Table of Content

1. Executive Summary2

2. Company Background:
2.1.1. Dulamia Cotton Spinning Mills LTD3
2.1.2. Envoy Textiles LTD..3

3. Comparing with IFRS:

3.1.1. IFRS Comparison3-5
4. Ratio Calculation6-11

5. Comments 12-14

6. Stock options and Bonus Share:

6.1.1. Dulamia Cotton Spinning Mills LTD.15
6.1.2. Envoy Textiles LTD..........................................16
7. Conclusion21

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 1. Executive Summary

This is the project analysis of financial statement with emphasis on the balance sheet liabilities
and equity section for 2 companies of the same industry world. In this regard the companies
which were chosen to be analyzed are Dulamia Cotton Spinning Mills LTD and Envoy
Textiles LTD. These companies are well reputed in the market and deal in a very wide range of
difference products.

On this assignment we analysis of annual report on these companies in 2 year in 2013 and
2014.Frist we identify the specific IFRS standard rules which says about the financial statement
and disclosure. Then we do a comparative analysis of the presentation of liabilities and equity
section among the chosen 2 companies. We also do ratios calculation, give comment their
performance and describe about their shares.

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 2. Company Background:

2.1.1. Dulamia Cotton Spinning Mills LTD

Dulamia Cotton Spinning Mills Ltd. is one of the pioneer Spinning Mills in the Private Sector of
the country. The Company was incorporated on 28th February, 1987. Dulamia is operating with
approximately 27,000 spindles with a production capacity of about 7,500,000 pounds (lbs) of
100% cotton yarn per annum. Although DMCSML produces solely for the domestic markets, its
raw material comes from Sudan, Tanzania, USA, Cameroon, Uzbekistan, Kazakhstan, India and
Pakistan. DMCSML can also boast to be pioneers in employing women. Out of about 900
workers, staff and officers, 682 are women.

2.1.2. Envoy Textiles LTD

Envoy Textiles Limited (ETL) is a manufacturer of high quality fashion denim in Bangladesh.
Introducing rope dyeing denim for the first time in the country, ETL has been designed with a
combination of superior man, machinery and management. Annual capacity of the plants is 50
million yards of quality denim fabric. ETL established in 2005, started the commercial
production in early 2008, within the short period of time, ETL is now the largest denim fabric
producing unit in Bangladesh.

3. Comparing with IFRS:

The accounting standard IFRS 9 sets out the requirements for recognizing and measuring
financial assets, financial liabilities and some contracts to buy or sell non-financial items. IFRS 9
Financial Instruments issued on 24 July 2014 is the IASB's replacement of IAS 39 Financial
Instruments: Recognition and Measurement. Dulamia Cotton Spinning Mills LTD and Envoy
Textiles LTD both are followed IFRS 9 standard and they also record notes for details.

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3.1.1. IFRS Comparison:

IFRS Dulamia Cotton Envoy Textiles LTD

Spinning Mills
LTD
Financial liabilities: IFRS 9 doesn't Dulamia Cotton Envoy Textiles LTD
change the basic Spinning Mills LTD also records their all
accounting model for records their all items under current
financial liabilities items under current liability in fair value and
under IAS 39. liability in fair they have also provided
Current liability and Financial liabilities value. Company detail information in
provisions are measured at gives detail note- 20, 21, 22, 23,
amortized cost unless information in note- 24(2012-2013) & note-
the fair value option 5.00 (2012-2013) & 22, 23, 24, 25, 26, 27
is applied. [IFRS 9, note- 6.00 (2013- (2013-2014) and
paragraph 4.2.1]. 2014) and company company follows this
follows this standard.
standard.

Non-current Dulamia Cotton Envoy Textiles LTD

liabilities Spinning Mills LTD also records long term
records long term loan in fair value under
loan in fair value IFRS 9. They also gives
under IFRS 9. detail information in
Company gives note- 19 (2012-2013) &
detail information note- 21 (2013-2014).
in note- 4.00, 4.01
(2012-2013) &
note- 4.00, 5.00
(2013-2014).

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Shareholders All equity The company gives This company also gives
equity: investments in scope detail in notes-2.00, detail in notes-15.01,
of IFRS 9 are to be 3.00 (2012-2013) & 15.02, 16, 17, 18 (2012-
measured at fair (2013-2014) which 2013) & notes- 16, 17,
value in the uses to measure at 18, 19 (2013-2014)
statement of financial fair value in the which uses to measure at
position. IFRS says statement of fair value in the
record detail financial position. statement of financial
information about position.
share capital in
balance sheet.

6. Conclusion:

The purpose of our analysis is to examine the financial statement of two companies of
Bangladesh for a period of two years each of the companies. However we tried to analyzed the
liabilities and equity section of the balance sheet as per requirements of IFRS, where the
companies mostly try to maintain IFRS standard. IASB reissued IFRS 9. We also calculated
many ratios using the companys annual report, which has showed the companies performances.

7. Reference:
http://www.dulamiabd.com/
http://www.envoytextiles.com/
3.1.1. Dulamia Cotton Spinning Mills LTD: Page no. of annual report- 28, 39, 45-58
(2012-2013) & 21, 32, 38-54 (2013-2014)
Envoy Textiles LTD: Page no. of annual report- 53, 60, 64-87 (2012-2013) & 58, 65,
69-88 (2013-2014)
http://www.ifrs.org/issued-standards/list-of-standards/

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