Contents 3 4 6 7 Letter of Notice of the Performance at a Overview on Transmittal AGM Glance 2018-2019 Bashundhara Group 8 11 12 14 Overview on Values & Mission Corporate Journey of BPML Statement Directory BPML 15 16 17 21 Chairman’s Managing Director & Directors’ Code of Conduct and Message CEO’s Review Profiles Ethical Guidelines 22 24 25 26 Quality Policy and Comparative Financial IPO Fund Utilization Value Added Environmental Policy Highlights Statement Statement 27 51 52 53 Director’s Report to Shareholding Report of Audit Report of Remuneration Shareholders Information Committee & Nomination Committee 57 58 70 71 Certificate of Compliance Corporate Governance Certificate of Due Auditor's Report & of Corporate Governance Disclosure Checklist Diligence by CEO & CFO Financial Statements 75 76 77 78 Statement of Financial Statement of Statement of Changes Statement of Position Comprehensive Income in Equity Cash Flow 79 158 Notes to the Financial Statements Proxy Forms- Bangla & English 1 Letter of Transmittal To All Shareholders of Bashundhara Paper Mills Limited; Bangladesh Securities and Exchange Commission; Registrar of Joint Stock Companies and Firms; Dhaka Stock Exchange Limited; Chittagong Stock Exchange Limited. Concertation: Annual Report for the year ended on 30 June 2019. Dear Sir (s), We are pleased to enclose a copy of Annual Report of Bashundhara Paper Mills Limited (BPML) along with the audited Financial Statements as on 30 June 2019, for your kind information and record. General review of this, unless explained otherwise, is based on the financials of the ‘BPML’. Yours sincerely, Sd/- M. Naseemul Hye FCS Company Secretary 2 Notice of Annual General Meeting NOTICE OF THE 26th ANNUAL GENERAL MEETING Notice is hereby given that the 26th Annual General Meeting of the Members of Bashundhara Paper Mills Ltd. will be held on Tuesday, 24 December, 2019 at 10:30 a.m at “Puspogusso” International Convention City Bashundhara (ICCB Hall- 2), Kuril Bishwa Road, Purbachal Express Highway, Dhaka-1229 to transact the following business: Agenda: 1. To receive, consider and adopt the Directors’ Report, the Auditors’ Report and the Audited Accounts of the Company for the Financial Year ended on 30 June 2019; 2. To declare Dividend for the Financial Year ended on 30 June 2019; 3. To elect the Directors; 4. To appoint Auditors for the Financial Year 2019-2020 and to fix their remunerations. By Order of the Board of Directors Sd/- Date: 07 December, 2019 M. Naseemul Hye FCS Company Secretary Notes: i. The Record Date of the Company has been fixed on 02/12/2019. Members whose names appeared in the Company's Member Register (certificated and depository) at the close of business on the Record Date be entitled to attend the Annual General Meeting. (N.B. General Shareholders, excepting the Sponsors/ Directors/Pre-IPO Placement Shareholders, will only be entitle to receive the dividends; ii. Any member entitled to attend and vote at the Annual General Meeting may appoint a proxy on his/her behalf provided that such proxy must be a member of the company. The Proxy Form (attached with the Annual Report) must be affixed with revenue stamp of Tk. 20/- and should be deposited at the Share Office of the Company not later than 72 hours before the time fixed for the Meeting; iii. Members are requested to notify the changes of their addresses including email addresses (if any), through their respective Depository Participants (DP) well in time; iv. Admission to the meeting venue will be strictly on production of the attendance slip and verification of the signature(s) of Members(s) and/or Proxy-holder(s). No children will be allowed in the AGM Venue; v. In compliance with the BSEC’s Notification No. SEC/SRMI/2000-953/1950 dated 24 October 2000 “(c) no benefit in cash or kind, other than in the form of cash dividend or stock dividend, shall be paid to the holders of equity securities.” for attending the AGM of the Company; vi. In case of non-receipt of the Annual Report of FY 2018-2019 of this Company sent through the email, Shareholders may collect the same from the Share Office of the Company by submitting written request. 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B-‡gB‡ji gva¨‡g †cÖwiZ 2018-2019 Avw_©K erm‡ii evwl©K cÖwZ‡e`b †Kvb m¤§vwbZ †kqvi‡nvìvi bv †c‡j AÎ †Kv¤úvbxi †kqvi wefvM n‡Z Zv msMÖn Kiv hv‡e| GQvov evwl©K cÖwZ‡e`b weeiYx AÎ †Kv¤úvbxi I‡qemvBUt www.bashundharapapermills.com- G cª`vb Kiv n‡q‡Q| 4 Performance at a Glance FY 2018 -2019 Net Revenue (Tk.mn) : 11,039.12 Gross Profit (Tk.mn) : 2,098.75 Profit after Tax (Tk.mn) : 291.84 Domestic Sales (Tk.mn) : 10,606.10 Export Sales (Tk.mn) : 433.02 Total Tax -VAT- SD(Tk.mn) : 611.74 Export Destinations (Country) : 23 Capacity Utilization : 58% Net Asset Values (NAV) : 42.08 Earnings Per share (EPS) : 1.68 5 Overview on Bashundhara Group Bashundhara Group, has started its journey as a real estate venture with the nomenclature of "Bashundhara" under the aegis of the group's first concern - the East-West Property Development (Pvt.) Ltd. in 1987. By the ramifications of this success, Bashundhara concentrated to invest in many new arenas e.g. manufacturing, constriction, fuel & gas, ship building, trading and service etc. Considerable numbers of enterprises were established in the early 1990s, covering diverse activities. Now the ventures under the group are involved in production of cement, paper and pulp, tissue paper, ship building & shipping, foods & beverage, oil refinairy, LPG bottling and distributions, chemicals, printing & publications and trading, among others. The group experienced its significant growth over the last two decades. The Group's first publicly-traded company, Meghna Cement Mills Limited, was listed in 1996 and the latest publicly-traded company is Bashundhara Paper Mills Ltd. listed in 2018 with the two stock exchanges of Bangladesh. The group has established a media house “East West Media Group Ltd” in 2009. This house owns well circulated Bangla dailies – “Kaler Kantho”, “Bangladesh Pratidin”, and English daily newspaper - “Daily Sun” and online portal “Banglanews24.com”. The media house also introduced a FM Radio known as “Radio Capital 94.80” and a television news channel “News24”. The group is engaged in various social and philanthropic projects. The micro-credit program under Bashundhara Foundation, Bashundhara Technical Institute, Bashundhara Ad-din Medical College & Hospital, Bashundahara Eye Hospital & Research Institute, and Bashundhara Special Children Foundation are being operated by the assistance and patronization of the group.