Dragon Sweater and Spinning financial analysis: BDT 2.25bn receivables on BDT 421m revenue, FY2026 EPS loss (Oct 2026)

Investment considerations: FY2025 revenue BDT 421.1m, trade receivables BDT 2,247.3m and a qualified-opinion section in the FY2025 audit

Dragon Sweater and Spinning Limited (DSSL) describes itself as "a 100% export oriented sweater manufacturing and spinning company producing and supplying sweaters to worlds biggest renowned buyers" [1 p.7]. It spins acrylic and blended yarns and uses "its own spanned yarns to make readymade sweaters", with exports listed to the USA, Canada, Brazil, Japan, Australia, the UK and Europe [1 p.7]. The company was incorporated on 16-Jun-1999, converted to a public limited company on 13-Jan-2012, and lists annual capacity of 6,570,000 lbs of spinning and 6,918,000 pieces of sweaters [1 p.7]. The factory is at Chandul, Miah Bazar, Chauddagram, Comilla [1 p.5]. The statements are company statements; no subsidiary is printed. We use the knit and RMG sector format (F12) for its questions on volumes, buyers and working capital.

Five sets of figures summarise the filings. Revenue was BDT 1,921.8m in FY2019, BDT 1,872.5m in FY2021 and BDT 421.1m in FY2025 [9 p.10] [8 p.49] [1 p.61]. Profit for the year was BDT 261.7m in FY2019 and BDT 28.8m in FY2025 [9 p.10] [1 p.61]. Trade receivables, foreign and local, were BDT 1,318.8m at 30-Jun-2019 and BDT 2,247.3m at 30-Jun-2025 [9 p.9] [1 p.60]. Operating cash flow was BDT 257.0m in FY2020 and BDT 8.8m in FY2025 [8 p.51] [1 p.63]. The FY2025 auditor's report lists two items under "Qualified Opinion" and five emphasis-of-matter items [1 p.55] [1 p.56].

The FY2026 audited annual report is not in the corpus at 1-Nov-2026. The board met on 27-Oct-2026 on the FY2026 audited statements, and the DSE post of 28-Oct-2026 gives EPS of BDT (0.45), NAV per share of BDT 17.70 and NOCFPS of BDT 0.03 for the year to 30-Jun-2026 [40]. FY2026 figures in this note are those DSE figures and the un-audited nine-month statements to 31-Mar-2026, each labelled [2 p.1] [2 p.2].

Business: sweater revenue of BDT 1,921.8m in FY2019 and BDT 421.1m in FY2025

The revenue note prints one line, "Gross Revenue", of BDT 421,101,455 for FY2025 [1 p.78]. The quantity schedule shows export sales of 1,357,297 pieces for BDT 421,101,455 in FY2025 and 1,630,447 pieces for BDT 505,846,324 in FY2024 [1 p.81]. The directors' report prints unit selling prices of BDT 310.25 a piece in FY2025, 310.51 in FY2023, 314.02 in FY2022 and 314.52 in FY2021 [1 p.25]. The company prints no segment note splitting spinning and sweaters, and no revenue by buyer or country; the foreign receivables note names 12 buyers [1 p.74].

Seven years of statements show revenue of BDT 1,921.8m in FY2019, BDT 1,761.7m in FY2020, BDT 1,872.5m in FY2021, BDT 1,670.0m in FY2022, BDT 1,039.3m in FY2023, BDT 505.8m in FY2024 and BDT 421.1m in FY2025 [9 p.10] [8 p.49] [7 p.48] [6 p.50] [1 p.61]. Revenue fell 37.8% in FY2023, 51.3% in FY2024 and 16.8% in FY2025 [44]. Profit for the year was BDT 232.0m in FY2022, BDT 111.1m in FY2023, BDT 25.5m in FY2024 and BDT 28.8m in FY2025 [6 p.50] [1 p.61]. The directors state that "The cost of production has varied during the year primarily due to wide fluctuations in the price of raw cotton, packing materials, fuel & power and spare parts which are beyond the control of the Management" [1 p.24]. That is the company's statement.

FY2021 revenue is printed twice with different values. The FY2021 annual report prints BDT 1,872,542,325 on the face of the statement of profit or loss [8 p.49], and the FY2025 five-year table prints the same [1 p.19]. The FY2022 annual report prints the FY2021 comparative as BDT 1,525,924,376 with the same cost of goods sold and gross profit [7 p.48]; that figure equals the FY2021 cash receipt from customers on the FY2021 cash flow statement [8 p.51]. The model uses the FY2021 annual report figure.

Volumes: 1,357,297 sweaters in FY2025 on capacity of 6,918,000; 4,267,201 lbs of yarn spun

The directors' report prints sweater capacity, actual production and utilisation for five years [1 p.24]. Installed capacity is 6,918,000 pieces each year, on 417 jacquard and 1,074 manual machines [1 p.24]. Actual production is printed as 5,953,722 pieces in FY2021, 6,251,401 in FY2022, 3,346,868 in FY2023, 1,630,447 in FY2024 and 1,357,297 in FY2025, with total utilisation of 86%, 90%, 48%, 24% and 20% [1 p.24]. Note 29.04 prints FY2025 spinning production of 4,267,201 lbs on capacity of 6,570,000 lbs, or 65% [1 p.82].

The same page prints FY2022 output twice. Table 2 (actual production) gives 6,251,401 pieces, and table (a) (output of sweater) gives 5,309,676 pieces [1 p.24]; the export sales quantity on the next page is 5,309,676 pieces [1 p.25]. Revenue per piece of output, derived from revenue and table (a), was BDT 310.25 in FY2025 and BDT 314.52 in FY2021 [44]. Raw material cost per piece is printed as BDT 181.37 in FY2025 and BDT 150.11 in FY2024, and unit cost as BDT 201.20 and BDT 166.87 [1 p.25].

Employees at 30-Jun-2025 numbered 1,372 by the note 29.03 table [1 p.82]. Raw materials consumed were 999,653 lbs in FY2025 and 993,858 lbs in FY2024; yarn purchases were BDT 264.6m in FY2025, all printed under "Import" [1 p.81].

Cost lines: gross margin 21.2% in FY2025; depreciation BDT 81.8m inside cost of goods sold

Gross margin was 25.2% in FY2019, 23.4% in FY2022, 19.0% in FY2024 and 21.2% in FY2025 [44]. The FY2025 cost of goods sold note prints raw materials consumed of BDT 246.2m, manufacturing overhead of BDT 56.3m and depreciation of BDT 81.8m [1 p.78]. Closing finished goods rose from BDT 101.0m to BDT 145.6m and work in process from BDT 18.7m to BDT 36.7m in FY2025 [1 p.78].

Operating expenses were BDT 67.5m in FY2025, 16.0% of revenue, and BDT 151.4m in FY2019, 7.9% of revenue [1 p.79] [9 p.10] [44]. FY2025 administrative expenses of BDT 54.4m include salary and allowances of BDT 36.5m, depreciation of BDT 7.3m and amortisation of BDT 3.6m [1 p.79]. Distribution and selling expenses were BDT 13.1m [1 p.79]. Total depreciation and amortisation charged in FY2025 was BDT 94.5m, with no addition to property, plant and equipment in FY2024 or FY2025 [1 p.73].

Below gross profit: non-operating income 37.7% of FY2025 pre-tax profit; tax provision BDT 164.9m

Non-operating income was BDT 12.4m in FY2025, of which exchange gain was BDT 11.5m, scrap sales BDT 0.5m and FDR interest BDT 0.4m [1 p.80]. It was 37.7% of profit before tax in FY2025 and 52.6% in FY2024 [44]. Financial expenses were BDT 233,452 of "Bank Charge & Commission" in FY2025 [1 p.80]. WPPF expense was BDT 1.0m, and the WPPF liability of BDT 7.1m sits in liabilities for expenses [1 p.78] [1 p.80].

Current tax was BDT 11.0m and deferred tax income BDT 7.1m in FY2025 [1 p.61]. The tax note shows the provision for income tax at BDT 164.9m at 30-Jun-2025, with no payment against it in FY2025 and a payment of BDT 85.1m in FY2024 [1 p.78]. Note 30.02 lists assessment years 2019-2020 to 2023-2024 as "Assessment is in Process" [1 p.85].

FY2026: EPS BDT (0.45) and NAV BDT 17.70 posted on 28-Oct-2026; nine-month revenue BDT 203.6m

The nine-month statements to 31-Mar-2026 print revenue of BDT 203.6m, against BDT 375.5m in the same period of FY2025, and gross profit of BDT 42.3m, against BDT 144.6m [2 p.2]. Gross margin was 20.8% and 38.5% [44]. Non-operating income was negative at BDT (22.5)m, and the loss for the period was BDT 26.9m, against a profit of BDT 77.2m [2 p.2]. The January-March 2026 quarter alone shows revenue of BDT 67.9m and a loss of BDT 19.3m [2 p.2].

FY2025 itself shows a fourth-quarter pattern. Nine-month FY2025 revenue was BDT 375.5m and full-year revenue BDT 421.1m, which leaves BDT 45.6m for April-June 2025 (derived) [2 p.2] [1 p.61] [44]. Nine-month FY2025 profit was BDT 77.2m and full-year profit BDT 28.8m, a derived April-June 2025 loss of BDT 48.4m [44]. The DSE posts mark the six-month FY2025 EPS of BDT 0.34 as "(restated)" in the half-year FY2026 post [40].

For the full FY2026, the DSE post of 28-Oct-2026 gives EPS of BDT (0.45), NAV per share of BDT 17.70 and NOCFPS of BDT 0.03 [40]. The derived April-June 2026 EPS is BDT -0.32 (FY2026 less nine months) [44]. The board recommended a 0.20% cash dividend for general public and institute shareholders, "without Sponsor Shareholders and Directors", totalling BDT 2,859,677 [40]. The FY2026 auditor's report and notes are not in the corpus at 1-Nov-2026.

Ratios: ROE 0.8% in FY2025; closing receivable days 1,948

Return on average equity was 6.7% in FY2020, 6.4% in FY2022 and 0.8% in FY2025 [44]. Equity includes a revaluation reserve of BDT 396.7m at 30-Jun-2025, from a 2018 revaluation of land, buildings and plant [1 p.60] [1 p.73]. Closing receivable days, on foreign and local trade receivables and revenue, were 250 at 30-Jun-2019, 813 at 30-Jun-2023 and 1,948 at 30-Jun-2025 [44]. Closing inventory days on cost of goods sold were 131, 263 and 881 at the same dates [44].

Operating cash flow was 1.20x profit for the year in FY2020 and 0.30x in FY2025 [44]. The FY2025 key-ratio page prints a current ratio of 16.97, an accounts receivable turnover of 5.34 and an asset turnover of 0.10 [1 p.20]. The same page prints FY2024 asset turnover as 1.32 [1 p.20]; revenue over total assets for FY2024 computes to 0.13 from the printed statements (derived) [1 p.60] [1 p.61].

Balance sheet: trade receivables 55.4% of total assets at 30-Jun-2025; no bank loans

Total assets were BDT 4,058.5m at 30-Jun-2025: trade receivables from foreign companies BDT 1,138.9m, trade receivables from local companies BDT 1,108.4m, inventories BDT 801.7m, property, plant and equipment BDT 947.2m and cash BDT 22.1m [1 p.60]. Liabilities were BDT 225.2m, of which the provision for income tax was BDT 164.9m [1 p.60]. At 31-Mar-2026, trade receivables were BDT 2,262.6m and total assets BDT 4,007.6m [2 p.1].

Foreign receivables are listed by buyer: Centex BDT 376.5m, Golden Touch BDT 154.0m, Woolworth BDT 124.6m, Blurred BDT 122.2m and New Yorker BDT 105.1m are the five largest of the 12 rows at 30-Jun-2025 [1 p.74]. The ageing table puts every row under "Not more than 90 days", and the note text below it states: "Major portion of trade receivable (foreign currency) is coming from previous years though the same has been shown receivable for less than ninety days." [1 p.74]. Note 8.01 states the balance in US dollars as 9,203,029 [1 p.74].

Local receivables of BDT 1,108.4m are due from Dragon Sweater (BD) Ltd. (BDT 455.1m), Imperial Sweater (BD) Ltd. (BDT 359.2m), CD Acrylic (BD) Ltd. (BDT 168.1m) and Ashraf-ul Sweater Ltd. (BDT 126.0m), each labelled "Common Management" with nature "Sub-contract" [1 p.82]. Note 9.01 states: "The above inter company were created to procure raw materials for the company and it is also executing exports orders on behalf of the companies under the common ownership." [1 p.75]. FY2025 additions to these balances were BDT 222.6m and adjustments BDT 188.3m [1 p.75]. Receivables from these companies were 27.3% of total assets at 30-Jun-2025 [44].

Operating cash flow was BDT 257.0m in FY2020, BDT 90.4m in FY2021, BDT 0.5m in FY2022, BDT 14.3m in FY2023, BDT 10.8m in FY2024 and BDT 8.8m in FY2025 [8 p.51] [7 p.50] [5 p.54] [1 p.63]. Cash receipt from customers was BDT 388.6m in FY2025 [1 p.63]. Financing outflows were loan repayments of BDT 103.4m in FY2023 and dividends of BDT 14.3m in FY2025 [5 p.54] [1 p.63]. Cash in hand was BDT 11.0m and cash at bank BDT 11.2m at 30-Jun-2025 [1 p.76].

Audit: a 'Qualified Opinion' section, five emphasis-of-matter items and five key audit matters in FY2025

Shafiq Basak & Co. signed the FY2025 report on 06-Nov-2025 (partner Sarwar Mahmood FCA) [1 p.59]. The board authorised the statements on 27-10-2025 [1 p.60]. The opinion paragraph reads: "In our opinion, the accompanying financial statements give true and fair view, in all material respects, the financial position of the Company as at 30th June 2025, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations." [1 p.55]

The basis paragraph reads: "We conducted our audit in accordance with International Standards on Auditing (IASs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the consolidated and the separate Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated and the separate financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion." [1 p.55]

Under the heading "Qualified Opinion:" the report prints: "a. We refer note 8.00 regarding trade receivable (foreign currency) major portion of which are coming from previous years but in the aging Note in 8.01 it has been stated as due for less than 90 days. We are doubtful about the existence of the receivable amounts. No satisfactory explanation could be given to us for the long outstanding of the foreign trade receivables. b. We refer note 32.00 where remains a difference of taka 3,488,853 while calculating the decrease of inventory which remains un-reconciled. We feel that there may be some mistake in calculating value/quantity of inventory at 30-06-2025 which has been taken, valued & certified by the management." [1 p.55]

Under "Emphasis of Matters:" it prints: "Without qualifying our report, we would like to draw the attention on the following matters: a. The company has been maintaining Workers Profit Participation Fund (WPPF) since long, but did not properly maintain WPPF account in accordance with Bangladesh Labour Act 2006 as amended till to date, particularly, Section 234, 235, 240, 242 & 248 of the said Act. Moreover, government portion of the fund is yet to be paid. No interest has been provided on unpaid amount of WPPF Fund resulting over statement of profit to that extent. b. During the audit period we observed that the company made payments of a reasonable amount including salary & allowances in cash instead of cheque/bank transfers which is a clear violence of Income Tax Act and related government rules in this regard. c. The company has not maintained/introduced employees provident fund & other compensation benefits as per guideline of Bangladesh Labor Laws/Rules 2015 and as such, no provision been made for this purpose, which is a non-compliance of Labor Law 2006 and rules thereof. d. Further we like to mention here that, documents of the company have been maintained/kept haphazardly as a result some of the supporting documents could not be provided to us for our verification. We suggest the management should look into the matter and take necessary steps to maintain all the papers/documents in a proper way. e. No supporting relating to the payment of dividend could be shown to us. As such, unclaimed dividend if any could not be ascertained." [1 p.55] [1 p.56]

Key audit matter 1, "Property, Plant and Equipments" (note 4.00): "The carrying value of Property, Plant and Equipments as of 30 June 2025 was BDT. 947,190,763 being written down value (cost less accumulated depreciation) as per IAS 16. There are several areas where management judgment impacts the carrying value of Property, Plant and Equipments and the related depreciation profiles. These include: Determining which costs meet the criteria for capitalization. The estimation of economic useful lives and residual values assigned to property, plant and equipment. We identified the carrying value of property, plant and equipment as a key audit matter because of the high level of management judgment involved and because of its significance to the financial statements." The response includes: "No fixed assets register is being maintained by the company & no physical verification of assets been carried out at the end of the year and as such we are unable to express our opinion as to the physical existence of assets at the financial statement date." [1 p.56]

Key audit matter 2, "Valuation of Inventory" (note 7.00): "The inventory of Tk. 801,748,128 as of 30 June 2025 held in factory. Inventories are carried at the lower of cost and net realizable value. As a result, the management apply judgment in determining the appropriate values for slow-moving or obsolete items. Since the value of Inventory is significant to the Financial Statements and there is significant measurement uncertainty involved in this valuation, the valuation of inventory was significant to our audit." The response includes: "Inventory was taken, valued & certified by the management but we are in doubt about the proper quantity/valuation thereof as on 30-06-2025." and "We could not physically count/check the inventories as our audit was postdated. However, we have been provided with a certificate showing the value of inventories, but no inventory sheets could be shown to us." [1 p.56]

Key audit matter 3, "Recognition of Deferred Tax Liability" (Annexure-5): "The Company has recognized deferred tax assets/liabilities for deductible temporary differences that it believes are recoverable. The recoverability of recognized deferred tax liability is in part dependent on the Company's ability to generate future taxable profits sufficient to utilize deductible temporary differences. We have determined this to be a key audit matter, due to the inherent uncertainty in forecasting the amount and timing of future taxable profits and the reversal of temporary differences." [1 p.56] [1 p.57]

Key audit matter 4, "Revenue Recognition" (note 19.00): "At year end the company in current year recognized export/deemed export revenue of Tk. 421,101,455 for the year 30 June 2025. Revenue recognition has a significant and wide influence on the financial statements. Revenue is recognized when the amounts and the related costs are reliably measured, and the performance obligation is complete through passing of control to the customers. Revenue from the sale of goods is recognized at the time when the goods are dispatched for delivery to the customer. Revenue is measured net of discounts, incentives and rebates earned by customers on the company's sales. Within a number of the company's markets, the estimation of discounts, incentives and rebates recognized based on sales made during the year is material and considered to be complex and judgmental. Therefore, there is a risk of revenue being misstated because of faulty estimations over discounts, incentives and rebates. We identified revenue recognition as a key audit matter because revenue is one of the key performance indicators of the Company and therefore there is an inherent risk of manipulation of the timing of recognition of revenue by management to meet specific targets or expectations." The response states that customer balances "could not be confirmed as most of the parties are outsiders" and that "Export Sale Certificate & realization certificate from bank could not be provided to us." [1 p.57]

Key audit matter 5, "Income Tax Provision" (note 18.00): "At year end the Company reported income tax expense of Tk. 11,035,613 and Deferred Tax Expenses Tk. 7,070,814 for the year 30 June 2025. The calculation of the tax expense is a complex process that involves subjective judgments and uncertainties and requires specific knowledge and competencies." The response includes "Inspecting the correspondence with tax authorities but no assessment orders could be given to us to assess the contingent liability if any." [1 p.57]. The statement of profit or loss prints the BDT 7,070,814 as deferred tax income [1 p.61]. The auditor's report on other legal requirements states that "the Company has maintained books of account & other records through Excel Sheets" [1 p.59].

The company's explanation, in the directors' report under "Auditors Qualified Opinion": "a) Foreign receivable will be collected next financial year due to buyer agreed b) It is typo next time will not be happend again" [1 p.27]. Note 32 prints the same BDT 3,488,853 difference: "There is a difference of taka 3,488,853 while calculating the (Increase)/Decrease of Inventory which is remain un-reconciled." [1 p.86]. The qualified items relate to balances at 30-Jun-2025, the audited date: foreign receivables of BDT 1,138.9m and inventories of BDT 801.7m [1 p.60]. The un-audited balances at 31-Mar-2026 are foreign receivables of BDT 1,024.6m and inventories of BDT 807.3m [2 p.1].

Printed conflicts at the same date, all in the FY2025 annual report unless stated. (1) The auditor's opinion paragraph prints an unmodified "true and fair" wording, and the same report prints a "Qualified Opinion" heading with two items [1 p.55]; the compliance checklist remark reads "Auditors' Report contain 02 qualified opinion & 05 Emphasis of Matters" [1 p.54]. (2) Note 8.01 ageing puts all foreign receivables within 90 days, and the note text under it says the major portion is from previous years [1 p.74]. (3) Board attendance for the chairman is 6 of 6 in Annexure-I and 5 of 6 in note 30.00 [1 p.28] [1 p.84]. (4) The audit committee report says the committee "met 4 (four) times"; note 30.01 lists six meeting dates (14-08-2024, 27-11-2024, 28-11-2024, 29-01-2025, 26-04-2025, 26-05-2025) [1 p.31] [1 p.85]. (5) The five-year table prints FY2024 shareholders' equity as 3,818,665,576 and FY2023 revenue as 1,039,257,375; the statements print 3,818,765,576 and 1,039,257,303 [1 p.19] [1 p.26] [1 p.60]. (6) The same table prints FY2021 EPS as 1.16; the key-ratio page and the directors' report print 1.22 [1 p.19] [1 p.20] [1 p.26]. (7) Note 29.01(d) prints an opening inventory total of 583,427,069; its four opening rows add to 724,670,345, the 30-Jun-2024 balance [1 p.81]. (8) The sweater page prints FY2022 production as 6,251,401 and FY2022 output as 5,309,676 pieces [1 p.24]. (9) The directors' report states "Proper books of accounts as required by the prevailing law have been maintained" [1 p.28], and the auditor states the books were kept "through Excel Sheets" and that "documents of the company have been maintained/kept haphazardly" [1 p.55] [1 p.59].

Two further items are labelled separately. The FY2021 revenue reprint (BDT 1,872.5m and BDT 1,525.9m) is two printings of the same period in different annual reports [8 p.49] [7 p.48]. The un-audited statements to 30-Sep-2025 print "Dated: 13 Dec 2025" [4 p.2]; the DSE notice set the board meeting on those statements for 13-Nov-2025 and the results were posted on 16-Nov-2025 [40].

Governance: directors 32.17%; two conditions marked 'Not Complied'; no head of internal audit named

At 30-Jun-2025 the directors held 67,809,440 shares (32.17%), institutions 32,242,735 (15.30%) and the public 110,741,100 (52.53%) [1 p.29]. The managing director, Mostafa Quamrus Sobhan, held 34,624,583 shares (16.43%), and the company states that no other shareholder held 10% or more [1 p.29]. The DSE dividend post of 28-Oct-2026 gives sponsor and director shares of 67,809,440 out of 210,793,275 [40]. The family ties printed in the profiles: the managing director is the "Only son of late Mostafa Golam Quddus", and Fauzia Quamrun Tania is the "Eldest daughter of Late Mostafa Golam Quddus" [1 p.10]. The annual report opens with a tribute to Mostafa Golam Quddus (1949-2025) [1 p.3].

The corporate-governance compliance checklist, read page by page from the images [1 p.45] [1 p.46] [1 p.47] [1 p.48] [1 p.49] [1 p.50] [1 p.51] [1 p.52] [1 p.53] [1 p.54], marks two conditions "Not Complied": 1(5)(iii), "Risks and concerns including internal and external risk factors, threat and negative impact on environment, if any", remark "Not disclosed in Directors' Report"; and 1(5)(xxv)(d), "Compare financial performance and position with peer industry", remark "No Practice Found" [1 p.47] [1 p.48]. The certificate by Mollah Quadir Yusuf & Co., dated 09-Dec-2025, says the company complied except conditions "1(5)(iii),1(5)(xxv)(d)"; it refers to "the year ended on 30 June 2024" [1 p.44].

Checklist statements that conflict with other pages of the same report: item 1(1) remarks "06 Directors including 02 Independent Directors" [1 p.45], and the corporate information page lists six directors plus two independent directors [1 p.5]. Item 5(2)(b), members "who shall be non-executive directors", is ticked complied, and the audit committee report states "all the members are Non-Executive Directors" [1 p.50] [1 p.31]; the managing director is a member [1 p.31] [1 p.85]. Item 5(5)(k), "Review management letters by statutory Auditors", is marked "Not Applicable" [1 p.51]; the audit committee report says it "Reviewed the findings arising from audits particularly the comments and recommendations in management letter" [1 p.32]. Item 3(1)(a), "The Board shall appoint a MD or Chief Executive CEO, a CS, a CFO and a HIAC", is ticked complied [1 p.49]; no head of internal audit is named in the report (KMP list p.29, profiles p.12) [1 p.29] [1 p.12]. The MD and CFO declaration of 27-Oct-2025 states "Our internal auditors have conducted periodic audits" [1 p.37].

Related-party lists: note 29.08 shows the four sub-contract balances and directors' fees of BDT 30,000 each, BDT 240,000 in total [1 p.82] [1 p.83]. The managing director's row reads "Remuneration, Fees and Factory Rent" [1 p.83]; manufacturing overhead includes factory lease rent of BDT 2,500,000 [1 p.79], and the notes do not name the lessor. Note 29.06 states "There was no transaction resulting in Directors' interest with the Company" [1 p.82]. Changes after 30-Jun-2025, timing differences rather than conflicts: on 10-Nov-2025 the DSE posted that the board appointed Mst. Fazlutun Nessa as chairman and Mostafa Quamrus Sobhan as managing director [40].

Peers: receivables 5.34x FY2025 revenue at DSSL

The peer set is four DSE textile companies with published AnalystBro notes, each read from its own FY2025 annual report on the company basis [36 p.101] [36 p.102] [37 p.93] [37 p.94] [38 p.57] [38 p.58] [39 p.84] [39 p.85]. Their businesses are stated as printed. Shepherd Industries PLC is "a 100% export-oriented company engaged in: 1. Dyeing of yarn - cotton, acrylic, viscose and nylon 2. Washing of garments and fabrics" [36 p.14]. Queen South Textile Mills prints its nature of business as "Dyeing of Yarn for sweater industry (100% export oriented)" [37 p.10]. Mozaffar Hossain Spinning Mills states that it "is a manufacturer of 100% export oriented woven fabrics cotton yarns" [38 p.22]. Hwa Well Textiles describes itself as "a 100% export-oriented, backward-linkage textile manufacturer specializing in a wide range of knitted fabrics" [39 p.24]. The table states figures for each company separately and does not rank them.

Receivables were 5.34x FY2025 revenue at DSSL (derived) [44]. They were 0.46x at SHEPHERD, 0.53x at QUEENSOUTH, 0.44x at MHSML and 0.17x at HWAWELLTEX (derived) [44]. Gross margin was 21.2% at DSSL, 13.8% at SHEPHERD, 10.5% at QUEENSOUTH, 21.2% at MHSML and 14.4% at HWAWELLTEX (derived) [44]. The figures are FY2025 audited statements; no peer FY2026 annual report is used.

Share price: BDT 8.9 on 29-Oct-2026; 0.50x 30-Jun-2026 NAV per share

DSSL closed at BDT 8.9 on 29-Oct-2026 [43]. Over the 52 weeks to that date the lowest daily close was BDT 7.3 on 16-Nov-2025 and the highest BDT 14.4 on 2-Aug-2026, each on a single day [43]. At BDT 8.9 the market value of 210,793,275 shares is BDT 1,876.1m, and the price is 0.50x the NAV per share of BDT 17.70 at 30-Jun-2026 posted on the DSE [44] [40]. P/E is n/a: FY2026 EPS is a loss of BDT 0.45 [40]. The basis is unadjusted DSE daily closes from the TradingView feed.

On 28-Oct-2026 the DSE posted that there would be no price limit on the shares that day following the corporate declaration [40]. The close was BDT 8.2 on 27-Oct-2026 and BDT 9.3 on 28-Oct-2026 [43].

What's next: record date 16-Nov-2026, AGM 29-Dec-2026; Q1 FY2027 board 1-29 Nov 2026 (inferred)

Two dates are notified by the company: the record date of 16-Nov-2026 and the AGM of 29-Dec-2026, both in the DSE post of 28-Oct-2026 [40]. No board date for the first quarter of FY2027 is notified on the DSE at 1-Nov-2026 [40]; one precedent (21-Oct-2018) falls before that date [21 p.1]. Inferred ranges use every board or signing date printed on the quarterly statements in the corpus and in the DSE archive, cover all of them, start after 31-Oct-2026 and begin and end on DSE business days; Fridays and Saturdays are excluded. The statements to 31-Dec-2017 print the date as "January 14, 2017" [26 p.1]; the table shows it as printed. The statements to 30-Sep-2016 were approved on "November 14, 2016" [35 p.1]; the corpus holds no statements for the quarter to 30-Sep-2017.

Already announced, and therefore not in the table: FY2026 EPS of BDT (0.45), NAV per share of BDT 17.70, NOCFPS of BDT 0.03 and the dividend, posted on 28-Oct-2026 after the board meeting of 27-Oct-2026 [40]. The 26th AGM of 30-Dec-2025 had on its agenda the FY2025 accounts, the dividend, director elections, the statutory and compliance auditors and "approval for the female independent directors" (passed), outcome unknown from the filings read [1 p.6]. The FY2025 cash dividend was reported as disbursed in the DSE post of 15-Feb-2026 [40]. Bangladesh's LDC graduation date is 24-Nov-2029, per the UN General Assembly decision of 29-Oct-2026 [41] [42].

Not in the corpus at 1-Nov-2026: the FY2026 annual report with its auditor's report, notes and governance annexure, and the Q1 FY2027 statements.

Risks: BDT 2,247.3m of receivables, BDT 801.7m of inventory and the items the auditor qualified

Each risk row gives the FY2025 figure printed for the item and where it is reported. The "line it moves" column reads "None disclosed" unless a filing quote links the item to a line.

In FY2025 the company's profit before tax was BDT 32.8m, of which exchange gain in non-operating income was BDT 11.5m [1 p.61] [1 p.80]. The nine months to 31-Mar-2026 show a loss before tax of BDT 46.9m [2 p.2].

Key questions: receivable collection, inventory, related-party terms and the FY2026 audit

The filings describe a sweater exporter and spinner with no bank loans, revenue of BDT 421.1m in FY2025, trade receivables of BDT 2,247.3m at 30-Jun-2025, an auditor's report with a "Qualified Opinion" section, and FY2026 EPS of BDT (0.45) as posted on the DSE [1 p.55] [1 p.60] [1 p.61] [40].

FAQ

What does Dragon Sweater and Spinning make?

Sweaters for export and the yarn for them; capacity is 6,918,000 sweaters and 6,570,000 lbs of yarn a year [1 p.7].

When does Dragon Sweater and Spinning's financial year end?

On 30 June. FY2025 ended on 30-Jun-2025 [1 p.60].

What was Dragon Sweater and Spinning's EPS for FY2026?

BDT (0.45), posted on the DSE on 28-Oct-2026; FY2025 EPS was BDT 0.14 [40].

What dividend did Dragon Sweater and Spinning declare for FY2026?

0.20% cash to general public and institute shareholders, BDT 2,859,677 in total; record date 16-Nov-2026 and AGM 29-Dec-2026 [40].

Does Dragon Sweater and Spinning have bank debt?

No loan line appears on the balance sheet at 30-Jun-2025 or 31-Mar-2026 [1 p.60] [2 p.1].

How large are Dragon Sweater and Spinning's receivables?

BDT 2,247.3m at 30-Jun-2025: BDT 1,138.9m foreign and BDT 1,108.4m from four companies under common management [1 p.60] [1 p.75].

Who audits Dragon Sweater and Spinning?

Shafiq Basak & Co. audited FY2025; its report has a 'Qualified Opinion' section and five emphasis-of-matter items [1 p.55] [1 p.56].

Who owns Dragon Sweater and Spinning?

Directors held 32.17%, institutions 15.30% and the public 52.53% at 30-Jun-2025 [1 p.29].

Sources

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38. Mozaffar Hossain Spinning Mills Limited Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-02
39. Hwa Well Textiles (BD) PLC Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-02
40. Dhaka Stock Exchange news archive for DSSL, 1-Nov-2024 to 1-Nov-2026 (results, dividends, board meetings, record dates, appointments, auditor's emphasis of matters) · link · accessed 2026-11-02
41. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
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44. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-02