22 October 2017

The Board of Directors

Jhon Tex Limited

Subject: Report on Valuation of Land & Building (Floor Space) of Jhon Tex Limited.

Dear Sir,

In pursuance to your letter of appointment dated 17 September 2017,we have carried out the
revaluation of land & Building (Floor Space) of Jhon Tex limited. We submit hereunder our detailed
valuation report on the subject assignment for your reference.

1.0 Introduction

Jhon Tex limited was incorporated in Bangladesh as a private Limited Company vide registration
No. C-68816 (1328)/07 on dated 25 October 2007.

The management of the Jhon Tex limited desired to revalue its land & Building (Floor Space) at(1)
Kkjdcibj, Upazila: sutrapur, Dist: Quisy, (2)New york C/A, Upazila: New
york, Dist: Quisy, (3)Faydabad, Upazila : uttara, Dist: Quisyand (4) New york town Municipality-91,
Upazila: SylhelSadar, Dist: New york town by an independent professional firm and accordingly
appointed Jhon j Q, Chartered Accountants, Quisy for revaluation as on the date of 30 June 2017.

2.0 Identification and status of the valuer

A multi-disciplinary team was formed with optimum blend of diverse expertise to physically verify,
evaluate the quality of assets and assess the fair value of scheduled assets. The following
professionals were in the team:

3.0 Identification of the client and any other intended users

Jhon Tex Limited was established as a private limited company in 2007 under The Companies Act
1994 with an aim to set up manufacturing & outsourcing of different knit, woven garments
clothing’s items to sales at local market & export. The company has established its first chain
shop in 2009 under the brand name Le Jhon. Le Jhon wants to position itself in the market as a
brand with best possible designs to reflect our tradition, globalization and modern outlook. The
factory is located at Satarkul Main road, Badda Quisy-1212 and Ashik Market 12/Tu. Plot 18/1,
Road - 19, Pallabi, Mirpur.

As the objective of the revaluation is to present the fair market value of the Land & Building
(Shop/Floor Space) in the financial statements, the intended users of this report will be the users
of the financial statements.

4.0 Purpose of the revaluation

The purpose of revaluation of assets has been to assess the estimated fair market value of Land &
Building (Floor Space) of Jhon Tex Limited with the aim to recognize and present them in its
financial statements at a fair market value.

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6.0 Basis of valuation

Valuation of the subject assets and properties was carried out on the basis of following applicable
standards and guidelines:
a. The standard for revaluation of assets was applied in accordance with Bangladesh
Accounting Standard (BAS)-16 and International Valuation Standards (IVS).

b. The assets being Land & Land & Building (Floor Space) were revalued at fair value as
per the standard for revaluation of those assets. The definition of ‘fair value’ is
reproduced below:
“Fair value is the amount for which an asset could be exchanged
betweenknowledgeable willing parties in an arm’s length transaction”.

c. Audited Financial Statements as of 30 June 2017 of Jhon Tex limited, as audited by

Mahefl Huq & Co, Chartered Accountants, were taken into consideration as the base for
costs and written down values of those revalued assets.

d. There valuation exercise was undertaken in accordance with the International Valuation
Standards (IVS), the Fundamental Principles of Ethical Conduct namelyIntegrity,
Objectivity, Competence, Confidentiality and Professional Behavior have been
maintained in this assignment.

7.0 Valuation date

As decided by the management of Jhon Tex Limited, the date of valuation of Land & Building
(Floor Space) was considered 30 June 2017. Valuation is carried out in compliance with the
notification no. SEC/CMRRCD/2009-193/150/Admin/51 of BSEC dated 18 August 2013.

8.0 Extent of investigation

The surveyors and valuers visited the location of the land at (1) Kkjdcibj as on 25 September
2017,(2) New york C/A as on 27 September 2017,(3)Uttara as on 28 september 2017 and (4) New
york town Municipaliti of sutrapur as on 09 October 2017 and taken measurement of the Lands,
observed position and location of the lands, commercial importance, communication and other
infrastructural facilities attached to the lands and also measurement of the Flat observed position
and location, commercial importance etc. We consulted different sources like, land broker, realstate
company, deed writers involved in writing sale deeds of nearby similar lands and local
knowledgeable persons to assess the present market value of the land.

9.0 Nature and source of the information relied upon

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We used different sources of information to arrive at the conclusion of the valuation for Land & Land
Development (Flat). Among the various sources of information we specially relied upon following
sources:

Nature of information Sources

Latest available audited financial statements for the year ended 30
June 2016 audited by Masih Muhith Haque & Co. Chartered Jhon Tex limited
Accountants.
Jhon Tex limited
Title/Purchase deed of lands
Jhon Tex limited
Drawing and design of Flat layout
Sub registry office of
Investigation with Sub-Registry office for latest transfer price and sutrapur, Quisy; tejgaon,
authentication of ownership of lands Quisy; uttara, Quisy and
new york town sadar,
New york town.
Investigation of present market value with local land brokers and Land brokers
deed writers and deed writers
Investigation of present market value of flat, car parking space with Real estate company
real estate company
Interaction with local people of Kkjdcibj,New york, New york townof
Quisy &New york townsadar of New york townfor assessing present Local people
development cost and transfer price of similarlands& flat.

10.0 Relevant IVS and BAS have been followed for revaluation

The valuation exercise was carried out in accordance with the Bangladesh Accounting Standard
(BAS) 16, BFRS 13 and International Valuation Standards (IVS). We have verified the ownership,
and possession of subject assets which are in use by the company.

11.0 Valuation approach and methodology

We followed the undergoing methodologies to assess the fair value of assets i.e. Land & Building
(Floor Space).

11.1 Collection of Papers and Documents

Following the confirmation of assignments, we collected necessary papers & documents (copy of
title deed, parcha/khatian and up to date land rent receipt, drawing, design, financial
statements, etc.) from Jhon Tex limited.

11.2 Entrance Meeting

On receipt of the information, data and papers & documents, we had an entrance meeting with the
management of Jhon Tex limited. We obtained necessary clarification and explanation required to
carry out the assignment.

11.3 Engagement of professional Surveyors and Valuers

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The firm engaged Daniel Surveyors a company of professional surveyor and valuers of high repute
to critically survey, physically measure, check, examine, verify the physical position of the assets
under valuation, check and verify the deeds & land documents, etc.

11.4 Verification of Land & Land Development

Our team physically measured the assets at the site, evaluated and assessed the quality and
physical condition of those land & Building (Floor Space) etc.

11.5 Location of the Land & Building (Floor Space)

1. Location of the Property:

Mouza : Kkjdcibj
Measurement of the land : 0.0024 Acre
Measurement of the
Shop/Floor area : 1132 Sft.
Ihsan Plaza, 30, Rankin
Building Location Street,Kkjdcibj, 1st Floor, Shop 12,
: Quisy
Thana : Sutrapur
District : Quisy

Surroundings of the Property About 16ft. wide pucca road

On the North : namely Jogi Nagar Road
On the South : Plot 30/A
About 25ft. wide pucca road
On the East : namely Ranking Street
On the West. : Kkjdcibj Jame Mosque


Picture of Property:

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 

 The Land is situated approximately less than1 Kilometer away from Rankin Street.

2. Location of the Property:

Mouza : New york

Measurement of the land : 0.014 Acre
Measurement of the Shop/Floor
area : 2872 Sft.
Syed Plus, House 286/B, Road -
Building Location 27(Old),House - 45, Road - 16 (New),
: 1st Floor, Shop 12,New york, Quisy
Thana : New york
District : Quisy

Surroundings of the Property :

On the North : About 60ft. wide pucca road 16
On the South : Plot 45/B
On the East : Plot 45
On the West. : About 60ft. wide kancha road










Picture of Property:
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 The Land is situated nearest to Road no. 16 New york.

3. Location of the Property:

Mouza : Fayadabad, Uttara R/A

Measurement of the land : 0..001664 Acre
Measurement of the Shop/Floor
area : 1095.70 Sft.
R.A.K Tower, Level - 3, Jashim Uddin
Building Location Avenue, 2nd Floor, Shop 301,302,303
: , Quisy
Thana : Uttara
District : Quisy

Surroundings of the Property :

On the North : Thirteen storied building, Plot 3/A
On the South : 120 feet wide metal road
On the East : Six storied building of Uttara Tower
On the West. : 40 feet wide metal road

Picture of Property:
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 The Land is situated nearest to Highway road.

1. Location of the Property:

Mouza : New york town, Municitypal-91

Measurement of the land : 0.01255 Acre
Measurement of the Shop/Floor
area : 3843.35 Sft.
Thikana Tower, Naya Sarak, 1st Floor,
Building Location
: New york town
Thana : Sadar
District : Quisy

Surroundings of the Property :

On the North : Open Plot
On the South : Jail Road Point
On the East : Open Plot
Building of Advocate Mustakim
On the West.
: Chowdhury

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ABC
Chartered Accountants

Picture of Property:

 The Land is situated approximately 2 Kilometers away from a new york town highway road.

11.6 Valuation Method

a. We considered Net Asset Value method, most suitable method out of all the internationally
recognized acceptable valuation methods, to revalue the Land and Land development of
Jhon Tex limited. Net Asset Value essentially estimates the cost of replacing the tangible
assets of the business. The replacement cost represents current market value of asset to be
acquired or to build up an infrastructure exactly similar to that.
b. Based on the financial statements and confirmation of information provided by management
to us, we state that:
 Land & Building (Floor Space) under this valuation exercise were never revalued since the
date of their acquisition;
 The subject Land & Building (Floor Space) are freehold Lands, and not under any lease;

Chartered Accountants

c. Review of the valuation carried out by Jhon j Q Chartered Accountants, Quisy of the Lands &
Land Development (Flat).

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 d. Daniel Surveyors carried out physical inspection and examination of Lands & Land
Development (Flat) of Jhon Tex limited located at Kkjdcibj,Quisy; New york,
Quisy;Faydabad, Quisy and New york townSadar,New york town.

11.7 Valuation of Land & Building (Floor Space)

a. We physically visited and examined the land& land development (Flat) and surroundings
areas in working out the present value of land& land development (Flat). We have taken
into consideration the position and location of the land, importance, commercial facilities
and convenience of the locality in terms of industrial, commercial and other related factors.
The presence of buildings on land was also considered in determining the value of subject
assets. We have also studied in details the present price structures of the land& flat in that
area, prices of recently concluded sale of lands& flat in that locality, and have applied our
professional judgment in arriving at the present value.
b. The surveyors and valuation experts have studied all purchase and other related
documents of subject assets provided by Jhon Tex limited to determine the title ship of
lands& flat and measurement of exact area of lands& flat. The actual area of land & flat
possessed by Jhon Tex limited has been compared with those as appeared in the legal
documents.

Jhon Tex limited possessed and purchased 0.0024 Acre land & 1132 square feet flat at (1)
Kkjdcibj mouza, Sutrapur Upozila, Quisy district (2) 0.013992 Acre land & 2872 (including
Car Parking space 672 square feet) square feet flat at New york mouza, New york upozila
Quisy District (3) 0.0016653 Acre Land & 1095.7 square feet flat at New york townmouza,
Uttara upozila,Quisy district and (40.01255 Acre land &3843.35 square feet flat at New york
town municipality mouza, New york town sadar upozila, new york town district. We
considered the said assets for our revaluation purpose.

c. We consulted different sources like, land broker, real estate company, deed writers
involved in writing sale deeds of nearby similar lands & flat and local knowledgeable
persons to assess the present market value of the land& flat. Ideas were developed to
assess the value from lower as well as higher sides to arrive at the most reasonable
rate/price of the land& flat using our professional judgment.

d. Land (0.003256 acre) and Building (Floor Space-1891 sft.) were not considered for upward
valuation, which were acquired and/or registered as on 19 June 2017, to comply with the
SEC notification no. SEC/CMRRCD/2009-193/150/Admin/51 of BSEC dated 18 August
2013.

12.0 Amount of the Revaluation

As per the scope of revaluation Jhon j Q has done the revaluation of Land & Building (Floor Space)
of Jhon Tex limited as on 30 June 2017. Total assessed value stands at Tk. 171,958,260 summary
of which is shown on the table below:

Area in
Area in Value of Building Total
Sl. Location of Properties Value of land Square feet
Acer (Floor Space) (Taka)

1 Kkjdcibj, Upazila: Sutrapur, Dist: 0.0024 13,805,820 1132 13,810,400 27,616,220

Quisy
2 New york C/A, Upazila: New
0.014 19,009,061 2872 19,012,640 38,021,701
york,Dist: Quisy
3 New york town, Upazila : uttara, Dist:
0.001664 35,636,824 1095.70 35,632,164 71,268,988
Quisy
4 New york town Municipality-91,
Upazila: SylhelSadar ,Dist: New york 0.01255 17,525,675 3843.35 17,525,676 35,051,351
town
Total 0.030614 85,977,380 8943.05 85,980,880 171,958,260
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ABC
Chartered Accountants

12.1 Land & Building (Floor Space)

Jhon Tex limited revalued (i) 0.0024 Acre land & 1132 square feet flat at Kkjdcibj mouza, Sutrapur
Upozila, Quisy district (ii) 0.013992 Acre land & 2872 (including Car Parking space 672 square feet)
square feet flat at New york mouza, New york upozila Quisy District (iii) 0.0016653 Acre Land &
1095.7 square feet flat at New york townmouza, Uttara upozila, Quisy district and (iv) 0.01255 Acre
land &3843.35 square feet flat at New york town municipality mouza, New york town sadar upozila,
new york town district. Detailed has been shown in Annex-1 & Annex-2.

13.0 Result of the Valuation

Total revalued amount of Land & Land Development arrived at Tk. 171,958,260.00 resulting in a
revaluation Surplus of Tk. 85,894,775.00as tabled below:
Land:
Amount in Taka
Cost/Written Current
Revaluation
Location of land Down Value Revalued
Surplus
30.06.2017 amount
Kkjdcibj, Upazila: Sutrapur, Dist: Quisy 8,524,800 13,805,820 5,281,020
New york C/A, Upazila: New york,Dist: Quisy 4,116,667 19,009,061 14,892,394
New york town, Upazila : uttara, Dist: Quisy 16,032,563 35,636,824 19,604,261
New york town Municipality-91, Upazila: 11,148,347 17,525,675 6,377,328
SylhelSadar ,Dist: New york town
Total 39,822,377 85,977,380 46,155,003

Building (Floor Space):

Amount in Taka
Current
Written Down Revaluation
Location of Building (Floor Space) Revalued
Value Surplus
amount
Kkjdcibj, Upazila: Sutrapur, Dist: Quisy 11,527,153 13,810,400 2,283,247
New york C/A, Upazila: New york,Dist: Quisy 5,923,615 19,012,640 13,089,025
New york town, Upazila : uttara, Dist: Quisy 17,054,453 35,632,164 18,577,711
New york town Municipality-91, Upazila:
11,735,887 17,525,676 5,789,789
SylhelSadar ,Dist: New york town
Total 46,241,108 85,980,880 39,739,772

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