balance 

as on 

31.10.2010 

Delet 

ion 

Durin 

g 

the 

Year 

Charge 

During 

the Year 

Opening 

Balance 

as on 

01.01.2010 

Depreci 

ation 

Rate 

(%) 

Closing 

Balance 

as on 

31.10.2010 

Deletion 

During 

the Year 

Addition 

During 

the Year 

Opening 

Balance 

as on 

01.01.2010 

Particulars 

Land and Land Development: 

Free Hold Land 28,839,503 1,768,450 - 30,607,953 - - - - 30,607,953 

Building: 

Factory Building 552,221,425 19,101,051 - 571,322,476 15% 350,235,736 27,635,843 - 377,871,579 193,450,897 

Plant & Machinery: 

Plant & Machinery 1,310,880,899 8,468,157 - 1,319,349,056 10% 623,408,271 57,995,064 - 681,403,335 637,945,721 

1,310,880,899 8,468,157 - 1,319,349,056 623,408,271 57,995,064 - 681,403,335 637,945,721 

Equipment & Appliance: 

Office Equipment 1,104,504 11,800 - 1,116,304 10% 588,817 43,957 - 632,774 483,530 

Computer 5,011,414 267,600 - 5,279,014 10% 2,051,004 269,001 - 2,320,005 2,959,009 

Electric Installation & Air 

24,394,479 40,440 - 24,434,919 10% 11,000,834 1,119,507 - 12,120,341 12,314,578 

Conditioner 

Fire Extinguisher 264,160 - - 264,160 10% 144,748 9,951 - 154,699 109,461 

Weight Scale 1,050,000 - - 1,050,000 10% 504,801 45,433 - 550,234 499,766 

31,824,557 319,840 - 32,144,397 14,290,204 1,487,849 - 15,778,053 16,366,344 

Furniture & Fixtures 3,274,851 833,810 - 4,108,661 10% 1,707,445 200,101 - 1,907,546 2,201,115 

Motor Vehicles 26,463,457 3,462,934 - 29,926,391 10% 10,858,864 1,588,961 - 12,447,825 17,478,566 

31.10.2010 Taka 1,953,504,692 33,954,242 - 1,987,458,934 1,000,500,520 88,907,818 - 1,089,408,338 898,050,596 

31.12.2009 Taka 1,893,784,841 59,719,851 - 1,953,504,692 884,650,141 115,850,379 - 1,000,500,520 953,004,172 

31-Oct-10 31-Oct-09 

Basis 

3.2 Depreciation Allocated to: Taka Taka 

Factory Overhead - note 19.2 80,017,036 103,771,363 90% 

Administrative Expenses - note 20 4,445,391 5,765,076 5% 

Selling Expenses - note 21 4,445,391 5,765,076 5% 

Taka 88,907,818 115,301,515 100% 

31-Oct-10 31-Dec-09 

3.3Capital Work-in-Progress Taka Taka 

Factory Building - 7,615,050 

Power Plant - 100,000 

Taka - 7,715,050

3.4 Revaluation Reserve 

Cost (Amount in Taka) 

Depreciation (Amount in Taka) 

Written 

Depr Openin 

Deleti 

Revaluatio 

Closing Down 

Opening 

Closing eciat g 

on 

n Deletion 

Charge 

Balance Value as 

Particulars 

Balance 

Balance ion Balance 

Durin 

Surplus During 

During 

as on on 

as on 

as on Rate as on 

g 

During the Year 

the Year 

31.10.201 31.10.2010 

01.01.2010 

31.10.2010 (%) 01.01.20 

the 

the Period 

0 (Taka) 

10 

Year 

Land and Land 

Development: 

Free Hold Land - 742,339,047 - 742,339,047 - - - - 742,339,047 

Building: 

Factory Building - 505,862,234 - 505,862,234 15% - 12,646,556 - 12,646,556 493,215,678 

Plant & Machinery: 

Plant & Machinery - 184,814,393 - 184,814,393 10% - 3,080,240 - 3,080,240 181,734,153 

- 184,814,393 - 184,814,393 - 3,080,240 - 3,080,240 181,734,153 

Equipment & Appliance: 

Office Equipment - - - - 10% - - - - - 

Computer - - - - 10% - - - - - 

Electric Installation & Air 

- 12,465,216 - 12,465,216 10% - 207,754 - 207,754 12,257,462 

Conditioner 

Fire Extinguisher - - - - 10% - - - - - 

Weight Scale - 1,031,148 - 1,031,148 10% - 17,186 - 17,186 1,013,962 

- 13,496,364 - 13,496,364 - 224,940 - 224,940 13,271,424 

Furniture & Fixtures - - - - 10% - - - - - 

Motor Vehicles - 16,576 - 16,576 10% - 276 - 276 16,300 

31.10.2010 Taka - 1,446,528,614 - 1,446,528,614 - 15,952,012 - 15,952,012 1,430,576,602 

3.5 Revaluation Surplus 

Represent revaluation surplus arised in accordance with the report on revaluation of assets carried out by Shafiq Basak & Co, 

Chartered Accountants.

4 INVESTMENT 

31-Oct-10 31-Dec-09 

Taka Taka 

KDS Logistics Ltd. 200,000 Shares @ Tk 100 each (non quoted) 20,000,000 20,000,000 

Al - Arafah Islami Bank Ltd. - note 4.1 259,110,856 27,067,500 

PHP First Mutual Fund 728,000 Shares @ Tk 10 each (non quoted) 7,280,000 - 

Taka 286,390,856 47,067,500 

4.1 Face Value of 10,853,700 nos shares @ Tk 10 each of Al - Arafah Islami Bank Ltd. is Tk 108,537,7000 and 

Market Value as on that date Tk 696,807,540. 

4.2 PHP First Mutual Fund was listed on 29 November 2010. 

5 PRELIMINARY EXPENSES 

Preliminary Expenses - 593,574 

Amortized during the period - (593,574) 

Taka - - 

Amortization of Preliminary Expenses during the period ended on 31.10.2009 was Tk 527,439 is shown in 

Income Statement. 

6 INVENTORIES 

Stores & Spares - note 6.1 30,971,989 32,737,443 

Raw Materials in Stock - note 6.2 1,418,745,369 1,225,708,906 

Stock - in - transit - note 6.3 562,647,194 568,237,721 

Finished Goods - note 6.4 294,307,480 145,186,261 

Taka 2,306,672,032 1,971,870,331 

6.1 Stores & Spares - note 6 

Stores & Spares 30,971,989 32,737,443 

It includes Mechanical, Electrical & Consumable 

Items 

Tk 30,971,989 32,737,443 

6.2 Raw Materials in Stock - note 6 Qty in MT 

Direct Materials 19,662.85 1,407,495,793 1,220,894,870 

Indirect Materials - 11,249,576 4,814,036 

Indirect Materials are Consumable 

Items 

19,662.85 Tk 1,418,745,369 1,225,708,906 

6.3 Stock - in - transit - note 6 

Direct Materials 517,099,333 529,663,728 

Indirect Materials 45,547,861 38,573,993 

Tk 562,647,194 568,237,721

6.4 Finished Goods - note 6 

Finished Goods 4,050.15 294,307,480 145,186,261 

294,307,480 145,186,261 

7 RECEIVABLES 

Trade Receivable 1,751,347,222 1,742,629,834 

Interest Receivable 4,673,563 2,121,265 

Taka 1,756,020,785 1,744,751,099 

i) Receivables are unsecured but considered good. 

ii) There have been no receivables outstanding for the period exceeding six months. 

iii) There is no such debt due by or to directors or other officers of the Company. 

iv) Details of Trade Receivables are shown in Annexure - A. 

8 DUE FROM SISTER CONCERN 

Due from KY Steel Mills Ltd. 368,362,261 173,788,110 

Due from Steel Accessories Ltd. 148,826,920 163,350,778 

Taka 517,189,181 337,138,888 

These represents the balancing amount receivables from sister concern on account of: 

i) CR Product Sales to KY Steel Mills Ltd. 

ii) CR Product Sales & Temporary Loan paid to Steel Accessories Ltd. 

9 ADVANCES, DEPOSITS AND PREPAYMENTS 

31-Oct-10 31-Dec-09 

Taka Taka 

Advances - note 9.1 339,004,802 307,045,574 

Deposits - note 9.2 8,212,094 7,407,011 

Prepayments - note 9.3 4,747,194 2,468,057 

Taka 351,964,090 316,920,642 

9.1 Advances - note 9 

Advance to employee 420,545 388,437 

Advance Against Supplies 6,151,300 - 

Advance Against Expenses - 10,000,000 

Advance Income Tax 112,180,629 167,507,127 

VAT Current A/C 159,105,460 127,287,642 

Earnest Money 170,630 1,862,368 

Advance for Share Purchase 57,564,226 - 

Alliance Financial Services 1,000,000 - 

Advance to others 2,412,012 - 

Tk 339,004,802 307,045,574

i) All the advances and deposits amount is considered good and recoverable. 

ii) There is no agreement amount due from directors or officers of the Company. 

iii) Represents the VAT paid on imported raw materials at the import stage but yet to be adjusted. 

iv) Advance is paid to SKYS securities & Union capital Ltd. for purchase of Al-Arafah Islami Bank shares. 

9.2 Deposits - note 9 

Bakhrabad Gas System Ltd. 1,667,825 1,294,028 

Bangladesh Telecommunication Company Ltd. 10,000 10,000 

Power Development Board Chittagong 6,000,000 6,000,000 

Bangladesh Oxygen Corporation 22,983 22,983 

Bangladesh Railway 60,000 60,000 

Security Money-Grameen Phone 20,000 20,000 

Security Money- Ansar & VDP 431,286 - 

Tk 8,212,094 7,407,011 

i) All are security deposits against contractual services to be provided by the respective institutions. 

9.3 Prepayments - note 9 

Pragati Insurance Company Ltd. (from 01.05.2010 to 30.04.2011) 3,663,525 2,442,373 

BSTI CM Licence Fee (from 01.07.2009 to 30.06.2012) 1,083,669 - 

Northern Insurance Ltd. - 25,684 

Tk 4,747,194 2,468,057 

10 CASH AND BANK BALANCES 

Cash in Hand 

Cash in hand at Head Office 384,009 480,142 

Cash in hand at Factory 247,418 237,124 

631,427 717,266 

Cash at Bank - note 10.1 120,113,247 72,209,815 

Foreign Currency Accounts - note 10.2 4,297,467 2,543,118 

124,410,714 74,752,933 

Taka 125,042,141 75,470,199 

31-Oct-10 31-Dec-09 

Taka Taka 

10.1 Balances with Schedule Banks - note 10 

Arab Bangladesh Bank Ltd., Anderkilla Branch 3,023,707 831,578 

Bangladesh Krishi Bank Ltd., Tea Board Branch 4,500 - 

Bank Asia Limited, Agrabad Branch 261 836 

Bank Asia Limited, CDA Avenue Branch 454,733 1,906,878 

Bank Alfalah Limited, Chittagong Branch 67,215 68,485 

Dutch-Bangla Bank Ltd., Agrabad Branch 3,169,683 2,154,732 

Dhaka Bank Ltd., Agrabad Branch 104,292 93,672 

EXIM Bank Ltd., Khatungonj Branch 34,100 -

EXIM Bank Ltd., Agrabad Branch 56,042 3,841 

EXIM Bank Ltd., Sitakunda Branch 2,956,172 99,000 

Eastern Bank Ltd., Agrabad Branch 104,130 25,775 

HSBC Ltd., Chittagong Branch 1,763,423 3,890,651 

Habib Bank Limited, Laldighi Branch 22,924 32,003 

ICB Islami Bank Ltd,. 500 - 

IFIC Bank Limited, Agrabad Branch 216,663 1,436,139 

Islami Bank Bangladesh Ltd., Khatungonj Branch 584,452 - 

Janata Bank Limited, Baijid Branch 767,555 405,583 

Janata Bank Limited, Asadgonj Branch 170,389 170,964 

Janata Bank Limited, Kumira Branch 92,686 1,965,386 

Jamuna Bank Ltd., Agrabad Branch 3,113 3,688 

Jamuna Bank Ltd., Khatungonj Branch 294,438 12,165 

Mercantile Bank Ltd., Khatungonj Branch 2,047,807 - 

Mutual Trust Bank Ltd., Agrabad Branch 813,450 972,420 

Mutual Trust Bank Ltd., CDA Avenue Branch 37,505 - 

National Bank Ltd., Khatungonj Branch 4,196,018 - 

NCC Bank Ltd., Agrabad Branch 1,913,915 25,166 

NCC Bank Ltd., Jubilee Road Branch 3,725 - 

One Bank Ltd, Khatungonj Branch 1,605,750 - 

Premier Bank Ltd.,Khatungonj Branch 4339 - 

Prime Bank Ltd., Agrabad Branch 64,415 64,990 

Prime Bank Ltd., Laldighi Branch 7,777,436 1,691,865 

Pubali Bank Ltd., Khatungonj Branch 551,073 4,784,503 

South East Bank Ltd., Khatungonj Branch 484,095 68,985 

Social Investment Bank Ltd., Agrabad Branch 2,502 12,547,786 

Social Investment Bank Ltd., Khatungonj Branch 3,705 - 

Sonali Bank Ltd., Agrabad Branch 2,689,345 152,026 

State Bank of India, Agrabad Branch 482,746 72,787 

Standard Bank, Khatungonj Branch 196,400 - 

Standard Chartered Bank, Agrabad Branch 1,253,482 515,310 

Shahjalal Islami Bank Ltd., Khatungonj 

320,191 74,909 

Branch 

The City Bank Ltd., Khatungonj Branch 793,493 1,003,326 

The Trust Bank Ltd., Agrabad Branch 187,143 40,246 

United Commercial Bank Ltd., Agrabad Branch 2,271,227 1,325,204 

Uttara Bank Ltd., Khatungonj Branch 86,818 4,655 

Fixed Deposit Receipts 78,435,689 35,764,261 

Tk 120,113,247 72,209,815 

10.2 Foreign Currency Accounts - note 10 

HSBC Ltd., Chittagong Branch 1,181,686 2,543,118 

Standard Charterd Bank., Chittagong Branch 3,115,781 - 

Tk 4,297,467 2,543,118

11 SHARE CAPITAL 

11. 

1 Authorized 

Number 

500,000,000 

11. 

2 

Issued, subscribed and paid-up 

130,240,000 

11.3 Position of Shares holding 

Name of the Shareholders 

Ordinary Shares of Tk 10 

each 

31-Oct-10 31-Dec-09 

Taka Taka 

5,000,000,000 

Taka 5,000,000,000 

1,000,000,00 

0 

1,000,000,00 

0 

Ordinary Shares of Tk 10 

each 

1,302,400,000 651,200,000 

Taka 1,302,400,000 651,200,000 

31-Oct-10 31-Dec-09 

% Taka % Taka 

Al - Haj Khalilur Rahman 9.21 120,000,000 9.21 60,000,000 

Mr. Salim Rahman 13.82 180,000,000 13.82 90,000,000 

Mrs. Tahsina Rahman 7.68 100,000,000 7.68 50,000,000 

Mr. S.M. Shamim Iqbal - - 6.14 40,000,000 

Mrs. Hasina Iqbal - - 6.14 40,000,000 

KDS Hi - Tech Garments (BD) Ltd. 21.50 280,000,000 21.49 140,000,000 

KDS Garment 

Industries Ltd. 

17.08 222,400,000 17.07 111,200,000 

KIY Steel Industries Ltd. 2.30 30,000,000 2.30 15,000,000 

KY Steel Mills Ltd. 28.41 370,000,000 16.15 105,000,000 

Total 100.00 1,302,400,000 100.00 651,200,000 

11.4 Classification of Shareholders by holding 

Holdings No. of Holders No. of Shares Total Holdings 

100,000 to 10,000,000 shares 2 13,000,000 9.98% 

10,000,001 to 20,000,000 shares 2 30,000,000 23.04% 

20,000,001 to 30,000,000 shares 2 50,240,000 38.57% 

30,000,001 to 40,000,000 shares 1 37,000,000 28.41% 

Total 7 130,240,000 100.00 

Note: The authorized share capital of the company is Tk. 5,000,000,000 (Five hundred Crore) divided in to 500,000,000 

(Fifty Crore) ordinary shares of Tk. 10/- each, which was converted into TK. 10/- per share from Tk. 100/- per share by 

passing special resolution in the Extra Ordinary General Meeting (EGM) held on 31 .07.2010.

12 GENERAL RESERVE 

31-Oct-10 31-Dec-09 

Taka Taka 

Opening Balance 202,085,763 - 

Addition during the Period - 202,085,763 

Transferred to Share Capital (202,085,763) - 

Taka - 202,085,763 

13 REVALUATION RESERVE 

Opening Balance as on 01.09.2010 1,446,528,614 - 

Charged during the year (15,952,012) - 

Taka 1,430,576,602 - 

i) Revaluation of Company's assets were carried out by Shafiq Basak & Co, Chartered Accountants 

following Market value Method of Valuation as on 31 August 2010 & submitted their report on 20 

September 2010. Revaluation surplus has been credited to Revaluation Reserve account. 

14 LONG TERM LOAN 

Due within one year - 126,220,207 

Taka - 126,220,207 

a) Eastern Bank Ltd., Agrabad Branch 


Tk - 61,720,258 

b) South East Bank Ltd., Khatungonj Branch 


Tk - 10,467,249 

c) National Credit and Commerce Bank Ltd., Agrabad Branch 


Tk - 32,596,173 

d) Dutch Bangla Bank Ltd., Agrabad Branch 


Tk - 21,436,527 

15 CREDITORS AND ACCRUALS 

For Other finance - note 15.1 2,848,658 2,249,205 

For Supplies expenses - note 15.2 69,704,757 4,588,106 

For Revenue expenses - note 15.3 41,961,281 6,250,365 

Taka 114,514,696 13,087,676

15.1 For Other Finance - note 15 

31-Oct-10 31-Dec-09 

Taka Taka 

Tax Deducted at Source - Bill 55,306 33,824 

Pragati Insurance 943,244 1,551,385 

Liability for Staff EBF 1,750,457 663,996 

VAT Payable 99,651 - 

Tk 2,848,658 2,249,205 

15.2 For Supplies expenses - note 15 

Poly Cables 462,000 462,000 

M.D Steel Casting Industries 5,052,000 400,000 

New Sun Chemicals 30,636,423 426,884 

Unite Engineering 16,624,959 2,900,000 

Mitra Hardware 15,434,375 162,575 

Others 1,495,000 236,647 

Tk 69,704,757 4,588,106 

15.3 For Revenue expenses - note 15 

Employment Cost - Work Force Salary 3,876,057 617,335 

Employment Cost - Mgt. Staff Salary 935,914 796,213 

Electricity Bill Factory 6,009,398 2,924,204 

Audit Fee 250,000 200,000 

WPPF 27,539,767 - 

Gas 

1,829,235 1,000,000 

Bill 

Others 1,520,910 712,613 

Tk 41,961,281 6,250,365 

i) All accrued expenses were paid on regular basis. 

ii) Salary and Allowances for the month of October 2010 has been paid in subsequent 

month. 

16 SHORT TERM BANK LOAN 

Janata Bank Ltd., Asadgonj Branch (CC Pledge) 433,926,834 444,217,775 

Janata Bank Ltd., Asadgonj Branch (CC Hypo) 103,064,556 36,178,348 

Jamuna Bank Ltd., Khatungonj Branch(CC Hypo) 21,776,190 22,201,931 

Social Islami Bank Ltd., Agrabad Branch (CC Hypo) 220,953,593 206,599,583 

Mutual Trust Bank Ltd., CDA Avenue Branch (CC Hypo) 49,510,217 - 

Mercantile Bank Ltd., Khatungonj Branch (SOD) 43,788,411 46,707,806 

Janata Bank Ltd., Asadgonj Branch, PAD 190,774,041 288,776,547 

Marcantile Bank Ltd., Kahtungonj Branch, LTR 611,803,516 374,712,972

South East Bank Ltd., Khatungonj Branch, LTR - 135,094,121 

Janata Bank Ltd., Asadgonj Branch, LTR 126,496,938 212,453,862 

Shahjalal Islami Bank Ltd., Khatungonj Branch, LTR 20,599,258 27,263,308 

Social Islami Bank Ltd., Agrabad Branch, LTR 1,650,599 25,589,948 

NCC Bank Ltd., Agrabad Branch, LTR 71,055,617 - 

Jamuna Bank Ltd., Khatungonj Branch LTR 74,468,318 - 

State Bank of India, Agrabad Branch, LTR 1,649,503 58,800,235 

Mercantile Bank Ltd., Khatungonj Branch, ABP 249,094,505 195,868,352 

Pubali Bank Ltd., Khatungonj Branch, LTR 774,916,065 13,273,580 

Mutual Trust Bank Ltd., CDA Avenue Branch, LTR 26,024,232 - 

Janata Bank Ltd., Asadgonj Branch, ABP 241,851,574 358,013,457 

South East Bank Ltd., Khatungonj Branch, ABP 5,240,220 356,816,508 

Pubali Bank Ltd., Khatungonj Branch, ABP 126,767,485 116,406,797 

Major Terms and conditions of the said loans are presented in - note 26 

17 INCOME TAX PROVISION - note 2.12 

Taka 3,395,411,672 2,918,975,130 

31-Oct-10 31-Dec-09 

Taka Taka 

Opening balance 291,223,959 140,266,542 

Provision made during the period 185,538,290 150,957,417 

476,762,249 291,223,959 

AIT Adjusted (167,507,130) - 

Paid during the period (20,000,000) - 

Taka 289,255,119 291,223,959 

i) The IT assessment for the all years to 2008 (IT Assessment year 2009-2010) have been completed and 

agreed with the Tax Authorities while the return for 2009 has been filed and pending for assessment. 

Company paid Tk 167,507,130 as advance, which will be adjusted with above provision on finalization of 

the assessment upto the year 2009. 

ii) Consistently deferred tax has not been considered. 

18 NET TURNOVER Qty in MT 

31-Oct-10 31-Oct-09 

Taka Taka 

Local Sales 50,951.10 4,862,895,492 3,692,216,734 

Scrap Sales 2,477.20 91,111,439 66,855,964 

Export Sales - note 18.1 8,349.52 605,315,303 229,427,639 

61,777.82 5,559,322,234 3,988,500,337 

Less: VAT 129,934,028 340,682,319 

Taka 5,429,388,206 3,647,818,018

18.1 Export Sales - note 18 

Export in Foreign Currency 8,349.52 USD 8,805,307 2,546,835 

Export in Local Currency Taka 605,315,303 229,427,639 

19 COST OF GOODS SOLD 

Opening Stock of Raw Materials 

Direct Materials 18,078.07 1,220,894,870 1,304,148,273 

Indirect 

Materials 

- 4,814,036 2,479,577 

18,078.07 1,225,708,906 1,306,627,850 

Raw Materials Purchased 

Direct Materials - note 19.1.1 66,044.34 4,708,802,244 2,856,068,919 

Indirect Materials - note 19.1.2 - 133,785,989 140,630,676 

66,044.34 4,842,588,233 2,996,699,595 

Materials available for 

consumption 

84,122.41 6,068,297,139 4,303,327,445 

Closing Stock of Raw Materials - note 6.2 

Direct Materials (19,662.85) (1,407,495,793) (1,255,568,915) 

Indirect Materials - (11,249,576) (12,881,995) 

(19,662.85) (1,418,745,369) (1,268,450,910) 

Raw Materials Consumption 64,459.56 4,649,551,770 3,034,876,535 

Production Overhead - note 19.2 - 282,084,523 263,031,834 

Cost of Production (Process Loss 

1,027.53 MT) 

Opening Stock of Finished 

Goods 

Closing Stock of Finished Goods - 

note 6.4 

19.1 Raw Materials Purchase 

63,432.03 4,931,636,293 3,297,908,369 

2,395.94 145,186,261 10,235,213 

65,827.97 5,076,822,554 3,308,143,582 

(4,050.15) (294,307,480) (24,303,589) 

61,777.82 Taka 4,782,515,074 3,283,839,993 

31-Oct-10 31-Oct-09 

Taka Taka 

19.1.1 Direct Materials note - 19 Qty in MT 

HRC 62,214.77 3,998,385,325 2,489,209,721 

ZN 3,699.93 656,004,516 327,834,915 

Compound ZN 118.62 37,265,367 16,996,658 

Tin Ingot 11.01 17,147,036 22,027,625 

66,044.33 Tk 4,708,802,244 2,856,068,919

19.1.2 Indirect Materials note - 19 

Rolling Oil 9,834,728 7,579,435 

HCL 13,889,181 8,190,516 

Consumable Stock 110,062,080 124,860,725 

Tk 133,785,989 140,630,676 

19.2 FACTORY OVERHEAD - note 19 

Taka 4,842,588,233 2,996,699,595 

Salaries and Wages 54,011,049 47,155,990 

Bonus 709,456 568,313 

Shifting Expenses 3,238,732 2,725,943 

Mechanical Shutdown Expenses 787,094 698,085 

Electricity Charges 49,009,049 45,964,827 

Gas Bill 16,950,827 11,960,041 

Laboratory Expenses 132,995 106,210 

Electrical 

3,489,503 2,429,429 

Spares 

Depreciation - note 3.2 80,017,036 103,771,363 

Fire Insurance 6,105,973 3,677,364 

Gas Line Repairing 1,124,150 1,425,803 

Crane 

533,003 743,356 

Repairing 

Crane Hire Charges 1,166,524 1,099,596 

Loading Expenses 26,600 302,085 

Un-loading Expenses 4,818,336 3,116,130 

Canteen expenses 1,960,037 1,293,376 

Store Material Consumption 58,004,159 35,993,923 

Taka 282,084,523 263,031,834 

20 ADMINISTRATIVE EXPENSES 

31-Oct-10 31-Oct-09 

Taka Taka 

Salary & Allowances 3,706,910 2,362,896 

Directors Remuneration - note 24 320,000 320,000 


Festival Bonus 366,623 363,113 

Telephone & Mobile charges 1,753,385 1,239,053 

Traveling Expenses 3,846,802 2,925,993 

Conveyance 482,071 405,279 

Staff Fooding 254,878 219,702 

Office Tea 323,875 133,261

Expenses 

Entertainment Expenses 1,164,453 1,075,895 

Postage & Stamp charges 100,713 124,117 

Repairing Expenses 79,010 97,907 

Courier Service Charges 13,870 69,000 

Newspaper and Periodicals 4,709 10,716 

Uniform & Liveries 14,740 700 

Legal Expenses 3,561,600 184,510 

Vehicles Fuel & Lubricants 2,772,504 897,868 

Office Stationeries 368,354 407,917 

Medical Expenses 868,664 37,324 

Land Revenue Expenses 44,828 177,828 

Subscription 2,797,785 77,125 

Vehicle maintenance 679,745 614,259 

Miscellaneous expenses 1,624,972 308,334 

Registration & Renewal Expenses 1,747,239 190,255 

Rent, Rates & Taxes 50,000 50,000 

Electricity Charges 5,445,450 5,107,203 

Audit fee - note 23 200,000 - 

Salary & Allowances include payment to employees only. 

21 SELLING AND DISTRIBUTION EXPENSES 

Taka 37,038,571 23,165,331 

Salary & Allowances 2,042,517 596,022 


Sales Promotion Expenses 32,243,739 139,800 

Sample Expenses 200,000 - 

22 FINANCIAL EXPENSES 

Taka 38,931,647 6,500,898 

31-Oct-10 31-Oct-09 

Taka Taka 

Bank Interest 24,595,492 - 

Bank Charge 907,987 939,037 

Taka 

25,503,47 

9 

939,037 

i) The above amount was not directly attributable. Directly attributable cost incurred for cost of raw materials 

was charged to cost of goods sold as per IAS 23. 

23 AUDITOR'S REMUNERATION - note 20 

Audit Fee (Statutory) 200,000 - 

Taka 200,000 - 

Audit fee represents auditor's remuneration only which is fixed up by the Board of Directors. 

24 DIRECTOR'S REMUNERATION - note 20

Director's Remuneration paid to Mrs. Tahsina Rahman @ Tk 32,000 320,000 320,000 

Taka 320,000 320,000 

25 OTHER INCOME 

ID Card Re-issue Compensation 1,800 1,030 

Delivery Charge for Scrap Sales 2,487,485 2,307,747 

Interest on FDR 2,906,622 469,300 

Taka 5,395,907 2,778,077 

26 BANK FACILITIES 

Sl 

No 

The following facilities are available with the company's Bankers : 

Bank Name 

LC 

Limit 

LTR 

Limit 

Term 

Loan 

Limit 

CC 

Hypo 

Limit 

OD/CC 

Pledge 

Limit 

BG 

Limit 

Rate of 

Interest 

BDT in Crore 

Sanction 

Validity 

1 

Janata Bank - 

Asadgonj 

100.00 50.00 56.17 13.30 43.00 15.00 12.00% 15.10.2010 * 

2 

Mercantile Bank - 

Ktg 

160.00 60.00 - 5.00 - 15.00 11.50% 30.09.2010 * 

3 

Southeast Bank - 

Ktg 

68.25 33.25 - - - 25.00 12.00% 28.02.2011 

4 Pubali Bank - Ktg SDB SDB - - - SDB 11.00% Specific 

5 

Shahjalal Bank - 

Ktg 

50.00 35.00 - - - 10.00 11.50% 31.12.2010 

6 

Jamuna Bank - 

Ktg 

50.00 25.00 - 2.50 - - 11.50% 31.07.2010 * 

7 

AB Bank - 

Anderkilla 

45.00 40.00 8.00 - - - 13.00% 30.09.2010 * 

8 

State Bank of 

India - Ktg 

15.00 15.00 - - - - 12.00% 30.06.2010 * 

9 

Social Islami Bank 

- Agr. 

100.00 25.00 - 25.00 - 10.00 11.00% 22.08.2010 * 

10 Standard 

Chartered - Agr. 

120.00 60.00 - 2.00 - - 11.00% 12.04.2011 

11 

Mutual Trust Bank 

- Agr. 

40.00 20.00 - 5.00 - 5.00 11.00% 28.02.2011 

12 NCCBL - Agr. 100.00 50.00 - 5.00 - 25.00 11.00% 30.09.2011 

13 Dhaka Bank - Agr. 100.00 50.00 50.00 35.00 - 30.00 11.00% 31.07.2011 

14 

Dutch Bangla 

Bank - Agr 

88.00 50.00 - 20.00 - - 11.00% 30.09.2011 

Total Exposure 1,036.25 513.25 114.17 112.80 43.00 135.00 - - 

* Renewal of expired loans are under process. 

27 RELATED PARTY TRANSACTIONS

The Company carried out a number of transactions with related parties in the normal course of business 

on arms length basis 

Sl. 

No 

1 

2 

Name of the 

Parties 

Relationship Types of Transaction 

KY Steel Mills 

Ltd. Sister Concern Sales of CR Coil 

Steel Accessories 

Sales of CR Product & 

Ltd. Sister Concern Temporary Loan 

28 NET ASSET VALUE PER SHARE 

Closing 

Balance 

as at 

31.10.2010 

Taka 

Closing 

Balance 

as at 

31.12.2009 

Taka 

368,362,261 173,788,110 

148,826,920 163,350,778 

Total 517,189,181 337,138,888 

31.10.2010 2009 

Taka Taka 

Net Assets Value per Share (Basic) Value of Share 2010 Tk 10, 2009 Tk 100 29.74 323.16 

Net Assets Value per Share (Restated) Value of Share 2010 Tk 10, 2009 Tk 10 29.74 16.16 

Net Assets Value during the period Tk 3,872,724,796 (31.12.2009: Tk 2,104,430,909) 

Number of Ordinary Shares at the close of business 130,240,000 nos (31.12.2009: 6,512,000 nos) 

29 THE COMPOSITION OF EARNING PER SHARE (EPS) IS GIVEN BELOW : 

Earning per share (Basic) Value of Share 2010 Tk 10, 2009 Tk 100 2.59 32.21 

Earning per share (Restated) Value of Share 2010 Tk 10, 2009 Tk 10 2.59 1.61 

(a) Earning attributed during the period to the ordinary shareholders Tk 337,717,285 (31.10.2009: Tk 

209,764,623) 

(b) Number of ordinary shares at the close of business 130,240,000 nos (31.10.2009: 6,512,000 nos) 

30 VALUE PER SHARE ON THE BASIS OF CASH FLOW FROM OPERATING ACTIVITIES : 

Operating cash Inflow/(Outflow) per share (Basic) Value of Share 2010 

Tk 10, 2009 Tk 100 3.39 92.91 

Operating cash Inflow/(Outflow) per share (Restated) Value of Share 

2010 Tk 10, 2009 Tk 10 3.39 4.65 

The composition of Opening Cash Inflow/(Outflow) Value per share is 

given below:

(a) Operating Cash Inflow/(Outflow) during the period Tk 441,354,697 (31.10.2009: Tk 605,033,371) 

(b) Number of ordinary shares at the close of business 130,240,000 nos (31.10.2009: 6,512,000 nos) 

31 POST BALANCE SHEET EVENTS 

No material events had occurred from the Balance Sheet date to the date of issue of this Balance Sheet, 

which could materially affect the values stated in the Balance Sheet. 

32 EMPLOYEES 

Number of 

Employee 

31.10.2010 

Number of 

Employee 

31.12.2009 

Number of employees whose salary below Tk 3,000 per month - - 

Number of employees whose salary above Tk 3,000 per month 380 434 

Total 380 434 

33 CAPACITY UTILIZATION 

CR Plant 

Installed Capacity (MT) Annual 120,000 120,000 

Installed Capacity (MT) for the period 100,000 100,000 

Actual Equivalent production (MT) 60,095 29,389 

Capacity Utilized 60.10% 29.39% 

NOF Plant 

Installed Capacity (MT) Annual 70,000 70,000 

Installed Capacity (MT) for the period 58,333 58,333 

Actual Equivalent production (MT) 45,410 27,449 

Capacity Utilized 77.85% 47.06% 

34 CONTINGENT LIABILITIES AND COMMITMENTS 

34.1 

Appeal prefer to VAT Appellate Tribunal against Price Declaration of CR Coil amounting to Tk 

1,227,623; GP Coil /Sheet Tk 352,249 and CI Sheet Tk 7,678,068 total Tk 9,257,940 which is 

awaiting final hearing. In case of adverse decision by the Tribunal Company's liability will stand at Tk 

9,257,940. 

34.2 Dispute with the VAT authority prefer for writ petition against VAT: 

15 Nos writ such as no : 7419/05 dated 20.10.2005, 8697/05 dated 05.12.05, 8696/05 dated 

05.12.05, 8889/05 dated 13.12.05, 5964/06 dated 20.07.06, 7598/06 dated 10.08.06, 10847/07 dated 



16.06.10 aggregating amounting to Tk 940,741,960.

35 GENERAL 

Causes of cases were custom duty for bond; Audit demand & price declerance for VAT. The 

Management of the Company informed that as the matter is sub-judice, provision for writ petition 

against VAT would not be required as per Legal Advisor's opinion of the Company. 

35.1 Figures appearing in these accounts have been rounded off to the nearest taka. 

35.2 Previous year's/period's phrases & amounts have been re-arranged, wherever considered necessary, 

to conform to the presentation for the year under review. 




SD/- SD/- SD/- 

COMPANY SECRETARY DIRECTOR MANAGING DIRECTOR 

7.1 Trade Receivable as on 31st October 2010 Annexure-A 

Particulars Taka 

1 Zobaida Steel(Afzal Trading)--Acc.Rec 574,067.04 

2 R.M.Steel--Acc.Rec. 473,312.10 

3 M.R.Traders-Acc.Rec. 146,697.41 

4 Eastern Refinery Limited--Acc.Rec. 115,877,666.83 

5 Abul Khair Steel Mills Ltd.--Acc.Rec. 913,016.42 

6 Fuad & Brothers--Acc.Rec. 340,431.34 

7 M.Rahman & Brothers--Acc.Rec. 2,408,919.57 

8 Samuda Containers--Acc.Rec. 63,936.68 

9 I.I.Tubes Mills Ltd.--Acc.Rec. 8,155.69 

10 Osaka Cycle Industries Ltd.-Acc.Rec. 830,664.09 

11 Beg Steel Mills Ltd.--Acc.Rec.(C0794) 1,477,878.94 

12 Jalalabad Steels Ltd.--Acc.Rec. 7,739.27 

13 Nazrul & Brothers--Acc.Rec. 13,713.75 

14 Bismillah Enterprise,CTG-Acc.Rec.(C0173) 114,770.92 

15 Mcdonald Steel--Acc.Rec. 671,836.29 

16 Madina Traders--Acc.Rec. 12,683.58 

17 Vangaurd Steel Ind. Ltd--Acc.Rec. 62,435.45 

18 Peerless Makers (pvt.) Ltd.--Acc.Rec. 384,474.45 

19 Yunsco Steel and Engr. Ltd.--Acc.Rec. 542,823.88 

20 Shafiq And Sons,Asadgonj-Acc.Rec 29,726.71 

21 Ajmeer Khawja Enterprise-Acc.Rec 384,273.34 

22 Rubel Steel Mills Ltd (Partex Group)-Acc.R 27,078.60 

23 National Fan-Acc.Rec 3,252.23 

24 Sristy Steel Enterprise-Acc Rec 1,346,131.43 

25 Haji Motiur Rahman & Sons-Acc Rec 64,046.08 

26 Janani Enterprise-Acc.Receivable 14,410.25 

27 K.S. TRADING-Acc.Rec. 9,279,455.89 

28 S.S.Traders--Acc.Rec. 587,041.58 

29 Bhuiyan Enterprise,Ctg-Acc Rec 4,031,991.22

30 Saleh Engineering Works,Ctg (C0996) 5,875.86 

31 Mohesen Awolia Traderse,Ctg(C0997) 435,599.45 

32 Babul Chandra Dey, Ctg(C1024) 104,134.11 

33 GMS PURNAMAX(M) SDN,BHD (X0001) 3,283.47 

34 Venus Int Pte Ltd,Singapore(X0004) 22,286,653.08 

35 Do International Trading Co.,Ltd,Thailand( 2,201.37 

36 Atco Export, UK (X0008) 6,604.69 

37 Portland Steel Int., South Africa(X0009) 684,460.69 

38 Deepak Commercial Brokerage, Dubai(X0011) 4,414.02 

39 Steel(Singapore) Trading Pte Ltd(X0013) 20,985,522.62 

40 Wira Overseas Enterprise,Singapore(X0016) 48,265.65 

41 Gloria Trading, Congo (X0017) 32,571.94 

42 Salim Traders -B.Baria-(CB0007) 8,683,344.09 

43 Rupali Traders-B.Baria(CC0007) 10,323,972.83 

44 Alpana Traders -B.Baria(CC0008) 4,063,090.50 

45 Padma Traders -B.Baria(CD0057) 2,502,689.03 

46 Arif Traders -B.Baria(CD0076) 5,734,924.20 

47 Abul Kashem,Casba-B.Baria(CD0333) 28,356,609.20 

48 Sumon Ent-Bangura-B.Baria(CD0418) 528,023.60 

49 Hobigonj Trading-B.Baria(CD0448) 20,911,653.25 

50 New Madina Tinghor-B.Baria(CD0580) 45,382.68 

51 Ananda Enterprise-B.Baria(CD0638) 9,456,153.61 

52 Fahin & Maisa Enterprise-B.Baria(CD0691) 9,335,891.42 

53 Ma Moni Traders-B.Baria(CD0692) 1,167,919.41 

54 Haji Shahid Meah Traders-B.Baria(CD0695) 4,296,747.27 

55 Minar Traders-Barguna(CD0428) 25,879,442.97 

56 Al-Madina Store2-Barishal(CD0297) 29,263,500.05 

57 Abu Bakar-Barishal(CD0482) 7,121.87 

58 Hazi Traders-Barishal(CD0668) 1,228,386.44 

59 Aktaruzzaman-Barishal(CD0665) 1,052,089.18 

60 Bikrampur Ent-Bhola-(CB0015) 1,348,356.88 

61 Five Star-Bhola(CD0325) 3,920,523.17 

62 Samad Sarder-Bogra(CD0022) 7,783,167.53 

63 Enam Corporation-Chandpur(CD0099) 11,782,257.12 

64 Kazi Traders-Chandpur(CD0257) 15,829,309.72 

65 Sagir & Brothers -Chittagong-(CB0001) 32,652,894.01 

66 Liton Enterprise-Chittagong(CD0154) 517,957.56 

67 Nureja Enterprise -Chittagong(CD0313) 23,927,290.75 

68 Omar Farq. & Brothers-Ctg(CD0331) 1,056,591.58 

69 A S Traders-Chittagong(CD0390) 30,122,250.81 

70 Salim And Sons-Chittagong(CD0652) 3,221,428.77 

71 Hj. Nazeer Ahamed Traders-Chuadanga(CD0672 9,284,895.79 

72 Abdul Matin,Ramchanpur-Comilla(CC0026) 141,002.70 

73 Musa & Sons -Comilla(CC0033) 8,404,421.16 

74 Ali Akbar Traders -Comilla (CD0056) 1,298,544.17 

75 Babul Traders-Comilla(CD0079) 12,828.33 

76 Haji Moinul Islam -Comilla(CD0142) 972,699.39 

77 ShakherGaon Store-Comilla(CD0180) 1,187,062.63 

78 Khalu Meah Bapary-Comilla(CD0197) 20,354,350.58 

79 Saiful enterprise -Comilla(CD0396) 1,467,803.77 

80 Rafique Ting ghar-Comilla(CD0397) 7,209,195.93 

81 Monindra Ch. Debnath-Comilla(CD0413) 20,760,206.00 

82 Hafiz & Brothers-Comilla(CD0419) 4,019,307.04

83 Rony Tin ghar-Comilla(CD0452) 825,367.91 

84 Hossain Enterprise-Comilla(CD0481) 1,345,757.27 

85 Maruf Steel-Comilla(CD0499) 9,837,135.01 

86 Abdul Karim -Comilla(CD0517) 2,260,468.73 

87 Prodip Kumar Bhoumik,-L-Comilla(CD0538) 2,441,109.22 

88 Nargis Hardware Store-Comilla(CD0563) 3,250,593.83 

89 Nazrul Traders,Comilla (CD 0679) 623,341.32 

90 H K Ali Bricks, Comilla (CE0005) 145,460.27 

91 Karim Traders -CoxsBazar(CD0217) 2,910,499.11 

92 Shah Alam Trading,Chokoria,Coxs Bazar(CD04 6,754,111.26 

93 Kamru Traders -CoxsBazar(CD0521) 1,255,523.49 

94 Chittagong Steel -Dhaka(CB0016) 1,442,344.38 

95 Ayub & Sons -Dhaka (CD0270) 636,279.80 

96 J. B. Enterprise-Dhaka(CD0286) 3,674,497.29 

97 Dhaka Trading Corporation -Dhaka(CD0380) 2,787,568.79 

98 Rakhi Steel Cor.-Dhaka(CD0415) 26,922,365.30 

99 Jalalabad Steel Ltd -Dhaka(CD0458) 9,976,012.68 

100 Samata Traders-Dhaka(CD0496) 180,390.72 

101 Zaman & Sons-Dhaka(CD0653) 2,761,593.19 

102 Fazlay Rabbi Ali-Faridpur(CD0654) 9,098,222.20 

103 Abul Kashem -Feni(CD0105) 4,728,017.88 

104 Adbur Quddus-Feni(CD0177) 1,728,589.59 

105 Abdul Bashar-Feni (CD0200) 8,824,168.70 

106 Abdul Momen Traders-s.Nay-Feni(CD0433) 2,856,790.51 

107 Gopal Chandra Sarkar-Feni (CD0661) 947,746.16 

108 Fathema Hardware Store-Feni (CD0647) 10,077,886.10 

109 Raju Traders S.Gon-Gaibanda(CD0532) 7,791,858.07 

110 Abul Kashem Traders-Gaibanda(CD0694) 1,076,682.67 

111 Abed Ali Traders-Gazipur(CD0491) 3,835,352.19 

112 Shahjalal Traders -Gazipur(CD0360) 664,459.85 

113 Mojibor Traders-Gazipur(CD0225) 4,061,529.71 

114 Shahin Enterprise-Gazipur(CD0631) 35,747,847.58 

115 Sheuli Enterprise-Gazipur(CD0648) 9,488,330.10 

116 Sikder Traders -Gopalgonj(CD0450) 17,052,402.46 

117 Amin Traders,Gopalgonj(CD0697) 2,044,686.44 

118 F Zaman & Sons,Gopalgonj(CD0704) 639,879.16 

119 Ramash Ch.Gosh-Hobigonj(CD0462) 9,304,405.35 

120 Al Mamun Enterprise-Hobigonj(CD0650) 15,839,633.87 

121 Dalai Mia & Sons-Hobigonj(CD0677) 2,029,321.91 

122 Sabib Enterprise-Hobigonj (CD0684) 1,534,928.63 

123 Marwa Enterprise-Jalkhati(CC0018) 31,523,543.52 

124 Tanim Enterpise -Jalkhati(CC0022) 4,805,664.80 

125 Alam & Brothers-Jalkhati(CD0038) 6,076,475.96 

126 Nayamat Ent-Jalkhati(CD0130) 7,953,582.07 

127 Salam And Brothers-JhalKhati(CD0657) 9,251,682.40 

128 Dhanshiri Enterprise-JhalKhati(CD0689) 35,559,678.98 

129 Sharif & Borthers-Jessore(CD0522) 1,093,752.09 

130 Ayian Steel Corporation-Jhenaidhah(CD0656) 198,464.37 

131 Monir Ahamed -Khulna(CD0109) 32,902,259.92 

132 Kazal Ghush -Kishoregonj-(CA0006) 32,016,725.70 

133 Mujibur Rahman-2-Kishoregonj(CD0221) 33,787,823.80 

134 Haji Motiur & Sons-Kishoregonj(CD0322) 6,928,038.50 

135 Jaman & Hasan Ent. -Kishoregonj(CD0386) 17,196,030.39

136 Saidur Rahaman-Kishoregonj(CD0490) 735,845.03 

137 Asha Enterprise-Kishoregonj(CD0504) 4,101,868.17 

138 Bashar Traders-Kishoregonj(CD0622) 22,359,908.39 

139 Haji Shahab Uddin & Sons-Kishoregonj(CD064 3,219,135.30 

140 Seven Brothers-Kishoregonj (CD0682) 393,989.05 

141 Sadek Traders-Kurigram(CD0574) 2,214,708.18 

142 Janata Biponi -Kustia(CD0382) 1,353,308.24 

143 Muntakim Traders -Kustia(CD0570) 1,805,393.02 

144 Ali Hossain & Traders-Kustia(CD0636) 8,733,532.71 

145 Mamun Enterprise-Kustia(CD0667) 1,316,674.18 

146 Jilani Traders -Laxmipur(CD0174) 3,251,509.68 

147 Laxmipur Ent.-Laxmipur(CD0226) 22,315,784.20 

148 Mukbul & Brothers-Laxmipur(CD0243) 4,003,579.37 

149 Mazumder & Co-Laxmipur(CD0404) 5,983,820.61 

150 Basanti Traders-Alexgandar-Laxmipur(CD0573 5,307,263.20 

151 Three Bany Traders-Laxmipur(CD0610) 4,616,615.76 

152 Fatema Traders-Magura(CB0018) 1,091,405.47 

153 Salam Traders- Manikgonj(CD0588) 1,684,614.63 

154 M. A. Sattar-Molavibazar(CD0066) 15,615,619.80 

155 Rahman Traders -Molavibazar(CD0510) 1,558,279.65 

156 Shashanka Dutta -Molavibazar(CD0540) 10,093,855.22 

157 Rakin Enterprise-Munshigonj(CD0666) 12,675,951.14 

158 Shaha Trading -Narail(CC0041) 6,023,213.11 

159 Showrav Traders-Narayangonj(CD0234) 4,348,680.53 

160 Kakoli Enterpirse -Narayangonj(CD0262) 2,758,493.39 

161 Haji Trader-Narayangonj(CD0283) 1,429,086.31 

162 Sonia Trading-Narsindi(CD0346) 12,689,419.92 

163 Shahid Trader-Narsindi(CD0409) 9,915,654.86 

164 Muzibur Traders-Netrokona(CD0639) 5,558,718.86 

165 N.K.Bhowmick-Noakhali-(CB0009)/T.K. Trader 27,424,083.47 

166 B. K. Nath -Noakhali (CC0015) 4,041,978.65 

167 Pubali Trading -Noakhali(CC0029) 17,602,952.16 

168 R.M. Enterprise-Noakhali(CC0030) 28,057,871.90 

169 Taz Enterprise-Noakhali(CD0042) 28,160,116.79 

170 Abdur Rashid -Noakhali(CD0043) 17,298,756.26 

171 Noor Traders-Noakhali(CD0080) 19,010,838.75 

172 MaFatema Steel&Sons-Noakhali(CD0081) 3,395,066.52 

173 Babul Traders-2 -Noakhali(CD0082) 3,732,501.43 

174 Shebar Hat Khadda Vander-Noakhali(CD0132) 4,117,604.16 

175 Fatema Trading -Noakhali(CD0135) 4,341,741.83 

176 Shaha Steel-Noakhali(CD0254) 33,002,050.58 

177 Allahar Dan-Noakhali(CD0315) 7,734,557.15 

178 Haji. Younus & Sons-Noakhali(CD0324) 795,311.33 

179 Femous Iron House-Noakhali(CD0387) 11,672,598.70 

180 Popular Traders-Noakhali(CD0391) 5,458,999.93 

181 Mohammed Ullah -Noakhali(CD0398) 7,750,332.21 

182 Patwari Traders-Noakhali(CD0406) 1,245,955.08 

183 Badal Traders-Chowm-Noakhali(CD0578) 875,188.94 

184 Sokina Traders-Noakhali(CD0629) 189,043.27 

185 Sufian Traders-Shbrhat-Noakhali(CD0642) 878,500.10 

186 Manik Timber-Noakhali-(CD0673) 8,232,900.76 

187 Monir & Sons-Chowmahoni,Noakhali(CD0702) 1,211,111.10 

188 Shahanara Trading-Pabna(CD0246) 2,747,746.54

189 Shaha Trading Corp-Pabna (CD0412) 15,038,543.71 

190 Mollah & Sons-2-Pabna(CD0608) 31,530,438.03 

191 Jasmin Traders-Patuakhali(CD0431) 17,429,551.38 

192 Islamia Traders-Patuakhali(CD0516) 2,749,783.19 

193 Kajol Store-Patuakhali(CD0572) 12,145,119.14 

194 Mitali Enterprise -Pirozpur(CD0074) 1,975,113.75 

195 Makka Traders-Rajshahi(CD0031) 1,264,886.95 

196 Rahman Traders,Baneshar,Rajshahi(CD0272) 5,760,928.62 

197 Kismat Trading Corp-Rajshahi(CD0632) 11,312,190.02 

198 Rahman Traders-2-Razbari(CD0199) 5,641,506.71 

199 Talukder Traders -Sariadpur-(CB0012) 16,798,078.19 

200 Laxmi Narayan Shaha-Sariadpur(CD0582) 6,060,478.02 

201 Rahaman Traders -Shathkhira(CC0032) 21,464,362.56 

202 Mofazzal Enterprize,Sherpur(CD0681) 32,328,550.06 

203 A. Ali Trader -Sunamgonj(CD0508) 3,062,780.24 

204 Abu Bakar & Sons-Sylhet(CD0048) 22,564,116.37 

205 Jogajog Traders-Kalighat,Sylhet(CD0577) 1,768,633.20 

206 Bashir Uddin & Sons, Chatak,Sylhet(CD0685) 5,355,548.42 

207 Sikander & Sons-Sylhet (CD0674) 508,201.50 

208 Akata Traders-Tangail(CD0446) 1,865,607.38 

209 Kamrul & Brothers-Tangail(CD0633) 107,032.94 

210 Jannat Steel Corporation-Tangail(CD0651) 34,218,796.41 

211 Rahman Traders-Thakurgaon(CD0353) 17,662,650.31 

212 Mahmud Machinary-Thakurgaon(CD0473) 19,770,434.43 

213 H.R Brothers Pirgonj-Thakurgao(CD0609) 9,582,240.10 

214 M.A.Hoque Traders-Thakurgaon(CD0670) 17,183,829.07 

215 Jahirul Traders, Thakurgaon(CD0701) 91,849.01 

216 Farhad Traders-Thakurgaon(CD0712) 1,020,982.25 

217 Three Brothers-Thakurgaon(CD0717) 1,280,738.22 

218 Nabi Trading--Mymensingh(CD0343) 985,803.95 

219 Madina Traders-Mymensing(CD0693) 8,857,072.75 

220 Janata Bank,Agrabad Branch(CE0024) 52,517.36 

221 Ali Hossain,Office Assitt,KY Steel(CE0027) 15,385.66 

222 Nawjesh Ali,SDS Director,Rajshahi(CE0031) 107,302.70 

223 Zen Enterprise-Chittagong-2(CD0680) 1,699,209.06 

224 K I Enterprise-Chittagong(CD0696) 1,069,676.73 

225 Safrat Enterprise-Kornel-Chitt-2(CD0688) 783,161.88 

Grand Total 1,751,347,222.00


Auditors' Report under section 135(1) and paragraph 24(1) of Part -II of Third Schedule of the Companies Act 1994 

For the periods from 01 January 2005 to 31 October 2010 

We have examined the financial statements of KYCR Coil Industries Limited for the years ended 31st December 2005, 2006, 2007, 2008 and 2009 and for the period from 01 January 2010 to 31 

October 2010 in pursuance of Section 135(1) under Paragraph 24(1) of Part -II of Third Schedule of the Companies Act 1994 our report is as under: 

A. Statement of Assets and Liabilities: 

31.12.2005 

Taka 

31.12.2006 

Taka 

31.12.2007 

Taka 

31.12.2008 

Taka 

31.12.2009 

Taka 

31.10.2010 

Taka 

NON CURRENT ASSETS & 

1,029,728,27 

2,615,018,054 1,007,786,722 

667,716,360 749,082,200 843,055,514 

PROPERTIES 

4 

Property, Plant & Equipment 2,328,627,198 953,004,172 1,009,134,700 667,122,786 748,488,626 842,461,940 

Capital Work-in-Progress - 7,715,050 - - - - 

Investment 286,390,856 47,067,500 20,000,000 - - - 

Preliminary Expenses - - 593,574 593,574 593,574 593,574 

5,056,888,22 

3,598,680,88 3,477,003,76 3,560,095,41 2,802,209,72 

CURRENT ASSETS & PROPERTIES 

4,446,151,159 

9 

8 

6 

7 

5 

Inventories 2,306,672,032 1,971,870,331 1,922,794,096 1,704,105,163 2,033,054,181 1,466,126,402 

Receivables 1,756,020,785 1,744,751,099 960,189,314 953,249,731 717,716,530 830,622,016 

Due from Sister Concern 517,189,181 337,138,888 432,357,605 548,079,715 361,490,039 74,200,468 

Advances, Deposits and Prepayments 351,964,090 316,920,642 236,127,011 251,119,305 439,923,574 392,928,577 

Cash and Bank Balances 125,042,141 75,470,199 47,212,862 20,449,852 7,911,093 38,332,262 

3,645,265,23 

9 

4,144,720,126 4,309,177,617 

4,628,409,16 

2 

5,453,937,881 

7,671,906,28 

3 

TOTAL ASSETS & PROPERTIES 

SHAREHOLDERS' EQUITY & 

LIABILITIES 

3,872,724,79 

1,852,903,87 

1,725,772,78 

1,359,439,38 

SHAREHOLDERS' EQUITY 

2,104,430,909 

1,618,126,306 

6 

6 

3 

3 

Share Capital 1,302,400,000 651,200,000 651,200,000 651,200,000 651,200,000 651,200,000 

Tax Holiday Reserve - - 202,085,763 202,085,763 202,085,763 98,610,994 

General Reserve - 202,085,763 - - - - 

Revaluation Reserve 1,430,576,602 - - - - - 

Un appropriated Profit 1,139,748,194 1,251,145,146 999,618,113 872,487,020 764,840,543 609,628,389 

NON CURRENT LIABILITIES - - 126,220,207 85,389,163 157,424,562 320,968,567

Long Term Loan - - 126,220,207 85,389,163 157,424,562 320,968,567 

1,964,857,28 

9 

2,533,626,74 

9 

2,333,558,18 

0 

2,649,285,07 

9 

3,349,506,97 

2 

CURRENT LIABILITIES 3,799,181,487 

Current Portion of Long Term Loan - 126,220,207 310,687,187 - - - 

Creditors and Accruals 114,514,696 13,087,676 5,520,345 7,779,513 11,671,859 11,904,266 

Short Term Loan 3,395,411,672 2,918,975,130 2,192,811,005 2,261,790,781 2,521,954,890 1,952,953,023 

Income Tax Provision 289,255,119 291,223,959 140,266,542 63,987,886 - - 

7,671,906,28 

4,628,409,16 

3,645,265,23 

5,453,937,881 

4,144,720,126 4,309,177,617 

3 

2 

9 

29.74 323.16 284.54 265.01 248.48 208.76 

NET ASSETS VALUE PER 

SHARE(Basic) 

29.74 32.32 28.45 26.50 24.85 20.88 

NET ASSETS VALUE PER 

SHARE(Restated) 

B. Statement of Operating Results: 

31.12.2005 

Taka 

31.12.2006 

Taka 

31.12.2007 

Taka 

31.12.2008 

Taka 

31.12.2009 

Taka 

31.10.2010 

Taka 

Net Turnover 5,429,388,206 4,348,942,559 2,582,068,789 2,117,127,407 2,013,900,743 3,354,160,882 

(4,782,515,074 

Cost of Goods Sold 

) (3,917,942,273) (2,354,515,889) (1,930,323,567) (1,737,096,122) (3,153,720,280) 

Gross Profit 646,873,132 431,000,286 227,552,900 186,803,840 276,804,621 200,440,602 

Operating Expenses 

Administrative Expenses (37,038,571) (24,772,605) (17,559,689) (14,060,144) (15,842,659) (17,970,714) 

Selling and Distribution Expenses (38,931,647) (7,270,961) (7,484,713) (1,046,199) (1,253,653) (1,318,949) 

Trading Profit 570,902,914 398,956,720 202,508,498 171,697,497 259,708,309 181,150,939 

Financial Expenses (25,503,479) (1,271,224) (1,353,850) (1,063,134) (1,021,385) (514,761) 

Gross Operating Profit 545,399,435 397,685,496 201,154,648 170,634,363 258,686,924 180,636,178 

Amortization of Preliminary Expenses - (593,574) - - - - 

Profit after amortization of Preliminary 

545,399,435 397,091,922 201,154,648 170,634,363 258,686,924 180,636,178 

Expenses 

Other Income 5,395,907 5,392,528 2,255,101 - - - 

Net Operating Profit before WPPF 550,795,342 402,484,450 203,409,749 170,634,363 258,686,924 180,636,178 

WPPF (27,539,767) - - - - - 

Net Operating Profit before Income Tax 523,255,575 402,484,450 203,409,749 170,634,363 258,686,924 180,636,178

Provision for Income Tax (185,538,290) (150,957,417) (76,278,656) (63,987,886) - - 

Profit after Income Tax 337,717,285 251,527,033 127,131,093 106,646,477 258,686,924 180,636,178 

Earning Per Share (Basic) 2.59 38.63 19.52 16.38 39.72 27.74 

Earning Per Share (Restated) 2.59 3.86 1.95 1.64 3.97 2.77

C. Statement of Cash Flow: 

31.12.2005 

Taka 

31.12.2006 

Taka 

31.12.2007 

Taka 

31.12.2008 

Taka 

31.12.2009 

Taka 

31.10.2010 

Taka 

CASH FLOW FROM OPERATING ACTIVITIES 

Cash received from customers & others 5,328,621,073 4,457,121,135 2,697,786,832 1,926,645,384 1,726,378,766 3,291,595,985 

(4,748,567,111 (2,465,835,332 

Cash paid to suppliers & employees (5,338,199,439) 

) 

) (1,579,379,004) (2,161,236,411) (4,022,617,899 

) 

Cash received / (payment) from short term bank 

476,436,542 726,164,125 358,422,597 (260,164,109) 569,001,867 811,678,334 

loan 

Financial Expenses (25,503,479) (1,271,224) (1,353,850) (1,063,134) (1,021,385) (514,761) 

Cash Inflow / (Outflow) from Operating 

441,354,697 433,446,925 589,020,247 86,039,137 133,122,837 80,141,659 

Activities 

CASH FLOW FROM INVESTING ACTIVITIES 

Purchase of Fixed Assets (33,954,242) (59,719,851) (466,373,095) (1,464,980) - (7,623,465) 

Addition of Capital Work in Progress 7,715,050 (7,715,050) - - - - 

Investment (239,323,356) (27,067,500) (20,000,000) - - - 

(265,562,548) (94,502,401) (486,373,095) (1,464,980) - (7,623,465) 

Cash Inflow / (Outflow) from Investing 

Activities 

CASH FLOW FROM FINANCING ACTIVITIES 

(Repayment) / Receipt of Term Loan (126,220,207) (310,687,187) (75,884,142) (72,035,399) (163,544,005) (38,018,167) 

(126,220,207) (310,687,187) (75,884,142) (72,035,399) (163,544,005) (38,018,167) 

Cash Inflow / (Outflow) from Financing 

Activities 

49,571,942 28,257,337 26,763,010 12,538,758 (30,421,168) 34,500,027 

Net Increase/ (Decrease) in Cash & Cash 

Equivalents 

Cash and Cash Equivalents at the beginning of the year 75,470,199 47,212,862 20,449,852 7,911,094 38,332,262 3,832,235 

Cash and Cash Equivalents at the end of the year 125,042,141 75,470,199 47,212,862 20,449,852 7,911,094 38,332,262 

Operating Cash Inflow / (Outflow) Per Share(Basic) 3.39 66.56 90.45 13.21 20.44 12.31 

3.39 6.66 9.05 1.32 2.04 1.23 

Operating Cash Inflow / (Outflow) Per 

Share(Restated)

D. Dividend Declared: 

31.12.200 

5 

31.12.2006 

31.12.200 

7 

31.12.200 

8 

31.12.200 

9 

31.10.201 

0 

Particulars 

Cash Dividend (%) - - - - - - 

100% - - - - - 

Stock Dividend (Bonus Share 

%) 

KYCR Coil Industries Limited is a public limited company which was incorporated 04 November 

1995. 

E. 

F. The Company did not prepare any account for any period subsequent to 31 October 2010. 

Figure related to previous years have been rearranged where considered 

necessary. 

I. 

Sd/- 

Chittagong, 3 January 2011 Chartered Accountants 

Hoda Vasi Chowdhury & Co

Ratio Analysis 

31 Dec, 

2005 

31 Dec, 

2006 

31 Dec, 

2007 

31 Dec, 

2008 

31 Dec, 

2009 

31Oct, 

2010 

Particulars 

Liquidity Ratios: 

Current Ratio 1.43 1.41 1.49 1.36 1.33 1.33 

Quick Ratio 0.48 0.43 0.65 0.55 0.66 0.71 

Debt Equity Ratio 

Operating Ratios: 

Accounts Receivable 

1.67 1.66 1.36 1.42 1.45 0.88 

Turnover Ratio 3.71 2.03 1.64 1.84 2.69 2.69 

Inventory Turnover Ratio 2.18 1.00 1.04 1.31 2.04 2.27 

Asset Turnover Ratio 

Profitability Ratios: 

0.92 0.47 0.51 0.56 0.80 0.71 

Gross margin Ratio (%) 5.98 13.74 8.82 8.81 9.91 11.91 

Operating Income Ratio (%) 5.40 12.90 8.11 7.84 9.17 10.52 

Net Income Ratio (%) 5.39 12.85 5.04 4.92 5.78 6.22 

Return on Asset Ratio (%) 4.96 6.00 2.57 2.75 4.61 4.40 

Return on Equity Ratio (%) 

Basic Earning Per Share ( 

13.29 15.99 6.18 6.86 11.95 8.72 

Restated) 

Net Asset Value per Share ( 

2.77 3.97 1.64 1.95 3.86 2.59 

Restated) 20.88 24.85 26.50 28.45 32.32 29.74

KYCR Coil Industries Ltd. - Dhaka Stock Exchange

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