Corporate Financial Reporting of BOC Bangladesh Ltd.
We shall be recognized as the leader in all business sectors in which we compete in Bangladesh
Our success will be build on our absolute dedication to the satisfaction of our customer through constant
Innovation, operational efficiency cost effectiveness and the talent of our people.
We shall always apply high standard integrity and responsibility of our activities.
Corporate Annual reports are widely used in understanding the Quality of corporate Governess. A well-designed annual report is an attempt to express, as much as possible, the 365 days activities of a company. In general a corporate annual report contains information’s such a statement of the chief executive officer, a statement from the chairman, composition of the board of directors, and financial statements vise , income statements, statements of retained earnings, balance sheet and a cash flow statement. It also includes notes and supporting schedules such as schedule of long-term assets, five to ten years performance statistics, information on human resources development and the auditor’s report.
The chief executive officer or the chairman’s report usually states the current operations of and future challenges for the company. The reports contain both opportunities and threats for the company and the shareholders. The disclosers of the composition of the board of directors are important. The directors in the board and their contribution and importance in the society are considered important by the shareholders. Most importantly the presence of outside independent directors in the board is considered necessary for good governance. Financial statements are considered the most important part of an annual report. Income statements quantifies the operation of a business and gain or loss from these operations, balance sheets the assets and liabilities of the business, and cash flow statement shows the liquidity position of the business. These three financial statements show the financial health of the business. In any particular year, these statements disclose the company’s current year end and the immediate previous state of financial performance. A company also discloses historical performance statistics for a period of five to ten years. Performance is measured in terms of profitability, liquidity, and solvency.
In guiding the preparation of the above financial statements, there is International accounting standards. so far the International accounting standard committee(IASC) has developed 40 accounting standards(IASC 2002).The purpose of these standards is to facilitate harmony in accounting practices by companies so that performance evaluation and investment decisions become easier for the shareholders. One of these standards is adequate disclosure, which says that financial statements shall disclose all material information important for decision making.
The chairman’s report usually covers a short review of current activities, salient features of organization performance, strength of the organization and potential threats that may hamper the organizations future. A well designed report can help investors and other stakeholders in their investment decisions. A good report is one which can capture the past, present and future. It contains not only the achievements of the organization but also its weaknesses and opportunities lost. It also contains the policies and strategies under consideration to sustain the strengths and removes the barriers in the way of targeting the future opportunities
While financial statements are historical in nature, they can still provide users with valuable insights. These users rely on financial statement analysis, which involves examining trends in key financial data, comparing financial data across companies, and analyzing financial ratios to assess the financial health and future prospects of a company. Here we focus our attention on the most important ratios and other analytical tools that financial analysts use.
In addition to stockholders and creditors, managers are also vitally concerned with the financial ratios. The ratios provide indicators of how well the company and its business units are performing. The specific ratios selected depend on the company’s strategy. For example, a company that wants to emphasize responsiveness to customers may closely monitor the inventory turnover ratio. Since managers must report to stockholders and may want to raise funds from external sources, managers must pay attention to the financial ratios used by external investors.
Historical Background BOC Bangladesh Ltd.:
BOC Bangladesh Ltd. Is a member of the Linde Group, a multinational company that has been present in Bangladesh for over 50 years with continuous expansion in operation and business with a modest appearance at the beginning BOC Bangladesh Ltd. Products are now part and parcel of all the industrial and economic activities of the country. Today the turnover of the company has exceeded tk.1.25 billion.BOC Bangladesh Ltd. Is a listed company in our market? This company listed in 1976.The registered office in 285 tejgoan I/A, Dhaka-1213.BOC Bangladesh Ltd is a member of the Linde Group having its head office in Munich, Germany has been present in Bangladesh for over 50 years with continuous expansion in operation and business.
|1879||Foundation Linde AG ,Germany|
|1880||Barium oxide parents|
|1885||Linde british co, London|
|1886||Brings oxygen company|
|1895||Parent to cart van linde|
|1907||Linde Air products,co|
|1929||Linde take over the groundless|
|1935||BOC buys controlling stake|
|1969||BOC opens research facility|
|1991||Foundation of Linde joint venture|
|2002||Joint venture linde-BOC plants|
|2006||Linde and BOC now at Linde group|
Performance at a glance:
· Financial History
|Net Fixed Assets||1257046||1087131||1004121||966509|
|Net assets per share||76.53||82.12||91.62||99.28|
The financial statement analyses of BOC need for some method .There are five parts of the financial statements. And each statement is analyzed by using different tools. The balance sheet and the income statement are analyzed by using common size statement and also prepare the comparative balance sheet. We also consider which items are relative with the IAS 1(PRESENTATION OF FINANCIAL STATEMENT) and notification if SEC. A common size the cash flow statements are analyzed by using the tools such as
- Cash average ratio
- Quality of income ratio
- Capital expenditure ratio
- Cash flow return ratio.
The director report and the chairman report are also analyzed because the two items are used for the taking decision of present, past and the future. The chairman report indicates the strength of financial position in future and the future probability of the firm’s growth. The director’s report also indicates the works are performed by the director and their necessary steps that have been used for the future development of the firm. The ratio analysis on the basis of the common shareholder, short term creditor and the long term creditor helps to understand
ANALYSIS OF THE REPORT:
- Qualitative report:
- Compliance if IAS 1:
· Presentation of Financial Statements:
This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirement for their content.
An entity shall apply this Standard in preparing and presenting general purpose financial statements in accordance with International Financial Reporting Standards (IFRSs).
Other IFRSs set out the recognition, measurement and disclosure requirements for specific transactions and other events.
This Standard uses terminology that is suitable for profit-oriented entities, including public sector business entities. If entities with not-for-profit activities in the private sector or the public sector apply this Standard, they may need to amend the descriptions used for particular line items in the financial statements and for the financial statements themselves.
The following terms are used in this Standard with the meanings specified:
General purpose financial statements (referred to as ‘financial statements’) are those intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs. Material Omissions or misstatements of items are material if they could, individually or collectively; influence the economic decisions that users make on the basis of the financial statements. The components of other comprehensive income include:
(a) Changes in revaluation surplus (see IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets);
(b) Actuarial gains and losses on defined benefit plans recognized in accordance with paragraph 93A of IAS 19 Employee Benefits;
(c) Gains and losses arising from translating the financial statements of a foreign operation (see IAS 21 the Effects of Changes in Foreign Exchange Rates);
(d) Gains and losses on re-measuring available-for-sale financial assets (see IAS 39 Financial Instruments: Recognition and Measurement);
(e) The effective portion of gains and losses on hedging instruments in a cash flow hedge (see IAS 39).
Owners are holders of instruments classified as equity.
Profit or loss is the total of income less expenses, excluding the components of other comprehensive income.
Total comprehensive income is the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.
Total comprehensive income comprises all components of ‘profit or loss’ and of ‘other comprehensive income’.
Although this Standard uses the terms ‘other comprehensive income’, ‘profit or loss’ and ‘total comprehensive income’, an entity may use other terms to describe the totals as long as the meaning is clear. For example, an entity may use the term ‘net income’ to describe profit or loss.
Purpose of financial statements:
Financial statements are a structured representation of the financial position and financial performance of an entity. The objective of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. Financial statements also show the results of the management’s stewardship of the resources entrusted to it. To meet this objective, financial statements provide information about an entity’s:
(d) Income and expenses, including gains and losses;
(e) Contributions by and distributions to owners in their capacity as owners; and
(f) Cash flows.
This information, along with other information in the notes, assists users of financial statements in predicting the entity’s future cash flows and, in particular, their timing and certainty. The BOC Bangladesh Ltd maintains all items above in their financial statements.
Complete set of financial statements:
A complete set of financial statements comprises:
(a) A statement of financial position as at the end of the period;
(b) A statement of comprehensive income for the period;
(c) A statement of changes in equity for the period;
(d) A statement of cash flows for the period;
(e) Notes, comprising a summary of significant accounting policies and other explanatory information; and
(f) a statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements.
BOC Bangladesh Ltd has the all five items in their statements.
As permitted by paragraph 81, BOC Ltd may present the components of profit or loss either as part of a single statement of comprehensive income or in a separate income statement. When an income statement is presented it is part of a complete set of financial statements and shall be displayed immediately before the statement of comprehensive income.
The BOC Bangladesh Ltd present, outside the financial statements, a financial review by management that describes and explains the main features of the entity’s financial performance and financial position, and the principal uncertainties it faces. Such a report may include a review of:
(a) the main factors and influences determining financial performance, including changes in the environment in which the entity operates, the entity’s response to those changes and their effect, and the entity’s policy for investment to maintain and enhance financial performance, including its dividend policy;
(b) Its sources of funding and its targeted ratio of liabilities to equity; and
(c) Its resources not recognized in the statement of financial position in accordance with IFRSs.
The BOC Bangladesh Ltd also present, outside the financial statements, reports and statements such as environmental reports and value added statements, particularly in industries in which environmental factors are significant and when employees are regarded as an important user group. Reports and statements presented outside financial statements are outside the scope of IFRSs
Fair presentation and compliance with IFRSs:
Financial statements of The BOC Bangladesh Ltd present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful with the definitions and recognition criteria for assets, liabilities, income and expense.
The BOC Bangladesh Ltd in a prior period from a requirement in an IFRS for the measurement of assets or liabilities and that departure affects the measurement of changes in assets and liabilities recognized in the current period’s financial statement.
Material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those uncertainties.
IAS 18 Revenue defines revenue and requires an entity to measure it at the fair value of the consideration received or receivable, taking into account the amount of any trade discounts and volume rebates the entity allows. An entity undertakes, in the course of its ordinary activities, other transactions that do not generate revenue but are incidental to the main revenue-generating activities. An entity presents the results of such transactions, when this presentation reflects the substance of the transaction or other event, by netting any income with related expenses arising on the same transaction
In addition, an entity presents on a net basis gains and losses arising from a group of similar transactions, for example, foreign exchange gains and losses or gains and losses arising on financial instruments held for trading. However, an entity presents such gains and losses separately if they are material. These rules are maintained by The BOC Bangladesh Ltd
Frequency of reporting:
The BOC Bangladesh Ltdpresent a complete set of financial statements (including comparative information) at least annually. When an entity changes the end of its reporting period and presents financial statements for a period longer or shorter than one year, an entity shall disclose, in addition to the period covered by the financial statements:
It consistently prepares financial statements for a one-year period. However, for practical reasons, some entities prefer to report, for example, for a 52-week period. This Standard does not preclude this practice
The BOC Bangladesh Ltddiscloses comparative information in respect of the previous period for all amounts reported in the current period’s financial statements. An entity shall include comparative information for narrative and descriptive information when it is relevant to an understanding of the current period’s financial statements.
Consistency of presentation:
The BOC Bangladesh Ltd retains the presentation and classification of items in the financial statements from one period.
A significant acquisition or disposal, or a review of the presentation of the financial statements, might suggest that the financial statements need to be presented differently. The BOC Bangladesh Ltd changes the presentation of its financial statements only if the changed presentation provides information that is reliable and more relevant to users of the financial statements and the revised structure is likely to continue, so that comparability is not impaired.
Identification of the financial statements:
The BOC Bangladesh Ltd clearly identifies the financial statements and distinguishes them from other information in the same published document.
IFRSs apply only to financial statements, and not necessarily to other information presented in an annual report, a regulatory filing, or another document. Therefore, it is important that users can distinguish information that is prepared using IFRSs from other information that may be useful to users but is not the subject of those requirements.
(j) the total of assets classified as held for sale and assets included in disposal groups classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;
(k) Trade and other payables;
(m) Financial liabilities (excluding amounts shown under (k) and (l));
(n) Liabilities and assets for current tax, as defined in IAS 12 Income Taxes;
(o) Deferred tax liabilities and deferred tax assets, as defined in IAS 12;
(p) Liabilities included in disposal groups classified as held for sale in accordance with IFRS 5;
(q) Non-controlling interests, presented within equity; and
(r) Issued capital and reserves attributable to owners of the parent.
The BOC Bangladesh Ltd present additional line items, headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position.
It also presents current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position; it shall not classify deferred tax assets (liabilities) as current assets (liabilities).
· Current/non-current distinction:
The BOC Bangladesh Ltd present current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position in accordance with paragraphs 66–76 except when a presentation based on liquidity provides information that is reliable and more relevant. When that exception applies, an entity shall present all assets and liabilities in order of liquidity.
It also disclose the amount expected to be recovered or settled after more than twelve months for each asset and liability line item that combines amounts expected to be recovered or settled:
(a) No more than twelve months after the reporting period, and
(b) More than twelve months after the reporting period.
It supplies goods or services within a clearly identifiable operating cycle, separate classification of current and non-current assets and liabilities in the statement of financial position provides useful information by distinguishing the net assets that are continuously circulating as working capital from those used in the entity’s long-term operations. It also highlights assets that are expected to be realized within the current operating cycle, and liabilities that are due for settlement within the same period.
The BOC Bangladesh Ltdclassifies an asset as current when:
(a) It expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(b) It holds the asset primarily for the purpose of trading;
(c) It expects to realize the asset within twelve months after the reporting period; or
(d)The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
The BOC Bangladesh Ltd classifies all other assets as non-current.
It uses the term ‘non-current’ to include tangible, intangible and financial assets of a long-term nature. It does not prohibit the use of alternative descriptions as long as the meaning is clear.
The BOC Bangladesh Ltd classifies a liability as current when:
(a) It expects to settle the liability in its normal operating cycle;
(b) It holds the liability primarily for the purpose of trading;
(c) The liability is due to be settled within twelve months after the reporting period; or
(d) The entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period.
It also classifies all other liabilities as non-current.
Some current liabilities, such as trade payables and some accruals for employee and other operating costs, are part of the working capital used in the entity’s normal operating cycle.
Information to be presented either in the statement of financial position or in the notes:
BOC Bangladesh ltd disclose its information in the statement of financial position in the notes, further sub classifications of the line items presented, classified in a manner appropriate to the entity’s operations.
The detail provided in sub classifications depends on the requirements of IFRSs and on the size, nature and function of the amounts involved.
(a) Items of property, plant and equipment are disaggregated into classes in accordance with IAS 16;
(b) Receivables are disaggregated into amounts receivable from trade customers, receivables from related parties, prepayments and other amounts;
(c) Inventories are disaggregated, in accordance with IAS 2 Inventories, into classifications such as merchandise, production supplies, materials, and work in progress and finished goods;
(d) Provisions are disaggregated into provisions for employee benefits and other items; and
(e) Equity capital and reserves are disaggregated into various classes, such as paid-in capital,
Share premium and reserves.
BOC Bangladesh ltd discloses the following the statement of changes in equity, or in thenotes:
(a) For each class of share capital:
(i) The number of shares authorized;
(ii) The number of shares issued and fully paid, and issued but not fully paid;
(Iii) par value per share, or that the shares have no par value;
(iv)A reconciliation of the number of shares outstanding at the beginning and at the end of the period;
(v) The rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital;
(vi) Shares in the entity held by the entity or by its subsidiaries or associates; and
(vii) Shares reserved for issue under options and contracts for the sale of shares, including terms and amounts; and
(b) A description of the nature and purpose of each reserve within equity.
(b) Total comprehensive income for the period attributable to:
(i) Non-controlling interests, and
(ii) Owners of the parent.
It also presents in a separate income statement (see paragraph 81) the line items in paragraph 82(a)–(f) and the disclosures in paragraph 83(a).
They present additional line items, headings and subtotals in the statement of comprehensive income and the separate income statement (if presented), when such presentation is relevant to an understanding of the entity’s financial performance.
Profit or loss for the period:
BOC Bangladesh ltd shall recognize all items of income and expense in a period in profit or loss unless an IFRS requires or permits otherwise.
Some IFRSs specify circumstances when an entity recognizes particular items outside profit or loss in the current period. IAS 8 specifies two such circumstances: the correction of errors and the effect of changes in accounting policies. Other IFRSs require or permit components of other comprehensive income that meet the Framework’s definition of income or expense to be excluded from profit or loss (see paragraph 7)
Other comprehensive income for the period:
BOC Bangladesh ltd disclose the amount of income tax relating to each component of other comprehensive income, including reclassification adjustments, either in the statement of comprehensive income or in the notes.
Its present components of other comprehensive income either:
(a) Net of related tax effects, or
(b) Before related tax effects with one amount shown for the aggregate amount of income tax relating to those components.
It presents reclassification adjustments in the statement of comprehensive income or in the notes. An entity presenting reclassification adjustments in the notes presents the components of other comprehensive income after any related reclassification adjustments.
Reclassification adjustments arise, for example, on disposal of a foreign operation (see IAS 21), on the recognition of available-for-sale financial assets (see IAS 39) and when a hedged forecast transaction affects profit or loss (see paragraph 100 of IAS 39 in relation to cash flow hedges).
Reclassification adjustments do not arise on changes in revaluation surplus recognized in accordance with IAS 16 or IAS 38 or on actuarial gains and losses on defined benefit plans recognized in accordance with paragraph 93A of IAS 19. These components are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. Changes in revaluation surplus may be transferred to retained earnings in subsequent periods as the asset is used or when it is derecognized (see IAS 16 and IAS 38). Actuarial gains and losses are reported in retained earnings in the period that they are recognized as other comprehensive income (see IAS 19).
Information to be presented in the statement of comprehensive income or in the notes:
When items of income or expense are material, it discloses their nature and amount separately.
There are some Circumstances that would give rise to the separate disclosure of items of income and expense includes:
(a) Write-downs of inventories to net realizable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs;
(b) Restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring;
(c) Disposals of items of property, plant and equipment;
(d) Disposals of investments;
(e) discontinued operations;
(f) Litigation settlements; and
(g) Other reversals of provisions.
Expenses are sub classified to highlight components of financial performance that may differ in terms of frequency, potential for gain or loss and predictability. They provided in following way
This analysis is the ‘function of expense’ or ‘cost of sales’ method and classifies expenses according to their function as part of cost of sales or, for example, the costs of distribution or administrative activities. At a minimum, an entity discloses its cost of sales under this method separately from other expenses. This method can provide more relevant information to users than the classification of expenses by nature, but allocating costs to functions may require arbitrary allocations and involve considerable judgment. An example of a classification using the function of expense method is as follows:
Revenue X Cost of sales (X) Gross profit X Other income X Distribution costs(X) Administrative expenses (X) Other expenses (X) Profit before tax X
Statement of cash flows:
Cash flow information provides users of financial statements with a basis to assess the ability of the entity to generate cash and cash equivalents and the needs of the entity to utilize those cash flows. IAS 7 sets out requirements for the presentation and disclosure of cash flow information.
(a) The notes of the company present information about the basis of preparation of the financial statements and the specific accounting policies used in accordance with paragraphs 117–124;
(b) Disclose the information required by IFRSs that is not presented elsewhere in the financial statements; and
(c) Provide information that is not presented elsewhere in the financial statements, but is relevant to an understanding of any of them.
They normally present notes in the following order, to assist users to understand the financial statements and to compare them with financial statements of other entities:
(a) Statement of compliance with IFRSs (see paragraph 16);
(b) summary of significant accounting policies applied (see paragraph 117);
They disclosure of particular accounting policies, including choices made by management between different policies they allow. For example, IAS 16 requires disclosure of the measurement bases used for classes of property, plant and equipment.
They also consider the nature of its operations and the policies that the users of its financial statements would expect to be disclosed for that type of entity. For example, users would expect an entity subject to income taxes to disclose its accounting policies for income taxes, including those applicable to deferred tax liabilities and assets. When an entity has significant foreign operations or transactions in foreign currencies, users would expect disclosure of accounting policies for the recognition of foreign exchange gains and losses.
An accounting policy may be significant because of the nature of the entity’s operations even if amounts for current and prior periods are not material. It is also appropriate to disclose each significant accounting policy that is not specifically required by IFRSs but the entity selects and applies in accordance with IAS 8.
BOC Bangladesh ltd disclose in the summary of significant accounting policies or other notes, the judgments, apart from those involving estimations (see paragraph 125), that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognized in the financial statements.
In the process of applying its accounting policies, management makes various judgments, apart from those involving estimations, that can significantly affect the amounts it recognizes in the financial statements. For example, management makes judgments in determining:
(a) Whether financial assets are held-to-maturity investments;
(b) When substantially all the significant risks and rewards of ownership of financial assets and lease assets are transferred to other entities;
(c) Whether, in substance, particular sales of goods are financing arrangements and therefore do not give rise to revenue; and
(d) Whether the substance of the relationship between the entity and a special purpose entity indicates that the entity controls the special purpose entity.
Sometimes it is impracticable to disclose the extent of the possible effects of an assumption or another source of estimation uncertainty at the end of the reporting period. So they discloses that it is reasonably possible, on the basis of existing knowledge, that outcomes within the next financial year that are different from the assumption could require a material adjustment to the carrying amount of the asset or liability affected. In all cases, the entity discloses the nature and carrying amount of the specific asset or liability (or class of assets or liabilities) affected by the assumption.
Other IFRSs require the disclosure of some of the assumptions that would otherwise be required in accordance with paragraph 125. For example, IAS 37 requires disclosure, in specified circumstances, of major assumptions concerning future events affecting classes of provisions. IFRS 7 requires disclosure of significant assumptions the entity uses in estimating the fair values of financial assets and financial liabilities that are carried at fair value. IAS 16 requires disclosure of significant assumptions that the entity uses in estimating the fair values of revalued items of property, plant and equipment.
BOC Bangladesh Ltd. discloses information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital.
They disclose the following:
Qualitative information about its objectives, policies and processes for managing capital including:
(i) a description of what it manages as capital;
(ii) when an entity is subject to externally imposed capital requirements, the nature of those requirements and how those requirements are incorporated into the management of capital; and
(iii) How it is meeting its objectives for managing capital.
(b) Summary quantitative data about what it manages as capital. Some entities regard some financial liabilities (e.g. some forms of subordinated debt) as part of capital. Other entities regard capital as excluding some components of equity (e.g. components arising from cash flow hedges).
(c) Any changes in (a) and (b) from the previous period.
(d) Whether during the period it complied with any externally imposed capital requirements to which it is subject.
(e) When the entity has not complied with such externally imposed capital requirements, t he consequences of such non-compliance.
The entity bases these disclosures on the information provided internally to key management personnel.
They manage capital in a number of ways and be subject to a number of different capital requirements. For example, a conglomerate may include entities that undertake insurance activities and banking activities and those entities may operate in several jurisdictions. When an aggregate disclosure of capital requirements and how capital is managed would not provide useful information or distorts a financial statement user’s understanding of an entity’s capital resources, the entity shall disclose separate information for each capital requirement to which the entity is subject
BOC Bangladesh Ltd disclose in the notes:
(a)the amount of dividends proposed or declared before the financial statements were authorized for issue but not recognized as a distribution to owners during the period, and the related amount per share; and
(b) The amount of any cumulative preference dividends not recognized.
They also disclose the following, if not disclosed elsewhere in information published with the
(a) The domicile and legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office);
(b) A description of the nature of the entity’s operations and its principal activities; and
(c) The name of the parent and the ultimate parent of the group.
Board of directors:
SEC notified that the Board of directors of a company should not be less than 5[five] and more than 20[twenty]. The BOC Company has maintained these rules.
provided, however, that in the case of banks and non-bank financial institutions, insurance companies and statutory bodies for which separate primary regulations like Bangladesh Bank, Department of insurance etc. exist, the Board of those companies are not inconsistent with the aforesaid condition.
(1)SEC notification was the independent directors must be 1/10 of total directors and BOC has two independent directors.
Explanation: for the purpose of this clause “independent director” means a director who does not hold any share in the company or who holds less than one percent (1%) shares of the total paid-up shares of the company, who is not connected with the company’s promoters or directors. Or shareholders who holds one percent (1%) or more one percent (1%) shares of the total paid-up shares of the company on the basis of family relationship; who does not have any other relationship, whether pecuniary of otherwise, with the company or its subsidiary/ associated companies, who are not a member, director or officer of any stock exchange; and who is not a shareholder, director of officer of any member of stock exchange of an intermediary of the capital marke