www.singerbd.com ANNUAL REPORT 2019 ANNUAL REPORT 2019 2019 A Stronger Brand SINGER’s triumphant journey as the ‘Number 1 Choice for Generations’ continued during the year 2019. The widespread presence of Singer in Electronic, Print and Digital media has assisted the brand to create for itself a robust and lasting impression on the customers’ minds. Research findings reflect that consumers believe in SINGER as a contemporary brand which is relevant to their lives. Innovative campaigns and activities helped the brand to reach even closer to consumers. Product-centric field activations, shop-centric fairs, product demonstrations, free service campaigns and mobile shops have been helping the brand to be engaged with more consumers. A number of new television commercials on Voice Control TVs, Washing Machines and No-frost Refrigerators were released during the year. Extensive campaigns were launched during Eid-ul-Fitr, Eid-ul-Adha and the Cricket World Cup. Abolombon: A SINGER - BRAC Initiative In Bangladeshi society, developing earning skills is a key for women to be empowered. Women particularly belonging to extreme poverty level are considered as the underprivileged as they do not have the financial capacity or access to mainstream skill development educations. In this backdrop, SINGER Bangladesh, in association with leading development agency BRAC, took a joint initiative titled – ‘Abolombon’. The objective of this two-year long project was to facilitate the underprivileged women with free of cost tailoring training to develop sewing skills. Under this initiative, 5,000 women, living below the poverty line, received tailoring training for free at 15 BRAC centres across the country. During the training period, the participants also received sewing accessories free of cost. This project ‘Abolombon’ aims at empowering women so that they can be self-dependent and improve their socio-economic conditions. A good number of these women have changed their lives using their sewing skills as a means of earning. The training helped them to build up their capacity to earn through tailoring at their neighborhoods or localities, eventually leading them towards self-reliance. https://singerbd.com Contents 12 CHAIRMAN’S STATEMENT Our key strengths are SINGER brand and nationwide distribution network which contributed to the coveted success. 7 COMPANY PROFILE Singer has been operating 37 CORPORATE GOVERNANCE in this region (Bangladesh) since 1905 Compliance is the central pillar of Singer management and corporate culture 8 2019 AT A GLANCE and at the same time, an integral part of 405 Retail Outlets, 974 Dealers & 1653 Members all of its business processes. 11 FINANCIAL HIGHLIGHTS 42 FINANCIAL REVIEW 2019 Net Income increased by Operating profit increased to 12% compared to that of last year Taka 1,951 million against Taka 1,659 million of the year 2018 14 BOARD OF DIRECTORS The Board comprises Directors having diverse and 46 PEOPLE IN SINGER professional expertiese and experiences Employees bring values, skills, diversity and expertise to singer that make us the 18 MANAGEMENT TEAM market leader in the consumer durables Leaders behind company’s success industries in the country 22 DIRECTORS’ REPORT 48 MANAGING RISK Revenue reached Tk. 15.5 billion The management always monitors which was higher by 14.2% over the the effectiveness of the designed systems previous year’s revenue of through receiving various reports from Tk. 13.6 billion. different departments 2 » Singer Bangladesh Limited Annual Report 2019 Contents 34 MANAGEMENT DISCUSSION AND ANALYSIS FROM MD’S DESK Strategies and initiatives implemented over the last few years have paid off with tremendous Revenue growth as well as strengthening of operating fundamentals. 40 Statement of Value Added 50 Audit Committee Report 52 Directors' Responsibilities for Financial Statements 53 Nomination and Remuneration Committee Report 55 Activity Calendar 57 Auditors’ Report 107 Directors' Report Singer Bangladesh Limited International Appliances Limited 60 Financial Statements 108 Auditors’ Report Singer Bangladesh Limited International Appliances Limited 109 Financial Statements International Appliances Limited 113 Share Information 114 Glossary of Financial Terms 115 Notice of Annual General Meeting Singer Bangladesh Limited » 3 Vision To be the most admired and respected family company in the country Values We live up to the expectation of a responsible organization by contributing to the improvement Consumers in the quality of life of our customers through outstanding product and services. We provide reasonable return to shareholders while safeguarding their Shareholders investment. We respect each other as individuals and encourage Employees cross functional teamwork while providing opportunities for career development. We develop our suppliers to be partners in progress and share our growth with Suppliers them. We respect our competitors and recognize their Competitors contribution to market value. We conduct our business by conforming to the ethics of our country and share Community the social responsibility of the less fortunate. We make every effort to ensure that the environment Environment is protected and conserved for future generations. 4 » Singer Bangladesh Limited Annual Report 2019 Mission Our mission is to improve the quality of life of people by providing comforts and conveniences at affordable prices Objectives To be the market leader in our product range and market segment. Provide our consumers with the best service and shopping experience in the country. Provide our consumers with products of latest technology. Develop our employees to achieve their real potential. Provide our shareholders with steady asset growth and return on investment above the industry norm. Grow our revenue and profits at a rate above the industry norm. Singer Bangladesh Limited » 5 Corporate Directory Chief Financial Officer Board of Directors Akram Uddin Ahmed Chairman Head of Internal Audit & Compliance (In-charge) Dr. Fatih Kemal Ebiclioglu Shahed Al-Mahmud Chowdhury Managing Director & CEO Auditors A Qasem & Co. M. H. M. Fairoz Chartered Accountants Independent Directors Legal Retainer Dr. Syed Ferhat Anwar Advocate Md. Motiur Rahman A .F. Nesaruddin Corporate Governance Compliance Auditor Directors S. F. Ahmed & Co. (SFACO) Hakan Hamdi Bulgurlu Chartered Accountants Polat Sen Cemal Can Dincer Bankers Trust Bank Limited Company Secretary Pubali Bank Limited Dhaka Bank Limited Mohammad Sanaullah Bank Alfalah Limited Audit Committee Eastern Bank Limited The City Bank Limited A. F. Nesaruddin (Chairman) Mutual Trust Bank Limited Dr. Syed Ferhat Anwar Commercial Bank of Ceylon PLC. Polat Sen Standard Chartered Bank Mohammad Sanaullah (Secretary) The Hongkong and Shanghai Banking Corporation Limited Nomination & Remuneration Committee Registered Office Dr. Syed Ferhat Anwar (Chairman) 39 Dilkusha Commercial Area A. F. Nesaruddin Dhaka-1000 Cemal Can Dincer Mohammad Sanaullah (Secretary) Corporate Office Management Committee 5B, Road No. -126 Gulshan-1, Dhaka-1212 M. H. M. Fairoz (Chairman) Akram Uddin Ahmed Audit and Wholesale Office Mokbulla Huda Chowdhury H. S. Bhaban Chandana Aravinda Samarasinghe Cha-75/A, Bir Uttam Rafiqul Islam Avenue Kazi Rafiqul Islam Pragati Sarani, Dhaka- 1212 Erdinc Ayan Md. Anisur Rahman Singer Manufacturing Complex (SMC) Md. Monzur Murshed Rajfulbaria, Jhamur, Savar, Dhaka-1347 Abu Zafor Md. Kibria Subsidiary Company Md. Ashgar Hossain International Appliances Limited Mohammad Sanaullah (Member Secretary) Koulashur, Hemayetpur, Savar, Dhaka-1348 6 » Singer Bangladesh Limited Annual Report 2019 Company Profile SINGER BANGLADESH LIMITED inger has been operating in this company on 4 September 1979 under encompass a highly successful region (Bangladesh) since Companies Act 1913. It was multi-brand strategy combining S 1905 when the first Singer converted into a public limited products of top world marques with sewing machines went on sale at company in 1983 when it offered its the Company's own products across Chittagong and Dhaka stores and at shares to the public with the requisite a range of electrical home that time the country was a part of the permission from the Government. appliances. Indian sub-continent. Since its inception in Bangladesh, the Hire Purchase scheme is one of the After the partition of the Indian name Singer has been synonymous cardinal factors for the success of the Sub-Continent in 1947, Singer in East with the sewing machine. Although Company. This scheme is innovative Pakistan operated as a branch of Singer Corporation had started and appropriate for Bangladesh Singer Pakistan and the products diversification of its product range in considering the socio-economic used to come from West Pakistan. At early sixties, Singer Bangladesh conditions of the country. the initial stage marketing operation Limited remained a company with a was carried out through only 10 single product – ‘sewing machines’ till In 2019, Singer Bangladesh Limited shops, which increased to 43 by the 1985. A single product sewing became a member of Arcelik A. S., late 1960s. In December 16, 1971 machine company turned into a Turkish largest home appliances Bangladesh emerged as a sovereign multi-product consumer durable company (Part of Koc Holding, state. As a result, the East Pakistan company in 1985. Turkey). Retail Holdings Bhold B. V. is branch office was elevated to a the majority shareholder in the country office and the sewing Today, Singer Bangladesh Limited is a company, holding