Rangpur Foundry financial analysis: 20.5% gross margin in FY2025, BDT 995m group guarantees (Oct 2026)

Investment considerations: a 2.6% net margin and a 23% cash dividend each year FY2020-FY2025; BDT 995m of guarantees for group companies

Rangpur Foundry Limited (RFL) makes cast-iron products at the BSCIC Industrial Estate, Kellabond, Rangpur, and sells them in Bangladesh and abroad. The nine-month report prints that the company 'manufactures and sells cast iron products which include tubewell and irrigation pump including spare parts thereof' [6 p.6]. The annual report describes RFL as 'a concern of PRAN-RFL Group' and states that the business started in 1981 with hand tube wells [s1 p.7, 16]. The company was incorporated on 30 June 1980, became a public limited company on 8 November 1996, and listed in 1999 on the Dhaka and Chittagong exchanges [6 p.6]. It has 10,000,000 shares of BDT 10 [1 p.95].

The latest annual report in the corpus is the Annual Report 2024-2025, for the year to 30-Jun-2025; the statement headings read 'As at 30 June 2025' and 'For the year ended 30 June 2025' [s1 p.84, 85]. The board met on 26-Oct-2026 under listing regulation 19 and declared a 23% cash dividend for the year ended 30-Jun-2026 [7]. The FY2026 audited statements and the FY2026 annual report are not in the corpus at 1-Nov-2026, and the DSE announcement of 27-Oct-2026 reports FY2026 EPS of BDT 3.90 (BDT 3.86 in FY2025), NAV per share of BDT 36.70 at 30-Jun-2026 (BDT 35.09) and NOCFPS of BDT 0.59 (BDT 1.56) [14]; the latest statements in the corpus are the un-audited nine months to 31-Mar-2026 [s6 p.2, 3].

Over FY2020-FY2025 revenue rose from BDT 1,279.6m to BDT 1,502.1m, and profit after tax from BDT 31.1m to BDT 38.6m [5 p.53] [1 p.85]. Gross margin printed between 20.39% and 20.45% each year, and the company declared a 23% cash dividend, BDT 23.0m, for each of those six years [1 p.27] [16]. The callouts list the points on each side as printed in the filings.

Business: tube wells and spares 91.2% of FY2025 revenue, irrigation pumps 8.8%, exports BDT 33.9m

Business model in brief. What it sells: cast-iron tube wells and spares (91.2% of FY2025 revenue) and irrigation pumps and others (8.8%) [1 p.99]. To whom: domestic buyers through distributors and dealers (BDT 1,468.2m) and exports (BDT 33.9m); customer types and top customers are not disclosed, and trade receivables were BDT 3.4m at year-end [s1 p.37, 84, 99]. How it makes money: sale of goods by tonnage, recognised when control passes; FY2025 revenue rose with both tonnage and revenue per tonne; the pricing basis is not disclosed [s1 p.81, 99]. What it needs: ship scrap, pig iron, coke and check valves melted at one plant in Rangpur with 14,820 MT of capacity, part of it imported (USD 2.7m of raw material imports in FY2025) [s1 p.100, 103, 104]. How it is funded: equity of BDT 350.9m and bank short term loans of BDT 93.2m, with no long-term debt printed [1 p.84]. Who controls it: the PRAN-RFL group; the chairman holds 24.88% and Property Development Ltd. 22.51% [s1 p.16, 28].

Industry forces from the filings. Rivalry: the directors' report says sales growth fell short 'due to stiff competition and consumers' choice' and that small firms 'cannot survive in this competition'; RFL calls itself 'the market leader in Cast Iron category'; market shares and the number of rivals are not disclosed [s1 p.7, 37]. Supplier power: ship scrap was 55.5% of FY2025 material consumed (derived), purchases include imports, and the report names 'Power and gas shortage' as an obstacle; sole suppliers: None disclosed [s1 p.37, 100, 104]. Buyer power: sales go through distributors, receivables were 0.8 days of revenue, and no related-party sales are listed in note 39.1; customer concentration: None disclosed [s1 p.98, 108] [16]. Entry barriers: BSTI and ISO 9001 certification and the VAT exemption for CI products are printed; licence or capex barriers: None disclosed [s1 p.7, 99]. Substitutes: None disclosed.

RFL sells two product groups, both cast iron. The quantity schedule in note 19 lists 'Tube well & Spares (CI Products)' at 11,652 MT and BDT 1,370.4m in FY2025, and 'Irrigation Pump & Others (CI Products)' at 853 MT and BDT 131.7m; the FY2024 figures were 11,387 MT and BDT 1,336.0m, and 745 MT and BDT 115.1m [1 p.99]. Tube wells and spares were 91.2% of FY2025 revenue (derived) [16]. The directors' report prints the same volumes, a 2.33% rise for tube wells and a 14.50% rise for pumps [1 p.37].

Revenue per tonne of tube wells and spares was BDT 117.6 thousand in FY2025 and BDT 117.3 thousand in FY2024 (derived from the note 19 schedule) [1 p.99]. Domestic sales are VAT exempted: note 19 prints that 'VAT is exempted in respect of Cast Iron (CI) Products as per S.R.O #172/law/2019/29 VAT dated 13.06.2019' [1 p.99]. Domestic sales were BDT 1,468.2m and export sales BDT 33.9m in FY2025, against BDT 1,421.9m and BDT 29.1m in FY2024 [1 p.99]. The directors' report states that 'company was not able to earn the expected revenues from export' [1 p.37].

Installed capacity for CI products was 14,820 MT in both FY2024 and FY2025; actual production was 13,010 MT and 13,430 MT, a utilisation of 88% and 91% [1 p.103]. The MD&A states that 'RFL is the only listed manufacturing company producing tube well, irrigation pump and agricultural spares in Bangladesh' and that 'it is not feasible to compare the financial position and cash flow with peer companies directly' [1 p.57]. The company had 604 permanent employees at 30-Jun-2025, 372 at head office and 232 at the plant [1 p.108].

Sales run through distributors, who place refundable security deposits: BDT 2.6m at 30-Jun-2025; note 15 prints 'For security purpose a refundable deposit has been taken from distributor for their dealership' [s1 p.84, 98]. Note 'Commission, brokerage or discount against sales' states that no commission was paid to sales agents or distributors other than conventional trade discount [1 p.104]. Selling and distribution expenses were BDT 103.6m and marketing expenses BDT 51.7m in FY2025, of which advertisement was BDT 17.2m [1 p.102].

Line items: revenue up 3.5% in FY2025, gross margin 20.5%, finance cost BDT 38.8m

Revenue grew in four of the five years after FY2020: FY21 7.0%, FY22 5.7%, FY23 -2.1%, FY24 2.4%, FY25 3.5% [16]. The FY2023 fall to BDT 1,417.2m followed FY2022's BDT 1,447.1m [3 p.77]. The FY2025 increase of 3.5% combined higher tube well and pump tonnage with revenue per tonne of tube wells up 0.2% (derived) [1 p.99] [16].

Cost of goods sold was BDT 1,194.9m in FY2025. Raw material consumed was BDT 961.3m, of which ship scrap was BDT 533.2m (8,840.00 MT), pig iron BDT 80.7m, coke BDT 67.7m, check valves BDT 103.2m and store materials BDT 152.0m [1 p.100]. Ship scrap consumption was BDT 541.6m in FY2024 and pig iron BDT 31.1m [1 p.100]. Manufacturing expenses were BDT 241.5m, including salary, allowances and wages of BDT 176.4m and power and fuel of BDT 46.3m (BDT 37.5m in FY2024) [1 p.101]. Imports of raw materials were USD 2,683,489 in FY2025 and USD 1,104,813 in FY2024 [1 p.104].

Gross margin was FY20 20.42%, FY21 20.42%, FY22 20.41%, FY23 20.39%, FY24 20.44%, FY25 20.45% [16]. The MD&A attributes the FY2025 cost increase to 'Higher volume compared to last year, along with an incremental material cost globally and impact from currency devaluation' [1 p.57].

Operating expenses were BDT 212.6m in FY2025: administrative BDT 57.3m, selling and distribution BDT 103.6m and marketing BDT 51.7m [1 p.85]. Salaries were the largest item in each: BDT 43.7m, BDT 78.0m and BDT 32.1m [s1 p.101, 102]. Office rent was BDT 4.4m in both years [1 p.101]. Operating margin was 6.3% in FY2025 and 6.8% in FY2020 [16].

Finance cost was BDT 38.8m in FY2025: interest on working capital loan BDT 37.4m, exchange loss BDT 0.5m and bank charges BDT 0.9m [1 p.102]. It was BDT 42.5m in FY2020 and between BDT 36.8m and BDT 39.4m in FY2021-FY2025 [16]. Note 38.5 states that 'Local currency loans are however not significantly affected by fluctuations in interest rates as the rate is below from market rate' [1 p.106].

Income tax was BDT 14.6m on profit before tax of BDT 53.1m in FY2025, an effective rate of 27.4%; current tax was BDT 15.0m before a BDT 0.3m excess-provision release [1 p.102]. The deferred tax note applies 22.5% to items other than land [1 p.96]. Workers' profit participation fund contributions were BDT 2.7m, 5% of profit before contribution [1 p.102]. There was no other income line in FY2022-FY2025 [1 p.85] [4 p.55].

Ratios: ROE 11.2% in FY2025, inventory 94 days, CFO 0.40 times profit

ROE on average equity was FY21 13.0%, FY22 12.7%, FY23 11.9%, FY24 11.5%, FY25 11.2% [16]. Equity rose each year by retained profit after the BDT 23.0m dividend, from BDT 277.3m at 30-Jun-2020 to BDT 350.9m at 30-Jun-2025 [5 p.52] [1 p.86]. Net margin was between 2.4% and 2.7% in all six years [16].

Inventory was the largest asset: year-end inventory days were FY20 91, FY21 100, FY22 112, FY23 87, FY24 84, FY25 94 [16]. Receivable days were 0.8 in FY2025 [16]. Revenue to year-end total assets was 3.22 times [16].

Operating cash flow was BDT 15.6m in FY2025 and BDT 15.4m in FY2024, 0.40 and 0.41 times profit after tax; it was BDT 90.3m in FY2023 and BDT -10.1m in FY2021 [16]. Over six years CFO totalled BDT 190.9m, payments for property, plant and equipment and capital work in progress BDT 54.4m, and dividends paid BDT 140.3m [16]. There were no payments for property, plant and equipment in FY2024 or FY2025 [1 p.87].

Short term loan to equity was 0.27 times at 30-Jun-2025 and 0.46 times at 30-Jun-2022 [16]. The dividend of BDT 23.0m was 59.7% of FY2025 profit after tax [16].

Balance sheet and cash: inventories BDT 307.7m, short term loan BDT 93.2m, BDT 995m of guarantees issued

Total assets were BDT 466.0m at 30-Jun-2025: inventories BDT 307.7m, advances, deposits and prepayments BDT 88.8m, property, plant and equipment BDT 55.8m and cash BDT 10.2m [1 p.84]. There was no capital commitment at 30-Jun-2025 [1 p.104]. The schedule of property, plant and equipment shows no additions in FY2025 and cost of BDT 381.3m with accumulated depreciation of BDT 325.5m [1 p.110].

Note 12 prints the short term loan of BDT 93.2m as three lines: cash credit of (80,714,151), overdraft of (13,782,557) and trust receipts of 187,711,862 [1 p.97]. The cash credit and overdraft lines are printed as negative balances; at 30-Jun-2024 they were positive (48,433,731 and 5,006,582) and trust receipts were 55,854,294 [1 p.97]. The lenders are HSBC, Prime Bank and Bank Asia, and the security is 'Corporate guarantees and personal guarantees of all shareholding directors of the Company' and 'Hypothecation of stock of raw materials, work-in-process and finished goods' [1 p.97].

Note 39.1 lists the corporate guarantees the company has issued: 'RFL Plastics Ltd.' in favour of EBL, Tk. 615 million, and 'RFL Electronics Ltd.' in favour of SCB, Tk. 380 million, total 995, for working capital [1 p.108]. It also lists a guarantee received from RFL Plastics Ltd. in favour of HSBC of Tk. 410 million, and states 'The companies are subject to common control from same source' [1 p.108]. The guarantees issued equal 2.84 times RFL's equity at 30-Jun-2025 (derived) [16]. Ahsan Khan Chowdhury, RFL's chairman, holds 99.85% of RFL Plastics Ltd. and is a director, and Rathendra Nath Paul, RFL's managing director, is chairman of RFL Plastics Ltd. and RFL Electronic Ltd. (as printed) [1 p.107].

Note 39.1 also records short-term advances during FY2025 of BDT 84.1m to Gonga Foundry Limited, BDT 3.1m to Banga Building Materials Ltd. and BDT 1.1m to Advance Trims Solution, each with the same debit and credit and a nil balance at 30-Jun-2025 [1 p.108]. Note 30 states 'No compensation was allowed by the Company to the Managing Director' and 'No board meeting attendance fee was paid to the directors' [1 p.103].

Current tax liability was BDT 6.7m at 30-Jun-2025, net of advance income tax BDT 136.6m and cumulative provision BDT 143.3m [1 p.98]. Note 40 lists returns for assessment years 2022-2023 to 2024-2025 as 'Return Submitted U/S-180' [1 p.108]. Unclaimed dividends were BDT 1.6m after BDT 4.4m was deposited with the Capital Market Stabilization Fund [1 p.98].

At 31-Mar-2026 (un-audited) inventories were BDT 346.5m, debtors BDT 19.5m, short term credit facility BDT 116.9m, liabilities for expenses BDT 16.2m and equity BDT 359.4m [6 p.3].

Audit: unmodified opinions FY2021-FY2025 with three key audit matters each year

M. J. Abedin & Co, Chartered Accountants, signed the FY2025 report on 26 October 2025 (partner Hasan Mahmood FCA) and the FY2024 report on 27 October 2024 (partner Kamrul Abedin FCA) [1 p.83] [2 p.80]. S. F. Ahmed & Co. signed FY2021, FY2022 and FY2023 (engagement partner Md. Enamul Haque Choudhury, FCA) [5 p.51] [4 p.53] [3 p.75]. All five opinions are unmodified, and none of the five reports contains an emphasis-of-matter paragraph.

FY2025 opinion, quoted in full: 'We have audited the financial statements of Rangpur Foundry Limited, which comprise the statement of financial position as at 30 June 2025, and the statement of profit or loss and other comprehensive income, statement of cash flow and statement of changes in equity for the year then ended, and notes to the financial statements, including a summary of material accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the company as at 30 June 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).' [1 p.81]

FY2025 key audit matter 1: 'Valuation of Property, Plant and Equipment. The carrying value of the PPE was BDT. 55,804,356 as at 30 June 2025. Expenditures are capitalized if they create new assets or enhance the existing assets, and expensed if they relate to repair or maintenance of the assets. Classification of the expenditures involves judgment. The useful lives of PPE items are based on management's estimates regarding the period during which the assets or its significant components will be used. The estimates are based on historical experience and market practice and take into consideration the physical condition of the assets. (Refer to note 4.00 to the Financial Statements)' [1 p.81]

FY2025 key audit matter 2: 'Valuation of Inventory. The company had inventory of BDT.307,712,446 as at 30 June 2025, held in distribution centers, warehouses and across multiple product lines. Inventories are carried at the lower of the cost and net realizable value. As a result, the Directors apply judgment in determining the appropriate values for slow moving or obsolete items. (Refer to note 5.00 to the Financial Statements)' [1 p.81]

FY2025 key audit matter 3: 'Revenue recognition. The Company recognises revenue when (or as) the Company satisfies a performance obligation by transferring a promised good to a customer. Goods are considered as transferred when (or as) the customer or its agent (Forwarder/CFS) obtains control of that goods. Revenue from sale of goods is measured at the fair value of the consideration received or receivable . During the period ended 30 June 2025 the Company has recognised revenues of BDT. 1,502,080,829. Considering the above factors and the risk associated with revenue recognition, we have determined the same to be a key audit matter. (Refer to note 19 to the Financial Statements)' [s1 p.81, 82]

FY2024 opinion: 'We have audited the financial statements of Rangpur Foundry Limited, which comprise the statement of financial position as at 30 June 2024, and the statement of profit or loss and other comprehensive income, statement of cash flow and statement of changes in equity for the year then ended, and notes to the financial statements, including a summary of material accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the company as at 30 June 2024, and its financial performance and its cashflows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994, the Securities and Exchange Rules 2020 and other applicable laws and regulations.' [2 p.77] The FY2024 report has an Other Matter paragraph: 'The financial statements of Rangpur Foundry Ltd. for the year ended 30 June 2023 audited by S.F. Ahmed & Co. who expressed an unmodified opinion on those statements.' [2 p.78] Its key audit matter 1 repeats the FY2025 wording with 'BDT. 61,766,608 as at 30 June 2024' [2 p.77]. Key audit matter 2: 'Valuation of Inventory. The company had inventory of BDT. 264,584,735 as at 30 June 2024, held in distribution centers, warehouses and across multiple product lines. Inventories are carried at the lower of the cost and net realizable value. As a result, the Directors apply judgment in determining the appropriate values for slow moving or obsolete items. (Refer to note 5.00 to the Financial Statements)' Key audit matter 3: 'Revenue recognition. The Company recognises revenue when (or as) the Companysatisfies a performance obligation by transferring a promised good to a customer. Goods are considered as transferred when (or as) the customer or its agent (Forwarder/CFS) obtains control of that goods. Revenue from sale of goods is measured at the fair value of the consideration received or receivable. During the period ended 30 June 2024 the Company has recognised revenues of BDT. 1,451,069,242. Considering the above factors and the risk associated with revenue recognition, we have determined the same to be a key audit matter. (Refer to note 19 to the Financial Statements)' [2 p.78]

FY2023 opinion: 'In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 30 June 2023 and of its financial performance and its cash flows for the year ended in accordance with International Financial Reporting Standards (IFRSS), the Companies Act 1994, the Securities and Exchange Rules 2020 and other applicable laws and regulations.' [3 p.70] FY2023 key audit matters: 'Revenue. ISAS require that, as part of our overall response to the risk of fraud, when identifying and assessing the risks of material misstatement due to fraud, we evaluate which types of revenue or revenue transactions might give rise to potential fraud risks. The Company is concentrated in manufacturing. We have specifically focused this key audit matter to cut-off and occurrence for revenue recorded within June 2023. Pressures to meet stakeholders' expectations could provide incentives to record revenues where controls of the goods have not passed. The associated disclosure is included within Note-20. For specific detail on the Company's accounting policy, please see Note 3.4.' [s3 p.70, 71] 'Inventory. At the reporting date, the carrying value of inventory amounted to Taka 267,784,393 that is 59.13% of total assets. Inventories were considered as a key audit matter as inventory valuation involves management judgement. Inventory valuation and existence was an audit focus area because of the volume of inventories, and the judgment applied in the valuation of inventory to incorporate inventory shrinkage. According to the Company's accounting policy, inventories are measured at the lower of cost or net realizable value. The Company has specific procedures for identifying risk for obsolete items and measuring inventories at the lower of cost and net realizable value. The associated disclosure is included within Note 6. For specific detail on the Company's accounting policy, please see Note 3.3.' [3 p.71] 'Property, plant and equipment. At the reporting date, the carrying value of the Company's property, plant and equipment amounted to Taka 68,391,198. The valuation of property, plant, and equipment was identified as a key audit matter due to the significance of this balance to the financial statements, as well as the significance of management's judgements in determining its valuation. In considering the valuation of property, plant, and equipment, we focused on the assessment of the followings: Inherent risks associated with property, plant and equipment. Potential misstatements in property, plant, and equipment on account of frauds and errors. Assessment of useful lives of assets. Assessment of impairment of assets. Inherent risks associated with property, plant and equipment: Property, plant and equipment may include assets that should have been derecognized following sale, other transfer of rights or abandonment. Expenditure that should have been recognized as property, plant and equipment but has not been so recognized, including capitalized finance costs. Depreciation may have been incorrectly calculated. Potential misstatements in property, plant, and equipment on account of frauds and errors: Purchase of an asset at an inflated price especially from a related party. Wrong write-off of the asset as scrap. obsolescence, missing, donated, or destroyed. Expenditures for repairs and maintenance recorded as property, plant and equipment or vice versa. Capitalization of expenditure which are not normally attributable to the cost of the property, plant and equipment. Recording of an asset purchased, which in effect has not actually been received by the entity at all. Assessment of useful lives of assets: Management applies estimates and judgements in its determination of useful lives of assets and reviews the useful lives of assets at each financial year end and adjusts for changes, where appropriate. Impairment of assessment: At the end of each reporting period, managent assesses whether there is any indication that an asset may be impaired. If any such indication exists, management estimates the recoverable amount of the asset. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. The associated disclosure is included within Note 4. For specific detail on the Company's accounting policy, please see Note 3.1.' [s3 p.72, 73]

FY2022 opinion: 'In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 30 June 2022 and of its financial performance and its cash flows for the year 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.' [4 p.48] FY2022 key audit matters: 'Revenue. ISAs require that, as part of our overall response to the risk of fraud, when identifying and assessing the risks of material misstatement due to fraud, we evaluate which types of revenue or revenue transactions might give rise to potential fraud risks. The Company is concentrated in manufacturing. We have specifically focused this key audit matter to cut-off and occurrence for revenue recorded within June 2022. Pressures to meet stakeholders' expectations could provide incentives to record revenues where controls of the goods have not passed. The associated disclosure is included within Note-19. For specific detail on the Company's accounting policy, please see Note 3.4.' [s4 p.48, 49] 'Inventory. At the reporting date, the carrying value of inventory amounted to Taka 354,552,466 which is 72.99% of total assets. Inventories were considered as a key audit matter as inventory valuation involves management judgement. Inventory valuation and existence was an audit focus area because of the volume of inventories, and the judgment applied in the valuation of inventory to incorporate inventory shrinkage. According to the Company's accounting policy, inventories are measured at the lower of cost or net realizable value. The Company has specific procedures for identifying risk for obsolete items and measuring inventories at the lower of cost and net realizable value. The associated disclosure is included within Note 5. For specific detail on the Company's accounting policy, please see Note 3.3.' [4 p.49] 'Property, plant and equipment. At the reporting date, the carrying value of the Company's property, plant and equipment amounted to Taka 43,379,071. The valuation of property, plant, and equipment was identified as a key audit matter due to the significance of this balance to the financial statements, as well as the significance of management's judgements in determining its valuation. In considering the valuation of property, plant, and equipment, we focused on the assessment of the followings: Inherent risks associated with property, plant and equipment. Potential misstatements in property, plant, and equipment on account of frauds and errors. Assessment of useful lives of assets. Assessment of impairment of assets. Inherent risks associated with property, plant and equipment: Property, plant and equipment may include assets that should have been derecognized following sale, other transfer of rights or abandonment. Expenditure that should have been recognized as property, plant and equipment but has not been so recognized, including capitalized finance costs. Depreciation may have been incorrectly calculated. Potential misstatements in property, plant, and equipment on account of frauds and errors: Purchase of an asset at an inflated price especially from a related party. Wrong write-off of the asset as scrap, obsolescence, missing, donated, or destroyed. Expenditures for repairs and maintenance recorded as property, plant and equipment or vice versa. Capitalization of expenditure which are not normally attributable to the cost of the property, plant and equipment. Recording of an asset purchased, which in effect has not actually been received by the entity at all. Assessment of useful lives of assets: Management applies estimates and judgements in its determination of useful lives of assets and reviews the useful lives of assets at each financial year end and adjusts for changes, where appropriate. Impairment of assessment: At the end of each reporting period, management assesses whether there is any indication that an asset may be impaired. If any such indication exists, management estimates the recoverable amount of the asset. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. The associated disclosure is included within Note 4. For specific detail on the Company's accounting policy, please see Note 3.1.' [s4 p.50, 51]

FY2021 opinion: 'In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 30 June 2021 and of its financial performance and its cash flows for the year 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.' [5 p.46] FY2021 key audit matters: 'Revenue. ISAs require that, as part of our overall response to the risk of fraud, when identifying and assessing the risks of material misstatement due to fraud, we evaluate which types of revenue or revenue transactions might give rise to potential fraud risks. The Company is concentrated in manufacturing. We have specifically focused this key audit matter to cut-off and occurrence for revenue recorded within June 2021. Pressures to meet stakeholders' expectations could provide incentives to record revenues where controls of the goods have not passed. The associated disclosure is included within Note 19. For specific detail on the Company's accounting policy, please see Note 3.4.' [s5 p.46, 47] 'Inventory. At the reporting date, the carrying value of inventory amounted to Taka 297,284,113 which is 71.79% of total assets. Inventories were considered as a key audit matter as inventory valuation involves management judgement. Inventory valuation and existence was an audit focus area because of the volume of inventories, and the judgment applied in the valuation of inventory to incorporate inventory shrinkage. According to the Company's accounting policy, inventories are measured at the lower of cost or net realizable value. The Company has specific procedures for identifying risk for obsolete items and measuring inventories at the lower of cost and net realizable value. The associated disclosure is included within Note 5. For specific detail on the Company's accounting policy, please see Note 3.3.' [5 p.47] 'Property, plant and equipment. At the reporting date, the carrying value of the Company's property, plant and equipment amounted to Taka 52,749,698. The valuation of property, plant, and equipment was identified as a key audit matter due to the significance of this balance to the financial statements, as well as the significance of management's judgements in determining its valuation. In considering the valuation of property, plant, and equipment, we focused on the assessment of the followings: Inherent risks associated with property, plant and equipment. Potential misstatements in property, plant, and equipment on account of frauds and errors. Assessment of useful lives of assets. Assessment of impairment of assets. Inherent risks associated with property, plant and equipment: Property, plant and equipment may include assets that should have been derecognized following sale, other transfer of rights or abandonment. Expenditure that should have been recognized as property, plant and equipment but has not been so recognized, including capitalized finance costs. Depreciation may have been incorrectly calculated. Potential misstatements in property, plant, and equipment on account of frauds and errors: Purchase of an asset at an inflated price especially from a related party. Wrong write-off of the asset as scrap, obsolescence, missing, donated, or destroyed. Expenditures for repairs and maintenance recorded as property, plant and equipment or vice versa. Capitalization of expenditure which are not normally attributable to the cost of the property, plant and equipment. Recording of an asset purchased, which in effect has not actually been received by the entity at all. Assessment of useful lives of assets: Management applies estimates and judgements in its determination of useful lives of assets and reviews the useful lives of assets at each financial year end and adjusts for changes, where appropriate. Impairment of assessment: At the end of each reporting period, management assesses whether there is any indication that an asset may be impaired. If any such indication exists, management estimates the recoverable amount of the asset. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. The associated disclosure is included within Note 4. For specific detail on the Company's accounting policy, please see Note 3.1.' [s5 p.48, 49]

Governance: a six-member PRAN-RFL board, a 91-day gap between independent directors, and no 'Not Complied' ticks

The board listed in the Annual Report 2024-2025 has six members: Ahsan Khan Chowdhury (Chairman), Rathendra Nath Paul (Managing Director, nominated by Property Development Ltd.), Chowdhury Kamruzzaman (Director, nominated by Property Development Ltd.), Sabiha Amjad (Director), and Abu Taher Chowdhury and Zakia Sultana (Independent Directors) [1 p.15]. The chairman's profile states he is the son of the group's late founder Amjad Khan Chowdhury and of Sabiha Amjad, is Chairman and Chief Executive Officer of PRAN-RFL Group and Chairman of Midland Bank PLC [1 p.16]. Rathendra Nath Paul has been managing director since 27 October 2016 and is chairman of RFL Plastics Ltd., Banga Building Material, Rangpur Metal Industries Ltd., Durable Plastic Ltd., Get Well Ltd., Gonga Foundry Ltd. and RFL Electronic Ltd. [1 p.17]. Chowdhury Kamruzzaman lists 23 other directorships in the group [1 p.18].

The directors' report states that 'Mr. Md. Abdus Salam, FCA has completed his two terms as Independent Director on 7th July 2025' and that the board appointed Abu Taher Chowdhury and Zakia Sultana 'with effect from 6th October 2025', subject to approval at the 45th AGM [1 p.40]. Both are former members of the National Board of Revenue, and the annexure notes BSEC's prior approval of their qualification [s1 p.19, 71]. In the BSEC compliance checklist, condition 1(2)(d), 'The post of independent director(s) cannot remain vacant for more than 90 (ninety) days', is ticked 'Complied' [1 p.71]. The printed dates give 91 days from 7-Jul-2025 to 6-Oct-2025 (derived); the DSE notice of the appointment, posted 12-Oct-2025, cites 'BSEC's consent letter dated October 06, 2025' [14]. Condition 5(2)(d), on filling an audit committee vacancy 'not later than 60 (sixty) days', is also ticked 'Complied' [1 p.75].

We read every page of the Annexure-C checklist from the images (PDF pages 70-79): no condition is ticked 'Not Complied'; condition 6(5)(b)(i)(a) carries the remark 'Will be complied with' and conditions 6(5)(b)(i)(b) to (vi) the remark 'TOR of NRC includes this Role' [s1 p.70, 78]. SARashid & Associates (S. Abdur Rashid FCS) certified compliance on 01 December 2025 'except as stated in the remarks column' and wrote that 'The Governance of the Company is satisfactory' [1 p.69].

Eight board meetings were held in FY2025: the chairman, the managing director and Md. Abdus Salam attended 8, Chowdhury Kamruzzaman 7 and Sabiha Amjad 5 [1 p.43]. The FY2025 audit committee was Md. Abdus Salam, FCA (chairman), Ahsan Khan Chowdhury and Sabiha Amjad, each attending 4 of 4 meetings; the nomination and remuneration committee had the same three members and met once [s1 p.54, 55]. The current audit committee is Abu Taher Chowdhury (chairman), Sabiha Amjad and Zakia Sultana, and the NRC adds Ahsan Khan Chowdhury [1 p.14]. Muhammad Aminur Rahman, LL.M, FCS is company secretary and secretary to both committees; Md. Arafatul Islam is head of internal audit; Uzma Chowdhury is Director Finance and Chowdhury Atiur Rasul Director Accounts [1 p.14]. The directory lists Safiul Alam as 'Chief Financial Officer (CC)', and the FY2025 statements and the shareholding pattern name Kishor Kumar Debnath as Chief Financial Officer [s1 p.14, 28, 84].

Ownership and capital: sponsors and directors 49.89%, a 23% cash dividend for FY2020-FY2026

At 30-Jun-2025 Ahsan Khan Chowdhury held 2,487,380 shares (24.88%) and Property Development Ltd. 2,251,370 (22.51%); Sabiha Amjad held 250,000 (2.50%), Chowdhury Kamruzzaman 1,000 and Rathendra Nath Paul 1,000 [1 p.28]. Sponsors and directors held 49.89%, institutions 31.59% and the general public 18.53% [1 p.28]. Note 9 prints the general public at 18.52% (1,852,556 shares) and financial institutions at 31.59% [1 p.96]. 2,301 shareholders were on the register, and 8 holders above 100,000 shares held 77.96% [1 p.96].

Share capital has been BDT 100.0m in each year FY2020-FY2025, and the cash dividend 23% each year [1 p.27]. Dividends paid in cash were BDT 23.0m in FY2025 [1 p.87]. The directors' report states that the company was rated 'AA-' long term and 'ST-3' short term with a stable outlook by Credit Rating Information and Services Limited; no rating date is printed on that page [1 p.38]. DSE news posted 24-Feb-2026 reports the CRISL rating 'AA-' long term and 'ST-3' short term with a stable outlook, based on audited FY2025 and un-audited December 2025 statements; a CRISL rating was also posted on 16-Feb-2025 (DSE post dates) [14].

For FY2026, the board met on 26-Oct-2026 and declared a 23% cash dividend, with a record date of 17-Nov-2026 and the AGM on 24-Dec-2026 [7]. The DSE notices collected for 1-Nov-2024 to 1-Nov-2026 also include board meetings for Q1 FY2026 on 12-Nov-2025, Q2 on 31-Jan-2026 and Q3 on 27-Apr-2026 [7]. DSE news posted 6-Nov-2024 to 27-Oct-2026 contains no board approval of capital expenditure or expansion [14].

Nine months to March 2026: turnover up 3.0%, profit after tax BDT 31.4m

For the nine months to 31-Mar-2026, turnover was BDT 1,211.1m against BDT 1,176.1m, gross profit BDT 246.9m against BDT 239.7m, financial expenses BDT 29.6m against BDT 28.9m and net profit after income tax BDT 31.4m against BDT 31.7m; EPS was BDT 3.14 against BDT 3.17 [6 p.2]. Income tax was BDT 12.0m against BDT 9.4m [6 p.2]. The third quarter alone had turnover of BDT 368.5m and profit after tax of BDT 9.7m (BDT 360.4m and BDT 9.9m a year earlier) [6 p.2].

Operating cash flow for the nine months was BDT 0.6m, against a BDT 25.5m outflow a year earlier; short term loan drawings were BDT 23.7m and dividends paid BDT 22.9m [6 p.4]. NAV per share was BDT 35.94 at 31-Mar-2026 [6 p.3]. The statement of financial position prints total assets of 512,479 and total equity and liabilities of 512,477 (Taka '000) [6 p.3].

Peers: FY2025 finance cost of 2.6% of revenue at RFL, 9.2% at Anwar Galvanizing and 9.0% at Quasem Industries

RFL's MD&A states that comparison with light-engineering peers is not feasible [1 p.57]. For context we list two DSE engineering companies with published AnalystBro notes, each on a company basis for the year to 30-Jun-2025. Anwar Galvanizing Limited reported revenue of BDT 612.3m, a gross loss of BDT 52.6m, financial expenses of BDT 56.4m and a loss after tax of BDT 371.9m; its FY2025 opinion is unmodified [s8 p.24, 18] [10]. Quasem Industries PLC reported sales (net of VAT) of BDT 1,471.2m, gross profit of BDT 360.9m, financial expenses of BDT 131.9m and profit after tax of BDT 75.9m; its FY2025 opinion is qualified [9 p.11] [11].

On the same derived basis, finance cost was 2.6% of revenue at RFL, 9.2% at Anwar Galvanizing and 9.0% at Quasem Industries [16]. The businesses differ, and margins are listed without ranking.

What's next: record date 17-Nov-2026, AGM 24-Dec-2026, Q1 FY2027 board 12-Nov-2026 to 15-Nov-2026 (inferred)

The record date for the FY2026 dividend is 17-Nov-2026 and the AGM is on 24-Dec-2026 [7]. The FY2026 audited statements, signed after the 26-Oct-2026 board meeting, are not in the corpus at 1-Nov-2026 [7]. Bangladesh's LDC graduation date is 24-Nov-2029 [12] [13]; the filings do not link it to any line item.

Inferred dates use all precedents we hold: board meetings for Q1 on 13-Nov-2023, Q2 on 28-Jan-2024 and Q3 on 28-Apr-2024 from the AR FY2024 financial calendar [2 p.18]; board meetings for Q1 on 12-Nov-2024 and 12-Nov-2025, for Q2 on 27-Jan-2025 and 31-Jan-2026, for Q3 on 26-Apr-2025 and 27-Apr-2026, and annual statement dates of 28-Oct-2021, 27-Oct-2022, 28-Oct-2023, 27-Oct-2024, 26-Oct-2025 and 26-Oct-2026 [1 p.26] [5 p.51] [4 p.53] [3 p.75] [2 p.80] [1 p.83] [7]. The 31-Jan-2026 precedent was a Saturday. No board date for Q1 FY2027 is notified in the notices we hold. The AR FY2023, FY2022 and FY2021 reports print no financial calendar page, and the quarterly statements print no signing date. 13-Nov falls on a Friday in 2026. Each range is labelled with the number of years of precedent.

Risks: raw material prices, the exchange rate, group guarantees and bank borrowing

The directors' report lists the company's own risks: 'Any insufficiency or price hike of raw materials due to change in policy in the international market might hamper the production and profitability' and 'Changes in currency exchange rates might also affect the pricing and thereby the profitability of the Company' [1 p.41]. The table below lists risks from the filings; the 'line it moves' column is filled where a filing quote links the risk to a line.

Key questions: FY2026 results, the group guarantees, inventory and exports

Tonnage, gross margin and operating cash flow and dividends paid are printed each year in note 19, the statement of profit or loss and the cash flow statement [s1 p.85, 87, 99]. In FY2025 operating cash flow of BDT 15.6m was below the BDT 23.0m of dividends paid [1 p.87].

For the group links, the guarantee table in note 39.1 and the related-party holdings in note 39 are the pages to read in each new report [s1 p.107, 108].

Printed differences: nine items printed two ways

Where the filings print a figure two ways for the same item and date, both printings are listed; we have not chosen between them. All entries were read from page images or digital text layers.

FAQ

What does Rangpur Foundry make?

Cast-iron tube wells and spares and irrigation pumps at Rangpur, under the RFL brand of the PRAN-RFL group [6 p.6] [1 p.99].

What was the FY2025 result?

Revenue BDT 1,502.1m, gross profit BDT 307.2m, finance cost BDT 38.8m and profit after tax BDT 38.6m, EPS BDT 3.86 [1 p.85].

Who controls the company?

Ahsan Khan Chowdhury holds 24.88% and Property Development Ltd. 22.51%; sponsors and directors hold 49.89% [1 p.28].

What guarantees has it given?

BDT 995m of corporate guarantees for RFL Plastics Ltd. and RFL Electronics Ltd. at 30-Jun-2025 [1 p.108].

What did the auditor say?

An unmodified opinion for FY2025 with key audit matters on PPE, inventory and revenue [1 p.81].

What dividend is declared for FY2026?

23% cash; record date 17-Nov-2026, AGM 24-Dec-2026 [7].

What were the FY2026 EPS and NAV?

The DSE announcement of 27-Oct-2026 reports EPS of BDT 3.90, NAV per share of BDT 36.70 at 30-Jun-2026 and NOCFPS of BDT 0.59; the audited statements are not in the corpus at 1-Nov-2026 [14].

How did the nine months to March 2026 go?

Turnover BDT 1,211.1m and profit after tax BDT 31.4m, EPS BDT 3.14 [6 p.2].

Sources

1. Rangpur Foundry Limited Annual Report 2024-2025 (year to 30-Jun-2025; directors' report, governance annexures, auditor's report, statements, notes; 116 pages); PDF page numbers · link · accessed 2026-11-02
2. Rangpur Foundry Limited Annual Report 2023-2024 (year to 30-Jun-2024, FY2023 comparatives); PDF page numbers · link · accessed 2026-11-02
3. Rangpur Foundry Limited Annual Report 2022-2023 (year to 30-Jun-2023, FY2022 comparatives); PDF page numbers · link · accessed 2026-11-02
4. Rangpur Foundry Limited Annual Report 2021-22 (year to 30-Jun-2022); PDF page numbers · link · accessed 2026-11-02
5. Rangpur Foundry Limited Annual Report 2020-2021 (year to 30-Jun-2021, FY2020 comparatives); PDF page numbers · link · accessed 2026-11-02
6. Rangpur Foundry Limited un-audited financial statements, nine months to 31-Mar-2026 (Taka '000) · link · accessed 2026-11-02
7. DSE announcements for RANFOUNDRY as collected in the AnalystBro events feed, 1-Nov-2024 to 1-Nov-2026 (board meeting, dividend, record date and AGM notices; read 2-Nov-2026) · link · accessed 2026-11-02
8. Anwar Galvanizing Limited Annual Report 2025 (year to 30-Jun-2025) · link · accessed 2026-11-02
9. Quasem Industries PLC audited financial statements, year to 30-Jun-2025 · link · accessed 2026-11-02
10. AnalystBro, Anwar Galvanizing financial analysis (published note) · link · accessed 2026-11-02
11. AnalystBro, Quasem Industries financial analysis (published note) · link · accessed 2026-11-02
12. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
13. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
14. DSE news archive for RANFOUNDRY (old.dsebd.org), posts 6-Nov-2024 to 27-Oct-2026 (read 2-Nov-2026) · link · accessed 2026-11-02
15. AnalystBro price data (TradingView DSE daily feed, unadjusted): DSE:RANFOUNDRY daily bars to 1-Nov-2026 · link · accessed 2026-11-02
16. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-02