TABLE OF CONTENT

Corporate Information 01

Notice of The 15th Annual General Meeting 02

Company Profile 03

Board of Directors 06

Letter of Transmittal 09

Chairman's Statement 10

Photographs Gallery 12

Financial Performance (Five years’ financial Highlights) 15

Statement of Performance from Managing Director 17

Report of The Directors 18

Annexure of The Director's Report 24

Audit Committee Report 26

Deceleration by MD and CFO 28

Corporate Governance Report 29

Auditor's Report 44

Statement of Financial Position 45

Statement of Profit or Loss & Other Comprehensive Income 46

Statement of Changes in Equity 47

Statement of Cash Flows 48

Notes To The Financial Statements 49

Proxy Form & Attendance Slip 73

 th
Notice Of The 15
Annual General
Meeting (AGM)

NOTICE OF THE 15TH ANNUAL GENERAL MEETING (AGM)

Notice is hereby given that the 15th Annual General Meeting of Kattali Textile Limited will be held on Wednesday,
December 19, 2018 at 10.30 A.M. at Bhatiary Golf And Country Club, BMA Bhatiary, Chittagong to transact the
following business:

1. To receive consider and adopt the Audited Financial Statements of the Company for the year ended June 30, 2018
together with the report of the Director’s and Auditor’s thereon.
2. To declare dividend for the year ended 30th June 2018 as recommended by the Board of Directors.
3. To consider the progress of Utilization of IPO Proceeds.
4. To consider appointment of Auditors for the year 2019 and to fix their remuneration.
5. To elect Director’s as per Article of Association of the Company.
6. To transact any other business with the permission of the Chair.

By order of the Board of Directors

Sd/-
Sattabrata Das
Dated, Chittagong Company Secretary
November 28, 2018
Notes:
01. The ‘Record Date’ is fixed on Thursday, November 15, 2018. The Shareholders, whose names will appear in the
Share Register of the Company (Certificated & Depositary) at the close of business on the record date, will be
eligible to attend the meeting and dividend.
02. A member entitled to attend and vote at the Annual General Meeting (AGM) may appoint another person as his
/her proxy to attend and vote on his/her behalf. The proxy form duly stamped of Tk. 20, must be deposited at the
Company’s registered office not later than 48 (Forty Eight) hours before the time scheduled for the meeting.
03. Provided that the Company Annual Report 2017-2018 sent to the email address of the shareholders available in
their beneficial owner (BO) accounts with the depository. If any shareholders collect the Annual Report 2017-
2018 please go the company’s share office within December 15, 2018. No additional Annual Report will be distrib-
uted at AGM Venue. Annual Report is available in the website:www.kattalitextileltd.com
04. For the sake of convenience, Shareholders are requested to submit their queries, if any, on the Directors’ Report/
Audited Accounts for the year ended 30th June 2018 to the Registered Office of the Company preferably 72
(Seventy two) hours before the day of the Annual General Meeting.
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Annual Report 1
Letter of Transmittal

All Shareholders
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Ltd.
Chittagong Stock Exchange Ltd.

Subject: Annual Report for the year ended 30th June 2018

Dear Sir,
We are pleased to enclose a copy of Annual Report together with the Audited Financial Statements including statement
of Financial Position as at 30th June, 2018 and Statement of Profit or Loss and other Comprehensive Income, Statement
of Changes in Equity and Statements of Cash Flows for the year ended 30th June 2018 along with notes thereon of
Kattali Textile Limited for your information and record.

Yours truly

Sd/-
Sattabrata Das
Company Secretary

2 Annual Report
COMPANY PROFILE
Kattali Textile Limited (KTL) has been a pioneer in apparel making since its induction in 2002. Over the years it has
expanded its production facilities and now boasts a capacity of producing 4,180,860 pcs a year. The apparel unit is
specialized in the production of Woven and Knit Tops & Bottoms. It has served many international buyers in the North
American and the European market and continues to strive in the highly competitive apparel-manufacturing sector.

The principal product of the company is 100% export oriented woven garments in different constructions. The
products are exported to European countries. It is concentrated in Manufacturing, Cutting, Sewing & Finishing of
100% woven garments and exporting the same to European Countries. The principal activities of the company are to
produce and export different types of garment products like Men's Long Shirt, Boys Pant, and Ladies shirt, Boy's Polo
Shirt, Boys Long Pant, Boys Jacket, Men's Flt Front Short, Ladies Shorts, Boy's Trouser, Girl's Pant, Girl's Skirts,
Girl's Top and Man‘s Top etc. It is serving many international buyers in the North American and the European markets.
The principal buyers of the company are Wal-mart, GRAN INC (USA), Regatta Limited, Kohls, JC Penney, Target,
Kmart, Mango, Calvin Klein, At-Last, Weatherproof, ENYCE, Kenneth Cole, Nautica, etc. The company won many
awards for its quality products and compliance with economy standards.

The principal product of the Company is 100% export oriented garment products in different constructions. The
products are exported to American & European buyers. According to the Bangladesh Garment Manufacturers and
Exporters Association (BGMEA), the total Garments Products requirement in the captive market is about 4.34 billion
yards, of which roughly 75 to 80 percent is imported from countries such as China, India, Hong Kong, Singapore,
Thailand, Korea, Indonesia and Taiwan. Garments products demand is increasing at an average rate of 30 percent per
year. In view of increased demand from existing buyers and to attract more volumetric buyers of readymade garments,
KTL has taken the decision to expand production capacity.

With the latest technology and world-class expertise, Kattali Textile Limited has the factories to woven & knit.
Millions of pcs produced per year of the highest quality fabrics. You get the reliable partner you need for volume
consistency or value-added innovation.

Annual Report 3
BOARD AND MANAGEMENT TEAM
Board and Management Team
Mrs. Nasreen Hoque, Chairman
Md. Emdadul Hoque Chowdhury, Managing Director
Md. Anwarul Hoque Chowdhury , Director
Md. Mokarrom Anwar Chowdhury, Director
Waduda Sabrina Director, Nominee of EianApparels Ltd.
Sifat Sabrina, Nominee of Lucky Corner
Syed Manzur Quader, Independent Director
Mohammed NurulAlam, Independent Director

Audit Committee
Md. Syed Manzur Quader Chairman of the Committee
(Independent Director)
Md. Anwarul Hoque Chowdhury Member of the Committee
Director
Md. Mokarrom Anwar Chowdhury Member of the Committee
Director
Sifat Sabrina Member of the Committee
Nominee of Lucky Corner
Sattabrate Das Secretary of the Committee
Company Secretary

Chief Financial Officer

Md. Fazlul Hoque

Company Secretary
Sattabrate Das

4 Annual Report
CORPORATE INFORMATION
BOARD OF DIRECTORS
Mrs. Nasreen Hoque Chairman
Md.Emdadul Hoque Chowdhury Managing Director
Md. Anwarul Hoque Chowdhury Director
Md. MokarromAnower Chowdhury Director
Waduda Sabrina (Nominee Director of Eian Apparels Ltd.) Director
Sifat Sabrina (Nominee of Lucky Corner) Director
Syed Manzur Quader Independent Directors
Mohammed NurulAlam Independent Directors
Sattabrata Das Company Secretary

REGISTERED OFFICE Chowdhury Bari, Kornel Jones Road, North

Kattali, Pahartoli, Chittagong - 4217

PRINCIPAL PLACE OF BUSINESS Chowdhury Bari, Kornel Jones Road, North

Kattali, Pahartoli, Chittagong - 4217

LEGAL ADVISOR Hasan Mohammed Reyad (L.LB (Hon’s) & ITP)

Advocate (Supreme Court of Bangladesh)
35, Purana palton Lane (2nd & 3rd Floor)
Dhaka-1000, Bangladesh

BANKERS Islami Bank Bangladesh Limited

Agrabad Corporate Branch, Chittagong, 3, CDA,
SK. Mujib Road, Agrabad, Chittagong
One Bank Limited
Agrabad Corporate Branch, Agrabad, Chittagong

AUDITORS Shiraz Khan Basak & Co.

Chartered Accountants
R.K Tower (Level-10) 86, BirUttam C.R Datta
Road (312, Sonargaon), Dhaka-1205

INSURERS Rupali Insurance Co. Ltd.

Rupali Bima Bhaban,7 Rajuk Avenue, Dhaka-1000

LISTING Dhaka Stock Exchange Limited (DSE)

Chittagong Stock Exchange Limited (CSE)

Annual Report 5
 VISION & MISSION

VISION
Our conception of business germinated from our vision which sees it as a means to the well-being of the investors,
stakeholders, employees and members of the society at large by creating new wealth in the form of goods and services
that go to satisfy the wants of all of them without disturbing or damaging the socio-ecological-economic balance of
the Mother Earth and the process of human civilization leading to peaceful co- existence of all the living beings.

MISSION
The KTL aims to be a world class textile organization producing diverse range of products for the global textiles
market. We seek to achieve customer delight through excellence in manufacturing and customer service, based on
creative combination of state-of-the-art technology and human resources. We are responsible corporate citizens. Our
mission is the polestar of our vision for maximization of production of quality products and services strictly on ethical
and moral standards at minimum costs to the society ensuring optimum benefits to the consumers, the shareholders
and other stakeholders.

OBJECTIVES
• Expansion in areas that we know best.
• Total customer focus in all operational areas.
• Offer products of best available quality for premium market segments through TPM and Zero-Defect implementation
in all functional areas.
• Global orientation targeting sizeable percentage of production for exports.
• Integrated diversification and product range expansion.
• Faith in individual potential and respect for human values.
• Encourage innovation for constant improvements to achieve excellence in all functional areas.
• Accept change as a way of life.
• Appreciate our role as a responsible corporate citizen.

We in KTL, Strive, above all, for top quality products at the most competitive price utilize the lowest rungs of the
economic class of people in the country thus empowering and training the women folk of the course. We value our
social obligations.

We vow to strive for the protection of the capital invested by our shareholders as well as to ensure highest return and
growth of their assets. From routine day-to-day operations to formulating critical strategies for business expansion or
for fulfilling sustainability commitments, we are powered by the enduring bonds of trust with all our stakeholders Our
employees are the back bone of the company and are the operational strength of the company, through a pay package
composing of salary/wages, allowance, bonuses, leave/salary and superannuation’s and retirement benefits and other
emergency grants & gratis.

6 Annual Report
Our associate partners such as our creditors & financial institutions who provide financial support when we need
them, the suppliers of raw materials & supplies who offer them at the best prices, the providers of utilities-power, gas
& water etc. and the customers who buy our products & services by redeeming their claim in time by making prompt
payment and by distributing proper product on due dates.

We strive for fulfillment of our responsibility to the government through payment of entire range of due taxes, duties
and claims to various public agencies like municipalities etc. as per law of the land.

We strive as responsible citizen, for a social order devoid of malpractices, anti-environmental behaviors, unethical
and immoral activities and corruptive dealings. We keep away from any discriminatory practices between sexes,
races, religions, colors or political beliefs
We strive for practicing good governance in every sphere of activities covering inter alia, not being limited to, disclo-
sure & reporting to shareholders holding AGM on time distribution of dividends and other benefits to shareholders,
reporting / dissemination of price sensitive information, acquisition of shares by insiders, recruitment & promotion of
staff, procurement & supplies, sale of assets etc. all that directly and indirectly affect the interest of concerned
groups-the shareholders, the creditors, suppliers, employees, government and the society in general.

CORPORATE FOCUS
Our vision is the polestar to our mission that fulfils our objectives based on our strategy with emphasis on the quality
of product processes and services blended with good governance that help build the image of the most vulnerable
corporate citizenship at home and abroad.

Annual Report 7
PROFILE OF THE BOARD OF DIRECTORS

Mrs. Nasreen Hoque, Chairman:

Nasree Hoqueaged 54; Chairman of the Company was born in a well-known

Muslim family of Chittagong on 15 July, 1964. Her father name is Late Syed S.
M. Mowlana Abu lKashem& Mother is Late Kursida Begum. After completion
of her HSC, she engages is herself in business. She became a successful business
person in short time of her business career with her sincerity, honesty and concep-
tual problem-solving ability. Her interpersonal skills, leadership behavior, high
analytical ability and hardworking nature made her worth as a business leader
and she is also Director of Takaful Islami Insurance Ltd.

Md. Emdadul Hoque Chowdhury, Managing Director:

Md. EmdadulHoque Chowdhury, Managing Director of the Company was born

on February 23, 1957 in a well-known Muslim Family in Chittagong. His Father
name is Late Al-Haj Md. Anwar Chowdhury and mother is Late SalemaKhatun.
After completion of his Bachelors of Arts he engages himself in business since
1971. He became a successful businessman in short time of his business career
with his sincerity, honesty, conceptual and practical problem-solving ability.
During his tenure of a business career, he gained business knowledge in Textile,
agro-based and readymade garments industries.At present, he is Vice Chairman
of Takaful Islami Insurance Limited, Elected President (2018-2019) of Rotary
Club of Chittagong Pearl, Ex-Director Chittagong Chamber of Commerce and
Industry also Ex. Director of BGMEA, Ex- MIC of Chittagong Club Limited, and
lifetime member of Chittagong Rifle Club, Chittagong Press Club, Bhatiary Golf
and Country Club, Chittagong Boat Club & Chittagong Ma-O-Shishu

Md. Anwarul Hoque Chowdhury, Director:

Md. Anwarul Hoque Chowdhury, Director of Kattali Textile Limited. He is the

elder son of Md. Emdadul Hoque Chowdhury & Nasreen Hoque Chowdhury. He
was born on October 8th; 1988. He completed his O level in 2005 from Interna-
tional School of Dhaka (ISD), International Baccalaureate Diploma in 2007 from
International School of Dhaka (ISD). Bachelor of Business Administration (Intl.
Business & Major International Logistics) from Queensland University of
Technology (QUT) Australia in 2011 & Masters of Business Administration in
Finance from Independent University Bangladesh(IUB) in 2016. He joined the
company on a full-time basis immediately after his graduation. He is the head of
business development of KTL. He worked as Customer Service Nominee Direc-
tor at Yum Inc. Melbourne Central and worked as Admin Assistant at Service
Stream Communications, Geebung, QLD. At present, he is the key management
personnel of the company.

81 Annual Report
Md. Mokarrom Anower Chowdhury, Director:

Md. Mokarrom Anower Chowdhury, Director of the Kattali Textile Limited. He

is the younger son of Emdadul Hoque Chowdhury & Nasreen Hoque Chowd-
hury. He was born on May 21, 1991. He completed his ―Oǁ level in 2008 and
Aǁlevel in 2010. He completed his Bachelor of Arts (Major in Communication &
Public Relation) from Simon Frezere University. He has vast experience in
Financial and Corporate Management. He is responsible for the Merchandising
function of the company and therefore plays a vital role in the negotiations with
the buyers.

Waduda Sabrina (Nominee Director Of Eian Apparels Ltd.) Director:

Waduda Sabrina (Nominee Director of Eian Apparels Ltd.), Director of the

Kattali Textile Limited. She is the elder daughter of Md. Emdadu lHoque Chowd-
hury &Nasreen Hoque Chowdhury. She was born in 1984. She completed her
BBA from Independent University of Bangladesh, 2007; Diploma in Business
Administration from Brisbane North Institute of TAFE 2008. She has wide
experience in Management, Procurement, HR and Internal Audit in the Garments
and Textile sector. She is responsible for the procurement and internal audit
section of Kattali Textile Limited. She holds shares of several organizations.

Sifat Sabrina (Nominee Of Lucky Corner) Director:

Mrs. Sifat Sabrina (Nominee of Lucky Corner), Director of the Kattali Textile
Limited. She is the younger daughter of Md. Emdadul Hoque Chowdhury &
Nasreen Hoque Chowdhury. She was born on September 10, 1985. She
completed her BBA & MBA from North South University in 2008 & 2010. She
has wide experience in HR and Internal Audit in the Garments and Textile sector.
She is responsible for the Human Resource Section of the company and therefore
plays a vital role in the Organization.

Syed Manzur Quader, Independent Director:

Syed Manzur Quader, Independent Director of the Kattali Textile Limited. He is

the Son of Late Syed Fazlul Quader & Miss Halima Quader. He was born on 16
March, 1980. He completed his SSC and HSC from Chittagong Public School
and college and BSS in Economics from Dhaka University and also completed
his M.Sc in Finance and Business Economics from the University of Essex
(United Kingdom). Then hetookPh.D. In Economics from University of Sheffield
(United Kingdom). He has an interest in the teaching profession, as a result, he
joins in Independent University as a Lecturer in Economics, School of Business.
But at present, he is an Associate Professor of Chittagong Independent University.

Annual Report 9
 Mohammed Nurul Alam, Independent Director:

Mohammed Nurul Alam, Independent Director of the Kattali Textile Limited. He

is the Son of Late Eyakub Ali & Late Morium Khatun. He was born on 15 Febru-
ary, 1947. He completed his S.S.C and H.S.C. from Ishamati Yakub Maryam
High School and College and BSS in Economics from Chittagong University. He
is the president of Southland Center, Agrabad and also a member of Lions Club,
Chittagong. He has an interest to the business professionals. He is well experi-
enced in Business Planning, Formation & Corporate Advisory.

Md. Fazlul Hoque, Chief Financial Officer:

Md. Fazlul Hoqueis the Chief Financial Officer (CFO) of Kattali Textile Limited.
He is 48 years old. He Obtained his B.Com (Accounting) degree from National
University. Her long time experience in relive department. He has more than 18
(eighteen) years of experience in reputed Group of Companies.

10 Annual Report
STATEMENT OF PERFORMANCE FROM
THE CHAIRMAN’S STATEMENT

Dear Shareholders,
Bismillahir Rahmanir Raheem
Assalamualakium,

It is my pleasure to present the annual report of Kattali Textile Limited for the year ended 30th June 2018.
During the period under review, our manufacturing business remained challenging due to weak consumer sentiment
caused by the gloomy global economy. In addition, the performances during the first quarter of 2018-2019 are satisfac-
tory. Correspondingly the profit attributable to owners of the Company (“Net Profit”) for the year-2018 recorded to
approximately Tk. 10.71 crore. Despite the pressures of the competitive environment, the financial position of KTL
remained healthy for ongoing business operations and development.

STRATEGIC DIRECTIONS
Diversification of Production Bases Due to the constant rise in labor and fuel costs in Bangladesh in the past decade,
the operating costs of labor intensive industries such as sweater manufacturing in Bangladesh is currently under great
pressure. In the past few years, KTL has been focusing on developing appropriate production capacities by construct-
ing an extension of factory building to increase production capacity. Expansion of production bases has all along been
a challenging task. However, I believe that expansion is important for KTL to remain competitive and resilient.

Furthermore, fully integrated ERP software is being used for the entire operation of the companies, which gives Live
Production Update, Compliance Support, Production, Production Planning, Salary Disbursement etc. we are continu-
ously upgrading our software as per our needs and requirement. Its State of the Art technology will give the competi-
tive edge to the company against competitors.

OVERVIEW
Over the years readymade garment (RMG) industry has witnessed a steady growth and within three decades it has
become the largest export earning sector of Bangladesh, generating 80% of the export earnings and contributing more
than 10% to national GDP. The RMG sector has created employment for about 5.4 million people, of whom 80 percent
are women. Apart from playing a vital role in Bangladesh's economic growth, the RMG sector has strengthened the
country's image worldwide. The 'made-in-Bangladesh' tag has taken Bangladesh to a new height at the international
level.

Due to the geographic advantage and the trade preferences and lower labor costs, many brands have considered
Bangladesh as the country of choice and urged their suppliers to seek expansion of production capacities here. The
labor cost in Bangladesh has been increasing rapidly and this trend is likely to be continued in the next few years.
Trade negotiation and preferences are key factors affecting the competitive landscape of the apparel manufacturing
industries. All of the above-mentioned trade negotiations and preferences shall affect the customers’ sourcing strategy
and direction which create challenges and opportunities to all manufacturers. KTL shall remain to monitor and adjust
its diversification strategy to remain competitive.

In view of the market challenge ahead, the Group will strive to capture opportunities in the apparel and accessories
business by adjusting our customer base and product mix and further strengthening the relationship with our existing
key customers. KTL continues to focus on providing quality products, innovation and driving market expansion.

Annual Report 11
We have successfully managed the challenges with the continuous support of our customers, employees and our
valued shareholders. Their commitments and best efforts have earned us the success that we have achieved over the
years. As such, we would like to thank all for their on-going commitment and tremendous support.

DIVIDEND
The Board of Directors has resolved to propose a final dividend of 10% stock dividend per share for the year ended
30th June 2018.

CORPORATE GOVERNANCE
KTL acknowledges the need and importance of corporate governance as one of the essential elements in enhancing
shareholder value. KTL is devoted to improving its corporate governance policies in compliance with regulatory
requirements and in accordance with international recommended practices. As at the date of this report, the Company
has formed the Audit Committee and Remuneration Committee all at the Board of Directors’ (the “Board”) level, to
provide assistance, advice and recommendations on the relevant matters that aim to ensure protection of the interest
of the Company’s shareholders as a whole.

State of the Art automated machines and skilled labor and technicians will give the company the competitive edge
against competitors"

APPRECIATION
On behalf of KTL, I would like to express my sincere appreciation and gratitude to all our customers, suppliers and
shareholders for their dedicated support. Also, I wish to take this opportunity to thank all our employees for their
invaluable service, dedication and perseverance throughout last year. Finally, I am grateful to my fellow Board mem-
bers and the senior management for their contribution to the Group.

Sd/-
Mrs. NasreenHoque
Chairman

12 Annual Report
STATEMENT OF PERFORMANCE FROM
THE MANAGING DIRECTOR

Bismillahir Rahmanir Raheem

Assalamualakium,
Dear Shareholders,

We are pleased to report that KTL delivered a consistent and stable operational and financial performance in 2017-18.
Expanding urbanization, evolving lifestyles, changing preferences and growing middle-class aspirations are key
trends affecting our business.

I am pleased to inform that KTL has shown impressive turnaround during the current year, even after sustaining
through the social-political atmosphere in Bangladesh. This performance was achieved by implementing measures to
minimize increasing conversion cost, strengthening our sales mix, matching the international price competition, by
achieving operational excellence and strategic decisions to diversify our portfolio by investing in profitable business
segments.

We strongly believe in continuous improvement and this is well reflected in the measures taken by the Company to
align itself with the ever-changing dynamics of the industry.

The strong performance of our Company throughout this year could not have been achieved without the dedication of
our Management Team and we thank them for their strong leadership. We are extremely grateful to our valued employees
and we would like to extend our appreciation to them for their support and loyalty; and we express our gratitude to our
clients worldwide who continue to place their trust in KTL.

Working in partnership with all our customers, suppliers, business partners and Shareholders, we look forward to the
coming year with higher ambition and greater spirit.

I assure you that if factors such as energy process, transport costs, natural disasters, social violence and international
price/market situation could be rationally and internationally diplomatically controlled, our costs of operation would
be competitive and investment would continue to be profitable in not only in Textiles/RMG sectors, but also in other
existing/virgin sectors enabling the Country to attain its national goal to become a member of the rich income group
by 2040

Thank you All.

Sd/-
Md. Emdadul Hoque Chowdhury
Managing Director

Annual Report 13
STATEMENT OF PERFORMANCE FROM
THE DIRECTORS’ REPORT

Bismillah-hir Rahmanir Rahim

Honourable Shareholders,
Assalamu Alaikum,

On behalf of the Board of Directors and on my own behalf I welcome you all to 15th Annual General Meeting. The
Board of Directors is pleased to take the opportunity to present you the Audited Financial Statements of the Company
for the ended June 30, 2018, Auditors’ report and the Directors’ Report thereon along with Company’s performance
and other matters in terms of Companies ACT 1994, the guideline issued by Bangladesh Securities and Exchange
Commission and Bangladesh Accounting Standards.

BACKGROUND
Kattali Textile Limited (here in after referred to as “KTL” or “the Company”) was incorporated with the Registrar of
Joint Stock Companies and Firms (RJSCF) on June 26, 2002 and has been converted in to a Public Limited Company
on October 17, 2016 under the Companies Act, 1994.

REVENUE
As you are aware that the Company is 100% export oriented, mainly engaged in the business of Textile sector. The sale
proceeds stood at Tk.630,369,942.00 the efficient and prudent management of process control has enabled the
company to avoid financial catastrophe and earn substantial profit instead.
The operating financial results of the Company for the year 2017-2018 as compared to previous year are summarized
hereunder:
Particular 2018-2017 2017-2016
Turnover 630,369,942 595,295,265
Gross Profit 157,562,058 135,946,059
Financial Expenses 6,691,478 5,820,380
Non-Operating Income 126,330,223 105,723,116
Net Profit Before Tax (NPBT) 121,697,982 107,014,668
Provision for Taxation 14,603,757 128,840
Net Profit After Tax (NPAT) 107,094,225 106,885,828
Gross Margin (Turnover) 24.995% 22.87%
Net Margin Before Tax 19.31% 17.98%
Net Margin After Tax 16.99% 17.96%
Earnings Per Share (EPS) BDT 1.95 1.94
Weighted Average Number of Share 55,000,000 55,000,000
Number of Share Outstanding 55,000,000 55,000,000

In reference to provisions of Section 184 of the Companies Act 1994, Rule 12 (and the Schedule there under) of the
Bangladesh Securities and Exchange rules 1987, BSEC Notification dated August 07, 2012 and IAS-1 (International
Accounting Standard-1) codes as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), it is the
pleasure of the Board of Directors to submit its Reports to the Members of the Company for the year ended 30 June,
2018 in the following paragraphs;

14 Annual Report
Company’s Operations
Revenue & Net Profit
Capacity & Utilization
Operational Result

Turnover, Gross Profit and Net Profit has been increased significantly in 2018 compare to 2017.

The Cost of Goods sold (COGS) in the year ended June 30, 2018 amounting to 70.98% of Revenue, thereby resulting
in Gross Profit Margin of 29.02%. This is fairly consistent with 27.93% Gross Profit Margin for the year ended June
30, 2017. (The Net Profit Margin has been increased to 17.60% in 2018 which was 14.34% in 2017.

Annual Report 15
FIVE YEARS FINANCIAL POSITION (Amount in Taka)

Operational Result 30.06.2018 30.06.2017 30.06.2016 30.06.2015 30.06.2014

Turnover 630,369,942 595,295,265 486,266,104 564,388,585 561,642,281

Gross Profit 157,562,058 135,946,059 109,757,750 105,368,223 110,500,724
Profit from Operating 133,021,701 111,543,496 90,444,216 81,781,114 86,382,502
Net Profit before Tax 121,697,982 107,014,668 83,060,381 79,386,042 86,000,263
Net Profit after Tax 107,094,224 106,885,828 57,869,126 67,478,136 68,223,760

Financial Position 30.06.2018 30.06.2017 30.06.2016 30.06.2015 30.06.2014

Current Ratio 6.05 4.74 2.37 1.59 1.25

Quick Ratio 3.29 2.49 1.21 0.97 0.71
Debt to Equity Ratio 0.11 0.12 0.91 0.95 1.13
Net Income Ratio (%) 17.0% 18.0% 11.9% 12.0% 12.1%
Return on Equity (%) 8.7% 9.5% 10.6% 14.7% 17.5%
Earnings Per Share (EPS) 1.95 2.07 1.12 1.31 1.32

Key Financial Ratio 30.06.2018 30.06.2017 30.06.2016 30.06.2015 30.06.2014

Current Ratio 6.05 4.74 2.37 1.59 1.25

Quick Ratio 3.29 2.49 1.21 0.97 0.71
Debt to Equity Ratio 0.11 0.12 0.91 0.95 1.13
Net Income Ratio (%) 17.0% 18.0% 11.9% 12.0% 12.1%
Return on Equity (%) 8.7% 9.5% 10.6% 14.7% 17.5%
Earnings Per Share (EPS) 1.95 2.07 1.12 1.31 1.32

APPROPRIATION
The net profit of Tk. 107,094,224 earned during the year ended June 30, 2018 has been recommended by the Board to
be distributed in the following manner:
a) Provision for proposed Stock Dividend (Bonus Share) @ 10%

UTILIZATION OF IPO FUND

The Company has raised Tk. 34.00 crore by issuing ordinary shares through IPO.

Particulars Amount inTaka

IPO Expense 19,124,000
Factory Building 172,779,916
Dormitory for Employee 25,312,794
New Machinery 89,787,540
Electric Installation of Transformer & Generator 7,995,750
Bank Loan (One Bank) 25,000,000
Total 340,000,000

1 Annual Report
16
IPO Utilization start November, 2017
Compliance of Notification No.:BSEC/Cl/IPO-263/2017/549 Dated: July 31, 2018

SEGMENT REPORTING
The company operates in one segment, which is the business of Textile.
A position on cost of goods sold, gross margin and net profit margin
30-Jun-18 30-Jun-17
Particulars Amount Percentage Amount Percentage
Turnover 630,369,942 100% 595,295,265 100%
Cost of Goods Sold 472,807,884 75.00% 459,349,206 77.16%
Gross Profit 157,562,058 25.00% 135,946,059 22.84%
Net Profit during the year 107,094,224 16.99% 106,885,828 17.96%

ELECTION OF DIRECTORS
Mrs. Nasreen Hoque, Chairman and Md. Emdadul Hoque Chowdhury, Managing Director of the Company, retire as
per article 125 & 126 of Articles of Association and being eligible offer them selves for re-election. Brief resume and
other information of the above mentioned directors as per clause 1.5 (xxii) of BSEC notification dated 7th August,
2012 are depicted in Annexure-III.

APPOINTMENT OF AUDITORS
The Auditors of the Company, Shiraz Khan Basak & Co. Chartered Accountant , Padma Life Tower, Level-10, 115
Kazi Nazrul Islam Ave, Banglamotor 1000,has carried out the audit of the Company for the year ended 30 June 2017.
They were appointed as Statutory Auditor in 15th AGM. As per regulation 15 (2) & (3) of DSE and CSE (listing)
regulations, 2015 existing auditor is eligible for re-appointment. Accordingly the Board of Directors has recom-
mended re-appointment of Shiraz Khan Basak & Co. Chartered Accountant , Padma Life Tower, Level-10, 115
KaziNazrul Islam Ave, Banglamotor 1000, at an annual fee of Tk.75,000. A proposal for re-appointment Shiraz Khan
Basak & Co., Chartered Accountants as auditor for the year 2018-19 of the Company will be placed in the forth
coming 16th AGM for shareholders’ approval and fixation of their fees.

REAPPOINTMENT OF INDEPENDENT DIRECTORS

The existing Independent Directors of the Company Sayed Manzur Quader & Mohammed Nurul Alam expressed their
interest to be reappointed as Independent Directors of the Company for the next tenure.

DIRECTORS’ REMUNERATION
Directors’ remuneration is shown in the note no. 27.8.1 of the notes to the Financial Statements.

STATEMENT OF DIRECTORS ON FINANCIAL REPORTS

In accordance with the Bangladesh Securities and Exchange Commission Notification No. SEC/CMRRCD/2006-
158/134/Admin/44 dated 07 August, 2012 the Directors are pleased to confirm the following:

The financial statements together with notes thereon have been drawn up in conformity with the Companies Act. 1994
and Bangladesh Securities and Exchange Rules 1987. These statements present fairly the companies state of affairs,
the result of its operations, cash flow and changes in equity.
1. Proper books and accounts of the company have been maintained.
2. Appropriate accounting policies have been applied consistently in preparation of the financial statements and the
accounting estimates are based on reason able and prudent judgment.
3. The International Financial Reporting standards, as applicable in Bangladesh, have been followed in the preparation
of the financial statements.
4. The systems of internal control are sound and have been implemented and monitored effectively.
5. The pattern of shareholding is provided in Annexure-II of the annual report.

Annual Report 17
RISK AND CONCERNS
Changes in the existing global or national policies can have either positive or negative impacts for the company. Any
scarcity or price hike of raw materials due to change in policy in the international market might hamper the production
and profitability.

Moreover, the performance of the company may be affected by the political and economic instability both in Bangla-
desh and worldwide. Any instance of political turmoil and disturbance in the country may adversely affect the
economy in general.

Similarly, risks and concern of the industry depends on the upcoming Government policy as well. However, garments
being the major foreign currency earner have always enjoyed special consideration from all the successive Govern-
ments and expectation is that it will continue in the future.

DISCUSSION ON CONTINUITY OF EXTRA-ORDINARY GAIN OR LOSS

Extraordinary gains or losses refer to infrequent and unusual gain or loss and which is not part of the Company’s
ordinary/day to day operations. As to the Company, there was no such gain or loss during the year under reporting.

BOARD SIZE
The number of members in the Board of Directors of the Company stands at 08 (including Two Independent Director)
which are within the limits given by the BSEC Notification.

DUTIES OF MD & CEO

The provision of BSEC regulation have been compiled in the Annual report.

MAINTAINING A WEBSITE
The company maintains an official website: www. Kattalitextileltd.com. which is linked with the website of the stock
exchange.

SUBSIDIARY COMPANY
The company has not subsidiary company.

CHIEF FINANCIAL OFFICER, COMPANY SECRETARY, HEAD OF INTERNAL AUDIT

As per corporate governance guidelines of BSEC, the company has allocated the responsibilities of the officials as
follows:
Chief Financial Officer : Md. Fazlul Hoque
Company Secretary : Sattabrate Das
Head of Internal Audit : Waduda Sabrina

AUDIT COMMITTEE
The Audit Committee, as a subcommittee of the Board of Director has been constituted with the Independent Director
as Chairman and other Directors. The company Secretary acts as Secretary to the Audit Committee. This committee
assists the Board in ensuring that the financial statements reflect true and fair view of the state of affairs of the
company. Audit committee is responsible to the Board of Directors and its roles and responsibilities are clearly set
forth. The role of the Audit Committee has been started in the annual audit committee report.

CORPORATE GOVERNANCE
Corporate Governance is the practice of good citizenship, through which the company is governed by the board,
keeping in view its accountability to the shareholders and to the society. A statement in pursuance to clause 1.5, The
Directors Report to Shareholders. 3.5, Reporting to the Shareholders and General Investors, Certificate from the CEO
and CFO to the Board as per clause 6, certificate from professional accountant as per clause 7(i) and status of compli-
ance with the conditions imposed by the Commission’s Notification No.SEC/ CMRRCD/ 2006-158/207/Admin/80,
dated 3 June 2018 issued by Bangladesh Securities & Exchange Commission is depicted in the Annexure-I, II, IV, VI
and VII respectively.

18 Annual Report
ANNEXURE TO THE DIRECTORS’ REPORT
ANNEXURE-I
• Related Party Transactions are depicted in Note no. 27.07 in the Notes to the Account.
• Remuneration of Directors including Independent Director has been shown in Note no. 27.8.1 & 27.8.2 in the Notes
to the Account.
• The Financial Statement of the Company present true and fair view of the Company’s state of affairs, result of its
operation, cash flows and changes in equity.
• Proper books of accounts as required by the prevailing law have been maintained.
• Appropriate accounting policies have been followed in formulating the financial statements and accounting estimates
were reasonable and prudent.
• The financial statement was prepared in accordance with IAS/BAS/IFRS/BFRS.
• The internal control system is sound in design and is effectively implemented and monitored.
• There is no significant deviation from the operating result of the last year.
• Key operating and financial data of last five years have been presented in summarized form in page no.15
• The number of Board Meeting and the Attendance of Directors for the year ended 30 June, 2018 were as follows:

Board Members Designation Meeting Held Attendance

Mrs. Nasreen Hoque Chairman 7 7
Md. Emdadul Hoque Chowdhury Managing Director 7 7
Md. Anwarul Hoque Chowdhury Director 7 7
Md. Mokarrom Anwarul Chowdhury Director 7 7
Waduda Sabrina (Nominee Director of Eira Apparels Ltd.) Director 7 6
Sifat Sabrina ( Nominee of Lucky Corner) Director 7 7
Syed Manzur Quader Independent Director 7 6
Mohammed Nurul Alam Independent Director 7 7
The pattern of Shareholding as required by clause 1.5 (xxi) of the BSEC Notification dated 7th August, 2012, is stated
in Annexure II.
ANNEXURE-II
Pattern of Shareholding as on 30th June, 2018
SHAREHOLDING PATTERN
The shareholding of directors at the end of 30 June, 2017 is shown as bellow:
Sl Name of the Shareholder Position Shares Held %
No
i. Parent/Subsidiary/Associated companies - - -
and other related parties
ii Director, Chief Executive Officer, Chief Financial Officer, Company Secretary, Head of Internal
Audit and their Spouse and Minor Children:
Mrs. Nasreen Hoque Chairman 3,941,200 7.17%
Md. Emdadul Hoque Chowdhury Managing Director 10,582,904 19.24%
Md. Anwarul Haque Chowdhury Director 2,848,848 5.18%
Md. Mokarrom Anwar Chowdhury Director 2,489,680 4.53%
Eian Apparels Ltd. (Nominated Waduda Sabrina)
Director 3,760,625 6.84%
Lucky Corner (Nominated Sifat Sabrina) Director 3,359,070 6.11%

Annual Report 19
 Syed ManzurQuader Independent Director Nil Nil

Mohammed NurulAlam Independent Director Nil Nil

Md. Fazlul Hoque Chief Financial Officer Nil Nil

Sattabrata Das Company Secretary Nil Nil
Waduda Sabrina Head of Internal Audit Nil Nil
iii Executives: Nil Nil Nil
iv Shareholders holding 10% or more voting interest in the company:
Md. Emdadul Hoque Chowdhury Managing Director 26,982,327 49.07%
1. No Company Secretary/CFO/ Internal Auditor and their spouse and minor children hold above mentioned shares of
the Company.
2. No Executive holds any share of the Company except Managing Director.
3. No Shareholders hold 10% or more shares except Md. Emdadul Hoque Chowdhury hold 19.24% shares.

DIRECTORS INVOLVED IN OTHER COMPANIES

Sl Name Position in KTL Involvement
No. Name of the Company Position
Eian Apparels Ltd. Director
Stage 11 Ltd. Director
Saint Garments Ltd Director.
1 Mrs. Nasreen Hoque Chairman The Lucky Apparels Pvt. Ltd. Director
International pvt. Ltd. Director
Takafull Islami Insurance Ltd. Director
Takafull Islami Insurance Ltd. Vice-Chairman
Eian Apparels ltd Managing Director
Md. Emdadul Hoque Managing Stage 11 Ltd. Managing Director
2 Chowdhury Director
Saint Garments Ltd. Managing Director
The Lucky Apparels pvt. Ltd. Managing Director
3 Md. Anwarul Hoque
Director
Chowdhury
4 Md. Mokarrom Anwar
Director
Chowdhury
5 Eian Apparels Ltd.
(Nominated Waduda Director
Sabrina)
6 Lucky Corner
(Nominated Sifat Director
Sabrina)
7 Syed Manzur Quader Independent
Director
8 Mohammed Independent
Nurul Alam Director

20 Annual Report
MANAGEMENT APPRECIATION:
The Board of Directors record with deep appreciation the performance of the management, the officers, staff and
workers whose relentless effort helped increase the productivity as well as the net profit despite the natural and
unnatural adverse factors of production and marketing throughout the country and the world. It is expected the
employees and the management will continue to improve the results for the interest of shareholders whose unswerv-
ing trust in management has always been an inspiration to the Board of Directors.

The director humble express its gratitude and acknowledge with keen interest the cooperation and unflinching
support it has received from various agencies including Bangladesh Securities and Exchange Commission, Stock
Exchanges, National Board of Revenue and other agencies of the public and the private sector. We look forward to
brighter future for all of us.

We look forward to brighter future for all of us.

Sd/-
Mrs. NasreenHoque
Chairman

Annual Report 21
 Annexure-V

AUDIT COMMITTEE REPORT

For the year ended 30th June, 2018
The Board of Directors of Kattali Textile Limited has constituted an Audit Committee according to the conditions of
Bangladesh Securities and Exchange Commission’s (BSEC) guidelines which is appended at the Compliance Report
enclosed with the Directors’ Report.All members of the Audit Committee are financially literate and are able to
analyze and interpret financial statements of effectively discharge their duties and responsibilities as members of the
Audit Committee. The members of the Audit Committee are as follows:

Name of The Audit Committee Position of the Committee

Syed Manzur Quader, Independent Director of the KTL Chairman of the Committee
Md. Anwarul Hoque Chowdhury, Director of the KTL Member of the Committee
Md. Mokarrom Anwarul Chowdhury, Director of the KTL Member of the Committee
Sifat Sabrina (Nominee of Lucky Corner), Director of the KTL Member of the Committee
Sattabrata Das, Company Secretary Secretary of the Committee

PURPOSE OF AUDIT COMMITTEE

The role of the Audit Committee is to monitor the integrity of the financial statements of the Company and review and,
when appropriate, make recommendations to the Board on business risks, internal controls and compliance. The
Comittee satisfies itself, by means of suitable steps and appropriate information, that proper and satisfactory internal
control systems are in place to identify and contain business risks and that the company’s business is conducted in a
proper and economically sound manner. The key responsibilities of the Audit Committee include:
• Monitor the integrity of the financial reporting process ensuring compliance to accounting policies, standards and principles.
• Monitor internal control and business risk management process.
• Monitor and review the effectiveness of internal audit function.
• Oversee hiring and performance of external auditors.
• Other matters as per terms of reference and Audit Committee.

AUTHORITY
The Audit Committee is authorized by the Board to review and activity within the business as per its terms of
reference. It is authorized to seek any information it requires from, and require the attendance at any of its meetings
of, any Director or member of management, and all employees are expected to co-operate with any request made by
the Committee.

The Committee is also authorized to have information and advice from the Company Legal Advisor, Tax Consultant
and Statutory Auditor if required. The terms of reference of Audit Committee may be amended from time to time as
required for the business in line with BSEC notifications subject to approval by the Board

22 Annual Report
MEETING ATTENDANCE
The Audit Committee met 7 (Seven) times during the year 30 June, 2018. All the members were present in all meetings
of the Committee. The details of attendance of each member at the Audit Committee meetings during the year 30 June,
2018 are as follows:

AUDIT COMMITTEE MEETING ATTENDANCE RECORD OF THE MEMBERS

Board Members Designation Meeting Held Attendance
Syed Manzur Quader Chairman 7 7
Md. Anwarul Hoque Chowdhury Member 7 7
Md. Mokarrom Anwarul Chowdhury Member 7 6
Sifat Sabrina (Nominee of Lucky Corner) Member 7 6
Sattabrata Das Secretary 7 7

SUMMARY OF ACTIVITIES 2017-2018

The Committee carried out its duties in accordance with the terms of reference of the Audit Committee. During the
year 30 June, 2018, the Audit Committee carried out the following activities:

1. Financial reporting reviewed the quarterly and annual audited financial statements of the Company with the CFO
and MD, focusing particularly on significant changes to accounting policies and practices, adjustments arising from
the audits, compliance with accounting standards and other legal requirements before recommending them to the
Board for approval.

2. Internal audit:
a. Reviewed internal audit reports and corresponding actions to improve controls as agreed by management.
b. Reviewed status reports of internal audit to ensure that appropriate actions had been taken to implement the
audit recommendations.
3. External audit
a. Reviewed with the external auditors the Company’s Statement of Internal Control before recommending the
same for inclusion in the Company’s Annual Report of 2018.
b. Reviewed the findings arising from audits particularly the comments and recommendations in management
letter, before recommending them to the Board of Directors for approval.
c. Reviewed the external auditors’ audit plan including its nature and scope, audit report, evaluation of internal
controls and coordination of the external auditors.

Sd/- Sd/-
Sattabrate Das Syed Manzur Quader
Secretary, Audit Committee Chairman, Audit Committee

Annual Report 23
MANAGEMENT DISCUSSION AND ANALYSIS ON FINAN-
CIAL POSITION AND PERFORMANCE
In the financial 2017-18, Kattali Textile Limited generated sales amounting to Tk. 630,369,942, comparing to Tk.
595,295,265 in 2016-17. Net profit after tax in the financial 2017-18 was Tk. 107,094,225 which was Tk. 106,885,828
in financial year 2016-17. Debt to equity ratio has been very low that indicates company is financially solvent.
Accounting policy and estimation for preparing financial statements have been remained same as it was before. Hence,
there is no effect in this regard.

Peer companies of Kattali Textile Limited are Dragon Sweater & Spinning Ltd. The comparisons for the year ended
30th June 2018 are as follows.

Amount in Tk
Indicator
KTL DSSL
Sales 630,369,942 1,687,646,647
Net Profit Margin 107,094,225 1,088,090,011
Net Profit Ratio 16.99% 64.47 %
Net Cash Flow Per Share 0.67 1.23
EPS 1.95 2.25
NAV 22.43 21.95

The economic scenario of Bangladesh has been good. In last fiscal year Bangladesh enjoyed 7.86% economic growth.
Per capita income has been increased to USD 1751 in 2017-18, which was USD 1610 in FY 2016-17. We are going to
be middle income county by 2027. Export is experiencing mild growth and Forex Reserve around USD 32 billion plus.
The world economy has been recovering from economic meltdown of 2008. Global growth for 2018–19 is projected
to remain steady at its 2017 level. Global growth is projected at 3.7 percent for 2018–19.

As far as risks are concerned, Olympic Accessories Ltd. is exposed to foreign exchange risk, inflation risk. Foreign
exchange risk is trade-off between export and import. As we have to make less payment against export earnings,
foreign exchange risk is mitigated. In terms of inflation, this is adjusted in sales price. Hence, company can mitigate
this risk as well.

Sd/-
Md. EmdadulHoque Chowdhury
Managing Director

1 Annual Report
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 ANNEXURE-A
[As per condition No. 1(5)(xxvi)]
Kattali Textile Limited

DECLARATION BY MANAGING DIRECTOR AND

CHIEF FINANCIAL OFFICE
Date: October 28, 2018

The Board of Directors

Kattali Textile Limited
Chowdhury Bari, KornelKones Road,
North Kattali, Pahartoli, Chittagong-4217.

Subject: Declaration on Financial Statements for the year ended on 30 June 2018
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-
158/207/Admin/80 Dated 03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do
hereby declare that:
(1) The Financial Statements of Kattali Textile Limitedfor the year ended on 30 June 2018 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards
(IFRS), as applicable in the Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis,
in order for the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly
presented in its financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies
and procedures of the Company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate
and there exists no material uncertainty related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.

In this regard, we also certify that:

(i) We have reviewed the financial statements for the year ended on 30 June 2018 and that to the best of our
knowledge and belief:
(a) These statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(b) These statements collectively present true and fair view of the Company’s affairs and are in compliance with
existing accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year
which are fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or
its members.

Sd/- Sd/-
Md. Emdadul Hoque Chowdhury Md. Fazlul Haque
Managing Director (MD) Chief Financial Officer (CFO)

Annual Report 25
LOTTERY

26 Annual Report
TRADING

Annual Report 27
FACTORY

28 Annual Report
 MANAGEMENT DISCLOSURE REGARDING COMPLIANCE
WITH THE REQUIREMENTS OF CORPORATEGOVERNANCE
GUIDELINES OF
BANGLADESH SECURITIES AND EXCHANGE COMMISSION
The Company declares that it is in compliance with the requirements of the applicable regulations of Corporate Gover-
nance Guidelines of Bangladesh Securities and Exchange Commission in respect of corporate governance including
constitution of the Board and committees thereof.

Sd/-
Md. EmdadulHaque Chowdhury
Managing Director
Kattali Textile Limited

Annual Report 29
 aa 3E ACCOUNTING

Report to the Shareholders of KATTALI TEXTILE LIMITED on

Compliance on the Corporate Governance Code

We have examined the compliance status to the Corporate Governance Code by KATTALI TEXTILE LIMITED for
the year ended on 30 June 2018. This Code relates to the Notification No. Compliance of Notification No.
BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June 2018 issued under section 2CCof the Bangladesh Securities
and Exchange Commission.

Such compliance with the Corporate Governance Code is the responsibility of the Company. Our examination was
limited to the procedures and implementation thereof as adopted by the Management in ensuring compliance to the
conditions of the Corporate Governance Code.

This is a scrutiny and verification and an independent audit on compliance of the conditions of the Corporate Gover-
nance Code as well as the provisions of relevant Bangladesh Secretarial Standards (BSS) as adopted by Institute of
Chartered Secretaries of Bangladesh (ICSB) in so far as those standards are not inconsistent with any condition of this
Corporate Governance Code.

We state that we have obtained all the information and explanations, which we have required, and after due scrutiny
and verification thereof, we report that, in our opinion:

(a) The Company has complied with the conditions of the Corporate Governance Code as stipulated in the above
mentioned Corporate Governance Code issued by the Commission {Except l(3)(b)(iii) & l(3)(b)(v) of
Annexure-A};

(b) The Company has complied with the provisions of the relevant Bangladesh Secretarial Standards (BSS) as
adopted by the Institute of Chartered Secretaries of Bangladesh (ICSB) as required by this Code;

(c) Proper books and records have been kept by the company as required under the Companies Act, 1994, the securities
laws and other relevant laws; and

(d) The Governance of the company is satisfactory.

Dated: 08 November 2018

Place: Dhaka

Dhaka AHMAD & AKHTAR

Chartered Accountants

National Office: Dhaka Branch Office: Chittagong Branch Office:

BCIC B ha ban (3rd Floor) 39, Dilkusha (4th Floor) Isabella Tower, Level-4 I BBL
30-31 Dilkusha C/A C/A, Dhaka-1000. Halishahar, Boropool Chittagong-4000
Dhaka-1000, Bangladesh. Ph: 88-02-7174860, 9558706 (M) 01715429860
Ph. 88-02-9561289,9570299 web: www.aacabd.com
Fax: 88-02-9564366
E-mail: [email protected]

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Standards (BAS)

BAS : 1Presentation of Financial Statements

BAS : 2Inventories
BAS : 7Statements of Cash Flows
BAS : 8Accounting Policies, Changes in Accounting Estimates and Errors
BAS : 10Events after the reporting period
BAS : 12Income Taxes
BAS : 16Property, Plant and Equipment
BAS : 18Revenue
BAS : 21The Effects of Changes in Foreign Exchange Rates
BAS : 23Borrowing Costs
BAS : 24Related Party Disclosures
BAS : 33Earnings Per Share
BAS : 36 Impairment of Assets
BAS : 37Provisions, Contingent Liabilities and Assets
BAS : 39Financial Instruments: Recognition and Measurement

Annual Report 45
 INDEPENDENT AUDITOR’S REPORT
To the shareholders of
KATTALI TEXTILE LIMITED
Report on the Financial Statements:
We have audited the accompanying Financial Statements of KATTALI TEXTILE LIMITED, which comprises the
Statement of Financial Position as at 30 June 2018, Statement of Profit and Loss and Statement of Profit or Loss and
the Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and
a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these Financial Statements in accordance with
InternationalFinancial Reporting Standards (IFRS) and for such internal control as management determines is
necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to
fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these Financial Statements based on our audit. We conducted our audit
in accordance with International Standards on Auditing (ISA). Those standards require that we comply with relevant
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial
Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial
Statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the Financial Statements, whether due to fraud or error. In making those risk assessments,
we consider internal control relevant to the entity’s preparation and fair presentation of the Financial Statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the Financial Statements give a true and fair view of the Financial Position of the KATTALI
TEXTILE LIMITED as at 30 June 2018 and of the results of its operations and its cash flows for the year then ended
in accordance with International Financial Reporting Standards (IFRSs).
Report on Other Legal and Regulatory Requirements:
In accordance with the Companies Act 1994 and Bangladesh Securities and Exchange Rules 1987, we also report that:
a) we have obtained all 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) the Statement of Financial Position, Statement of Profit or Loss and other comprehensive
Income, Statement of Changes in Equity and Statement of Cash Flows dealt with the report are in agree-
ment with the books of account; and
c) the expenditures incurred were for the purposes of the Company’s business.

Sd/-
Date: 1st November, 2018 SHIRAZ KHAN BASAK & CO.
Place: Dhaka Chartered Accountants

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 KATTALI TEXTILE LIMITED
Registered Office :Chowdhury Bari, Kornel Jones Road, North Kattali, Pahartoli, Chittagong - 4217

PROXY FORM
I/We............................................................................................................................................................of being a
shareholders of Kattali textile limited and entitle to vote, hereby appoint Mr./Mrs./Miss............................................
..............................................................................................................................................................as my/our proxy
to attend and vote for me/us and on my/our behalf at the 15th Annual General Meeting of the Company to be held
on Thursday, December 19,2018 at 10.30.A.M at the Bhatiary Golf And Country Club, BMA Bhatiary, Chittagong
or at any adjournment thereof or at any
ballot to be taken in consequence hereof.

Signed this ...........................................Signature of Proxy........................................... day of ................................2018

Revenue
Signature Shareholder Stamp Signature of Proxy
Tk. 20.00

BO ID No.

No. of Shares held ................................................................................. Dated....................................................

Note:

01. A member entitled to attend and vote at the meeting may appoint any person as his/ her Proxy to attend and vote on his / her behalf.

02. Stamp Proxy Form must be deposited at the Company's Dhaka Office before 48 hours of the meeting.

KATTALI TEXTILE LIMITED

Registered Office :Chowdhury Bari, Kornel Jones Road, North Kattali, Pahartoli, Chittagong - 4217

ATTENDANCE SLIP
I hereby record my attendance at 15th Annual General Meeting of the Company being held on Thursday, December
19, 2018 at 10.30.A.M at the Bhatiary Golf And Country Club, BMA Bhatiary, Chittagong

BO ID No.

No. of Shares held ................................................................................. Dated..............................

(Signature of Proxy) (Signature of the Shareholder)

Date .................................
N.B.: Please present this slip duly signed at the entrance of the Meeting Place.