It is a broadly described annual report of Rahim Textile Mills Limited in the year of 2016. The turnover of the company during the year was Tk.630.290 million as against last year’s turnover of Tk.598.622 million. The increase in turnover is 5.29% over the last year. Gross Profit earned during the year was Tk.108.568 million (17.23% of turnover) as against last year’s gross profit of Tk.92.310 million (15.42% of turnover). The increase in Gross Profit ratio is due to decrease in prices of Dyes & Chemicals (Raw materials) and other overheads. Net profit (after tax) earned during the year was Tk.43.331 million as compared to last year’s Net profit (after tax) of Tk.23.565 million. During the year net profit after tax has increased due to the increase of turnover and decrease of financial expenses on the turnover by 2.50% compared to previous year. During the financial year 2015-2016, the Company succeeded in making the net profit due to increase in turnover of Tk.31.67 million compared to previous year and the decrease in the percentage of the cost of goods sold by 1.81% and the decrease in the percentage of financial expenses by 2.50% compared to previous year. This year’s cost of goods sold was Tk.521.72 million (82.77% of turnover) as compared to last year’s cost of goods sold of Tk.506.31 million (84.58% of turnover). This is due to the fact that there has been decreased in average production cost by Tk.0.38 per yards (Tk.22.62 in 2015-2016 per yards and Tk.23.00 in 2014-2015 per yards). The increase in production quantity is 10.48 Lac yards over the last year. Production capacity utilized during the year was 86.98%.
Board of Directors has recommended for declaration of Stock Dividend @ 40% i.e. 0.40 (Zero point four zero) Bonus Share for every 01 (One) ordinary shares held by the shareholders on the Record date. This will need issuance of 1,942,340.40 Ordinary Shares of Tk.10.00 each by capitalization of Tk. 19,423,404.00 out of Retained Earnings (free reserves).
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