ANNUAL REPORT 2020 ANNUAL REPORT 2020 ANNUAL REPORT 2020 2020 A TRUSTED BRAND FOR GENERATIONS SINGER continued its journey as a brand that diligently proved it as a Brand for all generations despite the disturbance of pandemic of COVID-19 extending in 2020. Despite the closures of physical shops, absence of print media and disruptions in all other outdoor activities, SINGER was able to flourish through its high presence and activities in the digital platforms and e-Commerce. Engaging with customers 24/7, looking after the pressing demands for hygiene & home cooking & fashion oriented appliances, SINGER proved to be the most sought after trusted brand for the folks of all walks of life. Online cooking shows, sewing demo’s and other digital entertainment contents encouraged the locked-down customers to spend their quality time in cooking, sewing and home entertainment. SINGER commenced online deliveries all over the country right from the start to serve the customers when they needed the products. Being contemporary and relevant at the most vulnerable times, SINGER was there from the beginning as they have been in the hearts of customers for the last 116 years. 2020 the Pandemic Year: SINGER has been with the people of Bangladesh for more than 100 years. SINGER continued is efforts to stand by the people in 2020 under its ''SINGER for Society'' programme. Soon after the break out of pandemic in Bangladesh, SINGER donated Refrigerators, Washing Machines and Microwave Ovens to a number of hospitals across the country to facilitate the hygiene of doctors and nurses attending COVID-19 patients. We also stood by cyclone ‘’Amphan’’ affected people in the Southern Part of the country in May 2020 by distributing food aid. https://singerbd.com 2/128 ANNUAL REPORT 2020 CONTENTS 7 COMPANY PROFILE Singer has been operating in this region (Bangladesh) since 1905 8 2020 AT A GLANCE 424 Retail Outlets, 1088 Dealers & 1767 Members 11 FINANCIAL HIGHLIGHTS Number of Shareholders 10,185, increased by 3% 14 BOARD OF DIRECTORS The Board comprises Directors having diverse and professional expertiese and experiences 19 MANAGEMENT TEAM Leaders behind company’s success 23 DIRECTORS’ REPORT Despite COVID-19 impact Company achieved revenue amounting Tk. 15.1 billion which was close to 2020 revenue of Tk. 15.5 billion even after 2nd Quarter was mostly stroked by general holiday 35 DIVIDEND DISTRIBUTION POLICY According to BSEC directive the Policy takes place in this report 41 CORPORATE GOVERNANCE Corporate reputation is valuable asset of a company which is directly linked to uncompromising compliance with applicable laws, regulations, and internal guidelines 48 FINANCIAL REVIEW 2020 12 Carefully managed costs without sacrificing CHAIRMAN’S STATEMENT expansion of the business for prospects Reopening of the economy in June was a along with incurring additional expenses for bold move and proved to be a prudent one. Hopefully precautionary measures related to COVID-19 2021 will get us back to a sustainable growth track with the world economy and domestic demand turning around 52 PEOPLE IN SINGER The Company was quick on its feet to prepare offices, manufacturing units, warehouses, and showrooms according to the government protocols & advisories and Arcelik guidelines as well 54 MANAGING RISK Risk analysis programmes are designed to help the organization to deal as effectively as possible with the existing or potential threats Singer Bangladesh Limited 3/128 ANNUAL REPORT 2020 CONTENTS 46 Statement of Value Added 56 Audit Committee Report 58 Directors' Responsibilities for Financial Statements 59 Nomination and Remuneration Committee Report 61 Activity Calendar 63 Auditors’ Report Singer Bangladesh Limited 66 Financial Statements Singer Bangladesh Limited 117 Directors' Report International Appliances Limited 118 Auditors’ Report International Appliances Limited 119 Financial Statements International Appliances Limited 123 Share Information 124 Glossary of Financial Terms 125 Notice of Annual General Meeting 38 MANAGEMENT DISCUSSION AND ANALYSIS FROM MD’S DESK 2020 will be remembered for the COVID-19 pandemic, which devastated lives and disrupted livelihoods. We responded quickly and returned back to the business from 3rd Quarter. Singer Bangladesh Limited 4/128 ANNUAL REPORT 2020 VISION To be the most admired and respected family company in the country Consumers We live up to the expectation of a responsible organization by contributing to the improvement 01 in the quality of life of our customers through outstanding product and services. Shareholders We provide reasonable return 02 to shareholders while safeguarding their investment. Employees We respect each other as individuals and encourage cross 03 functional teamwork while providing opportunities for career development. Suppliers VALUES We develop our suppliers to 04 be partners in progress and share our growth with them. Competitors We respect our competitors 05 and recognize their contribution to market value. Community We conduct our business by conforming 06 to the ethics of our country and share the social responsibility of the less fortunate. Environment We make every effort to ensure that 07 the environment is protected and conserved for future generations. Singer Bangladesh Limited 5/128 ANNUAL REPORT 2020 MISSION Our mission is to improve the quality of life of people by providing comforts and conveniences at affordable prices To be the market leader in our 01 product range and market segment. Provide our consumers with the best service and shopping 02 experience in the country. Provide our consumers with 03 products of latest technology. OBJECTIVES Develop our employees to 04 achieve their real potential. Provide our shareholders with steady asset growth and 05 return on investment above the industry norm. Grow our revenue and profits at a rate 06 above the industry norm. Singer Bangladesh Limited 6/128 ANNUAL REPORT 2020 CORPORATE DIRECTORY Board of Directors Chief Financial Officer Akram Uddin Ahmed Chairman Dr. Fatih Kemal Ebiclioglu In-charge- Head of Internal Audit and Compliance Shahed Al-Mahmud Chowdhury Managing Director & CEO M. H. M. Fairoz Auditors A Qasem & Co. Independent Directors Chartered Accountants Dr. Syed Ferhat Anwar (Up to February 28, 2021) Masud Khan Legal Retainer Reazul Haque Chowdhury (From March 1, 2021) Advocate Md. Motiur Rahman Directors Corporate Governance Compliance Auditor Hakan Hamdi Bulgurlu M/s. Itrat Husain & Associates Polat Sen Chartered Secretaries Cemal Can Dincer Bankers Acting Company Secretary Trust Bank Limited Pubali Bank Limited Kazi Ashiqur Rahman Dhaka Bank Limited Audit Committee Bank Alfalah Limited Eastern Bank Limited Masud Khan, Chairman The City Bank Limited Dr. Syed Ferhat Anwar (Up to February 28, 2021) Mutual Trust Bank Limited Reazul Haque Chowdhury (From March 1, 2021) Commercial Bank of Ceylon Plc. Polat Sen Standard Chartered Bank Kazi Ashiqur Rahman, Secretary The Hongkong and Shanghai Banking Corporation Limited Nomination & Remuneration Committee Registered Office Dr. Syed Ferhat Anwar, Chairman (Up to February 28, 2021) 39 Dilkusha Commercial Area (From March 1, 2021) Reazul Haque Chowdhury, Chairman Dhaka-1000 Masud Khan Cemal Can Dincer Corporate Office Kazi Ashiqur Rahman, Secretary 5B, Road No. -126 Gulshan-1, Dhaka-1212 Management Committee M. H. M. Fairoz, Chairman Audit and Wholesale Office Akram Uddin Ahmed, Member Secretary H. S. Bhaban Mokbulla Huda Chowdhury Cha-75/A, Bir Uttam Rafiqul Islam Avenue Chandana Aravinda Samarasinghe Pragati Sarani, Dhaka- 1212 Kazi Rafiqul Islam Erdinc Ayan Singer Manufacturing Complex (SMC) Hakan Altinisik Rajfulbaria, Jhamur, Savar, Dhaka-1347 Md. Anisur Rahman Md. Monzur Murshed Subsidiary Company Abu Zafor Md. Kibria International Appliances Limited Mohammad Ashgar Hossain Koulashur, Hemayetpur, Savar, Dhaka-1348 Singer Bangladesh Limited 7/128 ANNUAL REPORT 2020 COMPANY PROFILE SINGER BANGLADESH LIMITED inger has been operating in this into a public limited company in 1983 products across a range of electrical region (Bangladesh) since 1905 when it offered its shares to the public home appliances. S when the first Singer sewing with the requisite permission from the machines went on sale at Chittagong and Government. Hire Purchase scheme is one of the Dhaka stores and at that time the country cardinal factors for the success of the was a part of the Indian sub-continent. Since its inception in Bangladesh, the Company. This scheme is innovative and name Singer has been synonymous with appropriate for Bangladesh considering After the partition of the Indian the sewing machine. Although Singer the socio-economic conditions of the Sub-Continent in 1947, Singer in East Corporation had started diversification of country. Pakistan operated as a branch of Singer its product range in early sixties, Singer Pakistan and the products used to come Bangladesh Limited remained a company In 2019, Singer Bangladesh Limited from West Pakistan. At the initial stage with a single product – ‘sewing machines’ became a member of Arcelik A. S., marketing operation was carried out till 1985. A single product sewing Turkish largest home appliances through only 10 shops, which increased machine company turned into a company (Part of Koc Holding, Turkey). to 43 by the late 1960s. In December 16, multi-product consumer durable Retail Holdings Bhold B. V. is the majority 1971 Bangladesh emerged as a company in 1985. shareholder in the company, holding a sovereign state. As a result, the East stake of 57%. The