Aftab Annual Report 2018 PDF

Annual Report
2018
aftab automobiles limited

Letter of Transmittal
To
Hon’ble Shareholders
Regulatory Authorities and concerned
Sub : Annual Report for the year ended June 30, 2018.
Dear Sir(s):
We are pleased to enclose a copy of Annual Report together with the audited financial statements for
the year ended June 30, 2018 for your kind information.
Sincerely yours,
Sd/-
(Tareq Enamur Rahim)
Company Secretary
CORPORATE
PROFILE
Board of Directors
Chairman
Shafiul Islam
Managing Director
Saiful Islam Audit Committee
M. Obaidur Rahman, FCA- Chairman
Directors (Independent Director)
Khaleda Islam Sajedul Islam- Member
(Director)
Sajedul Islam
Ekramul Haq, FCA- Member
Farhana Islam (Independent Director)
Independent Directors
M. Obaidur Rahman, FCA Auditors
Ekramul Haq, FCA Malek Siddiqui Wali
Chartered Accountants
9-G, Motijheel C/A, (2nd floor)
Dhaka, Bangladesh
Company Secretary
Tareq Enamur Rahim
Legal Advisor
Chief Financial Officer Abdur Razzaque & Associates
Kazi Ehsanul Huq FCA Barristers & Advocates
Suite # 5/1, City Heart (4th Floor)
Head of Internal Audit 67, Naya Paltan
Muhammad Abidur Rahman FCA Dhaka, Bangladesh
Subsidiary Company
Navana Batteries Limited
A] Vehicle Assembling Plant
B] Navana Battery Plant
Principal Bankers Fouzderhat Heavy Industrial Estate,
Bank Asia Limited Chittagong, Bangladesh
Agrani Bank Limited
NRB Commercial BANK Limited C] Bus-body Fabrication Plant
Coatbari, Dipnagar, Gabtoli
Sotheast Bank Limited
Mirpur, Dhaka, Bangladesh
Dutch Bangla Bank Limited
Commercial Office
House#16/B, Road#93,
Gulshan-2, Dhaka, Bangladesh
Registered Office
125/A, Motijheel C/A,
Dhaka, Bangladesh
Website : www.aftabautomobiles.com
e-mail: info@aftabauto.com
Contents
Notice of 38th Annual General Meeting 04
Message from the Chairman 06
Directors’ Report 08
Highlights of Financial and Key Operating Data 13
Graphical Presentation 14
Corporate Governance Compliance 15
Certi�icate of Compliance to the Shareholders 19
Audit Committee 20
Certi�ication of Managing Director and Chief Financial Of�icer to the Board 22
Auditors’ Report to the Shareholders of Aftab Automobiles Limited & it’s subsidiary 24
Financial Statements of Aftab Automobiles Limited & it’s subsidiary 25
Auditors’ Report to the Shareholders of Aftab Automobiles Limited (AAL) 29
Financial Statements of AAL 30
Notes to the Financial Statements of AAL 34
Auditors’ Report to the Shareholders of Navana Batteries Limited (NBL) 59
Financial Statements of NBL 60
Notes to the Financial Statements of NBL 64
Share Capital and other Information 74
Attendance Slip & Proxy Form 75
03

125/A, Motijheel C/A, Dhaka, Bangladesh
Notice of the 38th annual general meeting
Notice is hereby given that the 38th Annual General Meeting (AGM) of the shareholders of the Company
shall be held on 09 December 2018 at 9:30 AM at International Convention City Bashundhara (Pushpoguscha,
Hall-2), Kuril Bishwa Road, Purbachal Express Highway, Dhaka to transact the following businesses: -
1. To receive, consider and adopt the audited financial statements for the year ended 30 June 2018 together
with auditors’ and directors’ reports thereon.
2. To declare dividend.
3. To re-elect directors.
4. To appoint new Independent Director and re-appoint existing Independent Director for further one term.
5. To appoint auditors and fix their remuneration.
6. Any other business with the permission of the Chair.
By order of the Board
Sd/-
Dated : Dhaka (Tareq Enamur Rahim)
28.10.2018 Company Secretary
Notes
a) The shareholders whose names will appear in the Share Register of the Company and/or Depository
Register of CDBL as on record date, i.e., 20 November 2018 will be entitled to attend the AGM and
receive dividend.
b) Attendance to the AGM will be on production of the Attendance Slip.
c) The Proxy Form affixed with requisite revenue stamp of Tk.20/- must be deposited at the Company’s
Registered Office at least 48 hours prior to the AGM.
d) Shareholders bearing BO ID are requested to update their 12 Digit e-TIN and address through their
Depository Participant (DP) by 20 November 2018 (Record Date) and shareholders bearing Folio
Numbers are requested to submit their 12 Digit e-TIN Certificate to the Share Department of the
Company before 09.12.2018 (AGM Date).
e) The Annual Report-2018 alongwith Attendance Slip and the Proxy Form will be available in the
Company’s website www.aftabautomobiles.com
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05
Message from the Chairman

Dear shareholders,
Assalamu Alaikum
I am pleased to welcome you all at the 38th Annual General Meeting of the Company and place before
you a summarized statement of the activities of the Company for the financial year ended June
30,2018.
The Assembling Unit of the Plant has produced 394 units of non-air-conditioned Hino Diesel Bus Chassis
during the year under review which is less than our desired target. One reason for this is we have noted
that the passengers have opted to switchover to other mode of transport causing decline in travelling
by roads. This has ultimately created less demand for new buses. Due to such, the Company has
decided to import less CKD components of Hino Diesel Bus Chassis.
As far as Hino new model RN8J completely built-up Luxurious Airconditioned Bus is concerned, the
company have already sold 29 units of bus during the year ended June 30, 2018. The demand for this
luxurious bus is encouraging and the Company hopes to increase it’s sales in the next financial year.
Although there has been a marginal decline in demand for new buses during the year under review but
body fabrication In the Bus Body Fabrication Unit has not declined comparatively. I hope situation will
improve in the next financial year.
In the Motorcycle Unit of the Company production and sales of motorcycles has increased.
In the subsidiary Company “Navana Batteries Limited” Tk. 145.40 crore has been added to the sales of
the Company. It may be mentioned here that due to import of low cost batteries from abroad, which
had a negative impact on the market, the Company could not achieve its desired target. We hope
market will improve in the next year.
I would like to express deep appreciation to the shareholders, customers, regulatory bodies, patrons
and well-wishers for their continuous support and co-operation extended to the Company. I expect
support from them will continue in the years to come.
Sd/-
(Shafiul Islam)
Chairman
06
Snapshots of
37th Annual General Metting
07
directors' report to the shareholders
Dear Shareholders,
Dear Shareholders,
The Board of Directors is please to present before you the Directors’ Report and the Auditors’ Report alongwith the
audited financial statements of the Company for the year ended June 30, 2018.
PRINCIPAL ACTIVITIES
The principal activities of the Company during the year is summarized hereunder :
In the Assembling Unit of the Company, 394 units of Hino Diesel Bus Chassis (Model: AK1JMKA) were produced and 29
units CBU Hino Luxurious Airconditioned Buses (Model: RN8J) were sold. These have contributed an amount of Tk. 237
crore to the Company’s turn-over.
In the Bus Body Fabrication Unit of the Company, the Unit has fabricated 180 units of Hino air-conditioned and non-air-
conditioned bus body. This Unit has contributed an amount of Tk. 28 crore to the sales of the Company.
The Motorcycle Unit has assembled 7015 units of motorcycles and contributed an amount of Tk. 71 crore to the
Company’s sales.
Consolidated Financial Result and Appropriation of Profit:

(The financial results for the year ended June 30, 2018 is given hereunder comparing with the results of the previous year
ended on June 30, 2017)
amount in taka
2018 2017
Retained Earnings Brought Forward 2,720,243,834 2,416,847,684
Add: Net Profit for the year after tax 249,296,756 396,639,231
Recommended for appropriations:
2018 2017
Cash Dividend @ 12 % 16%(Without Sponsors) (114,878,906) (93,243,081)
In appropriated profit carried forward 2,854,661,684 2,720,243,834
Aftab Automobiles Limited (AAL)

The operating results of AAL for the year ended June 30, 2018 is given hereunder compared to results of the previous year
ended on June 30, 2017
Particulars 2018 2017

Turnover 3,359,756,688 3,703,934,655
Gross Profit 668,259,731 793,756,137
Net Profit for the year after tax 256,456,025 394,492,235
Earnings Per Share (EPS) 2.68 4.12
Net Assets Value Per Share (NAVPS) 60.89 59.26
Net Operating Cash Flow Per Share (NOCFPS) (0.63) (3.72)
The performance of the subsidiary company – Navana Batteries Limited (NBL)

The Performance of Navana Batteries Limited for the year ended June 30, 2018 is given hereunder comparing with results
of the previous year ended on June 30, 2017.
Particulars 2018 2017
Turnover 1,453,951,709 1,067,274,041

Gross Profit 276,601,512 271,233,334
Net Profit After Tax 32,231,423 78,202,537
Earning Per Share (EPS) 1.75 4.26
Net Assets Value Per Share (NAVPS) 41.22 39.47
08
Mission & Vision
The mission of the Board of Directors is engaged in market change feasibility study on different types of vehicles and
Battery products in Bangladesh so as to boost up sales and increase our market share protecting the investment of
shareholders.
Risks and concerns

The profitability of the Company may be affected in future due to increase of essential ingredients like electricity, labor
cost etc. and other factors.
A discussion on Cost of Goods sold, Gross Profit Margin and Net Profit Margin (Consolidated).
amount in '000" taka
Particulars June 30, 2018 June 30, 2017
Revenues (Turnover) 4,813,708 4,771,209
Cost of goods sold 3,868,847 3,706,219
Gross profit 944,861 1,064,989
Net profit for the year after Tax 256,474 394,535
Margin Analysis
Gross profit margin and Net profit margin compare.
2018 2017
Gross Profit 19.63% 22.32%
Net Profit 5.33% 8.27%
Extra-Ordinary Events
No events of extra ordinary gain or loss which would require adjustment or disclosure in the financial statements
occurred during the reporting period.
Related Party Transaction

As per agreement with Toyota Tsusho Corporation, Japan, the assembled vehicles of Aftab Automobiles Limited are
distributable through Navana Limited (distributor of Toyota & Hino vehicles). No other transaction has been made with
any other related party.Disclosed on notes 36.
Variance within the Financial Year

There was no significant variance between quarterly financial performances during the year under review.
Board meeting attendance fee for Directors

The Directors of the Company including Independent Directors are receiving Taka 5000/- (Five thousand) only as board
meeting attendance fee. During the year the Company paid Tk. 1,71,000/- deducting tax at source.
Fairness of Financial Statements

The financial statements fairly present the Company’s state of affairs, the results of its operations, cash flow and
changes in equity. In compliance with the requirement of the Bangladesh Securities and Exchange Commission (BSEC)
notification dated August 7, 2012 Managing Director and Chief Financial Officer have given the certification about the
fairness of the financial statements which is shown on page 22 of the report.
Books of Accounts
Proper books of accounts of the Company were maintained.
Accounting Policies
Appropriate accounting policies have been consistently applied in preparation of the financial statements and the
accounting estimates are based on reasonable and prudent judgment.
Application of BAS and BFRS

Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) have been followed in
preparation of the financial statements and any deviation there-from has been adequately disclosed.
Internal Control
The systems of internal controls were sound and were implemented and monitored effectively.
09
Going Concern
There are no significant doubts about the Company’s ability to continue as a going concern. The Board of Directors has
reviewed the Company’s business plan and is satisfied that the Company has adequate resources to continue its operations in
the foreseeable future. Accordingly, the financial statements are prepared on the going concern basis.
Significant Variance over the Last year’s Operating Result

There are no significant deviations from last year in the operating results of the Company.
Investment in the associated company

Navana Real Estate Limited
Aftab Automobiles Limited is holding =60,00,000= shares of Tk.10/- each of Navana Real Estate Limited at present. The
acquisition cost of the said shares was Tk.3.33 per share. As Navana Real Estate Limited is not listed, its market price cannot
be determined. However, Navana Real Estate Limited’s Earning per share (EPS) and Net asset value (NAV) as on 30 June 2017
stood at Tk.4.07 and Tk.53.59 per share respectively.
Next Year Plan

The Assembling Unit of the Company have planned to assemble 400 units of Diesel Hino Bus Chassis in the next financial year.
The Bus Body Building Unit have planned to fabricate around 150 units of Hino Bus Body during the next financial year.
The Company have planned to market around 50 units of RN8J Hino Air-Conditioned luxurious Bus in the next financial year.
The Motorcycle unit have planned to assemble 12,000 units of various type of Mahindra Brand motorcycles as per trend of
present market demand.
Dividend
The Board of Directors of your Company has recommended cash dividend @ 12% to the shareholders of the Company for the
year ended June 30, 2018.
The shareholders whose names will appear in the share register of the Company and/or Depository Register of CDBL as on
Record Date i.e., November 20, 2018 will be entitled to the dividend (subject to approval in the Annual General Meeting of
the Company scheduled to be held on 09 December 2018).
Board Meetings Attendance :

In accordance with directives of the regulatory authorities, the Board supervise and review the activities of the Company and
make businesses decisions, etc. During the year the Board of Directors met eight(8) times.
Board meeting attendance during the year 2018
Name of Directors No. of Board Meeting attended

Mr. Shafiul Islam 6
Mrs. Khaleda Islam 4
Mr. Saiful Islam 5
Mr. Sajedul Islam 8
Ms. Farhana Islam 4
Mr. M. Obaidur Rahman 6
(Independent Director)
Mr. Ekramul Haq 5
10
Pattern of Shareholding:
Namewise details No. of Shares held
i. Parent/Subsidiary/Associated Companies and other related parties
Navana CNG Limited 75,084

Navana Real Estate Limited 20
Navana Engineering Limited 44,750
ii. Directors, Chief Executive Officer(CEO), Company Secretary, Chief Financial

Officer, Head of Internal Audit and their spouse and minor children:
Mr. Shafiul Islam-Chairman 1,86,26,415

Mr. Saiful Islam- Managing Director 19,88,215
Mrs. Khaleda Islam-Director 26,03,467
Mr. Sajedul Islam- Director 19,88,078
Ms. Farhana Islam- Director 19,88,078
Mr. M. Obaidur Rahman - Independent Director nil
Mr. Ekramul Haq- Independent Director nil
Chief Financial Officer, Company Secretary and Head of Internal Audit

and their spouse and minor children: nil
iii. Executives nil
iv. Shareholders holding ten percent (10%) or more voting interest in the Company:
Mr. Shafiul Islam 1,86,26,415
Recommendations for Re-election

In terms of Article 125 and 126 of the Articles of Association of the Company, Mr. Shafiul Islam and Mrs. Khaleda
Islam, Directors retire by rotation from the Board in the 38th Annual General Meeting. Being eligible under
Article 127 of the Articles of Association of the Company, the retiring Directors have offered themselves for
re-election.
Disclosure of information of the directors who are willing to be re-elected:

Mr. Shafiul Islam
A Bachelor of Science, Mr. Shafiul Islam joined the Islam Group, a reputed business conglomerate in Bangladesh
in 1968 and started his career with automobile business as well as in the construction, real estate business. In the
early years, he gained valuable experience by being involved in the management of the Group's diverse business
operations. He played a major role in establishing "Navana" as the Toyota brand car trading company in
Bangladesh, and finally set up Aftab Automobiles Ltd. He was also responsible for the construction company
named Bengal Development Corporation (BDC) where he was directly responsible for the construction work of
BDC in the Middle East and from 1981, he was also taking care of Eastern Housing Limited, then the largest real
estate development company in Bangladesh. In 1996, the then Chairman of Islam Group, he separated from
Islam Group with Navana Limited and Aftab Automobiles Ltd. and formed Navana Group. He has a very good
relationship with all business key persons of the country.
Mr. Shafiul Islam is the Chairman of Navana Group, consisting of companies involved amongst others in vehicles
assembling, bus body fabrication, trading; real estate; construction; CNG conversion and CNG stations;
electronics; petroleum and renewable energy
11
Names of companies in which Mr. Shafiul Islam also holds the directorship:
Navana Limited, Navana CNG Limited, Navana Real Estate Limited,Navana Construction Ltd.,Navana Foods
Ltd.,Navana Building Products Ltd., Navana Interlinks Ltd.,Navana Electronics Ltd.,Navana Batteries Ltd., Navana
Furniture Ltd.,Navana Engineering Ltd., Navana Welding Electrode Limited, Navana Plastic Products Ltd.Navana
Power Generation Ltd., Navana Toyota Service Center Ltd.,Essential Industries Ltd., Eastern Printing Press Ltd.,
Orion Complex Ltd., Kenhill Paper Mills Ltd., Navana Computers & Tech Ltd., Navana Services Ltd., Road Linkers
Ltd., Navana Taxi Cab Co. Ltd., Navana Power Co. Ltd., Navana Denims Ltd., Navana Knitting Ltd., Navana Feed
Mills Ltd., Navana Software Ltd., Navana Plantation Ltd., Navana Exports Ltd., Navana Logistics Ltd., Navana
Renewable Energy Ltd., Navana Lingerie Ltd., Navana Fabrics Ltd., Navana Gas Co. Ltd., Navana Paints Ltd.,
Navana Equities Ltd., Navana Electrical & Energy Saving Products Ltd., Navana Properties Ltd., and Navana LPG
Limited.
Membership in committees of the Board of other Companies – None.
Mrs. Khaleda Islam

Mrs. Khaleda Islam is the wife of Mr. Shafiul Islam, Chairman of the Navana Group.
She has experienced in business for more than 37 years. She traveled many countries of the world.
At present, Mrs. Khaleda Islam is a Director of Navana Group, involved, amongst others, in vehicles assembling,
bus body fabrication, trading; real estate; construction; CNG conversion and CNG stations; electronics; petroleum
and renewable energy.
Names of companies in which Mrs. Khaleda Islam also holds the directorship:
Navana Limited, Navana Real Estate Limited, Navana Construction Ltd., Navana Foods Ltd., Navana Electronics
Ltd.,Navana Batteries Ltd., Navana Toyota Service Center Ltd.,Navana Engineering Ltd., Navana Welding Electrode
Limited Navana Furniture Ltd., Navana Interlinks Ltd., Essential Industries Ltd., Eastern Printing Press Ltd., Orion
Complex Ltd., Kenhill Paper Mills Ltd., Biponon Ltd., Navana Computers & Tech Ltd., Navana Services Ltd., Road
Linkers Ltd., Navana Taxi Cab Co. Ltd., Navana Plastic Products Ltd., Navana Power Generation Ltd., Navana Power
Co. Ltd., Navana Denims Ltd., Navana Knitting Ltd., Navana Feed Mills Ltd., Navana Software Ltd., Navana
Plantation Ltd., Navana Exports Ltd., Navana Logistics Ltd., Navana Renewable Energy Ltd., Navana Lingerie Ltd.,
Navana Fabrics Ltd., Navana Gas Co. Ltd., Navana Paints Ltd., Navana Building Products Ltd., Navana Equities Ltd.,
Navana Electrical and Energy Saving Products Ltd.,Navana Properties Ltd., and Navana LPG Limited.
Membership in committees of the Board of other Companies – None.
Appointment of Auditors
The existing auditors of the Company Malek Siddiqui Wali, Chartered Accountants has completed their audit for
three consecutive years. As per Listing Regulation No. 15(2)&15(3) of Dhaka Stock Exchange (Listing) Regulations,
2015, no auditors be eligible for performing the auditing of the financial statements of the issuer of listed
securities for a consecutive period of three years. In this connection, three audit firms e.g.,Ata Khan & Co.,
Chartered Accountants, Ashfraf Uddin& Co., Chartered Accountants and Rahman Mostafa Alam & Co., Chartered
Accountants has expressed their willingness to conduct audit for the year ending on June 30, 2019.
The Board has recommended to appoint Rahman Mostafa Alam & Co., Chartered Accountants to audit the
financial statements of Aftab Automobiles Limited for the year ending on June 30, 2019 and fix their
remuneration at Tk. 3,00,000/- only, subject to approval by the shareholders of the Company in the ensuing
Annual General Meeting scheduled to be held on December 09, 2018.
12
Highlights of Financial and Key Operating Data

The summarized key operating financial data of five years.
The Key Operating and Financial Data (Consolidated): Amount in '000 Taka
Particulars 2018 2017 2016 2015 2014

Authorized capital 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
Paid-up capital 957,324 957,324 957,324 957,324 957,324
Face Value Per Share Tk.10/- Tk.10/- Tk.10/- Tk.10/- Tk.10/-
Shareholders equity 5,829,520 5,673,466 5,367,358 5,198,109 5,039,089
Fixed asset 2,012,035 1,742,323 1,265,524 1,033,688 785,500
Turnover (Net) 4,813,708 4,771,209 3,051,578 3,459,065 2,709,873
Gross profit 944,861 1,064,989 763,416 840,812 705,854
Net profit after tax 256,474 394,535 267,707 291,928 268,297
Total comprehensive income for the period/year 249,297 396,736 276,763 311,101 268,297
Other Information
Operating cash flow per share (4.24) 1.32 10.44 -8.29 -9.99
Book value per share 60.89 59.26 56.07 54.3 52.64
Earning per share 2.68 4.12 2.89 3.05 4.01
Cash dividend 12% 16% 15% 16% 17%
Number of shareholders 22,682 25,898 34,403 39,159 48,055
Conclusion
The Board wishes to express its sincere appreciation to all employees of Aftab Automobiles Limited for their
contribution and at the same time, thanks to all the stakeholders and concern for their continued support and
confidence.
On behalf of the Board of Directors

Sd/-
(Saiful Islam)
Managing Director
13
Graphical Presentation
in milion taka
Turnover (Net) PRODUCTION (Assembling unit)
in qty.
6,000
4,813
5,000 4,771
2,710 3,459 800 704
4,000 3,052 600
350 436
400 222 396
3,000
200
2,000 0
2014
1,000 2015
2016
2017
2018
0
2014 2015 2016 2017 2018
Year
Year
VALUE ADDED STATEMENT

For the period ended June 30, 2018 VALUE ADDED GRAPH
amount in '000' taka
Amount in '000' Taka
Sale / Turnover 4,813,708
Bought in- Material & Service 3,291,979 249,297
Value Added 1,521,729 93,243
661,573
Application to National Exchequer 661,573
177,217
to providers of Loan as Interest & Charges 340,399
to providers Emp. Salaries Wages & other benefits 177,217

340,399
to providers of Capital- as Dividend 93,243
Reserve & Surplus 249,297
1,521,729
in milion taka SHAREHOLDERS EQUITY in milion taka DIVIDEND
6,000 180.00 162.75

5,830 153.17 153.17
160.00 143.60
5,800 5,673
140.00
5,600 114.88
120.00
5,367
5,400 100.00
5,198
5,200
80.00
5,039
60.00
5,000
40.00
4,800 20.00
4,600 -
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Year Year
14
Corporate Governance Compliance [F. Y. ended 30 June 2018]
CORPORATE & FINANCIAL REPORTING:
The Company is determined to ensure good governance by complying with all the applicable rules and regulations of Corporate
Governance Guidelines of Bangladesh Securities & Exchange Commission. It has complied with all the requirements of
Corporate Governance and the Directors are pleased to confirm the following:
a) The financial statements together with the 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 Company’s state of affairs, the
result of its operations, cash flow and changes in equity.
b) Proper books of accounts of the Company have been maintained.
c) Appropriate Accounting Policies have been consistently applied in preparation of the financial statements and that the
accounting estimates are based on reasonable and prudent judgment.
d) The International Accounting Standards, as applicable in Bangladesh, have been followed in preparation of the financial
statements.
e) The systems of internal control are sound and have been effectively implemented and monitored.
f) There are no significant doubts upon the Company’s ability to continue as a going concern.
g) There are no significant deviations in operating result of the business of the company compared to last year.
Status of compliance with the conditions imposed by the Commission’s Notification No.SEC/CMRRCD/2006-158/134/Admin/44
dated 07 August 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
(Report under condition number 7.00)
Condition Compliance Status Remarks
Title Not
No. Complied Complied (if any)
1 Board of Directors:
1.1 Board’s Size (Number of Directors – minimum 5 and maximum 20) 
1.2 Independent Directors:
1.2 (i) At least one fifth of Directors should be Independent Directors; 
1.2.(ii) “Independent Director” means a director- 
1.2 (ii) a) Independent Director does not hold any share or holds less than
1% shares of the total paid-up capital; 
1.2 (ii) b) Non connectivity with the Company’s sponsor or director or 
shareholder who holds one percent or more shares on the basis
of family relationship;
1.2 (ii) c) Does not have any other relationship, whether pecuniary or

otherwise, with the Company or its subsidiary/associated companies;
1.2 (ii) d) Not a member, director or officer of any member of stock exchange; 
1.2 (ii) e) Not a shareholder, Director or officer of any member of stock

exchange or an intermediary of the capital market;
1.2 (ii) f) Not is or was a partner or an executive during the preceding
3 (three) years of the company’s statutory audit firm;

1.2 (ii) g) Shall not be an Independent Director in more than 3 listed
companies;

1.2 (ii) h) Not convicted by court of competent jurisdiction for defaulting

any loan payment to a bank / non bank financial institution;
1.2 (ii) i) Non convicted for a criminal offence involving moral turpitude; 
1.2 (iii) Appointment of Independent Director shall be by board of
Directors and subsequently approved by shareholders in the 
Annual General Meeting;
1.2 (iv) The post of Independent Director(s) cannot remain vacant for No such
more than 90 (ninety) days. incidence
1.2 (v) Code of conduct for all Board members and compliance matter; 
1.2 (vi) Tenure of office of an Independent Director for a period of 3
(three) years, may be extended for 1 (one) term only. 
15

Title Not
1.3 Qualification of Independent Director :
1.3 (i) Shall be a knowledgeable individual with integrity who is able to
ensure compliance with financial, regulatory and corporate laws 
and can make meaningful contribution to business;
1.3 (ii) Should be a Business /Corporate Leader/Bureaucrat/University
Teacher with Economics or Business Studies or Law background/
Professionals like Chartered Accountants, Cost & Management 
Accountants and Chartered Secretaries. Must have at least 12
(twelve) years of corporate management/ professional experiences;
1.3 (iii) Relaxation of qualifications of Independent Directors subject to
Not applicable
prior approval of the Commission;
1.4 Chairman of the Board & Chief Executive Officer (CEO) Chairman
to the Board and the Chief Executive Officer shall be different 
individual with clearly defined respective roles and responsibilities;
1.5 The Director’s Report to shareholders:
1.5 (i) Industry outlook and possible future developments in the industry; 
1.5 (ii) Segment-wise or product-wise performance; 
1.5 (iii) Risks and concerns; 
1.5 (iv) A discussion on Cost of Goods sold, Gross Profit Margin and Net

Profit Margin;
1.5 (v) Discussion on continuity of any Extra-Ordinary gain or loss; 
1.5 (vi) Disclosure on related party transactions; 
1.5 (vii) Utilization from public issues, rights issues and/or through any
Not applicable
others instruments;
1.5 (viii) Explanation if the financial results deteriorate after going for IPO,
Not applicable
RPO, Rights Offer, Direct Listing, etc;
1.5 (ix) Significant variance between Quarterly Financial Performance
Not applicable
and Annual Financial Statements and explanation thereon;
1.5 (x) Remuneration to Directors including Independent Directors; 
1.5 (xi) Fairness of Financial Statements; 
1.5 (xii) Maintenance of proper books of account; 
1.5 (xiii) Application of appropriate accounting policies and estimates; 
1.5 (xiv) Application of International Accounting Standards (IAS)/ Bangladesh
Accounting Standards (BAS)/ International Financial Reporting 
Standards (IFRS)/ Bangladesh Financial Reporting Standards (BFRS),
1.5 (xv) Efficiency of Internal control system; 
1.5 (xvi) Going concerns (ability to continue as going concern); 
1.5 (xvii) Deviations in operating results (highlighting significant deviations
from last year in operating result);

1.5 (xviii) Key operating and financial data (summarized financial data at least
preceding five years); 
1.5 (xix) Reason for non declaration of dividend ; Not applicable
1.5 (xx) Number of Board meetings (number of Board Meetings held and
attendance by each Director; 
1.5 (xxi) The pattern of shareholding: 
1.5 (xxi) a) Parent/Subsidiary/Associated Companies and other related parties
(name wise details);

1.5 (xxi) b) Directors, Chief Executive Officer, Company Secretary, Chief Financial
Officer, Head of Internal Audit and their spouses and minor children 
(name wise details);
1.5 (xxi) c) Executives;

16
Title Not
1.5 (xxi) d) Shareholders holding ten percent (10%) or more voting interest in 
the company (name wise details);
1.5 (xxii) In case of the appointment/ re-appointment of a director the

company shall disclose the following information to the shareholders:-
1.5 (xxii) a) Brief resume of the Director; 
1.5(xxii) b) Nature of his/her expertise in specific functional areas; 
1.5 (xxii) c) Names of companies in which the person also holds the directorship

and the membership of committees of the board;
2. Chief Financial Officer( CFO), Head of Internal Audit (HIA) and
Company Secretary (CS)
2.1 Appoint of CFO, HIA and CS. The Board of Directors should clearly
define respective roles, responsibilities and duties of the CFO, the 
HIA and the CS.
2.2 Presence of the CFO and CS in the Board Meeting; 
3. Audit Committee
3 (i) Should have an Audit Committee as a sub-committee of the Board
of Directors;

3 (ii) Assisting Board of Directors in ensuring true and fair presentation of
financial statements and also to monitor systems; 
3 (iii) Reporting and duties of the Audit Committee; 
3.1 (i) The Audit Committee shall be composed of at least 3 (three) members. 
3.1 Constitution of the Audit Committee
3.1 (i) Composition of Audit Committee (should be composed at least
3 [three] members.)

3.1 (ii) Audit Committee Members Appointment (members should
appointed by the Board with at least one Independent Director);

3.1 (iii) Financially literacy of committee members (members should be
financially literate;

3.1 (iv) Terms of Service of Audit Committee (Board to ensure continuity
of minimum prescribed number of members); 
3.1 (v) Secretary of the committee; 
3.1 (vi) Quorum of the Audit Committee meeting (at least one Independent
Director must present); 
3.2 Chairman of the Audit Committee
3.2 (i) Chairman of Audit Committee(Board to select Chairman from audit

committee who shall be an Independent Director);
3.2 (ii) Presence of Chairman of the audit committee Annual General Meeting; 
3.3 Role of the Audit Committee
3.3 (i) Oversee the financial reporting process; 
3.3 (ii) Monitor choice of accounting policies and principles; 
3.3 (iii) Monitor Internal Control Risk management process; 
3.3 (iv) Oversee hiring and performance of external auditors; 
3.3 (v) Review of annual financial statements before submission to the board; 
3.3 (vi) Review of quarterly and half yearly financial statements before
submission to the board;

3.3 (vii) Review the adequacy of internal audit function; 
3.3 (viii) Review statement of significant related party transactions submitted
by the management;

3.3 (ix) Review Management Letters/ Letter of Internal Control weakness

issued by statutory auditors;
3.3 (x) Declaration to Audit Committee by the Company regards utilization
Not applicable
of IPO/RPO, Right issue money
17
Title Not
3.4 Reporting of the Audit Committee:
3.4.1 Reporting to the Board of Directors;
3.4.1 (i) The Audit Committee shall report on its activities to the Board of
Directors.

3.4.1 (ii) The Audit Committee shall immediately report to the Board of
Directors on the following findings, if any:-
3.4.1 (ii) a) Report on conflicts of interests; 
3.4.1 (ii) b) Report on defect in the internal control system to the Board of Directors; 
3.4.1 (ii) c) Suspected infringement of laws to the Board of Directors; 
3.4.1 (ii) d) Any other matter (out of the above a-c). 
3.4.2 Reporting to the Authorities- BSEC (if any material impact on the
financial condition & results of operation, unreasonably ignored
by the management).
3.5 Reporting to the shareholders (disclosure of the activities of the

audit committee in the annual report).
4. External/Statutory Auditors
4 (i) Appraisal or valuation services (none by the external/ statutory auditor); 
4 (ii) Financial information system (none by the external/ statutory auditor); 
4 (iii) Book-keeping or other services (none by the external/ statutory auditor); 
4 (iv) Broker-dealer services; (none by the external/ statutory auditor); 
4 (v) Actuarial services (none by the external/ statutory auditor); 
4 (vi) Internal audit services (none by the external/ statutory auditor); 
4 (vii) Any other services (none by the external/ statutory auditor); 
4 (viii) Not to possess any share of the company (none by the external/
statutory auditor);

5. Subsidiary Company:
5 (i) Composition of the Board of Directors of the subsidiary Company; 
5 (ii) Presence of Independent Director of holding company in the Board
of subsidiary company;

5 (iii) Review the Board meeting minutes of subsidiary company in the

Board meeting of the holding company;
5 (iv) Reflection in the holding company’s Board meeting minutes about

review of the affairs of subsidiary company;
5 (v) Review the financial statements of subsidiary company, in particular 
the investments made by the subsidiary company. 
6. Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO):
6 (i) a) Financial statements do not contain any materially untrue statement

or omit any material fact or contain statements that might be misleading;
6 (i) b) Financial statements together present a true and fair view of the
company’s affairs and are in compliance with existing accounting 
standards and applicable laws;
6 (ii) No transactions entered into by the company during the year which
are fraudulent, illegal or violation of the company’s code of conduct. 
7. Reporting and Compliance of Corporate Governance:
7 (i) Certification on compliance of condition of Corporate Governance

Guidelines of BSEC and reporting to the shareholders;
7 (ii) Directors’ report should state about the compliance with the
conditions of the Corporate Governance Guideline of the Commission. 
18
ATIK KHALED CHOWDHURY Hasan Court (1st Floor)

Chartered Accountants 23/1 Motijheel C/A,
Dhaka, Bangladesh
Certificate of Compliance of Conditions of

Corporate Governance Guidelines to the Shareholders of
Aftab Automobiles Limited
We have examined the compliance of conditions of corporate governance guidelines of the Bangladesh Securities and
Exchange Commission(BSEC) by Aftab Automobiles Limited for the yearended on June 30, 2018 as stipulated in clause 7(i) of
the BSEC notification no BSEC/CMRRCD/2006-158/134/Admin/44, dated 07 August 2012.
The Compliance of conditions of corporate governance guidelines as stated in the aforesaid notification and reporting of the
status of compliance is the responsibility of the management of Aftab Automobiles Limited. Our examination for issuing this
certification was limited to the checking of procedure and implementations thereof, adopted by Aftab Automobiles Limited
for ensuring the compliance of conditions of Corporate Governance and correct reporting of compliance status on the
attached statement on the basis of evidence gathered and representation received.
To the best of our information and according to the explanations given to us, we certify that, as reported on the attached
status of compliance statement, Aftab Automobiles Limited has complied with condition of corporate governance stipulated in
the above mentioned BSEC notification dated August 07, 2012.
Sd/-
Dated: Dhaka Atik Khaled Chowdhury
October 18, 2018 Chartered Accountants
19
Audit Committee
The Audit committee consists of the following members:
Mr. M. Obaidur Rahman FCA, Independent Director : Chairman

Mr. Sajedul Islam, Director : Member
Mr. Ekramul Haq FCA, Independent Director : Member
Scope of work of Audit Committee

Audit Committee works as a sub-committee of the Board of Directors. The Committee shall assist the Board of Directors to
ensure that the financial statements reflect true and fair view of the state of affairs of the Company and ensure a good
monitoring system within the business and they will be responsible to the Board of Directors. The Chairman of the Audit
Committee shall remain present in the Annual General Meeting.
Internal Audit
• Audit Committee will observe the functions of internal audit department and its structure and confirm that no
barrier/limitation make hindrance against the work of the internal audit department.
• Audit Committee will examine the capabilities and effectiveness of internal audit department.
• Audit Committee will observe the management ’s function regarding the implementation/elimination of the
recommendations/errors/irregularities etc. found by the internal audit department.
• Audit Committee will submit their recommendation to the Board of Directors regarding the change of any accounting
principle if they think necessary.
External Audit
• Audit Committee will examine the audit report and audit procedure of the external auditor of the company.
• Audit Committee will examine the implementation/elimination of the recommendation/observation/irregularities as
provided by the external auditor in their report by the management properly.
• Audit Committee will submit their recommend to the Board of Directors regarding appointment of external auditor of the
company.
• Implementation/existence of practice of acts, rules and regulations
• Audit Committee will examine the implementation/existence of practice of the acts, rules and regulation enforced by the
Regulatory Authority like BSEC and other organizations and also adopted by the Board of Directors of the company on
regular basis.
Review of financial statements by the Audit Committee

Audit Committee reviewed the annual financial statements for the year ended June 30, 2018 and placed its recommendation
to the Board of Directors.
Role of Audit Committee

Role of audit committee shall include the following:
• Oversea the financial reporting process.
• Monitor choice of accounting policies and principles.
• Monitor internal control risk management `process.
• Performance of external auditors.
• Review alongwith the management, the annual financial statements before submission to the Board for approval.
• Review the adequacy of internal audit function etc.
• Review the quarterly and annualaudited financial statements.
• Review statement of significant related party transaction submitted by the management.
The Audit Committee meeting:

The Committee met four times during last financial year ended on June 30, 2018 to carry out the following tasks:
• The Audit Committee reviewed the financial statements for the year ended June 30, 2018;
• Reviewed and discussed the management letter, by external auditor Malek Siddiqui Wali, Chartered Accountants for the
year ended June 30, 2018 on the annual audit on financial statements of Aftab Automobiles Limited;
• Reviewed reports of Internal Control & Compliance on operational/financial activities;
• Reviewed the Quarterly and Annual financial statements.
Based on the review and above discussions, the Audit Committee found that the internal control and compliance procedures
are adequate to present a true and fair view of the activities and financial statements of the company and to ensure that its
assets are safeguarded properly.
20
Audit Committee
Audit Committee Report to the Board:
28 October 2018
The Board of Directors

Subject: Audit Committee Report
The Committee reviewed and discussed the procedure and task of the internal audit, financial report preparation and the
external auditors’ observations in their reports on the financial statements of Aftab Automobiles Limited for the year ended
30 June 2018. The Committee found adequate arrangement to present a true and fair view of the financial statements of the
Company and did not find any material deviation, discrepancies or any adverse finding/observation in the areas of reporting.
The Committee also reviewed the financial statements of the subsidiary company ‘Navana Batteries Limited’ for the year
ended 30 June 2018 and found adequate arrangement to present a true and fair view of the financial statements.
Sd/-
( M. Obaidur Rahman )
Chairman
Audit Committee
21
Certification of Managing Director and Chief Financial Officer to the Board
The Board of Directors

Subject : Certification of Managing Director and Chief Financial Officer to the Board.
Dear Sirs
Pursuant to Condition No 6 of the Bangladesh Securities and Exchange Commission Notification No. BSEC/ CMRRCD/
2006-158/134/Admin/44, dated August 07, 2012, we, do hereby certify that :
(i) We have reviewed financial statements for the year ended June 30, 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 together present a true and fair view of the Company’s affairs and are in
compliance with existing accounting standards and applicable laws.
(ii) To the best of our knowledge and belief, no transactions entered into by the company during
the year which are fraudulent, illegal or violation of the company’s code of conduct.
Sd/- Sd/-
(Kazi Ehsanul Huq, FCA) (Saiful Islam)
Chief Financial Officer Managing Director
October 18, 2018
22
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23
CHARTERED ACCOUNTANTS
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9-wR, gwZwSj evwbwR¨K GjvKv, XvKv-1000
PHONE: OFF: +88029513471
PABX: 9576128: 9576118-9
Partners: Md. Waliullah, FCA FAX: 880-2-9516236
Mr. Swadesh Ranjan Saha, FCA Email: wali@satcombd.com
Md. Habibur Rahman Sarker, FCA 9-G, MOTIJHEEL C/A,
Mr. Anjan Mallik, FCA Dhaka-1000, Bangladesh
Auditors’ Report to the Shareholders
of
Aftab Automobiles Limited and its Subsidiary
We have audited the accompanying consolidated financial statements of Aftab Automobiles Limited (the Company), which
comprise the statement of financial position as at June 30, 2018, and the consolidated statement of Profit or Loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the period/
year then ended, and a summary of significant accounting policies and other explanatory information disclosed in Notes and
Schedule-A. We have also audited the attached financial statements of Aftab Automobiles Limited which comprise the
statement of financial position as at June 30, 2018 and statements of cash flows for the period/ year then ended and a
summary of significant accounting policies and other explanatory notes. The financial statements of one subsidiary disclosed in
note 2.7 to the financial statements are audited by Rahman Mostafa Alam & Co.
Management’s responsibility for the financial statements
Management of the company is responsible for the preparation and fair presentation of these financial statements in
accordance with Bangladesh Financial Reporting Standards (BFRS), and for such internal control as management determine 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 Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the 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 circumstance, 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 Aftab Automobiles Limited and its
subsidiary as of June 30, 2017, and its financial performance and its cash flows for the period/ year then ended in accordance
with Bangladesh Financial Reporting Standards (BFRS) and comply with the applicable sections of the Companies Act, 1994, the
Securities and Exchange Rules, 1987 and other applicable laws and regulations.
Emphasis of Matter:
In our opinion financial statements give a true and fair view of the financial position of Aftab Automobiles Limited and its
subsidiary as of June 30, 2018, and its financial performance and its cash flows for the period/ year then ended in accordance
with Bangladesh Financial Reporting Standards (BFRS) and comply with the applicable sections of 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 the law have been kept by the Company so far as it appeared from
our examination of those books;
c) The company’s financial position and statement of comprehensive income dealt with by the report are in agreement with
the books of account and returns; and
d) The expenditure incurred was for the purposes of the company’s business.
Sd/-
Dated : Dhaka Malek Siddiqui wali
November 07, 2018 Chartered Accountants
24

Consolidated Statement of Financial Position
As at June 30, 2018
Amount in Taka Amount in Taka
As at As at
Notes
Assets June 30, 2018 June 30, 2017
Non-current assets
Property, plant and equipment 3 (a) 2,012,034,921 1,742,323,001
Capital work-in-progress 4 (a) 104,848,039 289,001,994
Investments 5.2 57,895,758 38,592,330
Investments in associate 5.3 321,562,941 297,116,955
Receivables -Non-Current Maturity 6 (a) 2,460,241,751 1,954,611,446
Total non-current assets 4,956,583,410 4,321,645,726
Current assets
Receivables -Current Maturity 6 (a) 2,217,118,700 1,647,745,470
Stock and stores 7 (a) 1,930,448,231 2,131,143,582
Current account with Navana Group Companies 8 (a) 1,590,392,444 1,066,437,396
Advances, deposits and prepayments 9 (a) 2,546,181,187 2,158,585,558
Cash and bank balances 10 (a) 460,146,251 481,143,486
Total current assets 8,744,286,812 7,485,055,492
Total assets 13,700,870,223 11,806,701,218

Equity and Liabilities
Capital & reserves
Share capital 11 957,324,220 957,324,220
Share premium 12 1,925,858,339 1,925,858,339
Reserves 13 67,338,231 67,338,231
Retained earnings 2,878,999,350 2,722,945,676
Equity attributable to owners of the Company 5,829,520,140 5,673,466,466
Non-controlling interests 412,223 394,678
Total equity 5,829,932,364 5,673,861,144
Non-current liabilities
Loan and deferred liabilities (unsecured) 25 25,310,440 25,310,440
Long Term loan-Non current Maturity 14 (a) 3,383,107,848 2,362,003,289
Deferred tax liability 23 ( b) 137,062,262 121,594,814
Total Non-current liabilities 3,545,480,550 2,508,908,544
Current liabilities
Long Term loan-Current Maturity 14 (a) 1,127,702,615 787,334,430
Short-term loan 15 (a) 1,993,503,690 1,810,578,998
Accrued and other current liabilities 16 (a) 1,204,251,006 1,026,018,102
Total Current liabilities 4,325,457,310 3,623,931,530
Total liabilities 7,870,937,860 6,132,840,073
Total equity and liabilities 13,700,870,223 11,806,701,218
Net assets value per share (NAVPS) 60.89 59.26
The annexed notes and schedule-A form an integral part of these financial statements.
These financial statements were approved by the Board of Directors on 28/10/2018 and were signed on it's behalf by:
Sd/- Sd/- Sd/-

Director Director Company Secretary
Signed in terms of our separate report of even date.
Sd/-
Dated : Dhaka Malek Siddiqui Wali
25
aftab automobiles limited CHARTERED ACCOUNTANTS

Consolidated statement of Profit or Loss and other Comprehensive Income
For the year ended June 30, 2018
Particulars Notes June 30, 2018 June 30, 2017
Sales revenue 17 (a) 4,813,708,397 4,771,208,696

Less : Cost of goods sold 18(a) 3,868,847,153 3,706,219,225
Gross profit 944,861,244 1,064,989,471
Less: Operating expenses
Administrative expenses 19 (a) 115,142,320 97,889,334
Selling and distribution expenses 20 (a) 157,940,999 114,734,347
Financial charges 21 (a) 340,399,318 286,050,491
Total Operating Expense 613,482,637 498,674,171
Operating profit 331,378,606 566,315,300
Other income 22 (a) 17,958,672 6,215,510
Share of profit from associate company 5.3 19,556,789 7,665,950
Profit before contribution to WPPF 368,894,067 580,196,760
Less: Contribution to WPPF 17,566,384 27,628,417
Net profit before tax 351,327,683 552,568,343
Less: Income tax expense

Current tax 23 (a) 83,725,612 146,197,579
Deferred tax 23.1 (a) 11,128,499 11,835,958
Total Income Tax Expense 94,854,111 158,033,537
Net profit After Tax 256,473,572 394,534,806
Other comprehensive Income for the year :
Investment Valuation surplus in share
Revaluation Gain/(Loss) on invest. in share 5.2 (6,609,021) 2,751,244
Deferred tax (550,249) 550,249
(7,159,270) 2,200,995
Total comprehensive Income for the year 249,314,302 392,333,811
Attributable to:
Equity holders of the company 249,296,755 396,693,231
Non-controlling interests 17,545 42,570
Profit for the period/year 249,314,302 396,735,801
Consolidated earnings per share 24(a) 2.68 4.12
Sd/- Sd/- Sd/-

Sd/-
26

Consolidated Statement of Cash Flows
Particulars June 30,2018 June 30,2017
A. Cash flows from operating activities

Receipts from customers 3,738,704,862 4,951,716,845
Receipts from others 17,958,672 6,215,510
Payments to suppliers and employees (4,013,661,719) (4,602,243,447)
Cash generated from operations (256,998,185) 355,688,908
Income tax paid (149,215,052) (229,183,157)
Net cash generated by operating activities (406,213,237) 126,505,751
B. Cash flows from investing activities
Acquisition of property, plant & equipment (117,045,625) (381,063,967)

Investment in Share money deposit (26,924,137) (30,971,621)
Payments for capital work in progress (64,843,010) (369,418,952)
Disposal Proceeds 700,000 -
Disposal of shares 6,528,786 -
Net cash used investing activities (201,583,986) (781,454,540)
C. Cash flows from financing activities

Received/(Repayments) of bank loan 1,544,397,435 1,646,522,924
Inter company receipts/(payments) (523,955,048) (1,066,437,396)
Bank interest paid (340,399,318) (286,050,491)
Dividend paid (93,243,081) (90,585,239)
Net cash provided by financing activities 586,799,988 203,449,798
D. Net changes in cash & cash equivalents for the period/ year (A+B+C) (20,997,235) (451,498,991)
E. Cash & cash equivalents at beginning of the period/year 481,143,486 932,642,477
F. Cash & cash equivalents at end of the period/ year (D+E) 460,146,251 481,143,486
Net operating cash flows per share (NOCFPS) (4.24) 1.32
Sd/- Sd/- Sd/-


Sd/-
27

Consolidated Statement of Changes in Equity
Amount in Taka
Attributable to Non-
Retained
Particulars Share capital Share premium Reserves equity holders of controlling Total
earnings
the company interest
Balance as on July 01, 2016 957,324,220 1,925,858,339 67,338,231 2,416,837,684 5,367,358,474 352,108 5,367,710,582
Cash dividend paid (90,585,239) (90,585,239) - (90,585,239)

- - -
Total comprehensive Income for the year - - - 396,693,231 396,693,231 42,570 396,735,801
Balance as at June 30, 2017 957,324,220 1,925,858,339 67,338,231 2,722,945,676 5,673,466,466 394,678 5,673,861,144
Balance as on July 01, 2017 957,324,220 1,925,858,339 67,338,231 2,722,945,676 5,673,466,466 394,678 5,673,861,144
Cash dividend paid - - - (93,243,081) (93,243,081) - (93,243,081)
Total comprehensive Income for the year - - - 249,296,755 249,296,755 17,545 249,314,300
Balance as at June 30, 2018 957,324,220 1,925,858,339 67,338,231 2,878,999,350 5,829,520,140 412,223 5,829,932,364
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PHONE: OFF: +88029513471
PABX: 9576128: 9576118-9
Partners: Md. Waliullah, FCA FAX: 880-2-9516236
Mr. Swadesh Ranjan Saha, FCA Email: wali@satcombd.com
Md. Habibur Rahman Sarker, FCA 9-G, MOTIJHEEL C/A,
Mr. Anjan Mallik, FCA Dhaka-1000, Bangladesh
Auditors’ Report to the Shareholders

of
We have audited the accompanying financial statements of Aftab Automobiles Limited (the Company), which comprise the
statement of financial position as at June 30, 2018, and the statement of 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 disclosed in Notes and Schedule-A.
Management’s responsibility for the financial statements
Management of the company is responsible for the preparation and fair presentation of these financial statements in
accordance with Bangladesh Financial Reporting Standards (BFRS), and for such internal control as management determine 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 Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the 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 circumstance, 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 Aftab Automobiles Limited as of
June 30, 2018, and its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial
Reporting Standards (BFRS) and comply with the applicable sections of the Companies Act, 1994, the Securities and Exchange
Rules, 1987 and other applicable laws and regulations.

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 the law have been kept by the Company so far as it appeared from
our examination of those books;
c) The company’s financial position and statement of comprehensive income dealt with by the report are in agreement with
the books of account and returns; and
d) The expenditure incurred was for the purposes of the company’s business.
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Dated : Dhaka Malek Siddiqui wali
29

Statement of Financial Position Amount in Taka Amount in Taka
As at June 30, 2018 As at As at
Notes
June 30, 2018 June 30, 2017
Assets :
Non-current assets
Property, plant and equipment 3 1,186,639,545 1,016,686,129
Capital work-in-progress 4 93,780,046 224,581,944
Investments in subsidiary and associates 5 1,136,311,043 1,060,347,751
Receivables - non current maturity 6 2,460,241,751 1,954,611,446
Total Non-current assets 4,876,972,385 4,256,227,269
Current assets :
Receivables -current maturity 6 1,742,308,445 1,324,190,437
Stock and stores 7 1,129,353,103 1,687,540,044
Current account with Navana Batteries Ltd. 243,227,935 194,104,312
Current account with Navana Group Companies 8 1,077,561,924 598,662,340
Advances, deposits and prepayments 9 1,853,292,948 1,523,955,271
Cash and bank balances 10 367,031,655 424,971,917
Total Current assets 6,412,776,010 5,753,424,321
Total Assets 11,289,748,396 10,009,651,590

Equity and Liabilities :
Equity attributable to equity holders
Share capital 11 957,324,220 957,324,220
Share premium 12 1,925,858,339 1,925,858,339
Reserves 13 67,338,231 67,338,231
Retained earnings 2,878,999,350 2,722,945,676
Total Equity attributable to equity holders 5,829,520,140 5,673,466,466
Non-current liabilities :
Loan and deferred liabilities (unsecured) 25 25,310,440 25,310,440
Long Term loan-non current maturity 14 2,201,719,971 1,580,876,885
Deferred tax liability 23 (b) 85,569,797 77,816,301
Total Non-current liabilities 2,312,600,207 1,684,003,626
Current liabilities :
Long Term loan-Current maturity 14 733,906,656 526,958,962
Short term loan 15 1,447,851,956 1,324,948,819
Accrued and other current liabilities 16 965,869,437 800,273,716
Total current liabilities 3,147,628,049 2,652,181,498
Total liabilities 5,460,228,256 4,336,185,124
Total Equity and Liabilities 25 11,289,748,396 10,009,651,590
Net assets value per share (NAVPS) 60.89 59.26
These financial statements were approved by the Board of Directors on 28/10 / 2018 and were signed on it's behalf by:
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30

Statement of Profit or Loss and other Comprehensive Income

Particulars Notes June 30, 2018 June 30, 2017
Sales revenue 17 3,359,756,688 3,703,934,655

Less: Cost of goods sold 18 2,691,496,957 2,910,178,518
Gross profit 668,259,731 793,756,137
Less: Operating Expense
Administrative expenses 19 89,868,109 81,407,526
Selling and distribution expenses 20 78,313,163 61,302,658
Financial charges 21 220,765,998 211,703,217
Total Operating expenses: 388,947,271 354,413,400
Operating Profit 279,312,460 439,342,737
Non-operating income :
Other Income 22 17,958,672 6,215,510
Add : Share of profit from associate company 5.3 19,556,789 7,665,950
Profit before contribution to WPPF 316,827,921 453,224,197
Less: Contribution to WPPF 15,087,044 21,582,105
Profit after contribution to WPPF 301,740,877 431,642,092
Add : Share of profit from subsidiaries 32,213,878 78,159,966
Net profit before tax 333,954,755 509,802,059
Less: Income tax Expenses :
Current tax 23 74,084,182 110,304,036
Deferred tax 23.1.a 3,414,548 5,005,788
Total income tax expesse 77,498,730 115,309,824
Profit for the year 256,456,025 394,492,235
Other comprehensive Income for the year :

Investment Valuation surplus in share
Revaluation Gain/(Loss) on invest. in share 5.2 (6,609,021) 2,751,244
Deferred tax 23 (550,249) 550,249
(7,159,270) 2,200,995
Total comprehensive income for the year 249,296,755 392,291,240
Earnings per share (Restated- Note 29) 24 2.68 4.12
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Statement of Cash Flows
Particulars June 30,2018 June 30,2017
A. Cash flows from operating activities

Receipts from customers 2,436,008,375 3,718,428,850
Receipts as other income 17,958,672 6,215,510
Payments to suppliers and employees (2,429,919,613) (3,894,304,636)
Cash generated from operations 24,047,435 (169,660,276)
Income tax paid (84,521,714) (186,079,779)

Net cash generated by operating activities (60,474,279) (355,740,055)
B. Cash flows from investing activities
acquisition of property, plant & equipment (62,657,245) (326,609,085)

Investment in Share money deposit (26,924,137) (30,971,621)
Payments for capital work in progress (23,775,017) (298,443,611)
Disposal Proceeds 700,000 -
Disposal of shares 6,528,786 -
Net cash used investing activities (106,127,613) (656,024,317)
C. Cash flows from financing activities
Receive of bank loan 950,693,917 1,343,729,189

Inter company receipts/(payments) (478,899,584) (598,662,340)
Inter company payments (49,123,623) 73,373,175
Bank interest paid (220,765,998) (211,703,217)
Dividend paid (93,243,081) (90,585,239)
Net cash used by financing activities 108,661,630 516,151,568
D. Net changes in cash & cash equivalents for the year (A+B+C) (57,940,262) (495,612,804)
E. Cash & cash equivalents at beginning of the year 424,971,917 920,584,721
F. Cash & cash equivalents at end of the year (D+E) 367,031,655 424,971,917
Net operating cash flows per share (NOCFPS) (Note 26) (0.63) (3.72)
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Statement of Changes in Equity
Amount in Taka
Retained
Particulars Share capital Share premium Reserves Total
earnings
Balance as on July 01, 2016 957,324,220 1,925,858,339 67,338,231 2,416,837,684 5,367,358,474
Cash Dividend Paid - - - (90,585,239) (90,585,239)
Total comprehensive income for the year - - - 396,693,231 396,693,231
Balance as at June 30, 2017 957,324,220 1,925,858,339 67,338,231 2,722,945,676 5,673,466,466
Balance as on July 01, 2017 957,324,220 1,925,858,339 67,338,231 2,722,945,676 5,673,466,466
Cash Dividend Paid - - - (93,243,081) (93,243,081)
Total comprehensive income for the year - - - 249,296,755 249,296,755
Balance as at June 30, 2018 957,324,220 1,925,858,339 67,338,231 2,878,999,350 5,829,520,141
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Notes to the Financial Statements
As at and for the year ended June 30, 2018
1. Corporate Information and Mode of Business

1.1 Corporate Information
Aftab Automobiles Limited (thecompany), was incorporated in erstwhile East Pakistan in year 1967 as East
Pakistan Automobiles Limited under the Company Act, 1913. Subsequently after liberation the Company
changed the name as Aftab Automobiles Limited and was certified by the Register of Joint Stock
Companies, Bangladesh on the 11th day of March, 1972. It was Incorporated as a Private Limited Company
since inception. However, in 1981 it was transformed into Public Limited Company under Company Act
1913. The Registered Office of the Company is located at 125/A, Motijheel Commercial Area, Dhaka-1000.
The Company was listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited in the
year 1987 and 1996 respectively.
1.2 Mode of Business

The principal activities of the Company throughout the period were assembling of Toyota Land Cruiser soft
top / Pick-up, Land Cruiser Prado, Hino Bus, Hino Mini Bus / Truck Chassis with a production Capacity of
2400 units of vehicles in 3 shifts in Assembling Unit. At present the plant is running single shift .The
Company has recently setup a Motor Cycle Unit with a capacity of 10,000 units of Motor Cycle per year.
Sales of Motor Cycle shall be start in the year 2013-2014. The Company has one subsidiary company
namely Navana Batteries Ltd, that produce and market Batteries.
2. Significant Accounting Policies and basis of preparation of the financial statements

2.1 Statement of Compliance
The financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS)
and Bangladesh Financial Reporting Standards (BFRS) and as per requirements of the Companies Act 1994,
The Securities and Exchange Rules 1987, and other applicable laws and regulations.
2.2 Basis of Preparation

The financial statements of the company have been prepared assuming going concern basis based on the
accrual basis of accounting following under the historical cost convention.
2.3 Basis of Reporting

The financial statements are prepared and presented for external users by the company in accordance with
identified financial reporting framework. Presentation has been made in compliance with the requirement
of BAS 1- “Presentation of Financial Statements”.
2.4 Reporting Period

These financial statements cover one accounting year from July01, 2017 toJune 30, 2018.
2.5 Regulatory and Legal Compliance

The company complied with the requirements of the following regulatory and legal authorities:
i) The Companies Act, 1994;
ii) The Securities and Exchange Rules, 1987;
iii) The Securities and Exchange Ordinance, 1969;
iv) The Income Tax Ordinance, 1984,
v) The Value Added Tax (VAT), 1991,
2.6 Functional and Presentation Currency

Financial statements are prepared in Bangladeshi Taka which is the company’s functional currency.
2.7 Basis of consolidation

The Company has consolidated the financial statements of Aftab Automobiles Limited andits solesubsidiary
named Navana Batteries Ltd.The Consolidated financial statement has been prepared in accordance with
BFRS: 10. The company accrued 99.95 % of paid –up Capital of Navana batteries Ltd.
34
notes to the financial statements

2.8 Recognition of Property, Plant and Equipment
These are capitalized at cost of acquisition and subsequently stated at original cost minus accumulated
depreciation and accumulated impairment losses, if any, in compliance with the relevant accounting
standard (BAS-16). The cost of the Assets is inclusive of cost paid to the vendors along with all incidental
expenses to install or construct the same assets for its intended use. Expenditure incurred after the assets
have been put in to operation, such as repairs and maintenance is normally charged off as revenue
expenditure in the period in which it is incurred.
On retirement or otherwise disposed off, the cost and accumulated depreciation are eliminated and any
gain or loss on such disposal is reflected in the Profit and Loss Account which is determined with reference
to net book value of the assets and net sale proceeds.
Capital Work-in-progress represents capital works of a unit still in progress and not in a operation .Once a
unit is completed, it is transferred to" Property, Plant and Equipment".
No revaluation of fixed assets has been made by the Company.
Depreciation
No depreciation has been charged on Land and Land Development considering the unlimited useful life. In
respect of all other assets, the quantum of annual depreciation charge is calculated over their estimated
useful lives using the diminishing balance method of depreciation. All the assets acquired or disposed off
during the period have been depreciated for the period of its use. The rate at which the assets are
depreciated per annum depended on the nature and estimated useful life of each assets are consistently
applied since the inception of the company which are given below :
Name of the Assets Rate of Dep. (%)

Land and land development Nil
Building 2.5
Shades 20
Plant & Machinery 10
Tools &Equipment’s 20
Office equipment 10
Furniture& Fixtures 10
Transport Vehicles 20
Electric line Installation 10
Gas line Installation 10
Office decoration 10
The whole amount of depreciation has been charged off partly to cost of sales and partly as expense in
consistent with practice followed in the earlier years.
2.9 Financial Instruments and Derivatives

a) Investment in associates
Investment in associates has been disclosed as per BAS-28 Investment in associates.
b) Derivatives
The company is not a party to any derivative contract at the balance sheet date, such as forward exchange
contract, currency swap agreement or interest rate option contract to hedge currency exposure related to
import of raw materials and others or principal and interest obligations of foreign currency loans.
35

2.10 Inventories
In compliance with the requirements with BAS 2 “Inventories” Raw materials and stores are valued at the
lower of average cost and the net realizable value. Stock of finished vehicles, Bus body building unit are
valued at cost which is determined by taking into consideration the value of raw materials and production
overhead. Cost comprises expenditure incurred in the normal course of business in bringing such
inventories to present condition and includes wherever applicable appropriate overheads based on normal
level of activity.
No provision has been made for slow moving & obsolete stocks during the financial year.
2.11 Cash and Cash Equivalent

Cash and Cash Equivalents includes cash in hand, cash at banks, which are held and available for use by the
company without any restriction and having maturity dates of three months or less from the respective
date of deposit. There is insignificant risk of change in value of same. No Foreign Currency transaction is
involved in Cash and Cash Equivalents.
2.12 Taxation
Current Tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
The applicable tax rate for the company is 25.00 % as the company qualifies as a “publicly traded
company”. Provision for taxation has been made as per law.
Deferred Tax
Deferred tax is recognized liabilities in accordance with BAS 12 “Income Tax “on differences between the
carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit, and are accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax
assets are recognized to the extent that it is probable that the taxable profits will be available against which
deductible temporary differences, unused tax loses or unused tax credits can be utilized.
2.13 Borrowing Costs

In compliance with the requirements of BAS 23 “Borrowing Costs” borrowing costs directly attributable to
the acquisition, construction or production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their intended use or sale.
Borrowing costs are recognized as expenses in the period in which they incurred and capitalized the same
that incurred before commencement of commercial operation.
2.14 Revenue Recognition

In compliance with the requirements of BAS 18 “Revenue”, revenue is recognized to the extent that it is
probable that the economic benefits will flow to the entity and the revenue can be reliably measured.
Revenue is measured at the fair value of the consideration received or receivable excluding Vat, discounts,
commission, rebates, and other sales taxes where applicable.
Revenue from the sale of goods is recognized when the following conditions are satisfied:
i) the enterprise has transferred to the buyer the significant risk and rewards of ownership of the goods;
ii) the enterprise retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
iii) the amounts of revenue can be measured reliably;
iv) it is probable that the economic benefits associated with the transaction will flow to the enterprise; and
v) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
36

2.15 Provident Fund Scheme
The company operates a Contributory Provident Fund Scheme for its permanent employees. The
company’s contribution to the fund is charged off as revenue expenditure during the year to which the
contribution relates. The fund is operated by a Board of Trustees consisting 5 (Five) members. All confirmed
employees of the company are contributing 10% of their basic salary as subscription to the fund. The
company also contributes equal amount of the employees’ contribution. Interest earned from the
investments is credited to the members account on yearly basis.
Gratuity Scheme
The company operates an unfunded gratuity scheme, provision in respect of which is made annually for the
company’s permanent eligible employees as per BAS-19, “Employee Benefits”.
Group Term Insurance Scheme

The company has Group Term Insurance Scheme for its permanent employees and the provision for
premium of the same is made annually.
2.16 Cash Flows Statement

Statement of cash flows is prepared principally in accordance with BAS 7 “Cash Flow Statements” and cash
flows from operating activities have been presented under direct method as required by the Securities and
Exchange Rules, 1987.
2.17 Provisions
The preparation of the financial statements in conformity with the Bangladesh Accounting Standards BAS
37 “Provision, Contingent Liabilities and Contingent Assets” requires management to make estimates and
assumptions that affect of the reported amounts of revenue and expenses, assets and liabilities and the
disclosure requirements for contingent assets and liabilities at the date of the financial statements.
In accordance with the guidelines as prescribed by BAS 37, provisions were recognized in the following
situations:
i) when the company has a present obligation as a result of past event;

ii) when it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; and
iii) reliable estimates can be made of the amount of obligation.
The provisions have been made in the accounts at an appropriate level with regard to an adequate risks
and uncertainties. An amount recorded as a provision represents the best estimate of the probable
expenditure required to fulfill the current obligation on the balance sheet date.
2.18 Liabilities for Expenses

While the provision for certain standing charges and known liabilities is made at the balance sheet date
based on estimate, the difference arising there from on receipts of bills/ demands and/ or actual payments
is adjusted in the subsequent year when such liabilities are settled.
2.19 Earning Per Share

Basic Earning Per Share
The company calculates Earning per Share (EPS) in accordance with BAS 33. Basic earnings per share have
been calculated taking a capital base of95,732,422 Ordinary shares of Tk. 10 each ason June 30, which is
shown in the face of the Statement of Comprehensive Income and the computation of EPS is stated in note
# 24.
Diluted Earnings per Share

No diluted earnings per is required to be calculated for the year as there was no scope for dilution during
the year under review.
2.20 Event after the Reporting Period

As per BAS- 10, Events after the reporting period are those events, favorable and unfavorable, that occur
between the end of the reporting period and the date when the financial statements are authorized for
issue. Two types of events can be identified:
37

i) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events
after the reporting period); and
ii) those that are indicative of conditions that arose after the reporting period (no adjusting events after the
reporting period).
These financial statements were authorized for issued by the Board of Directors on October10, 2017. No
material event had occurred after the balance sheet date of issue of these financial statements, which
could affect the values stated in the financial statement.
2.21 Workers Profit Participation Fund

Provision for Workers Profit Participation Fund (WPPF) and Worker Welfare Fund (WWF) has been made @
5% on net profit as per provision of The Bangladesh Labour Law,2006 and payable to workers as defined in
the said law.
Provision for Workers Profit Participation Fund (WPPF) and Worker Welfare Fund (WWF) has been restated
in previous year due to consideration ofshare of profit from associate company’s income.
2.22 Financial Assets and Liabilities

Financial assets and liabilities are recognized on the balance sheet date when the entity has become a party
to a contractual provision of the instruments.
i) Receivables
Receivables are stated their real value and consider good. No provision has been made for doubtful debts
except the amount was written off as bad debt. Receivables that would mature after one from the date of
Statement of Financial position has been shown as long term.
ii) Payable
Liabilities are recorded at the amount payable for settlement in respect of goods and services received by
the company.
iii) Related party disclosure

As per BAS -24 parties are considered to be related if one of the parties has the ability to control the other
party or exercise significant influence over the other party in making financial and operating decisions. The
Company has carried out transactions in the ordinary course of business on an arm's length basis at
commercial rates with related parties.
iv) Borrowings
Interest bearing bank loans and overdrafts are recorded at the proceeds received net of direct issue costs.
Financial charges are accounted for on an accrual basis.
2.23 Comparative Figure :

Comparative information has been disclosed in respect of the period 2017 for all numerical data in the
financial statements and also the narrative descriptive information when it is relevant for understanding of
the current year’s financial statements presentation. The financial information for the period July 01, 2017
to June 30, 2018 comparative for the period of July 01, 2016 to June 30, 2017 which is the last audited
Financial statements.
2.24 General
i) Figures shown in the accounts have been rounded off to the nearest Bangladeshi Taka.
ii) Comparative figures and account titles in the financial statements have been re-arranged/re-classified
where necessary, to conform to changes in presentation in the currentyear.
38
aftab automobiles limited CHARTERED ACCOUNTANTS

30-06-2018 30-06-2017
3 Property, plant and equipment, net
Land & Land Development 740,205,819 562,298,792

Building 120,279,401 113,889,610
Shades 18,227,700 19,012,750
Plant & Machinery 188,371,361 195,535,973
Tools & Equipments 17,491,003 15,358,901
Office Equipment 21,076,550 20,847,058
Furniture & Fixture 15,464,411 15,981,122
Transport Vehicles 33,518,959 39,963,082
Electrical line installation 1,897,349 1,199,037
Office Decoration 30,106,992 32,599,804
1,186,639,545 1,016,686,129
3 (a) Consolidated property, plant and equipment, net
Land & Land Development 1,063,604,227 833,496,052

Building 253,007,485 214,275,171
Shades 248,616,581 19,012,750
Plant & Machinery 224,664,455 420,552,333
Tools & Equipments 40,048,939 52,030,810
Office Equipment 36,718,357 41,441,686
Furniture & Fixture 34,297,639 28,885,285
Transport Vehicles 43,860,535 61,168,580
Electrical line installation 16,885,028 11,674,312
Gas line installation 20,224,681 7,459,180
Office Decoration 30,106,992 52,326,842
2,012,034,921 1,742,323,001
4 Capital work-in-progress
Opening balance 224,581,944 -

Addition during the year 23,775,017 298,443,611
248,356,961 298,443,611
Less: transfer to property, plant & equipment 154,576,915 73,861,667
Closing balance 93,780,046 224,581,944
Capital work in progress represents Land and Land Development , civil constructions, Plant and Machinery for BMRE of Assembling
Unit , Body Building Unit and Motor Cycle Unit.Primarily estimated cost of BMRE project is Taka 100.00 crore.
4 (a) Consolidated capital work in progress
Opening balance 289,001,994 103,416,248

353,845,004 472,835,200
Less: Transfer to property, plant & equipment 248,996,965 183,833,206
Closing balance 104,848,039 289,001,994
Capital work in progress represents Land and Land Development , civil constructions Plant and Machinery for BMRE of Aftab
Automobiles Ltd and Navana Batteries Ltd .
5 Investments in subsidiary and associate

Investment in subsidiaries (Note: 5.1 ) 756,852,344 724,638,466
Investment in Marketable securities ( Note: 5.2 ) 57,895,758 38,592,330
Investment in associate ( Note : 5.3 ) 321,562,941 297,116,955
1,136,311,043 1,060,347,751
39

30-06-2018 30-06-2017
5.1 Investment in subsidiary

Opening Balance 724,638,466 646,478,500

Add: Profit during the year 32,213,878 78,159,966
Closing Balance 756,852,344 724,638,466
5.2 Investment in Marketable securities
5 (a) Quantities details of investments in share

Investment in shares of Navana CNG Ltd (Note: 5 (a) 1)
Opening Balance 7,620,709 4,869,465
Add : revaluation gain booked to OCI - 2,751,244
Less revaluation gain booked to OCI 6,609,021 -
Less Related deferred Tax 550,249 -
Less sale of Share 461,439 -
Closing Balance - 7,620,709
5 (b) Investment in Share Money deposit
Navana Construction Ltd.

Opening Balance 30,971,621
Add ; During the year 26,924,137 30,971,621
57,895,758 30,971,621
Investment in Share Money deposit are consist as advance for share holding of Navana Construction ltd. Which will be consider by
the approval the board and also by the shareholders .
5.3 Investment in associate
The details are stated below :
Share Invest of NREL at cost 20,000,000 20,000,000
Share of equity from associate
Opening Balance 277,116,955 267,534,517
Share of equity from associate
Net Income after deferred tax ( P/L-AC ) 19,556,789 7,665,950
Provision for deferred tax ( note - 23.1.b ) 4,889,197 1,916,488
24,445,986 9,582,438
Closing Balance 301,562,941 277,116,955
Total Investment in associate 321,562,941 297,116,955

Shares investment of
Navana Real Estate Ltd. at
cost, represent as a
5.3 (a) Acquisition quantity of shares of Navana Real Estate Ltd. 20,000,000 20,000,000
Less: shares sale during the year - -
20,000,000 20,000,000
Opening Balance 6,000,000 6,000,000

Number of shares purchased - -
Number of bonus shares received during the year - -
Total number of shares 6,000,000 6,000,000
6 Receivables
Receivable Non-Current (Maturity over 12 months ) 2,565,001,751 2,041,737,203
Less ; Provision for Bad debts 104,760,000 87,125,757
2,460,241,751 1,954,611,446
Receivable current (Maturity less than 12 months ) 1,742,308,445 1,324,190,437
4,202,550,196 3,278,801,883
40

30-06-2018 30-06-2017
Ageing schedule of receivables :

Duration
1- 30 days 494,334,186 402,065,000
31- 60 days 462,951,775 361,858,500
61- 90 days 348,231,482 271,393,875
91- 180 days 381,941,065 176,406,019
181- 365 days 385,888,542 112,467,043
Over 365 days 2,129,203,146 1,954,611,446
4,202,550,196 3,278,801,883
Net receivables are considered good . The Company holds no security other than debtors' personal security in the form of work
orders etc.
6(a) Consolidated trade debtors

Receivable Non-Current (Maturity over 12 months ) 2,565,001,751 2,041,737,203
Less ; Provision for Bad debts 104,760,000 87,125,757
2,460,241,751 1,954,611,446
Receivable current (Maturity less than 12 months ) 2,217,118,700 1,647,745,470
4,677,360,451 3,602,356,916
Ageing schedule of receivables :
Duration
1- 30 days 494,334,186 434,549,520
31- 60 days 462,951,775 437,825,284
61- 90 days 348,231,482 312,853,927
91- 180 days 381,941,065 245,869,210
181- 365 days 385,888,542 216,647,529
Over 365 days - 2,604,013,401 1,954,611,446
4,677,360,451 3,602,356,916
Net receivables are considered good . The Company holds no security other than debtors' personal security in the form of work
orders etc.
7 Stock and stores
Finished products 628,405,618 1,260,488,880

Raw materials 219,212,998 182,895,268
Work-in-process 20,176,667 5,636,141
Stores and spares 3,080,234 2,045,821
Goods in transit 258,477,586 236,473,934
1,129,353,103 1,687,540,044
Value of Stock of Finished product & Raw materials inclusive of -87- units Hino bus-7- units RM2 Hino Bus chassis, and -1954- units
of Motor cycle .
7 (a) Consolidated stock and stores
Finished products 804,837,655 1,393,323,677
Raw materials 597,801,527 385,462,716
Work-in-process 117,223,316 77,093,746
Stores and spares 3,080,234 2,045,821
Goods in transit 407,505,499 273,217,622
1,930,448,231 2,131,143,582
Value of Stock of Finished product & Raw materials inclusive of -87- units Hino bus-7- units RM2 Hino Bus chassis, and -1954- units
of Motor cycle .
8 Current account with Navana group Companies

Navana Ltd. 873,991,694 385,492,110
Navana Engineering Ltd. 60,000,230 120,000,230
Navana Real Estate Ltd. 143,570,000 93,170,000
1,077,561,924 598,662,340
41

30-06-2018 30-06-2017
8 (a) Current account with Navana group Companies

Navana Ltd. 1,386,822,214 853,267,166
Navana Engineering Ltd. 60,000,230 120,000,230
Navana Real Estate Ltd. 143,570,000 93,170,000
1,590,392,444 1,066,437,396
9 Advances, deposits and prepayments
Advance to suppliers 603,867,553 477,669,842

Advance to employees 2,869,964 3,229,048
Advance to others 144,778,280 84,162,074
Current Account with VAT 6,228,303 6,029,162
Deposits 368,351,492 310,189,503
Advance Income tax (note-9.1) 727,197,356 642,675,642
1,853,292,948 1,523,955,271
Advance paid to suppliers against work order and considered good. Advance to employees against expenses, salary realisable on
production of documents and monthly salary respectively are considered good. Deposits consist of utility deposits, security money
against tender and bank guarantee are considered good.
9.1 Advance Income tax
Opening balance 642,675,642 466,777,177

727,197,356 642,675,642
Adjustment made during the year - -
Closing Balance 727,197,356 642,675,642
The above amount was deducted at the import point as well as from the bills in different times at delivery point. The company made
appeal to honourable High Court against the tax assessment U/S-160 is pending for the year 2011-2012 to 2016-2017.
9 (a) Consolidated advances, deposits and prepayments

Current Account with VAT 99,522,387 81,263,330
Deposits 401,437,455 333,612,054
Advance Income tax (note-9.1 a) 1,030,977,432 881,762,380
2,546,181,187 2,158,585,558
9.1 (a) Consolidated Income tax deducted at source
Opening balance 881,762,380 662,760,537

1,030,977,432 881,762,380
Adjustment made during the year - -
Closing Balance 1,030,977,432 881,762,380
10 Cash & bank balances

Cash in hand 6,293,654 21,813,272
Cash at bank 360,738,001 403,158,645
367,031,655 424,971,917
42

30-06-2018 30-06-2017
10 (a) Consolidated cash & bank balances
Cash in hand 60,996,075 27,953,804

Cash at bank 399,150,176 453,189,682
460,146,251 481,143,486
11 Share capital
Authorized capital:
120,000,000 Ordinary shares of Tk. 10 each 1,200,000,000 1,200,000,000

180,000,000 Cum. redeemable preference shares of Tk. 10 each 1,800,000,000 1,800,000,000
3,000,000,000 3,000,000,000
Ordinary Share capital:
Issued, subscribed and paid up
95,732,420 Ordinary shares of Tk. 10 each
Sponsors 291,939,445 291,939,445
General Public 665,384,775 665,384,775
957,324,220 957,324,220
The Position of Ordinary shareholders as on June 30,2018 was as follows :
Particulars Num. of Num. of Shares Share Holding

Share Holding '18
Investors '17
Sponsors 6 27,208,098 28.42% 28.42%
Financial Institutions including ICB 262 35,737,790 37.33% 36.01%
General Public 22,414 32,786,534 34.25% 35.57%
Total 22,682 95,732,422 100.00% 100.00%
The classification of shareholders by holding as on June 30, 2018 was as follows :
No. of share. No. of shares
No. of share holdings No. of shares 2018
holders 2017
1 to 500 15338 2,282,821 2,607,917
501 to 5000 6306 9,796,897 11,242,700
5001 to 10000 550 3,943,851 4,349,848
10001 to 20000 238 3,337,909 4,035,334
20001 to 30000 78 1,960,017 2,441,866
30001 to 40000 30 1,066,082 1,238,932
40001 to 50000 22 1,032,257 1,432,813
50001 to 100000 52 3,649,088 3,168,049
100001 to 1000000 55 17,165,029 14,860,678
Above 1000000 13 51,498,471 50,354,285
Total 22682 95,732,422 95,732,422
12 Share premium.
Net Premium Up to 2006 250,191,730 250,191,730
Net Premium in 2010 1,675,666,609 1,675,666,609
1,925,858,339 1,925,858,339
13 Reserves
Tax holiday reserve 12,338,231 12,338,231
Dividend equalization fund 4,000,000 4,000,000
General reserve 51,000,000 51,000,000
67,338,231 67,338,231
The Company has obtained tax holiday facilities for body building unit for the period of five
years with effect from may 05, 1997.
43

30-06-2018 30-06-2017
14 Long Term loan-Net of current portion
Agrani Bank Ltd. 512,617,234 309,656,546

Meghna bank Ltd AC 631-4 56,570,080 92,255,036
South-bangla Agricultural & commerce 71,049,368 78,668,132
Standard bank ltd. 141,902,741 94,628,221
Mutual trust bank ltd. 264,304,560 137,678,765
Bank Asia Ltd. 200,119,253 153,057,140
City bank Ltd.STL 64,991,141 105,453,111
Uttara Finance - 37,023,159
Prime bank Ltd. HP loan 63,903,407 107,667,397
Midland Bank Ltd. O/D AC 99,145,612 53,344,675
Peoples Leasing 162,637,460 109,325,620
Mercantile bank Ltd. Term loan 76,496,136 85,864,144
One Bank Lease Loan 400,341,511 53,677,613
NCC Bank Ltd TL AC 152,930,641 126,117,047
NRB Commercial 25,229,197 -
Bay Leasing 89,239,082 97,452,706
GSP Finance 187,429,117 191,949,553
Midas financing 31,225,924 39,961,080
Union Capital 145,093,674 150,912,320
Southeast Bank 127,805,806 -
Modhumoti bank Ltd. 62,594,683 83,143,582
2,935,626,627 2,107,835,847
less: Long Term loan-Current maturity 733,906,656 526,958,962
Long Term loan-Net of Non-current maturity 2,201,719,971 1,580,876,885
14( a ) Consolidated Long Term loan-Net of current portion

Agrani Bank Ltd. 1,027,162,123 309,656,546
Meghna bank Ltd AC 631-4 56,570,080 92,255,036
South-bangla Agricultural & commerce 71,049,368 78,668,132
Standard bank ltd. 141,902,741 94,628,221
Bank Asia Ltd. 200,119,253 153,057,140
City bank Ltd.STL 64,991,141 105,453,111
Uttara Finance - 37,023,159
Prime bank Ltd. HP loan 63,903,407 107,667,397
Peoples Leasing 162,637,460 109,325,620
Mercantile bank Ltd. Term loan 76,496,136 85,864,144
One Bank Lease Loan 400,341,511 53,677,613
Al-Arafah Islami Bank Ltd. - 30,344,500
Trust Bank Ltd. 387,295,430 357,037,083
Dutch-bangla Bank Ltd. 621,385,483 600,956,291
Social Islami Bank Ltd. 51,958,035 53,163,998
NCC Bank Ltd TL AC 152,930,641 126,117,047
NRB Commercial 25,229,197 -
Bay Leasing 89,239,082 97,452,706
GSP Finance 187,429,117 191,949,553
Midas financing 31,225,924 39,961,080
Union Capital 145,093,674 150,912,320
Southeast Bank 127,805,806 -
Modhumoti bank Ltd. 62,594,683 83,143,582
4,510,810,463 3,149,337,719
less: Long Term loan-Current maturity 1,127,702,615 787,334,430
Long Term loan-Net of Non-current maturity 3,383,107,848 2,362,003,289
44

30-06-2018 30-06-2017
15 Short-term loan
Bank Asia Ltd. 465,037,971 493,992,758
Standard Bank Ltd CC AC 42,794,066 40,849,043
NRB Commercial 228,022,713 210,978,466
NCC bank CC AC 82,725,899 -
Dhaka Bank Ltd. 51,388,456 51,084,123
Mercantile Bank 61,746,132 62,858,955
The City Bank Ltd O/D Ac 31,896,563 30,632,288
Prime bank Ltd. SOD A/C 51,554,429 49,703,569
SBSC 34,206,739 31,108,233
Southeast Bank Ltd. 82,188,304 81,865,901
Dutch-Bangla Bank SOD AC 199,999,768 103,064,857
IFIC Bank Ltd. - SOD 39,895,590 -
Jamuna Bank Ltd. - CC 2,339,465 -
One bank Ltd. SOD A/C 96,017,796
1,447,851,956 1,324,948,819
15 ( a ) Consolidated Short-term loan

Bank Asia Ltd. 465,037,971 493,992,758
Standard Bank Ltd CC AC 42,794,066 40,849,043
NRB Commercial 228,022,713 210,978,466
NCC bank CC AC 134,656,777 66,560,591
Dhaka Bank Ltd. 51,388,456 51,084,123
Mercantile Bank 72,054,431 73,124,367
The City Bank Ltd O/D Ac 31,896,563 30,632,288
Prime bank Ltd. SOD A/C 51,554,429 49,703,569
SBSC 34,206,739 31,108,233
Modhumoti Bank Ltd. 20,832,910 122,227,158
Shahjalal Islami bank ltd 166,444,443 -
Dutch-Bangla Bank SOD AC 199,999,768 103,064,857
Al-Arafah Islami Bank Ltd. 31,861,213 33,171,550
IFIC Bank Ltd. - SOD 39,895,590 -
Jamuna Bank Ltd. - CC 2,339,465 -
One bank Ltd. SOD A/C - 96,017,796
1,993,503,690 1,810,578,998
Non Financial Information of Short Term and Long Term loan are given below :
SANCTIONED
NATURE OF LIMIT RATE OF MONTHLY INSTAL.
NAME OF BANK PARTICULARS OF SECURITY
FACILITY (in Million INTEREST SIZE
BDT)
Funded
25.41 Deci.Land at Kaligonj & Lien
Agrani Bank Ltd. C C (H) 500.00 10.00% -
55,67,460 Shares of Aftab Automobiles Ltd
Agrani Bank Ltd. Trans, L 800.00 11.50% 21.11 47.32 Million FDR
Al-Arafah Islami Bank MPI-TR 50.00 13.00% -
Ltd.
Lien of 300,000 Shares of Navana
10.00% -
BRAC Bank Limited LTR 237.50 CNG Ltd.
Registered Mortgage 283.75 Decimal
of Land at Chittagong & Registered
10.00% -
Mortgage of 204 Decimal of Land at
BRAC Bank Limited TL 50.00 Mongla, District-Bagerhat
45

SANCTIONED
NATURE OF LIMIT RATE OF MONTHLY INSTAL.
NAME OF BANK (in Million PARTICULARS OF SECURITY
FACILITY INTEREST SIZE
BDT)
12.33 Acre Land with factory

Building at Fouzdarhat & 196.015
Deci. Land at Keton,
Bank Asia Limited O/D 450.00 10.50% - Panjura,Kaligong.
Bank Asia Limited DL 250.00 10.50% -
Bank Asia Limited O/D 37.50 8.00% - 42.56 Million FDR
10.50% - Lien of 220,000 Shares of Aftab

Bank Asia Limited LTR 700.00 Automobiles Ltd.
Dhaka Bank Ltd. STL 100.00 11.50% -
Dhaka Bank Ltd. O/D 50.00 11.50% -
Meghna Bank Ltd. TL 300.00 11.00% 4.814
151.01 Dcimal land at Katun, Kaligong
9.00%
& 299.54 Decimal Land at Panjora.
Mercantile Bank Ltd. TL 136.79 -
Lien 2,00,000 Shares of Aftab
9.00%
Mercantile Bank Ltd. TL 117.17 - Automobiles Limited
Mercantile Bank Ltd. O/D 50.00 9.00% -
13.00%
Midland Bank Ltd Time L 190.00 - Automobiles Limited
Lien 3,450,000 Shares of Navana CNG
13.00%
Midland Bank Ltd Time L 30.00 - Limited
Midland Bank Ltd Time L 40.00 13.00% -
Midland Bank Ltd LTR 40.00 13.00% -
Midland Bank Ltd O/D 20.00 13.00% -
Lien 800,000 Shares of Aftab
12.00%
Mutual Trust Bank Ltd. LG 400.00 - Automobiles Limited
Mutual Trust Bank Ltd. C C (H) 50.00 12.00% -
NCC Bank Ltd. TL 195.00 12.00% 4.67
Lien 250,000 Shares of Navana CNG
12.00% Limited
NRB Commercial Bank Ltd. LTR 300.00 -
Registered Mortgage 634 Decimal
12.00%
NRB Commercial Bank Ltd. O/D 200.00 - Land at Mongla, District-Bagerhat
11.00%
NRB Commercial Bank Ltd. O/D 50.00 Automobiles Limited
One Bank Limited LTR 400.00 11.00% -
Lien on Fixed Deposit BDT 2.08
11.00%
One Bank Limited Time L 380.00 - Million
One Bank Limited Lease 100.00 11.00% 1.30
Prime Bank Ltd. O/D 50.00 11.50% -
Prime Bank Ltd. HP 140.00 13.00% 3.76
South Bangla Agriculture and Commerce Bank Limited LTR 30.00 14.00% -
Registered Mortgage of 122 Decimal
14.00%
South Bangla Agriculture and Commerce Bank Limited C C (H) 30.00 - of Land at Kaligonj, District-Gazipur
South Bangla Agriculture and Commerce Bank Limited Lease 150.00 14.00% 3.72
Registered Mortgage of 681.66
13.00%
Southeast Bank Ltd. O/D 80.00 - Decimal Land at Mongla
Southeast Bank Ltd. Time L 83.61 13.00% -
Southeast Bank Ltd. LTR 120.00 13.00% -
Lien of 800,000 shares of Aftab
Standard Bank Ltd. C C (H) 40.00 12.50% - Automobiles Ltd.
Standard Bank Ltd. TL 120.00 12.50% -
46

SANCTIONED
LIMIT
NATURE OF RATE OF MONTHLY INSTAL.
NAME OF BANK (in Million PARTICULARS OF SECURITY
FACILITY INTEREST SIZE
BDT)
Lien 1,000,000 Share of Aftab

12.50%
The City Bank Limited O/D 30.00 - Automobiles Limited
12.50% Lien on Fixed Deposit BDT 11.8
The City Bank Limited STL 100.00 - Million
Non-funded
Covered by securities under Funded
Agrani Bank Ltd. L/ C 500.00 12.50% - Facilities of same sanction
Al-Arafah Islami Bank
100.00 12.50% -
Ltd. L/ C Do'
Bank Asia Limited L/ C 700.00 10.50% - Do'
BRAC Bank Limited L/ C 250.00 10.00% - Do'
Dhaka Bank Ltd L/ C 200.00 11.50% - Do'
Meghna Bank Ltd. L/ C 400.00 13.00% - Do'
Midland Bank Ltd L/ C 250.00 13.00% - Do'
Mutual Trust Bank Ltd. L/ C 500.00 12.00% - Do'
Mutual Trust Bank Ltd. B/ G 40.00 0.00% - Do'
NRB Commercial Bank Ltd. L/ C 500.00 11.00% - Do'
One Bank Limited L/ C 400.00 11.00% - Do'
Prime Bank Ltd. L/ C 100.00 11.00% - Do'
South Bangla Agriculture and Commerce Bank Limited L/ C 200.00 14.00% - Do'
Southeast Bank Ltd. L/ C 200.00 13.00% - Do'
Standard Bank Ltd. L/ C 200.00 12.50% - Do'
Leasing Company
BD. Finance Lease 150.00 13.00%
Bay Leasing & Finance Limited Lease 100.00 13.00% Land at District-Manikgong
GSP Finance Company (Bangladesh) Limited Lease 200.00 13.00%
MIDAS Financing
13.00% Lien on Fixed Deposit BDT 2.6 Million
Limited Lease 50.00
Land at Kaligonj, District- Gazipur &
PLFS Limited Lease 300.00 13.00%
630,000 Share of Aftab Automobiles
Limited
Union Capital Limited Lease 200.00 13.00% 711 Decimal land at Manikganj.

30-06-2018 30-06-2017
16 Accrued and other current liabilities
For goods supplied 73,124,406 42,018,479

For expenses 51,271,590 37,577,710
For Income tax 628,796,559 554,712,377
For gratuity 49,486,140 43,576,031
For Workers' P.P.F. and W.F. 26,351,486 45,180,171
For other finance 66,568,536 26,938,711
Unclaimed dividend 70,270,720 50,270,237
965,869,437 800,273,716
The company made appeal to honourable High Court against the tax assessment U/S-160 is pending for the year 2011-2012 to 2016-
2017.
47

30-06-2018 30-06-2017
16 (a) Consolidated accrued and other current liabilities

For expenses 60,839,520 56,171,430
For Income tax 817,244,168 733,518,556
For gratuity 63,176,895 45,156,617
For Workers' P.P.F. and W.F. 31,577,633 52,047,186
Provision for bad debts 6,149,979 -
For other finance 76,421,277 42,573,505
Unclaimed dividend 70,270,720 50,270,237
1,204,251,006 1,026,018,102
17 Revenues ( Net Sales )

Automobiles assembling unit 2,366,456,456 2,971,002,930
Body building unit 278,578,956 260,275,257
Motor Cycle unit 714,721,276 472,656,468
3,359,756,688 3,703,934,655
The quantity of sales during the year are Hino Bus chassis -364- units, RM2 AC Bus -0.- units , Hino RN8J-29- units, and -7015-units of
Motor cycle.
17 (a) Consolidated revenues
Aftab automobiles Ltd. 3,359,756,688 3,703,934,655

Navana Batteries Limited 1,453,951,709 1,067,274,041
4,813,708,397 4,771,208,696
18 Cost of goods sold
Opening stock of direct raw materials 182,895,268 230,619,284

Purchases of direct raw material 1,926,775,355 3,432,667,263
Direct raw materials available for consumption 2,109,670,623 3,663,286,547
Closing stock of direct raw materials (Note 7 ) 219,212,998 182,895,268
Raw materials consumed 1,890,457,625 3,480,391,279
Add : Opening WIP 5,636,141 12,701,357
1,896,093,766 3,493,092,636
Less : Closing WIP ( Note-7 ) 20,176,667 5,636,141
1,875,917,099 3,487,456,495
Indirect materials 70,134,566 97,857,395
Total consumption 1,946,051,665 3,585,313,890
Factory overhead ( Note-18.1 ) 113,362,031 91,464,234
Cost of production 2,059,413,696 3,676,778,124
Opening Finished products 1,260,488,880 493,889,274
3,319,902,576 4,170,667,398
Closing Finished products ( Note-7 ) 628,405,618 1,260,488,880
2,691,496,957 2,910,178,518
18.1 Factory overhead
Salary and allowances 21,158,382 18,583,037

Wages 13,027,372 8,127,611
Contribution to P.F. 1,557,128 1,801,917
Overtime 3,503,950 3,142,359
Bonus 3,479,044 2,722,740
Leave pay 698,005 700,782
Gratuity 202,183 755,783
Liveries and Uniform 175,970 174,409
Telephone, Fax, Mobile 279,424 427,457
Fuel and Lubricants 3,442,722 4,009,499
48

30-06-2018 30-06-2017
Travelling and Conveyance 457,680 324,382
Entertainment 1,041,058 1,367,696
Office Expenses 199,770 35,306
Maintenance expenses 738,994 1,392,516
Electric Expenses 8,645,856 6,817,736
Duty and Allowance 1,349,150 13,848
Canteen Subsidies 510,906 204,818
Eid greeting 135,000 213,996
Rent Rates & Taxes 9,220,790 1,808,250
Insurance 3,827,388 1,764,751
Welfare expenses 374,788 609,634
Carrying & handling 355,125 205,142
Papers & periodical 8,913 8,913
General charges 80,463 355,814
Repairs and maintenance ( vehicle) 245,628 199,250
Chemicals 2,268 748
Annual picnic 261,268 242,128
Printing & Stationary 159,782 221,924
Depreciation 38,223,024 35,231,789
113,362,031 91,464,234
The number of employees received annual salary and wages above Tk. 36,000 during the year are 165 .
18 (a) Consolidated cost of goods sold
Opening stock of direct raw materials 385,462,716 483,717,804

Purchases of direct raw material 3,232,224,650 4,012,347,434
Direct raw materials available for consumption 3,617,687,366 4,496,065,238
Closing stock of direct raw materials (Note 7.a ) 597,801,527 385,462,716
Raw materials consumed 3,019,885,839 4,110,602,522
Add : Opening WIP 77,093,746 92,694,840
3,096,979,585 4,203,297,362
Less : Closing WIP ( Note-7.a ) 117,223,316 77,093,746
2,979,756,269 4,126,203,616
Indirect materials 79,998,358 105,382,845
Total consumption 3,059,754,627 4,173,457,588
Factory overhead ( Note-18.a.1 ) 220,606,506 176,684,851
Cost of production 3,280,361,133 4,501,308,569
Opening Finished products 1,393,323,677 691,271,591
4,673,684,809 6,027,467,043
Closing Finished products ( Note-7.a ) 804,837,655 1,393,323,677
3,868,847,153 3,706,219,225
18 (a .1) Factory overhead

Wages 19,103,104 13,540,230
Contribution to P.F. 2,063,707 2,191,716
Overtime 3,814,274 3,418,814
Bonus 4,407,504 3,498,623
Leave pay 1,561,390 1,025,615
Gratuity 2,490,955 3,341,167
Telephone, Fax, Mobile 592,130 797,695
Fuel and Lubricants 4,161,593 4,532,746
Travelling and Conveyance 604,332 520,127
Entertainment 1,238,908 1,478,193
Office Expenses 316,809 139,571
Maintenance expenses 910,495 1,545,299
Electric Expenses 43,837,609 31,942,447
Duty and Allowance 2,284,300 254,583
49

30-06-2018 30-06-2017
Canteen Subsidies 2,479,399 1,459,368
Eid greeting 159,768 236,060
Rent Rates & Taxes 9,220,790 1,808,250
Insurance 7,440,972 2,773,479
Gas 2,066,177 520,172
Papers & periodical 1,475,951 8,913
General charges 80,463 355,814
Repairs and maintenance ( vehicle) 440,743 373,070
Security Exps - 792,977
Chemicals 33,088 196,563
store & Spare 141,040 20,991
Foreign Technician Remuneration 1,587,838 2,000,000
Annual picnic 1,202,436 980,498
Printing & Stationary 159,782 221,924
Screen Printing 64,411 605,936
Labour Charges 335,488 516,205
Laboratory Exps 285,452 274,599
Generator Maintenance 803,098 459,766
Fire Extinguisher 159,438 142,037
Depreciation 77,462,966 70,478,449
220,606,506 176,684,851
19 Administrative expenses
Wages 7,432,168 6,362,855
Cont. to C.P.F. 1,655,818 606,715
Bonus 2,859,552 2,678,820
Overtime 2,447,168 2,781,471
Medical Expenses 1,183,402 1,277,046
Gratuity 6,703,985 6,712,433
Leave pay 1,540,006 1,523,835
Entertainment 1,375,363 1,197,411
AGM expenses. 452,844 409,813
TA and Conveyance 1,031,784 1,355,883
Travelling Exp - Foreign 397,321 1,133,897
Car maintenance 2,065,168 2,840,003
Stationery 884,224 1,040,776
Fees and Registration 2,370,123 1,759,087
Telephone 586,020 721,741
Electric expenses 707,396 500,438
Rent, rates and taxes 3,639,364 4,027,382
Insurance premium 2,477,272 224,136
Bank charges 2,119,714 677,133
Bank Guarantee & Charge documents 91,588 1,034,297
Audit fees 287,500 250,000
Duty allowance 115,875 107,791
Paper and periodicals 31,094 69,289
Postage and telegram 601,390 531,472
Night allowances 62,772 58,392
Advertisement and Publicity 50,000 544,462
Directors fee 218,500 230,000
Office maintenance 843,906 319,147
Maintenance expenses 198,240 475,652
General Expenses 389,865 332,421
WASA Bill 7,694 33,020
50

30-06-2018 30-06-2017
Carrying & Handling 765,336 765,336
Gas 111,909 110,679
CDBL Fee 37,000 236,872
Canteen Subsidy 589,390 310,694
Security Exps 982,111 1,419,894
Donation 757,845 804,674
Promotion Exp. 3,649,546 552,127
Fuel & Lubricants 627,479 1,593,176
Depreciation 4,777,878 4,403,974
89,868,109 81,407,526
The number of employees who received annual salary and allowances above Tk. 36,000 during the year were 89.
19 (a) Consolidated administrative expenses

Wages 9,415,754 7,158,685
Cont. to C.P.F. 2,364,390 606,715
Bonus 3,688,114 3,011,151
Overtime 2,447,168 2,781,471
Medical Expenses 1,183,402 1,277,046
Gratuity 11,316,739 7,991,143
Leave pay 1,540,006 1,523,835
Entertainment 1,737,343 1,729,579
AGM expenses. 452,844 409,813
TA and Conveyance 1,155,332 1,694,185
Travelling Exp - Foreign 834,839 1,733,266
Car maintenance 2,217,530 3,435,310
Stationery 936,594 1,296,792
Fees and Registration 2,685,123 2,147,030
Telephone 806,217 828,679
Electric expenses 707,396 500,438
Rent, rates and taxes 4,598,696 4,027,382
Insurance premium 2,477,272 224,136
Bank charges 2,119,714 677,133
Bank Guarantee & Charge documents 112,527 1,136,724
Audit fees 533,500 307,500
Duty allowance 115,875 107,791
Paper and periodicals 33,514 86,892
Publicity - 357,763
Night allowances 62,772 58,392
Advertisement and Publicity 50,000 544,462
Office maintenance 929,858 757,526
Maintenance expenses 305,136 666,215
General Expenses 389,865 332,421
WASA Bill 7,694 33,020
Carrying & Handling 1,612,038 1,698,629
Gas 111,909 110,679
CDBL Fee 37,000 236,872
Canteen Subsidy 589,390 310,694
Security Exps 982,111 1,419,894
Donation 757,845 804,674
Promotion Exp. 3,649,546 552,127
ISO 341,213 -
Fuel & Lubricants 627,479 1,593,177
Guest House Maintenance 152,119 120,790
Membership fee & others 399,556 350,790
Depreciation 9,682,871 8,809,806
115,142,320 97,889,334
51

30-06-2018 30-06-2017
20 Selling and distribution expenses
Salary & Allowance 14,673,962 10,912,032

Wages 1,070,589 981,208
Bonus 2,355,983 1,631,281
Leave pay 198,223 215,124
Welfare 109,057 99,952
P/F company's Contribution 231,296 258,149
Gratuity 1,695,775 1,081,893
Overtime 715,745 776,691
Fuel & Lubricant 652,144 637,052
Transit Insurance 292,572 481,854
Promotional Exps 8,914,064 970,731
Training Exp. 4,940,674 504,164
Driving Charge 160,789 393,869
Toll Charge 147,931 78,619
Delivery Exps 1,006,821 454,912
Rent Rates & Taxes 9,550,345 9,610,136
Conveyance 897,302 597,329
Entertainment 470,019 862,276
Stationery 36,352 6,555
Telephone 1,026,078 257,717
Publicity Exp. 1,981,675 1,058,936
Fees & Registration 150,230 404,965
Maintenance 62,300 99,242
Car Maintenance 844,088 489,283
Electrical Expenses 310,636 -
Postage & Telegram 243,780 253,135
Papers & Periodicals 6,120 10,772
Bank Charges 25,790 44,488
Security Guard salary 205,120 383,482
Office Maintenance 105,790 404,758
Showroom Exps 555,932 835,489
Transportation Charges 852,695 2,102,680
Gift & Donation 178,431 168,350
Bad debts 17,634,243 17,240,000
Chemical & Packing exps 22,154 34,481
Dealer conference Exp. 807,039 2,215,608
Depreciation 4,777,878 4,403,974
78,313,163 61,302,658
The number of employees who received annual salary and allowances above Tk. 36,000 during the year were 40.
20 (a) Consolidated selling and distribution expenses

Salary & Allowance 50,908,211 37,603,148
Wages 3,209,560 2,798,731
Bonus 6,141,377 3,855,541
Leave pay 485,755 215,124
Welfare 109,057 417,590
P/F company's Contribution 3,854,721 2,927,260
Gratuity 5,907,946 3,637,213
Overtime 1,759,590 1,541,587
Fuel & Lubricant 1,196,044 1,370,759
Promotional Exps 9,264,064 1,312,349
Trade fare Exp. 997,780 -
Training Exp. 4,940,674 504,164
Driving Charge 160,789 393,869
Toll Charge 147,931 78,619
Delivery Exps 1,006,821 856,569
52

30-06-2018 30-06-2017
Rent Rates & Taxes 15,594,507 12,953,898
Conveyance 1,043,881 753,315
Entertainment 1,396,508 1,311,015
Telephone 1,144,591 967,804
Publicity Exp. 2,207,662 1,174,240
Fees & Registration 625,230 871,889
Car Maintenance 1,174,968 683,537
Electrical Expenses 2,431,404 1,053,980
Postage & Telegram 325,126 430,311
Papers & Periodicals 52,619 32,771
Bank Charges 149,921 47,749
Security Guard salary 2,424,930 1,494,679
Office Maintenance 181,661 455,017
Showroom Exps 863,875 1,352,110
Transportation Charges 1,785,081 2,538,454
Utility BiII ( WASA ) 321,101 70,938
Gift & Donation 329,221 427,089
Bad debts 23,784,222 17,240,000
Chemical & Packing exps 162,433 261,077
Dealer conference Exp. 1,055,808 2,436,398
Others 25,500 230,182
Depreciation 9,682,871 8,809,807
157,940,999 114,734,347
21 Financial charges
Aftab Automobiles Ltd.

Assembling Unit 191,285,103 185,268,112
Body building unit 2,327,019 -
Motor cycle Unit 27,153,876 26,435,105
220,765,998 211,703,217
21 (a) Consolidated financial charges
Aftab Automobiles Ltd. 220,765,998 211,703,217

Navana Batteries Ltd. 119,633,320 74,347,274
340,399,318 286,050,491
22 Other income
FDR Interest 11,203,287 5,860,400

Share dividend ( navana Cng ) - 355,110
Profit on sale of shares 6,067,347 -
Profit on sale of car 688,038 -
17,958,672 6,215,510
22 (a) Consolidated other income
FDR Interest 11,203,287 5,860,400

Share dividend ( navana Cng ) - 355,110
Profit on sale of shares 6,067,347 -
Profit on sale of car 688,038 -
17,958,672 6,215,510
53

30-06-2018 30-06-2017
23 Income tax expense
Current tax 74,084,182 110,304,036

Deferred tax 3,414,548 5,005,788
77,498,730 115,309,824
Calculation of Deferred tax

Associate company
Opening Balance 55,423,391

Add :Provision during the year 4,889,197
Investment in Associate Balance as on 30.06.18 60,312,588 60,312,588 55,423,391
Investment Valuation surplus in share - 550,249
Aftab Automobiles Ltd.

WDV on PPE as per Accounting Calculation 1,186,639,545
WDV on PPE as per Taxable Calculation 1,085,610,708
Temporary Difference 101,028,837
Deferred Tax 25% on different 25,257,209 25,257,209 21,842,661
opening Balance 21,842,661

add : during the year (PL AC ) 3,414,548
closing Balance 25,257,209
Movement of deferred tax

opening Balance 77,816,301 77,816,301 72,260,264
add : during the year ( PL AC ) 3,414,548 3,414,548 5,005,788
add : during the year (Associate co. ) 4,889,197 4,889,197 -
add : during the year( OCI ) (550,249) (550,249) 550,249
closing Balance 85,569,797 85,569,797 77,816,301
23 (a) Consolidated Income tax expense

Current tax
Navana Batteries Ltd 9,641,430 35,893,543
83,725,612 146,197,579
23.1 (a) Consolidated Income tax expense

Deferred tax
11,128,499 11,835,958
23 (b) Deferred tax

137,062,262 121,594,814
23.1(b) Deferred tax Liability
Assembling ,Body unit & Cycle Unit 25,257,209 21,842,661

Associate Company 60,312,588 55,423,391
Investment Valuation surplus in share - 550,249
137,062,262 121,594,814
54

30-06-2018 30-06-2017
24 Earnings per share (EPS ) Profit attributable to shareholders/

Number of ordinary shares
Total comprehensive income 256,456,026 394,492,236
Ordinary share(Paid Up capital ) 95,732,422 95,732,422
Earnings per share (EPS ) 2.68 4.12
24 (a) Consolidated earnings per share (EPS )
Profit attributable to the equity holders 256,456,026 394,492,236

No. of shares 95,732,422 95,732,422
Earnings per Share (EPS ) 2.68 4.12
25 Net assets value per share (NAVPS) (Total Asset-Total Liabilities)/

Net assets value 5,829,520,140 5,673,466,466
Number of ordinary shares used to compute NAVPS 95732422 95,732,422
Net assets value per share 60.89 59.26
25 (a) Consolidated net assets value per share (NAVPS)
Net assets value 5,829,520,140 5,673,466,466

Number of ordinary shares used to compute NAVPS 95732422 95,732,422
Net assets value per share 60.89 59.26
26 Net operating cash flows per share (NOCFPS) Net operating cash flow/
Net operating cash flows (60,474,279) (355,740,055)
Number of ordinary shares used to compute NOCFPS 95,732,422.00 95,732,422.00
Net operating cash flows per share (0.63) (3.72)
26 (a) Consolidated net operating cash flows per share (NOCFPS)
Net operating cash flows (406,213,237) 126,505,751

Number of ordinary shares used to compute NOCFPS 95,732,422.00 95,732,422.00
Net operating cash flows per share (4.24) 1.32
27 Loan and deferred liabilities (Unsecured ) :

Long- term interest free loan from sponsors is carried forward since 1982
28 Claims against the Company :

There is no known claim against the Company.
29 Restated EPS
The company's EPS for the year ended June 30, 2017 was calculated without considering the parent's (AAL) share of
profit from subsidiary to make correction of the mentioned error. The EPS for the cmparative financial statements was
restated from 3.30 to 4.12. We confirm that the profit for the comparative year as well as net asset value or net
operating cash were not affected at all.
55
30 Amount Due by Directors:

There is no advance in the name of directors or Associates undertaking of the company.
31 Amount paid to Directors:

The Directors have been paid only the meeting attendance fee during the year.
32 General Nature of Credit Facilities:

There is no other Credit facility available to the Company other than the credit facilities shown in this account.
33 Disclosure for purchase in foreign currency during the year :

Disclosure as per Para 8 of Schedule XI (kh) of the Companies Act 1994 regarding purchase made in foreign currency during
the year are as follows:
Type of expenditure Amount in Foreign currency Amount in BDT
Import of Raw material (Hino Bus Chassis CKD) JYP 1,297,381,949 982,865,113
Import of Raw material (Mahindra motorcycle Skd) $ 4,584,930 386,262,022
Total 1,369,127,135
34 Contingent liability :
The Company has issued guarantee to the tune of Tk. 40.00 crores against sale of Aftab Assembled vehicles under lease finance of different
parties.
35 Production Capacity :
The production capacity of the company is 2400 units Toyota & Hino vehicles in Assembling unit under three shifts and 400 units Hino buses
in Body Building unit. Actual production for the year- 396- units bus assembled in Assembling unit -163.-units body fabrication in Body
Building Unit.
The production capacity of the company is 10000 .units Motor Cycle in Motor Cycle unit under three shifts . Actual production for the
period 7560 units bike assembled in Motor Cycle unit.
36 Related Parties Disclosure:

As per agreement with Toyota Tsusho Corporation, Japan, certain Vehicles of Aftab Automobiles Ltd. are distributed through Navana Ltd.(
distributor of Toyota & Hino Vehicles). During the year, the company has made the following transactions with Navana Group companies.
Name of Company Nature of Transactions

Relation
Op. Balance Dr. Cr. Cl. Balance
Navana Ltd. Sales 385,492,110 847,424,996 358,925,412 873,991,694
Navana Real Estate Ltd. Sales / Land purchase 93,170,000 50,400,000 - 143,570,000
Navana Construction Ltd. Sales /Construction 30,971,621 26,924,137 - 57,895,758
Navana Engineering Ltd. Sales 120,000,230 - 60,000,000 60,000,230
37 Event after the Reporting Period

The Directors in the meeting held on October 28,2018, recommended 12 % cash dividend for the shareholders whose name will be
appeared in the shareholders’ registers at the date of book closure which is subject to shareholders’ approval at the forthcoming annual
general meeting to be held on December 09,2018.
"Except the fact stated above, no circumstances have arisen since the balance sheet date which would require adjustment or disclosure in
the financial statements or notes thereto."
56
38 Payment / Perquisites to Directors and officers :

The aggregate amount paid / provided during the period in respect of " Directors " and " Officers " of the Company as
defined in the Securities and Exchange Commission Rules 1987 are disclosed below :
Directors Officers
Board meeting attendance fee 233,500 -
Managerial remuneration 1,502,712 991,296
Gratuity 525,949 346,954
Company's contribution to P / F 150,271 99,130
Bonus 250,452 165,216
Perquisites :
Housing 1,277,305 842,602
Transport 300,542 198,259
Medical 90,163 59,478
Telephone 300,000 76,130
Others 25,200 65,700
4,971,664 3,052,937
during the year under review :
i) no compensation was allowed by the company to the Chief executive officer of the company who is also a Director.
ii) the rate at which Directors have drawn Board meeting attendance fees @ Tk.5000/- per Director per meeting. The
total Board meeting attendance fee incurred during the year under review was Tk.2,33,500/- and
iii) no amount of money was spent by the company for compensating any member of the board for special services
rendered.
57

Schedule- A

3. Property, plant and equipment, net
Cost Depreciation Carrying amount
Add. For the Adj. For As at Rate of Charged Adj. for As at As at
Particulars As at 01.07.17 As at 01.07.17 As at 30.06.18
year the year 30.06.2018 DEP. during the year the year 30.06.2018 30.06.2017
Land & Land Development 562,298,792 177,907,027 - 740,205,819 - - - - - 740,205,819 562,298,792
Building 148,953,691 9,430,228 - 158,383,919 2.50% 35,064,081 3,040,437 - 38,104,518 120,279,401 113,889,610
Shed 34,528,882 3,550,000 - 38,078,882 20% 15,516,132 4,335,050 - 19,851,182 18,227,700 19,012,750
Plant & Machinery 351,805,273 13,411,868 - 365,217,141 10% 156,269,300 20,576,480 - 176,845,780 188,371,361 195,535,973
Tools & Equipments 35,895,302 6,168,658 - 42,063,960 20% 20,536,400 4,036,557 - 24,572,957 17,491,003 15,358,901
Office Equipment 32,440,738 2,506,571 - 34,947,309 10% 11,593,680 2,277,078 - 13,870,759 21,076,550 20,847,058
Furniture & Fixture 23,039,131 1,170,622 - 24,209,753 10% 7,058,009 1,687,334 - 8,745,342 15,464,411 15,981,122
Trabsport Vehicles 81,987,333 1,869,676 510,000 83,347,009 20% 42,024,251 8,301,836 498,038 49,828,050 33,518,959 39,963,082
Electrical line installation 1,498,150 892,599 - 2,390,749 10% 299,113 194,287 493,400 1,897,349 1,199,037
Office Decoration 37,435,975 836,911 - 38,272,886 10% 4,836,169 3,329,723 8,165,892 30,106,992 32,599,804
Total 1,309,883,267 217,744,160 510,000 1,527,117,427 293,197,136 47,778,782 498,038 340,477,880 1,186,639,545 1,016,686,129
Deprecation charged to : Taka

Cost of goods sold ( Factory O/H) 38,223,024
Profit & Loss Account (Admin) 4,777,878
Profit & Loss Account (Selling) 4,777,878
T O T A L 47,778,782
Schedule- A
Aftab Automobiles Limited and its Subsidiariy
3 (a ). Property, plant and equipment, net
Cost Depreciation Carrying amount
Add. For the Adj. for As at Rate of Charged Adj. for As at As at

Particulars As at 01.07.17 As at 01.07.17 As at 30.06.18
year the year 30.06.2018 DEP. during the year the year 30.06.2018 30.06.2017
Land & Land Development 833,496,052 230,108,175 - 1,063,604,227 - - - - - 1,063,604,227 833,496,052
Building 267,617,370 44,873,105 - 312,490,475 2.5% 53,342,199 6,140,790 - 59,482,990 253,007,485 214,275,171
Shades 34,528,882 3,550,000 - 38,078,882 20% 15,516,132 4,335,050 - 19,851,182 18,227,700 19,012,750
- - - -
Plant & Machinery 712,853,646 43,277,038 - 756,130,684 10% 292,301,314 45,069,127 - 337,370,441 418,760,243 420,552,333
Tools & Equipments 112,689,285 14,194,312 - 126,883,597 20% 60,658,474 12,441,026 - 73,099,500 53,784,097 52,030,810
Office Equipment 67,274,125 6,816,681 - 74,090,806 10% 25,832,438 4,623,882 - 30,456,320 43,634,486 41,441,686
Furniture & Fixture 41,532,747 5,486,400 - 47,019,147 10% 12,647,461 3,265,468 - 15,912,930 31,106,217 28,885,285
Transport Vehicles 128,470,556 4,026,018 510,000 131,986,574 20% 67,301,976 12,830,448 498,038 79,634,386 52,352,188 61,168,580
Electrical line installation 14,780,555 1,871,702 - 16,652,257 10% 3,106,244 1,307,088 - 4,413,332 12,238,925 11,674,312
Office Decoration 59,847,258 3,483,711 - 63,330,969 10% 7,520,414 5,478,880 - 12,999,294 50,331,673 52,326,842
Gas line installation 11,332,299 8,865,448 - 20,197,747 10% 3,873,120 1,336,948 - 5,210,068 14,987,679 7,459,180
Total 2,284,422,775 366,552,590 510,000 2,650,465,365 542,099,772 96,828,708 498,038 638,430,442 2,012,034,921 1,742,323,001
Deprecation charged to : Taka

Cost of goods sold ( Factory O/H) 77,462,966
Profit & Loss Account (Admin) 9,682,871
Profit & Loss Account (Selling) 9,682,871
T O T A L 96,828,708
58
Paramount Heights (7th Floor - D2 & C1)
Rahman Mostafa Alam & Co. 65/2/1, Box-culvurt Road,
Chartered Accountants Purana Paltan, Dhaka-1000
Phone: +88-02-9553449,9551128
AUDITORS' REPORT
TO THE SHAREHOLDERS OF NAVANA BATTERIES LIMITED
We have audited the accompanying financial statements of Navana Bafteries Limited ("the Company")
which comprise the statement of financial position as at June 30, 2018 and the statement of proflt or loss
and other comprehensive income, statement of changes in equity, statement of cash flows for the year then
ended and a summary of significant accounting policies and other explanatory information disclosed in note
1 to 19 and annexure - A.
Management's Responsibility for the Financial Statements

Management of the company is responsible for the preparation and fair presentation of these flnancial
statements in accordance with Bangladesh Financial Reporting Standards (BFRSs), Companies Act 1994, and
other applicable laws and regulations and for such internal control as management determines is necessary
to enable the preparation of financial statement 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 Bangladesh Standards on Auditing (BSAs). Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors' judgment, including the assessment
of the risks of material misstatement of the Financial Statements, whether due to fraud or error. ln making
those risk assessments, the auditor considers internal control relevant to the company's preparation and
fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstance, but not for the purpose of expressing an opinion on the effectiveness of the company's
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management of the company 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:
ln our opinion, the financial statements present fairly, in all material respects, the financial position of
Navana Bafteries Limited as at June 30, 2018 and its financial performance and its cash flows for the year
then ended in accordance with Bangladesh Financial Reporting Standards (BFRSs) and comply with the
applicable section of the Companies Act 1994 and other applicable laws and regulations.

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) ln our opinion, proper books of account as required by the law have been kept by the Company so far as it
appeared from our examination of these books; and
c) The company's statement of financial position and the statement of profit and loss and other comprehensive
income dealt with by the report are in agreement with the books of account and returns.
Dated : Dhaka Sd/-

October 02, 2018 Rahman Mostafa Alam & Co.
Chartered Accountants
59
Rahman Mostafa Alam & Co.
Navana Batteries Limited Chartered Accountants

Statement of Financial Position
As at June 30, 2018
60

Statement of Profit or Loss and other Comprehensive Income
61

Statement of Changes in Equity
62

Statement of Cash Flows
63

Accounting Policies and Explanatory Notes to the Financial Statements
1. Corporate Information and Mode of Business

1.1 Corporate Information
The company incorporated on 21st April, 2009 vide registration # C76441/09.
1.2 Mode of Business

The principal activities of the company are manufacturing of Automotive, Industrial and Solar Batteries in
the plant located at Fouzdarhat Industrial Area, Chittagong, Bangladesh.
2. Significant Accounting Policies and Basis of Preparation of Financial Statement

2.1 Statement of Compliance
The financial statements have been prepared in accordance with Bangladesh Accounting Standards (BASs)
and Bangladesh Financial Reporting Standards (BFRSs)and as per requirements of the Companies Act 1994,
the Securities and Exchange Rules 1987, and other applicable laws and regulations.
2.2 Basis of Preparation

The financial statements of this unit have been prepared assuming going concern basis based on the
accrual basis of accounting following under the historical cost convention.
2.3 Basis of Reporting

The financial statements of this unit is prepared and presented for external userin accordance with the
identified financial reporting framework. Presentation has been made in compliance with the requirement
of BAS 1 “Presentation of Financial Statements.”
2.4 Reporting Period

These financial statements cover one accounting period from July01, 2017to June 30, 2018.
2.5 Functional and Presentation Currency

Financial statements are prepared in Bangladeshi Taka which is the functional currency.
2.6 Recognition of Property, Plant and Equipment

These are capitalized at cost of acquisition and subsequently stated at original cost minus accumulated
depreciation and accumulated impairment losses, if any, in compliance with the relevant accounting
standard (BAS 16). The cost of the assets is inclusive of cost paid to the vendors along with all incidental
expenses to install or construct the same assets for its intended use. Expenditure incurred after the assets
have been put in to operation, such as repairs and maintenance is normally charged off as revenue
expenditure in the period in which it is incurred.
2.7 Depreciation
No depreciation has been charged onland development considering the unlimited useful life. In respect of
all other assets, the quantum of annual depreciation charge is calculated over their estimated useful life
lives using the diminishing balance method of depreciation. All the assets acquired or disposed of during
the period have been depreciated for the period of its uses. The rate at which the assets are depreciated
per annum depended on the nature and estimated useful life of each assets are consistently applied since
inception of the Unit which are given below.
64

Name of the Assets Rate of Depreciation in (%)
Building 2.5
Plant & Machinery 10
Tools & Equipment 20
Office Equipment 10
Furniture & Fixtures 10
Transport Vehicles 20
Electric line Installation 10
Gas line Installation 10
Office decoration 10
2.8 Inventories
In compliance with the requirements with BAS 2 “Inventories” Raw Materials and Stores are valued at the
lower of average cost and the net realizable value. Stocks of finished goods are valued at cost which is
determined by taking into consideration the value of raw materials and production overhead. Cost
comprises expenditure incurred in the normal course of business in bringing such inventories to present
condition and includes wherever applicable appropriate overheads based on normal level of activity.
No provision has been made for slow moving & obsolete stocks during the financial year.
2.9 Cash and Cash Equivalent

Cash and cash equivalents includes cash in hand, cash at banks, which are held and available for use by the
unit without any restriction and having maturity dates of three months or less from the respective date of
deposit. There is insignificant risk of change in value of same.
2.10 Liabilities for Expenses

While the provision for certain standing charges and know liabilities is made at the Statement of Financial
Position date based on estimate, the difference arising there from on receipts of bills/demands and/or
actual payments is adjusted in the subsequent year when such liabilities are settled.
2.11 Workers Profit Participation Fund

Provision for Workers Profit Participation Fund (WPPF) has been made @5% on net profit as per provision of
the Companies profit (Bangladesh Labor Law,2006) and payable to workers as defined in the said laws.
2.12 Financial Assets and Liabilities

Financial assets and liabilities are recognized on the statement of financial position date when the unit has
become a party to a contractual provision of the instruments
I) Receivables: Trade receivables are stated their real value and consider good. No provision has been made
doubtful debts and no amount was written off as bad.
II) Payables: Liabilities are recorded at the amount payable for settlement in respect of goods and services
received by the unit.
III) Borrowings: Interest bearing bank loans are recorded at the proceeds received net of direct issue costs.
2.13 General
1. Figures shown in the accounts have been rounded off to the nearest Bangladeshi Taka.
2. Comparative figures and account titles in the financial statements have been re-arranged/re-classified
where necessary, to conform to changes in presentation in the current year.
65

Amount in taka
03 Property, plant and equipment June 30, 2018 June 30, 2017
a) Cost :
Opening balance at original cost 974,539,508 810,113,087
Add: Addition during the year 148,808,430 164,426,421
1,123,347,938 974,539,508
Less: Adjustment during the year - -
Sub Total 1,123,347,938 974,539,508
b) Less: Accumulated depreciation (297,952,562) (248,902,636)
WDV (a-b) 825,395,376 725,636,872
*An elaborate schedule of PPE are shown in annexure -A.
04 Capital work in progress

Opening balance 64,420,050 103,416,248
Add : Addition made during the year 41,067,993 70,975,341
105,488,043 174,391,589
Less: Transferred to property ,plant & equipment 94,420,050 109,971,539
Closing balance 11,067,993 64,420,050
Capital work-in-progress represents land and land development, civil constructions etc.
05 Trade receivables
Receivable current (Maturity less than 12 months ) 474,810,255 323,555,033
474,810,255 323,555,033
Trade receivables are considered good and as such no provision has been made in the
accounts for doubtful debts. Company holds no security other than debtor's personal
security in the form of work orders.
06 Inventory
Raw materials 378,588,529 202,567,448
Work-in-process 97,046,649 71,457,605
Finished stock 176,432,037 132,834,797
Goods in transit 149,027,913 36,743,688
801,095,128 443,603,538
The quantity of closing stock are 12 Volts NS-3804,NG-4504 ,PNE-2135,NKP-450,IPS-
2347,TTB-35, EV-4192,,MC-5183 ,Solar-3210,UPS-847,DZM-9814 Automotive, Home
Appliance Batteries.
07 Advance, deposits and prepayments

Deposits 33,085,963 23,422,551
Current account with VAT 93,294,084 75,234,168
Income tax deducted at source (Note- 7.a ) 303,780,076 239,086,738
692,888,238 634,630,288
66
Amount in taka
June 30, 2018 June 30, 2017
7.a Income tax deducted at source
Opening balance 239,086,738 195,983,360
Add: during the year 64,693,338 43,103,378
303,780,076 239,086,738
Less: adjustment - -
Closing balance 303,780,076 239,086,738
The above amount was deducted at the import point as well as from the Bills in different
times at delivery point.
Advance paid to suppliers against work order and considered good. Advance to
employees against expenses, salary releasable on production of documents and monthly
salary respectively are considered good. Deposits consist of utility deposits, security
money against tender and bank guarantee are considered good.
08 Cash & Cash Equivalents

Cash in hand factory 15,742,384 4,360,799
Cash balance of sales centers 38,960,037 1,779,733
Cash at banks 38,412,175 50,031,037
93,114,596 56,171,569
09 Share capital
Authorised :
50,000,000 ordinary shares of Taka 10/- each 500,000,000 500,000,000
500,000,000 500,000,000
Issued, subscribed and paid up capital
Ordinary shares 18,370,269 shares of Taka 10 each

Others 100,000 100,000
183,702,690 183,702,690
10 Retained earnings
Opening balance 541,330,454 463,127,917
Add: during the year 32,231,423 78,202,537
573,561,877 541,330,454
Less.adjustment - -
Closing balance 573,561,877 541,330,454
11 Long term loan-net of current portion
Al-Arafah Islami Bank Ltd. - 30,344,500
Trust Bank Ltd. 387,295,430 357,037,083
Dutch-bangla Bank Ltd. 621,385,483 600,956,291
Social Islami Bank Ltd. 51,958,035 53,163,998
Agrani Bank Ltd. 514,544,889 -
1,575,183,836 1,041,501,872
less: Long term loan - Current portion 393,795,959 260,375,468
Long term loan-net of current portion 1,181,387,877 781,126,404
67

Amount in taka
June 30, 2018 June 30, 2017
12 Short term loan
NCC Bank Ltd CC AC 51,930,878 66,560,591
Mercantile Bank Ltd. 10,308,299 10,265,412
Modhumoti Bank Ltd. 20,832,910 122,227,158
Al-Arafah Islami Bank Ltd. 31,861,213 33,171,550
Shahjalal Islami bank ltd. 166,444,443 -
545,651,734 485,630,179
13 Accrued and other current liabilities.

For expenses 9,567,930 18,593,720
For income tax 188,447,609 178,806,179
For gratuity 13,690,755 1,580,586
For workers' P.P.F. 5,226,146 6,867,015
For bad debts 6,149,979 -
For other finance 9,852,741 15,634,794
238,381,568 225,744,386
14 Turnover ( Net of VAT)

Turnover 1,453,951,709 1,067,274,041
1,453,951,709 1,067,274,041
The quantity of Sales during the period are 12 Volts NS-18189,NG-33321,PNE-6717,IPS-

9582,EV-73018,DZM-32096,Solar-14451,MC-2740 pcs. Automotive, Home Appliance .
15 Cost of goods sold.

Raw materials consumed 1,129,428,214 630,211,243
Direct materials 9,863,792 7,525,450
Total consumption 1,139,292,006 637,736,693
Add : Opening WIP 71,457,605 79,993,483
1,210,749,611 717,730,176
Less : Closing WIP 97,046,649 71,457,605
1,113,702,962 646,272,571
Factory overhead 15.2 107,244,475 85,220,617
Cost of production 1,220,947,437 731,493,188
Opening Finished Goods 132,834,797 197,382,317
1,353,782,234 928,875,505
Closing Finished Goods 176,432,037 132,834,797
Total Balance 1,177,350,197 796,040,708
68
July 01, 2017 July 01, 2016

to to
June 30, 2018 June 30, 2017
15.1 Raw materials consumed.

Opening stock 202,567,448 253,098,520
Purchases '15.1.1 1,305,449,295 579,680,171
1,508,016,743 832,778,691
Closing stock 378,588,529 202,567,448
1,129,428,214 630,211,243
15.1.1 Purchases.
C & F price 1,251,574,100 525,070,482
Insurance premium 7,391,806 3,938,029
L/C opening charges 8,319,676 6,563,381
C & F charges 8,592,220 17,592,220
Custom duty 29,451,816 19,952,678
Local purchase 119,677 6,563,381
1,305,449,295 579,680,171
15.2 Factory overhead

Wages 6,075,732 5,412,619
PF (Company Contribution) 506,579 389,799
Overtime 310,325 276,456
Bonus 928,460 775,884
Earned Leave 863,385 324,832
Gratuity 2,288,772 2,585,384
Liveries & uniform - 319,493
Telephone & mobile 312,706 370,239
Fuel & lubricants for generator 718,871 523,247
Travelling & conveyance 146,652 195,745
Office exp. 117,039 104,265
Repairs & maintenance 171,501 152,783
Electricity expenses 35,191,753 25,124,711
Night allowance 935,150 240,735
Canteen subsidy 1,968,493 1,254,550
Eid gratia 24,768 22,064
Insurance expense 3,613,584 1,008,728
Gas bill 2,066,177 520,172
Security expenses 1,467,038 792,977
Car maintenance 195,115 173,820
Chemicals 30,820 195,815
Store & spares 141,040 20,991
Foreign technician remu. 1,587,838 2,000,000
Annual picnic 941,168 738,370
Screen printing 64,411 605,936
Labour charges 335,488 516,205
69

July 01, 2017 July 01, 2016
to to
June 30, 2018 June 30, 2017
Laboratory expense 285,452 274,599
Generator maintenance 803,098 459,766
Fire extinguisher 159,438 142,037
Depreciation 39,239,941 35,246,660
107,244,475 85,220,617
The number of employees received annual salary and wages above Tk. 36,000 during
the year are 125.
16 Administrative expenses.
wages 1,983,586 795,830
Company Contributory P.F 708,572 -
Bonus 828,562 332,331
Gratuity 4,612,754 1,278,710
TA and conveyance 123,548 338,301
Travelling exp. - foreign 437,518 599,370
Fees and registration 315,000 387,944
Telephone 220,197 106,938
Office rent 959,332 -
Bank guarantee & charge documents 20,939 102,427
Audit fees 246,000 57,500
Paper & peoridicals 2,420 17,603
Publicity - 357,763
Office maintenance 85,952 438,379
ISO audit 341,213 -
Guest house maintenance 152,119 120,790
Membership fee & others 399,556 350,790
Depreciation 4,904,993 4,405,833
25,274,211 16,481,808
The number of employees received annual salary and allowances above Tk. 36,000
during the year are 64.
17 Selling and distribution expenses.

Salary & allowance 36,234,249 26,691,117
Wages 2,138,971 1,817,523
Bonus 3,785,394 2,224,260
Welfare 287,532 317,637
P/F company's contribution 3,623,425 2,669,112
Gratuity 4,212,171 2,555,320
70

July 01, 2017 July 01, 2016
to to
June 30, 2018 June 30, 2017
Overtime 1,043,845 764,896
Fuel & Lubricant 543,900 733,707
Transit Insurance - 206,309
Promotional Exps 350,000 341,618
Delivery Exps 997,780 401,657
Rent ( Showrooms ) 6,044,162 3,343,762
Conveyance 146,579 155,987
Telephone 118,513 710,087
Publicity exp. 225,987 115,304
Fees & registration 475,000 466,924
Electrical expenses 2,120,768 1,053,980
Postage & telegram 81,346 177,176
Papers & periodicals 46,499 21,998
Bank charges 124,131 3,261
Security guard salary 2,219,810 1,111,198
Office maintenance 75,871 50,259
Showroom expense 307,943 516,621
Transportation charges 932,386 435,775
Utility biII ( WASA ) 321,101 70,938
Gift & donation 150,790 258,739
Bad debts 6,149,979 -
Chemical & packing expense 140,279 226,596
Dealer conference expense 248,769 220,790
Others 25,500 230,182
Depreciation 4,904,993 4,405,833
79,627,836 53,431,689
The number of employees received annual salary and allowances above Tk. 36,000
during the year are 60.
18 Income tax expenses
Profit before Tax 49,586,805 120,926,250
Add: Accounting depreciation 49,049,926 44,058,325
Less: Tax depreciation (71,089,790) (62,431,596)
Adjusted profit for tax calculation 27,546,942 102,552,979
Tax @ 35 % ( transferred to compreh. income 9,641,430 35,893,543

statement )
19 Earning per share (EPS )
Net profit after tax 32,231,423 78,202,537
Number of ordinary share 18,370,269 18,370,269
Earning per share (EPS ) 1.75 4.26
71
July 01, 2017 July 01, 2016

to to
June 30, 2018 June 30, 2017
19.01 Cash flows from operating activities

Net profit/(loss) before interest & income tax during
the year 169,220,125 -
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 49,049,926 -
Income tax expense (9,641,430) -
Changes in current assets and liabilities:
Advance, deposits & prepayments (58,257,951) -
Trade receivables (151,255,222) -
Inventories (357,491,590) -
Accrued and other liabilities 12,637,182 -
Net cash flow from operating activities (345,738,958)
Net operating cash flow per share (18.82)
72
Navana Batteries Plant
73
Share Capital & other Information
Authorised Capital : Tk. 3,000,000,000
Paid-up Capital : Tk. 957,324,220
Class of Shares : Ordinary share of Tk. 10 each.
Stock Exchange Listing : Listed with Dhaka and Chittagong Stock Exchange Limited.
Dividend recommended
by the Board : 12%
Market Value per share : Highest during the year 75.20

Lowest during the year 50.80
The position of shareholders as on June 30, 2018 was as follows:
Number of Number of % of Share

Particulars
Investors Shares Holdings
Sponsors and Directors 6 27208098 28.42%
Financial Institution 262 35737790 37.33%
General Public 22414 32786534 34.25%
Total 22682 95732422 100.00%
The classification of shareholders by shareholding as on June 30, 2018 was as follows:
Number of Number of % of Share

Particulars
Investors Shares Holdings
1 to 500 15338 2282821 2.39%
501 to 5000 6306 9796897 10.23%
5001 to 10000 550 3943851 4.12%
10001 to 20000 238 3337909 3.49%
20001 to 30000 78 1960017 2.05%
30001 to 40000 30 1066082 1.11%
40001 to 50000 22 1032257 1.08%
50001 to 100000 52 3649088 3.81%
100001 to 1000000 55 17165029 17.93%
Above 1000000 13 51498471 53.79%
Total 22682 95732422 100.00%
74
125/A, Motijheel C/A, Dhaka-1000
Proxy Form
I / We of
being
a member of Aftab Automobiles Limited do hereby appoint Mr. / Ms.
of
as my/our proxy to attend and vote for me/us and on my/our behalf at the 38th Annual General Meeting of the Company to be held on 09 December 2018
at 9:30 a.m. at International Convention City Bashundhara [PUSHPOGUSCHO, Hall-02], Kuril Bishwa Road, Purbachal Express Highway, Dhaka and at any
adjournment thereof.
Revenue
Stamp
Taka 20.00
Name of Shareholder Name of Proxy
No. of Shares held Signature of Proxy
Date
Folio No.
B.O. A/C No.
Signature of shareholder
Note : A member entitled to attend and vote at the Annual General Meeting may appoint another member/ any one as a proxy to attend and vote in
his/her behalf. The Proxy Form, duly stamped must be deposited at the Registered Office of the Company atleast 48 hours before the meeting.

Attendance Slip
I/We hereby record my/our presence at the 38th Annual General Meeting on 09 December 2018 at 9:30 a.m. at International Convention City Bashundhara
[PUSHPOGUSCHO, Hall-02], Kuril Bishwa Road, Purbachal Express Highway, Dhaka.
Name of Shareholder Name of Proxy
Signature of Proxy
No. of Shares held
Date
Folio No.
B.O. A/C No.
Signature of shareholder
N.B. Please present this slip at the Registration Desk. Signature must match with your recorded signature.
Hon’ble Shareholders are hereby informed that due to restriction imposed by Bangladesh Securities and Exchange Commission
there shall be no arrangement for any sort of gift / entertainment in the Annual General Meeting of the Company
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Annual Report

aftab automobiles limited

Message from the Chairman 06

Highlights of Financial and Key Operating Data 13

Corporate Governance Compliance 15

Certi�icate of Compliance to the Shareholders 19

Certi�ication of Managing Director and Chief Financial Of�icer to the Board 22

Financial Statements of Aftab Automobiles Limited & it’s subsidiary 25

Auditors’ Report to the Shareholders of Aftab Automobiles Limited (AAL) 29

Financial Statements of AAL 30

Notes to the Financial Statements of AAL 34

Auditors’ Report to the Shareholders of Navana Batteries Limited (NBL) 59

Financial Statements of NBL 60

Notes to the Financial Statements of NBL 64

Share Capital and other Information 74

Attendance Slip & Proxy Form 75

aftab automobiles limited

Notice of the 38th annual general meeting

By order of the Board

b) Attendance to the AGM will be on production of the Attendance Slip.

Message from the Chairman

Consolidated Financial Result and Appropriation of Proﬁt:

Aftab Automobiles Limited (AAL)

Particulars 2018 2017

The performance of the subsidiary company – Navana Batteries Limited (NBL)

Particulars 2018 2017

Turnover 1,453,951,709 1,067,274,041

Risks and concerns

Related Party Transaction

Variance within the Financial Year

Board meeting attendance fee for Directors

Fairness of Financial Statements

Application of BAS and BFRS

Signiﬁcant Variance over the Last year’s Operating Result

Investment in the associated company

Next Year Plan

Board Meetings Attendance :

Board meeting attendance during the year 2018

Name of Directors No. of Board Meeting attended

Namewise details No. of Shares held

i. Parent/Subsidiary/Associated Companies and other related parties

Navana CNG Limited 75,084

ii. Directors, Chief Executive Oﬃcer(CEO), Company Secretary, Chief Financial

Mr. Shaﬁul Islam-Chairman 1,86,26,415

Chief Financial Oﬃcer, Company Secretary and Head of Internal Audit

Mr. Shaﬁul Islam 1,86,26,415

Recommendations for Re-election

Disclosure of information of the directors who are willing to be re-elected:

Membership in committees of the Board of other Companies – None.

Mrs. Khaleda Islam

Membership in committees of the Board of other Companies – None.

Highlights of Financial and Key Operating Data

Particulars 2018 2017 2016 2015 2014

On behalf of the Board of Directors

VALUE ADDED STATEMENT

to providers Emp. Salaries Wages & other benefits 177,217

Reserve & Surplus 249,297

in milion taka SHAREHOLDERS EQUITY in milion taka DIVIDEND

6,000 180.00 162.75