KYCR Coil Industries Ltd. - Dhaka Stock Exchange

The Company provides medical allowances to its employees. Furthermore, it also allows leave
encashment benefits, insurance, etc. to the employees.
Revaluation of Assets
The Company made revaluation of its assets in FY 2010 and reflected in the Financial
Statements of that year. Particulars of the valuer and summary of report are as follows:
Name : Shafiq Bashak & Co.
Qualification : A firm of Chartered Accountants
Work done (report date) : 20 September, 2010
Reason for Revaluation : To incorporate the fair present value of the major
assets of the company in the financial statements.
Other major works done by the valuer
As a Chartered Accountants Firm it did valuation jobs in addition to normal audit works namely : (i) IFIC Bank
Ltd (ii) Desh Garments Ltd (iii) Pacific Industries Ltd (iv) Therapeutics (BD) Ltd (v) National Banks Ltd (vi)
Lloyds (vii) Land & Building of Glaxo Wellcome Bd. Ltd (viii) Merimo Ltd .CEPZ (ix) Bangladesh Welding
Electrodes Ltd. (x) Land & Building of Hoechst Bangladesh Ltd.
Itemizing showing comparison Itemizing showing comparison
Particulars
Asset Value
Before
Revaluation
(Tk.)
Revalued
Amount (Tk.)
Revaluation
Surplus
(Tk.)
Free Hold Land 30,607,953 772,947,000 742,339,047
Building and civil construction 198,978,066 704,840,300 505,862,234
Plant & Machinery 641,683,119 826,497,512 184,814,393
Electric Installation &Air
condition
12,534,784 25,000,000 12,465,216
Weight Scale 508,852 1,540,000 1,031,148
Motor Vehicles 17,796,359 17,812,935 16,576
Total 902,141,429 2,348,637,747 1,446,528,614
Methodology of Valuation
There are a couple of internationally recognized methodologies commonly applied for valuation
of property, plant & equipment. Out of these, market value method, considered most
appropriate, was applied for revaluation of KYCR Coil Industries Ltd. market value method
essentially estimates the cost of replacing the tangible assets of business. The replacement cost
takes into account the market value of various assets required to be acquired to create the
infrastructure exactly similar to that of the company being revalued. Alternatively, this
methodology can also determine the money value which can be realize by selling off all tangible
assets of a company.
Transaction with subsidiary/holding company or associate companies
The Company carried out a number of transactions with related parties in the normal course of
business.