Directors Report 2016

Director's Report to the Shareholders

For the year ended 30th June 2016



Dear Shareholders,
As-salamo Alaikum.

I feel much privileged to welcome you on behalf of the Board of Directors and myself to this 36th Annual General Meeting And in presenting you the Annual Report and the Audited Financial Statements of the company for the year ended 30th June, 2016.

Operations Review


The year under report had also been eventful & much talked about because of the present global and local economic recession in terms of commodity price hike. The rise on consumer prices emerged mainly through external trade channels, with the growing exports of consumer necessities pulling their domestic prices to higher export prices; rising import prices of fuel oil, food items, other consumer items and production inputs feeding promptly and fully into domestic prices, except for partial shielding by the government in some fuel oil and fertilizer prices.

During the period under Report, the smooth business operation was hampered badly. The major reason behind that was the major fall of capacity utilization due to combined decreases of demand of our product mix together with very sharp rise of essential ingredients price in local market that ultimately played a negative role in our targeted sales achievement. On the other hand, due to severe entrance of foreign products a dumping price in the local market throughout the period, forcing the price downward and the competition to intensify. As a result profitability and turnover of our company were badly affected and the company has incurred losses.

During the year under review, company turnover of Tk113.42 million was generated from the sales of 553251 kg biscuits & 668380 kg bread. The reputed brand name spread over geographical boarder, exploited by an aggressive marketing program me and supported through powerful distribution network, has enabled the company to register the above sales during the reporting financial year. The company's turnover decreased by 18.80% over the previous year reaching Tk. 113.42 million compared to Tk. 139.68 million of the last year.

Board Audit Committee


The company has an audit committee, which met four times, to consider first quarter, half-yearly, third quarter financial statements of Financial Year 2015-2016 and annual accounts ended June 30, 2016 along with auditors report on the annual accounts.

Appropriation & Dividend


In accordance with IAS-I "Presentation of Financial Statements" balance of accumulated surplus carried forward in the Balance Sheet will be recognized in the accounts as and when approved by the shareholders in the Annual General Meeting. Following the principle dividend approved in the last Annual General Meeting will be provided for in the accounts of current year. In view of the above, the Board of Directors has proposed for appropriation as follows:

Particulars 2015-2016
Taka
2014-2015
Taka
Accumulated Surplus - Opening Balance 20,490,307 19,313,193
Deduct : Dividend Apportioned for Previous Year (8,236,180) (18,302,620)
Accumulated Surplus - Net of Previous year's Dividend 12,254,127 1,010,573
Add : Net Profit / Loss During the year (2,426,744) 19,479,734
Fund Available for Distribution 9,827,383 20,490,307

On the basis of the proposed appropriation the Board of Directors has not recommend any dividend for the year under report.

Out of the fund available distribution un-appropriated surplus to be carried forward for the year will be made as follows:

Particulars 2015-2016
Taka
2014-2015
Taka
Fund Available for Distribution 9,827,383 20,490,307
Deduct : Bonus share for the previous year's - (8,236,180)
Un-appropriated Surplus 9,827,383 12,254,127

Future


Bangas Limited is on the right course to becoming more diversified, more customer-oriented and, in particular, more profitable. We are accepting the Challenges posed by a changing world economy and marking use of the opportunities. In doing so, we are building on our proven strengths of new product development and diversification to increase market share. For shareholders, customers and employees, Bangas stands for innovation, know-how and a strong business ethics. The company has the core skills and technologies that will allow it both to maximize the opportunities available in the food sector, in doing so to earn for the shareholders an ever increasing returns for their investment.

Human Resources


An organization is as good as its people. Your Directors fully believe in this and are committed to the continued development of human resources. Your company's production plant operates at a satisfactory level and in congenial atmosphere. We must pay tribute to all our staff members who have made their due contributions in their individual roles in making this year under review yet another successful one.

The Board of Directors and Election


The following persons were the members of the Board of Directors of the company at the closing of the reporting year. The number and amount of shares held by each continuing Director at the beginning and end of the reporting financial year are also furnished in the following statement as per Stock Exchange Listing Regulation.

Name of Directors Designation Share held
01.07.2015
Amount
Taka
Share held
30.06.2016
Amount
Taka
Mrs. Rabeya Khatun Chairman 137242 1,372,420 157827 1,578,270
Mr. Md. Mozammel Haque M. Director 137242 1,372,420 157828 1,578,280
Mr. Rafiqul Haque Director 462078 4,620,780 531389 5,313,890
Mr. Mahbub-ul Haque Director 462076 4,620,760 531387 5,313,870
Mr. Atiqul Haque Director 462076 4,620,760 531387 5,313,870

In accordance with Article 120 of the Articles of Association Mr. Md. Rafiqul Haque retire from their present position, and being eligible offer themselves for re-election as per Article 121 of the Article of Association and the relevant sections of the Companies Act, 1994.

Environmental Role


The Company is committed to maintain high standard of pollution free environment at mill area. Accordingly tree plantation activities is implementing every year at mill premises.

Auditors


Company's present auditors, M/S. Zoha Zaman Kabir Rashid & Co., Chartered Accountants, Rupayan Karim Tower, Level-7A, 80, Kakrail, Dhaka-1000, will retire at the 36th Annual General Meeting and being eligible as they have offered themselves for re-appointment as auditors of the company for the year 2016-2017.

Corporate Governance


Corporate Governance in the practice of good corporate citizenship, through which the company is governed by the board, keeping in view its accountability to the shareholders, stakeholders and to the society. The status report required to be presented by the company in pursuance to notification No. SEC/CMRRCD /2006-158/134/Admin/44 dated of August 07, 2012 issued by the Securities and Exchange Commission is furnished in the Annexture-1

Conclusion


Finally, I, on behalf of the Board of Directors, would like to express my sincere appreciation and gratitude to our shareholders, employees, customers, agents suppliers and well-wishers for their untiring effort, and support to the company.

On behalf of the Board

Md. Mozammel Haque
Managing Director
10 November, 2016