ANNUAL REPORT 2019-2020 M. I. CEMENT FACTORY LTD. Corporate Office: Delta Life Tower (3rd & 6th floor) Plot No. 37, Road No. 45 (South) & 90 (North), Gulshan- 2, Dhaka- 1212. Tel: +88-02-222263631, 222261633, 222262634, 222284636, 222290641 Fax: +88-02-222263643, E-mail: [email protected] Web: www.crowncement.com Registered Office: West Mukterpur, Munshiganj Tel: +88-02-7648077, Fax: +88-02-7648070 E-mail: [email protected] ALHAJ MD. KHABIR UDDIN MOLLAH was one of the sponsors of M. I. Cement Factory Limited. In fact, he sowed the seed of the Company and tried his level best to make the Company sustainable. He was the founding Managing Director of the Company and performed the noble responsibility till his death. The Board of Directors of M. I. Cement Factory Limited always recall his contribution in every steps of the operation and pray in every Board Meeting to the Almighty Allah (SWT) for granting him Jannatul Ferdous. PICTURE OF OUR DECEASED MANAGING DIRECTOR ALHAJ MD. KHABIR UDDIN MOLLAH 07 CONTENT 07 Transmittal Letter 08 Brief History 10 Notice of the 26th AGM (Bengali) 11 Notice of the 26th AGM (English) 12 Vision, Mission 13 Our Values 14 Goals 15 Corporate History & Achievements 16 Corporate Profile 18 Board of Directors 19 Profile of the Board of Directors 30 Sponsor Shareholders 31 Audit Committee 32 Nomination and Remuneration Committee 33 Advisory Panel 34 Management Team 35 Glimpse of the 25th Annual General Meeting 36 Corporate Governance 44 Message from the Chairman 46 Statement from the Managing Director 49 Directors’ Report (English) 63 Directors’ Report (Bengali) 76 Annexure to the Directors‘ Report 104 Highlight of the Events 107 Auditors’ Report 112 Statement of Financial Position 113 Statement of Profit or Loss & Other Comprehensive Income 114 Statement of Changes in Equity 115 Statement of Cash Flows 116 Notes to the Financial Statements 165 Attendance Slip and Proxy Form TRANSMITTAL LETTER 14 December 2020 The Valued Members Bangladesh Securities and Exchange Commission Registrar of Joint Stock Companies & Firms Dhaka Stock Exchange Ltd. Chittagong Stock Exchange Ltd. Sub: Annual Report for the year ended 30 June 2020 Dear Sir(s)/Madam(s), We are pleased to enclose a copy of the Annual Report containing the Notice of the 26th Annual General Meeting, Directors’ Report, Certificate of Corporate Governance Compliance Auditors, Statutory Auditors’ Report along with the Audited Financial Statements including Statement of Financial Position as at 30 June 2020, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year ended 30 June 2020 together with Notes thereon and Proxy Form for your kind information & records. Thanking you. Yours faithfully, (Md. Mozharul Islam, FCS) Sr. GM & Company Secretary M. I. CEMENT FACTORY LTD. I ANNUAL REPORT I 2019-20 07 BRIEF HISTORY M. I. Cement Factory Ltd., a public limited company, is one of the leading cement manufacturers in Bangladesh. It started its journey on 31 December 1994 with the commitment of manufacturing high quality cement under the brand name “Crown Cement” that has already won renown both at home and abroad. Initially, the plant was installed with a capacity of producing 600 MT/Day of Portland Cement. With the passing of time, the demand for Crown Cement has been increasing day-by-day. So, the Sponsors expanded the project gradually to the 2nd unit started in 2002 with a production capacity of 800 MT/Day, the 3rd unit in 2008 of 1,400 MT/Day, the 4th unit in 2011 of 3,000 MT/Day and the 5th unit in 2017 of 5,200 MT/Day to take the total production capacity to 11,000 MT/Day i.e. 3.3 million Metric Ton per annum. The company’s backward and forward integration endeavors have given new dimensions to its growth platform. With this end in view, the associate industrial units such as Crown Polymer Bagging Ltd., Crown Power Generation Ltd., Crown Mariners Ltd., Crown Transportation and Logistics Ltd. and Crown Cement Concrete and Building Products Ltd. have been set up and are in operation. It has also acquired three Handy Max size Ocean Going Ship to facilitate transportation of raw materials from abroad. 08 M. I. CEMENT FACTORY LTD. I ANNUAL REPORT I 2019-20 It is hopefully expected that these new growth platforms will facilitate creation of new dimensions and frontiers to the mother company, M. I. Cement Factory Ltd. M. I. Cement Factory Ltd. pioneered in cement export in 2003 and paved the way for earning hard-earned foreign currency. The company achieved the National Export Trophy thrice for attaining the top most place among the cement exporters in Bangladesh. The factory possesses well communications facility both through water and road. It is located at West Mukterpur, Munshiganj on the bank of the river Dhaleswari. It is connected by a metalled road (Dhaka-Munshiganj Highway) linked with the whole country. The company has been listed with the Dhaka Stock Exchange Ltd. and the Chittagong Stock Exchange Ltd. in 2011. Its high growth agenda have been highly appreciated by the shareholders and have won the investors’ confidence. M. I. CEMENT FACTORY LTD. ANNUAL REPORT I 2018-19 M. I. CEMENT FACTORY LTD. I ANNUAL REPORT I 2019-20 09 26Zg evwl©K mvaviY mfvi weÁwß GZ Øviv Rvbv‡bv hv‡”Q †h, Gg. 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GKRb ‡kqvi‡nvìvi Zuvi c‡¶ GKRb e¨w³‡K cÖw· wb‡qvM Kivi Rb¨ Dchy³ †iwfwbD ÷¨v¤ú m¤^wjZ cÖw· di&g h_vh_fv‡e c~iY K‡i mfv Avi‡¤¢i 48 (AvUPwjøk) N›Uv c~‡e© [email protected] G B-‡gB‡ji gva¨‡g Aek¨B cvVv‡eb| 3. ‡kqvi‡nvìvM‡Yi cÖkœmg~n evwl©K mvaviY mfv ïiæ nIqvi Kgc‡ÿ 24 N›Uv c~‡e© Ges mfv PjvKvjxb D‡jøwLZ wjs‡K cvVv‡eb| wjsKwU‡Z hy³ nIqvi Rb¨ †kqvi‡nvìviMY‡K Zvu‡`i bvg, weI wnmve bs Ges †kqv‡ii msL¨v D‡jøL Ki‡Z n‡e| 4. ‡Kv¤úvbxi evwl©K cÖwZ‡e`b Gi md&U Kwc †kqvi‡nvìviM‡Yi B-‡gB‡j cvVv‡bv n‡e Ges evwl©K cÖwZ‡e`b Gi md&U Kwc †Kv¤úvbxi I‡qe mvBU http://www.crowncement.com G cvIqv hv‡e| 10 M. I. CEMENT FACTORY LTD. I ANNUAL REPORT I 2019-20 NOTICE OF THE 26th ANNUAL GENERAL MEETING Notice is hereby given that the 26th Annual General Meeting (AGM) of M. I. Cement Factory Limited will be held at 11:00 A.M. on Tuesday, the 29th December 2020 using Digital Platform through the link https://26agm.crowncement.com to transact the following businesses: AGENDA: Ordinary Resolution 1. To receive and adopt the Directors’ Report, Auditors’ Report and the Audited Financial Statements of the Company for the year ended 30 June 2020. 2. To declare Dividend for the year ended 30 June 2020. 3. To elect Directors. 4. To appoint the Statutory Auditors for the year ending 30 June 2021 and to fix their remuneration. 5. To appoint the Corporate Governance Compliance Auditors for the year ending 30 June 2021 and to fix their remuneration. Special Resolution 1. To approve winding up of the 3 (Three) Subsidiary Companies fully owned by M. I. Cement Factory Limited (MICFL), if considered and thought fit, the following resolution may be passed: “RESOLVED that the proposal for winding up of the 3 (Three) Subsidiary Companies fully owned by M. I. Cement Factory Limited (MICFL) is hereby passed.” By Order of the Board Dated, Dhaka (Md. Mozharul Islam, FCS) 14 December 2020 Senior General Manager & Company Secretary Notes: 1. The Shareholders, whose names appeared in the Company’s Register or in the Depository Register on the Record Date i.e.