intratek testing services

Financial Policies And Practices Of Intertek Testing Service Labtest Bangladesh

1. Introduction: Bangladesh verification and advisory services provide quality and quantity audits, production checks during the manufacturing, pre-loading inspections and tailormade solutions.

Intertek verification and advisory services in Bangladesh provide customers with the assurance they need throughout the trading process. Intertek also supports companies exporting to Bangladesh as a government appointed provider of pre-shipment inspections which is mandatory for all goods except those identified as exempt, prohibited or restricted.

Whatever industry, Intertek can provide in Bangladesh verification services to meet your needs. Intertek inspections protect you from substandard products, ensuring products meet the inspection and certification terms for letters of credit and are accepted by insurance companies for loss-prevention cover. No matter where you, your customers or suppliers are based, Intertek's global network can deliver.

Bangladesh exporter and importer services: Exporting or importing your products in Bangladesh ? Intertek services are tailored for clients who need reassurance and assistance in exporting or importing their goods worldwide, and ensuring those products meet government and safety standards. Your products are of the quality your customers expect, so protecting your brand and reputation, and prevention of late and short shipments is important. As an independent, third party inspection and testing company Intertek can conduct a variety of on-site inspections with the minimum of disruption.

Caleb brett was founded in 1885 and is a joint leader in the market for testing and inspecting crude oil, petroleum products and chemicals. We believe that caleb brett has strong name recognition coupled with an international reputation for reliability and confidentiality. Caleb brett’s primary business is providing independent verification of the quality and quantity of crude oil, petroleum products and chemicals and, to a lesser extent, agricultural produce.

Free standing testing involves the analysis of samples unrelated to cargo shipments, including situations where an oil or chemical company or trader outsources its laboratory testing work to caleb brett.

Caleb brett also performs marine surveying and agricultural inspection. Marine surveying is the evaluation of cargo damage, primarily for insurance purposes. Agricultural inspection and testing is the physical sampling, quantification, inspection and testing of commodities, such as vegetable oils and cotton.

1.1 Background of the project Intertek Bangladesh organizes seminar on restricted substances in Intertek consumer goods Bangladesh organized seminars in chittagong and Dhaka held december 1-2 in hotel peninsula chittagong and spectra convention centre Dhaka respectively. Each seminar was attended by approximately 100 representatives from different buyers, trading agents, suppliers and manufacturers across the rmg (ready made garments) and textile sector.

Representatives from major us & european retailers sourcing out of Bangladesh were also present in the seminars. Caleb brett has 330 offices and 174 laboratories worldwide.

Head offices are located in singapore for caleb brett asia, the united kingdom for caleb brett europe africa middle east, and the united states for caleb brett americas. Caleb brett’s customers include oil and chemical companies and traders with whom we have well established long-term relationships. The majority of our oil company customers purchase services from caleb brett on a job-by-job, port-by-port basis. Caleb brett does not have any customers which represent more than 5% of its revenues. We believe that caleb brett has been able to increase its market share through its extensive network of facilities, its well equipped, quality-controlled and technically proficient laboratories, its reputation for service and its international co-ordination which leads to close contact with customers. Marketing is carried out on a global, regional and local level. The internet is starting to become an important route to market. Multinational oil companies typically split inspection and testing between two or more suppliers to sustain competition. Based on our knowledge of the market for testing and inspecting crude oil, petroleum products and chemicals, we believe that caleb brett and societe generale de surveillance are regarded as market leaders in this industry, together sharing over 50% of the market in 1999. Other global competitors include inspectorate and saybolt which each hold approximately 10% of the market. We believe that competition in this market will continue to be relatively stable as a result of high start-up and fixed costs, as well as the importance of brand name recognition. All of caleb brett’s offices include staff capable of performing relevant sampling, testing and inspection operations. Field inspectors attend and superintend vessels during loading or discharge, sample the cargo and measure the cargo quantity. Laboratory technicians test samples. Caleb brett uses sophisticated information systems to allow it to maximise reporting accuracy, minimise operating costs and turnaround times and offer the highest level of service to its customers.

We believe that the market for traditional inspection related testing is mature in europe and the united states, and we anticipate low growth in these regions. As a result of consolidation in the oil industry, there has been an increasing number of intercompany movements, which tend not to attract third party inspections. This decline has been offset by increasing business in asia and latin america where markets are developing and the state oil companies have privatised parts of their business. We intend to concentrate on maintaining our market share in europe and the united states and expanding in developing countries, making acquisitions as appropriate. Free standing testing is the fastest growing sector within caleb brett, and we intend to continue investing in our petroleum and petrochemical laboratories. In addition, we plan to increase further our level of customer service through improved responsiveness combined with fast and accurate turnaround. This strategy is supported by tailored information technology solutions, for example a new ordering, inquiry, and reporting system called “mycalebbrett.com” which came online in 2000. Following the success of our outsourcing agreement with bp in the united kingdom in 2000, a number of multinational oil companies and petroleum traders have expressed an interest in outsourcing their laboratories to caleb brett. We believe outsourcing will be a key growth area in 2001 and beyond. Caleb brett made four small acquisitions in 2000 that expanded our range of services and geographic 1.2 Prelude Throughout this annual report, the term “company” refers to Intertek testing services limited and the terms “we”, “our”, “us”, “its” or “group” refer to Intertek testing services limited and its consolidated. References to “sterling” and “TK.” Are to great british pounds and all references to “dollars” or “$” are to united states dollars. Our historical consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United Kingdom (“bd. Gaap”) and are presented in sterling. Bd gaap differs in certain significant respects from generally accepted accounting principles in the United States (“u.s. Gaap”). For a discussion of the most significant relevant differences between bd. Gaap and U.S. Gaap, see note 30 to our 1.3 Nature of the problem On, the dollar noon buying rate in new york city for cable transfers in pounds sterling as certified for customs purposes by the federal reserve its Labtest Bangladesh of new york (the “noon buying rate”) was the following table sets out, for the periods indicated, the period average rate calculated from the average of the noon buying rate on the last business day of each full month during the period and where the period is less than one full month, the last day of the period. The following table sets out, for the periods indicated, the high and low exchange rates during the previous six months.

1.4 Objective of the study: Significant leverage and ability to service debt could affect our ability to grow and service our debt obligation .we are highly leveraged. At we had , in total borrowings on a consolidated basis and , of shareholders’ equity. We may incur additional indebtedness in the future, subject to certain limitations in the instruments governing’ indebtedness. The degree to which we are leveraged could have important consequences for holders of our debt and

our’debt, as well as for our operations and financial position, including (i) our ability to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes may be limited, (ii) we must dedicate a substantial portion of our cash flow to the payment of interest on our indebtedness, reducing the funds available to us for other purposes; (iii) some of our indebtedness bears interest at floating rates, which may make its vulnerable to increases in interest rates; (iv) certain loans incurred in connection with our acquisition are secured and rank in priority to holders of the 10.25% senior subordinated notes due 2006 (the “notes�) issued by our subsidiary, Intertek finance plc, and will come due prior to the notes becoming due; (v) our indebtedness imposes numerous financial and other restrictive covenants that limit our ability to, among other things, borrow additional funds, dispose of assets or pay cash dividends and the failure to comply with such restrictions may result in an event of default which, if not cured our ability to make scheduled payments of the principal of, or to pay interest on, or to refinance our indebtedness and to make scheduled payments under our operating and capitalized leases depends on our future performance, which to a certain extent is subject to economic, financial, competitive and other factors beyond our control. Based upon the current level of operations and anticipated growth, management believes that available cash, together with available borrowings under our credit agreements and other sources of liquidity, will be adequate to meet our anticipated requirements for working capital, capital expenditures, research and development expenses, interest payments and scheduled principal payments. We can offer no assurance, however, that our business will continue to generate sufficient cash flow from operations in the future to pay principal and interest on indebtedness. If unable to do so, we will be unable to repay our existing debt and may be required to refinance all or a portion thereof (including the notes), to sell assets or to obtain additional financing. We can offer no assurance that any such refinancing would be possible or that any such sales of assets or additional financing could be achieved.

The right of payment of holders of the notes is subordinate to senior indebtedness The notes issued by our subsidiary, Intertek finance, are subordinated in right of payment to all existing and future senior indebtedness of Intertek finance. The notes are guaranteed on a senior subordinated basis by and certain of its other. The guarantees of the notes are subordinated in right of payment to all existing and future senior indebtedness of the guarantors. As of, and the other guarantors of the notes have TK.323.9 , of senior indebtedness outstanding. The notes and the guarantees will rank at least pari passu with all present and future subordinated indebtedness of Intertek finance and the guarantors of the notes.

1.5 literature review if required Intertek finance and the guarantors of the notes have no operations of their own. As a result, they are wholly dependent on the earnings of the operating companies that are their.

Generally, claims of creditors of a subsidiary, including trade creditors, secured creditors and creditors holding indebtedness and guarantees issued by such subsidiary, and claims of preferred stockholders (if any) of such subsidiary, will have priority with respect to the assets and earnings of such subsidiary over the claims of the creditors of its parent company, except to the extent the claims of creditors of the parent company are guaranteed by such subsidiary.

The notes therefore are effectively subordinated to creditors (including trade creditors) and preferred stockholders (if any) of the direct and indirect of, Intertek finance and each other

guarantor of the notes. As ofthe total liabilities, including provisions for liabilities and charges of all of the operating Restrictive covenants in loan agreements and our shareholders’ agreement could hinder our ability to grow and service our debt The for the notes, the subscription and shareholders’ agreement among and the holders of certain classes of its shares (the “shareholder’s agreement”), and its’ loan agreements impose operating and financial restrictions that restrict, among other things, the ability of, Intertek finance and the other guarantors of the notes (i) to incur additional indebtedness; (ii) to incur liens; (iii) to pay dividends or make certain other restricted payments; (iv) to enter into certain transactions with affiliates; (v) to incur indebtedness that is subordinate in right of payment to senior indebtedness but senior in right of payment to the notes; (vi) to impose restrictions on the ability of a subsidiary to pay dividends or make certain payments to Intertek finance, or other guarantors of the notes; (vii) to merge or consolidate with other persons; or (viii) to sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the assets of Intertek finance or a guarantor of the notes.

1.6 justification of the study In addition, other agreements, including the credit agreement entered into in november 1996, as amended (the “credit agreement”), prevent the prepayment of certain indebtedness (including the notes) and require tha maintain certain financial ratios and meet certain financial condition tests’s ability to meet those financial ratios and tests can be affected by events beyond its control, and we can offer no assurance that will meet these tests. A breach of any of these covenants could result in default under these agreements, and under other agreements containing cross default provisions, which would permit lenders to declare outstanding amounts, together with interest, to be immediately due and payable. If and the other guarantors of the notes were unable to pay those amounts, the lenders could proceed against the collateral securing that indebtedness, which collateral includes the capital stock of the guarantors of the notes. If the amounts outstanding under certain credit agreements were to be accelerated, holders of the notes could also accelerate the payment thereof. If some or all of the indebtedness of Intertek finance or its affiliates was to be accelerated, we can offer no would be sufficient to repay that indebtedness in full, including the notes.

1.7 limitation of the study : Each of Intertek finance, Intertek testing services uk limited (“ukco”), which is one of the guarantors of the notes, and its are limited companies organized under the laws of england.

Accordingly, insolvency proceedings with respect to either Intertek finance, ukco or its are likely to proceed under, and be governed by uk insolvency laws.

The procedural and substantive provisions of uk insolvency and administrative laws generally are more favorable to secured creditors than comparable provisions of the us law and afford other creditors only limited protection from such secured creditors. Although the notes are secured by a second priority lien on certain intercom any notes, the lenders under the credit agreement have a first priority lien on the notes evidencing the intercom any loans, and the capital stock of certain have been pledged to secure the loans. Under the terms of an intercreditor deed entered into in connection with the offering of the notes, after the occurrence of an insolvency event, the security trustee under the credit agreement shall have

the right to direct the disposition of any collateral. In connection with a sale of the capital stock of a subsidiary guarantor pursuant to an enforcement of security, the applicable subsidiary guarantee and second lien on an intercompany note will be released. In addition, under uk insolvency law, the liabilities of Intertek finance, uk co and in respect of the notes and the guarantees, respectively, will be paid in the event of a its Labtest Bangladesh ruptcy or similar proceeding after certain debts of 1.8 Scope of the study Total combined voting power of all classes of stock of the issuer or testing holdings usa inc.

Entitled to vote within the meaning of section 871(h)(3) of the code and the regulations hereunder, (ii) the non-united states holder is not a controlled foreign corporation that is related to the issuer or testing holdings usa inc. Through stock ownership, (iii) the non-united states holder is not a bank whose receipt of interest on a note is described in section 881(c)(3) (a) of the code and (iv) either (a) the non-united states holder provides its name and address on an form w-8ben (or successor form), and certifies, under penalty of perjury, that it is not a united states person or (b) if the non-united states holder holds its notes through certain foreign intermediaries or certain foreign partnerships, it satisfies the certification requirements of applicable united states treasury regulations. Special certification rules apply to certain non-united states holders that are entities rather than individuals; (b) the 30% u.s. Federal withholding tax generally will not apply to any gain that a nonunited states holder realizes on the sale, exchange, retirement or other disposition of a note; and (c) a note beneficially owned by an individual who at the time of death is a non-united states holder will not be subject to united states federal estate tax as a result of such individual’s death, provided that such individual does not actually or constructively own 10% or more of the total combined voting power of all classes of stock of the company entitled to vote within the meaning of section 871(h)(3) of the code and provided that the interest payments with respect to such note would not have been, if received at the time of such individual’s death, effectively connected with the conduct of a united states trade or business by such individual.

If a non-united states holder cannot satisfy the requirements of the “portfolio interest” exception described in (a) above, the issuer will withhold united states federal income tax at a rate of 30% on payments of premium, if any, and interest made to such non-united states holder unless the beneficial owner of the note provides the issuer or its paying agent, as the case may be, with a properly executed (1) form w-8ben (or successor form) claiming an exemption from or reduction in withholding under the benefit of an applicable tax treaty or (2) form w-8eci (or successor form) stating that interest paid on the note is not subject to withholding tax because it is effectively connected with the beneficial owner’s conduct of a trade or business in the united states. Alternative documentation may be applicable in certain situations.

If a non-united states holder is engaged in a trade or business in the united states and interest on the note (that is treated as united states source income for united states federal income tax purposes) is effectively connected with the conduct of such trade or business, the non-united states holder, although exempt from the withholding tax discussed above, will be subject to united states federal income tax on such interest income on a net income basis in the same manner as if it were a united states holder. In addition, if such holder is a foreign corporation,

it may be subject to a branch profits tax equal to 30% (or lesser rate under an applicable tax treaty) of its effectively connected earnings and profits for the taxable year, subject to adjustments. For this purpose, such interest income will be included in such foreign corporation’s earnings and profits.

Any gain realized upon the sale, exchange, retirement or other disposition of a note generally will not be subject to united states federal income tax unless (i) such gain is effectively connected with a trade or business in the united states of the non-united states holder, or (ii) in the case of a non-united states holder who is an individual, such individual is present in the united states for 183 days or more in the taxable year of such sale, exchange, retirement or other disposition, and certain other conditions are met.

Information reporting and backup withholding In general, no information reporting or backup withholding will be required with respect to payments made by the issuer or any paying agent to non-united states holders if the requirements described in (a)(iv) above have been satisfied (and the payor does not have actual knowledge that the beneficial owner is a united states person).

In addition, no information reporting or backup withholding will be required with respect to the proceeds of the sale of a note within the united states or conducted through certain united states related financial intermediaries if the requirements described in (a)(iv) above have been satisfied (and the payor does not have actual knowledge that the beneficial owner is a united states person) or if the holder otherwise establishes an exemption.

1.9 Working definitions of the concepts If we perform a test, inspection or certification inaccurately or improperly then a commercial dispute or litigation may arise for damages. Although we have a well established quality assurance programmer to mitigate such occurrence, from time to time we are involved in various claims and lawsuits incidental to the ordinary course of our business. We maintain a professional indemnity insurance policy that provides coverage, appropriate to our operations, for most customer claims arising from errors or omissions in work undertaken, although claims up to the deductible are self-financed.

In particular, as is set forth in greater detail under item 8 below, two of our subsidiary corporations are currently involved in investigations by the us environmental protection agency . We are unable to predict the outcome of these actions. However, on the basis of currently available information, we consider that the costs to its of any civil and criminal penalties arising from this investigation that may be legally enforceable are unlikely to have a material adverse effect on the financial position of its in the foreseeable future, although we are not able to quantify the cost of any adverse publicity. We have notified inchcape plc of the investigation and are pursuing possible rights of recovery against inchcape plc under the agreement pursuant to which inchcape plc sold our business to us. Our group professional indemnity insurance policy may respond at least in part, to legal costs, civil damages and third party claims.

As, approximately 45.18% of the outstanding ordinary a and b shares of were held by funds managed by charterhouse, and its owns all of Intertek finance’s, approximately 55.78% of the outstanding redeemable preference shares of the company were held by funds managed by

charterhouse. Circumstances may give rise to perceived or actual conflicts of interests between charterhouse as shareholder and the note holders. each of our division’s service a different market, and the revenues of each division are dependent upon the condition of the market it services. In particular, the revenues of Labtest and etl Bangladesh are dependent on the market for manufactured goods, and the revenues of caleb brett are dependent upon the petroleum and petrochemical market. Our fts division works for governments in developing countries where there can be longer payment cycles for accounts r can be terminated at short notice at the sole discretion of the government. We believe the diversified nature of our operations can reduce the effect of various market shocks. However, we can offer no assurance that future changes in underlying markets, or at its, the inherent instability within our markets, will not adversely affect our revenues. In addition, our located throughout the world, and we are subject to certain risks inherent in doing business in international markets, including political instability and change, variations in effective income tax rates, difficulties in collecting accounts receivable, longer payment cycles and withholding taxes that limit the repatriation of earnings. One or more of these factors could have an adverse effect on our international operations.

Methodological aspects: List of the data collection: 2.1 Revenues in 2001 to 2010 were generated by operations in the following geographic areas: Americas Europe, africa and middle east Asia and far east

143.3 117.7 90.2

163.5 120.4 114.5

20.2 2.7 24.3

14.1 2.3 26.9

7.3 4.8 19.3

Continuing operations Discontinued operations

351.2 11.3

398.4 0.7

47.2 (10.6 )

13.4 (93.8 )

9.6 (93.8 )

Total

362.5

399.1

36.6

10.1

6.3

In 2000, 41% of revenues were generated in the americas (1999: 41%), 30% in europe africa and the middle east (1999: 33%), and 29% in asia and the far east (1999: 26%). In 2000, we extended our operations into 9 new countries which increased the total number of countries in which we operate to 94 (1999: 85). In 2000, 34% of revenues were generated in the united states (1999: 34%), 14% in the united kingdom (1999: 15%) and 14% in hong kong (1999: 13%). No other individual country accounted for more than 10% of revenues in either 2000 or 1999.

Revenues from the americas increased by TK.20.2 , or 7.3% at comparable rates, in 2000 over 1999, primarily due to strong growth in caleb brett and The growth rate was 14.1% at actual rates due to currency translation gains caused by the strength of the us dollar against sterling.

Revenues from europe, africa and the middle east increased by TK.2.7 , or 4.8% at comparable rates, in 2000 over 1999. Growth in revenues in europe from outsourcing work

and acquisitions was offset by the termination of the nigerian inspection programmes in march 1999 and the cessation of a short term food aid programme which boosted caleb brett revenues in 1999. The growth rate was 2.3% at actual rates due to currency translation losses caused by the strength of sterling against other european currencies.

In asia and the far east, revenues increased by TK.24.3 , or 19.3% at comparable rates, in 2000 over 1999 due to strong growth in textiles and toys testing in Labtest and growth in caleb brett and etl Bangladesh . The growth rate was 26.9% at actual rates due to currency translation gains as the hong kong dollar reflected the strength of the us dollar against sterling.

Operating costs before exceptional items Our operating costs principally comprise labour costs, property and equipment rental, depreciation and laboratory consumables. Operating costs for continuing operations increased

by TK. 10.3 , or 2.6% at comparable rates to TK.303.2 , in 1999 over 1998. Operating costs for continuing operations increased by TK. 35.2 , or 8.0% at comparable rates to TK.338.4 , in 2000 over 1999. The costs increased broadly in line with revenues. The table below compares operating income before exceptional items, by division for 1998 and 1999 at actual and comparable exchange rates.

Operating income from continuing operations grew by TK.3.1 , or 4.2% at comparable rates in 1999 over 1998. The growth was 6.9% at actual rates. Excluding Its and central overheads, operating income grew by TK. 7.6 , or 16.0% at comparable rates. Over 60% of this growth came from textiles and toys testing in Labtest due to the increased demand for quality testing of consumer merchandise sourced from asia and other developing countries. The decline in its operating income was caused by the cancellation of pre-shipment inspection programmers in nigeria from march 31, 1999.

Operating income from discontinued operations included environmental testing which ceased operating in 1998 and bondar clegg which ceased operating in 2000.

2.2 The table below compares operating income before exceptional items, by division for 2001 and 2010 at actual and comparable exchange rates.

Operating income/(loss) by division

1999

2000

Growth/ (decline)

Actual

Comparable

TK.m

TK.m

TK.m

%

%

Caleb brett Etl Bangladesh Labtest Foreign trade standards

14.8 12.4 21.6 3.1

16.6 15.0 27.8 5.8

1.8 2.6 6.2 2.7

12.2 21.0 28.7 87.1

8.8 16.1 21.3 80.6

Sub total Central overheads

51.9 65.2 13.3 (3.9 ) (5.2 ) (1.3

Continuing operations Discontinued operations

48.0 60.0 12.0 (2.1 ) (0.7 ) 1.4

25.6 20.0 ) (33.3 ) (30.8 25.0 —

19.2 —

)

Total

45.9

59.3

13.4

29.2

23.1

Operating income from continuing operations grew by TK.12.0 , or 19.2% at comparable rates in 2000 over 1999. The growth was 25.0% at actual rates. All operating divisions contributed to this growth, particularly Labtest The following statement is made pursuant to the safe harbour provisions for forward-looking statements described in the private securities litigation reform act of 1995. Some of the information in this annual report on form 20-f contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by forwardlooking words such as “expect”, “anticipate”, “believe”, “seek”, “estimate” and similar words. Statements that we make that are not statements of historical fact also may be forward-looking statements. Forward-looking statements are not guarantees of our future performance, and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. There may be events in the future that we are not accurately able to predict, or over which we have no control. You should not place undue reliance on forward-looking statements. We do not promise to notify you if we learn that our assumptions or projections are wrong for any reason. We disclaim any obligation to update our forward-looking statements.

Both our legal and our commercial name is Intertek testing services limited. We are a private company limited by shares, originally incorporated under the English companies act 1985 on e are a holding company and our business is conducted by 148 . Prior to November 1996, our business operated as a division of inchcape plc called inchcape testing services. In November 1996, a management buyout led by charterhouse development capital limited purchased inchcape testing services from inchcape plc, forming the Intertek testing services group (“its”). Our global business is the testing, inspection and certification of manufactured goods and commodities to customers throughout the world. Our registered office is located at 25 savile row, london, w1s 2es and the telephone number at that location is (44) 20 7396 3400.

Our agent for service of process in connection with our senior subordinated notes is ct corporation system, 111 eighth avenue,.

In 1998, we sold our environmental testing division as the returns from this division were unsatisfactory.

Despite extensive restructuring in 1999, our minerals testing division, bondar clegg, continued to generate operating losses and we considered that the outlook for minerals testing was poor, so we decided to exit this market. In the first quarter of 2000, we sold the businesses that comprised this division.

Our total capital expenditures for 1998, 1999 and 2000 were TK. 14.1 ,, TK.17.7 , and TK.26.4 , respectively. These expenditures were primarily for laboratory equipment, improvements to laboratories and for computer equipment. In 2000, we spent TK.3.6 , establishing a new caleb brett testing facility in the united kingdom and TK.2.2 , on two electrical testing chambers in the united states. Principal capital expenditures currently in progress consist of approximately TK.1.0 , for setting up new laboratories in china and france and TK.2.1 , for a major upgrade to computer equipment in the united states. Our expenditure

on the acquisition of new businesses in 1998, 1999 and 2000 was TK. 11.3, TK.8.5 , and TK. 2.0 ,, respectively. The acquisitions were principally in our caleb brett and etl Bangladesh divisions and acquisitions were made in order to extend our geographical coverage and enhance our market position and strategic strengths.

Organization profile 3.1 Historical background We are a leading international organization engaged in the testing, inspection and certification of manufactured goods and commodities. We are organized into four operating divisions, each focusing on the testing, inspection and certification of different manufactured goods and commodities. Our customer base is diverse and different in each division and includes retailers, distributors, manufacturers, petroleum companies, traders and governments. The majority of our work is on a job by job basis except for the Its division where over 90% of revenues are from term. Apart from our government clients in the Its division, no individual customer contributes more than 2% to the group’s revenues. We currently employ over 9,500 people and operate 479 inspection offices and 243 testing laboratories in 94 countries.

We believe that the growth of the internet offers significant opportunities to expand our business. Increasingly, our customers are demanding closer integration between their systems and ours. We are actively improving our information technology systems to answer these demands. A new ordering, inquiry and reporting system is now online in the caleb brett division (“mycalebbrett.com�). Similar systems will be available in all our divisions in the near future. Other internet based it initiatives are also underway which will allow our divisions to provide better and more tailored services to our customers. This is in keeping with our commitment to put customers first.

An increasing number of commodities and products are being traded via the internet, mainly on business-to-business but also business-to-consumer sites. We provide testing, inspection and certification services for many of the commodities and products traded, ensuring that customers are able to buy products over the internet reliably and with confidence. We are working actively with sites to ensure we are integrated into their online buying and trading processes. Our goal is to be the service partner of choice in online inspection and testing. Our aim is to ensure that we have a market share in each e-business area equal to or greater than our market share in traditional

3.2 Organizational structure 3.3 Administration Our objective for ITS Bangladesh is to increase our market share while maintaining our operating margin. We aim to achieve this by continuing to develop strong partnerships with our customers so that we can promote and provide all of our testing and certification services on a “one stop� basis. The continued development of our interactive websites and internet marketing is an integral part of this strategy. A new oracle computer system is being implemented in the united states that will allow customers on-line access to project status and test reports. We are increasingly organizing. Bangladesh into customer driven market segments such as telecommunications equipment, information technology equipment, medical equipment, building products and heating, ventilation and air conditioning equipment. We believe these segments allow for more focused and effective marketing. We have outsourcing partnerships with abs, electrolux and ericsson, and we anticipate that outsourcing will continue to be a growth area. In addition to the above initiatives, we are continuing to broaden the geographical spread of etl Bangladesh by making strategic acquisitions, particularly in europe where the market is mature and organic growth is slower.

We also acquire businesses that allow us entry into niche markets such as explosives•

Pre-shipment inspection for exports to uzbekistan

3.4 Scope We expect the market for Labtest to continue growing as a result of increasing sourcing of products from developing countries. In addition, Labtest benefits from the greater consumer desire for product varieties, the trend towards shorter product life cycles and increasing awareness of consumer protectionism. Labtest aims to continue its strong revenue growth while maintaining its operating margins. We anticipate an increase in the volume of consumer products purchased over the internet which will potentially increase business for Labtest. We are developing our computer systems to allow our customers on line access to an ordering, reporting and analysis system. We continue to expand the geographical coverage of Labtest. In 2000 we opened offices in Bangladesh and madagascar and 3.4.1 Finance Developed for clients requiring assurance during the loading and unloading process, Intertek personnel ensure that safety and quality requirements are met and that correct goods handling procedures are in place. Intertek Bangladesh’s container inservice verification certifies the sea-worthiness of containers giving you confidence that your goods will arrive and in the best condition.

Bangladesh product inspection services: With Intertek acting as your eyes and ears on the shop floor, we help ensure you receive exactly the goods you ordered.

• • • •

Ipc (initial production checks) Dupro (during production checks) Fri (final random inspections) Commerical manufacturing expediting services

View a listing of our offices in Bangladesh .

Related Bangladesh services: • Pre-shipment inspection for exports to Bangladesh • Exporter and importer services • Verfication services: container services • Donor organisation services • Verfication services: production services Contact us to see how Intertek can help your organization with Bangladesh verification services.

3.4.2 Service Labtest has the expertise to inspect and test a wide range of consumer products to the specifications required by retailers and distributors. Labtest testing facilities are usually located near to the point of manufacture of the product and range from the largest textile testing laboratory in the world in hong kong to small startup operations in new territories such as morocco. We employ experts in a number of specialist fields such as textile analysis

and toy testing. Exporting your products? Intertek can help you comply with import and export requirements, ensuring smooth customs clearance.

Many goods are now produced in countries where the safety and performance requirements of the importing country or region are not always fully understood.

These requirements have been put into place to ensure the safety of importing countries consumers. Unsafe and unreliable products can result in injury, death or damage to property as well as the costs associated with product recalls, compensation claims and the damage to a brand's reputation.

Companies trading with these countries need to comply with the requirements in order for their goods to clear customs. Failure to do so can result in severe delays in goods clearance, penalties or even shipments being returned.

Intertek can issue the necessary certificates to meet these countries standards and ensure smooth customs clearance. Intertek has issued more than 1 million certificates and test reports and have undertaken more assessments of more products for longer than any other organization.

Intertek export and import related programmes in operation include: • • • • • • • • • • • • • • •

Certificates of conformity for exports to algeria Pre-shipment inspections for exports to Bangladesh Destination inspection for imports for ecuador Chartered engineers certificate for exports of used machinery to india Certificate of conformity for exports to kenya Product conformity certificate for exports to kuwait Certificate of origin inspection for exports to mexico Pre-shipment inspection for exports to mozambique Soncap certificate of conformity for exports to nigeria Pre-shipment inspection for exports to the philippines Certificate of conformity for exports to russia Certificate of conformity for exports to saudi arabia Destination inspection for imports for sierra leone Uae export development services Product conformity certificate for exports to uganda

3.4.3 Capital Statement of financial accounting standards (“sfas”) 133, accounting for derivative instruments and hedging activities, as amended by sfas 137, accounting for derivative instruments and hedging activities — deferral of the effective date of fasb statement no. 133, and sfas 138, accounting for certain derivative instruments and certain hedging activities, is effective for the group as of January 1, 2001. Sfas 133 requires that an entity recognize all derivatives as either assets or liabilities measured at fair value. The accounting for changes in the fair value of a derivative depends on the use of the derivative. Derivatives that are not designated as part of a hedging relationship must be adjusted to fair value through income. If the derivative is a hedge, depending on the nature of the hedge, the effective portion of the hedge’s change in fair value is either (1) offset against the change in fair value of the hedged asset, liability or firm commitment through income or (2) held in equity until the hedged item

is recognized in income. The ineffective portion of a hedge’s change in fair value is immediately recognized in income. Adoption of these new accounting standards will result in cumulative after-tax reductions in other comprehensive income on a u.s. Gaap basis of approximately TK.0.4 , in the first quarter of fiscal 2001. The adoption will also impact assets and liabilities recorded on the balance sheet on a u.s. Gaap basis. On January 1, 1999, eleven of the european union member states, including seven countries in which we operate, established fixed conversion rates between their existing currencies and adopted one common currency, the euro. The conversion to the euro eliminates currency exchange rate risk among the eleven member countries.

The currencies of the eleven member states remain legal tender in the participating countries during a three-year transition period from January 1, 1999 through January 1, 2002. Effective January 1, 1999, the euro is traded on currency exchanges and is available for non-cash transactions during the three-year transitional period. Beginning on January 1, 2002, the european central bank will issue euro-denominated bills and coins for use in cash transactions. On or before July 1, 2002, the participating countries will withdraw all bills and coins and use the euro as their legal currency.

Our operating units affected by the euro have established plans to address the issues raised by the conversion. These issues, among others, include such matters as pricing, continuity of contracts, accounting and financial reporting, taxation, treasury activities and computer systems. A number of our operating units in france and portugal have converted their systems and began reporting in euros during 2000. We anticipate that the remaining operating units will convert their local records to the euro during the three-year transition period.

Although we have not identified any immediate problems, we cannot be certain that the harmonisation of currencies in europe will not have a material adverse impact on the operating results, financial position or liquidity of our european businesses.

We are organised under the English companies act 1985 and, as set forth in our memorandum and. Intertek testing services limited is the ultimate parent company for the 148 subsidiary companies that conduct our business on a worldwide basis. Our significant are wholly owned.

Intertek testing services hong kong limited and Intertek testing services na inc. Each contributed more than 10% of the operating income from continuing businesses for the group in 2000.

At, we operated from 479 offices and 243 laboratories in 94 countries. The majority of laboratories have approximately 10,000 to 20,000 square feet of space. Most of our properties are leased and approximately 76% of our leases expire in less than five years. Our principal executive office is located in london, england and occupies 6,960 square feet under a lease expiring in june 2006. The other leased premises have remaining terms generally ranging from 1 to 24 years. Our Labtest operation in hong kong currently occupies 180,800 square feet of a building in kowloon which it rents under various two year leases. The majority of the leases expire in 2001 and we currently expect that they will be renewed.

We own a small number of sites that had a net book value of TK.8.5 , attockholm, sweden occupies 161,400 square feet and accounts for TK.4.6 , of that total. The caleb brett facility in rotterdam, the netherlands, which occupies 34,000 square feet and is owned by its caleb brett nederland bv, has a net book value of TK.0.9, the etl Bangladesh facility in cortland, new york, which occupies 150,000 square feet and is owned by Intertek testing services na, inc.,

also has a net book value of TK.0.9 ,. We believe that our facilities are suitable for their present and intended purposes and are adequate for our current and expected levels of operations.we are aware of contamination at the following two properties which we presently own.

Cortland, new york, united states Cortland is a major etl Bangladesh operating location with a significant heating, ventilation and air conditioning testing capacity. Site contamination was discovered and clean up efforts were started several years ago. These clean-up operations cost approximately $50,000 in 2000, and we estimate ongoing clean up operation costs of about $50,000 to $100,000 per annum. There is a risk that the regulators may require more expensive remedial work.

3.5 Board of directors The board's main roles are to create value for shareholders, to lead the group, to approve the group's strategic objectives, and to ensure that the appropriate financial and other resources, as required, are made available to enable the group to meet set objectives. All directors have a wide range of experience and skills, bringing independent judgment to bear on issues of strategy, performance, resources, and standards of conduct.

Chairman Appointed to the board as chairman in may 2002. He is a corporate lawyer and was a partner of a major Dhakafirm of solicitors, macfarlanes, for 30 years, (during twelve of which he was senior partner). He has been chairman of three listed companies, channel four television and Dhakabusiness school and, until recently, of equitable life assurance society. He is currently chairman of the national college for leadership and of korn ferry/whitehead mann, a director of amplifon s.p.a. (an italian public company) and a trustee of the j paul getty jr charitable trust.

Chief executive officer Appointed to the board as chief executive officer in march 2005 after serving as a non-executive director since november 2002. He was previously chief executive officer of t端v product services for 10 years and chief executive officer and president of t端v s端ddeutschland ag from 1998 to 2002. Starting his career as a scientist in pharmacology and ergonomics, he established and led a broad range of successful international service industry businesses over 25 years. He is also currently a non-executive director of logica plc.

Chief financial officer Appointed to the board as chief financial officer in April 2010. He had previously spent 11 years with bg group plc in various operational and corporate finance roles in the uk and middle east; the last 5 of which were as group financial controller. He started his career with mobil oil corporation, where he held various financial, commercial and management roles in the uk over seven years.

Lloyd is a chartered management accountant and holds an mba from herriott watt university.

Senior independent non-executive director Appointed to the board as a non-executive director in may 2002. With a career that started in civil engineering, as a chartered accountant he has held positions in major international businesses including group finance director for bat industries and barclays plc and chief operating officer for zurich financial services. He is currently chairman of costain group plc and arena coventry ltd and a non-executive director of william hill plc and thomas cook plc, and is a former board member of the uk accounting standards board.

Non-executive director Appointed to the board as a non-executive director in january 2006. Between 1989 and 2002, she was an officer of underwriters laboratories inc., a global provider of systems certification, product inspection, testing and certification, and held various positions there, including senior vice president, chief administrative officer and chief legal officer. Formerly a partner in a large international law firm, she is the managing attorney of rade law llc in chicago focused on corporate law, and legal issues concerning product testing, safety, certification, standards and regulations. Additionally, she is the chief executive officer of rade consulting llc providing corporate strategic planning services.

Non-executive director Appointed to the board as a non-executive director in march 2006. He was an investment banker for nearly 30 years, for much of that time with morgan grenfell and deutsche bank, of which he was a managing director until 2001.

He is a chartered accountant and has extensive corporate finance experience gained during his banking career in london, new york and hong kong. He is chairman of brooks macdonald group plc. •

non-executive director Appointed to the board as a non-executive director in september 2009. He is currently pro-rector of commercial development at imperial college Dhakawhere he leads major international business development and project opportunities in the uk and internationally for the university. Edward was executive director of national grid plc from 2001 to 2008, a managing director at the bicc group from 1997 to 1999 and an executive and regional director at cable & wireless plc from 1989 to 1997. Previously he held senior business strategy positions in the uk and france.

Non-executive director Appointed to the board as a non-executive director in september 2009. 10 years with vodafone plc until 2010 included roles as ceo for vodafone affiliates in the usa, africa, china and india from 2004 to 2008, and ceo/coo of vodafone uk from 2001 to 2004. Multiple board responsibilities at vodafone included verizon wireless in the usa, vodacom and safaricom in africa, china mobile (as alternate), as well as vodafone essar, bharti airtel and indus towers in india. Gavin's operational and management experience spans the consumer goods as well as technology sectors, having served fifteen years in senior executive positions at the coca-cola co including president of coca- cola n w europe, and president of coca-cola central and eastern europe, as well as executive positions at s.c johnson & son ltd (uk) and spillers foods.

Corporate responsibility Intertek group is committed to operating in a socially responsible manner as a global corporate citizen.

As a publicly-listed company, the group's board of directors follow corporate governance standards that promote integrity, transparency, and accountability in order to protect and enhance Intertek’s value to stakeholders and the long-term success of the company.

We guide many of the world's largest multinational corporations and best-known brands to improve the social, ethical and environmental consequences of their products, services and supply chains. We have adopted a framework approach to our own corporate responsibility. We believe that local managers are best placed to understand and react to their local business environment, within this framework. Our corporate social responsibility report contained in our annual report shows how these policies are being implemented around the group.

Our integrity is crucial to our business. Intertek is committed to high standards of professional conduct and to ethical and fair business dealings with our employees, stakeholders, and third parties. Our compliance code and compliance structure support adherence to our code of ethics.

Annul report View the presentations Intertek has given to the investment community.

2010 •

2010 half year results presentation (1.2 mb pdf)

2009 • •

2009 full year results presentation (2 mb pdf) 2009 half year results presentation (734 kb pdf)

2008 • •

2008 full year results presentation (449k pdf) 2008 half year results presentation (137k pdf)

2007 • •

2007 full year results presentation (220k pdf) 2007 interim results presentation (1951k pdf)

2006 • • •

2006 full year results presentation (494k pdf) 2006 investor day presentation (636k pdf) 2006 interim results presentation (726k pdf)

2005 • •

2005 full year results presentation (793k pdf) 2005 interim results presentation (203k pdf)

2004 • •

2004 full year results presentation (150k pdf) 2004 interim results presentation (151k pdf)

2003 • •

2003 full year results presentation (131k 2003 interim results presentation (139k pdf)

2002 • •

2002 full year results presentation (592k pdf) 2002 interim results presentation (99k pdf)

Presentations of finajciai. Statements 4.1 Purpose of financial) statements Genteel purpose financial statements is to ensure comparability both with the entity’s financial statements of previous periods and with the indicia! Slat emends of other entities.

Objective of financial statements The objective of general purpose financial statements is to provide internet son about the financial position, financial performance, and cash flows of Intertek testing service Bangladesh that is useful to a wide range of users in making economic decisions. To meet that objective, financial statements provide information about Intertek testing service Bangladesh ’s: A. Assets B. Liabilities.

C. Equity.

D. Income and expenses, including gains and losses.

E. Other changes in equity.

F. Cash flows.

That information. Along with other information in the notes. Assists users of tenancies statements in predicting the entity’s future cash flows and. In particular, their timing and certainty.

Components of financial statements A complete set of financial statements should include:  A balance sheet,  Income statement,  A statement of changes in equity showing either:  Changes in equity, or  Changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders;  Cash flow statement, and  Notes, comprising a summary of accounting policies and other explanatory notes.

Fair presentation and compliance The financial statements must “present fairly’ the financial position, financial performance and cash flows of Intertek testing service Bangladesh. Fair presentation requires the faithful representation of the effects of inactions, other events, and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses out in the framework.

Appropriate accounting policies are not rectified either by disclosure of he accounting policies used or by notes or explanatory material.

Going concern Intertek testing service Bangladesh is presumed to be a going concern, if management has significant concerns about the entity’s ability to continue as a quoins concern, the uncertainties must be disclosed. F management concludes that the entity is not a going concern; the financial statements should not be prepared on a going concern basis 4.2 Accrual basis of account A prepare its financial statements, except for cash information, using the accrual basis of accounting. Consistency of presentation the presentation and classification of items in the financial statements mall be retained from one period to the next unless a change is justified

either by a change in circumstances or a requirement of a new company.

4.3 Materiality. Offsetting Assessed liabilities, and income & expenses, may not be offset unless outran or permitted by a standard or an interpretation. Comparative information comparative information shall be disclosed in respect of the previous period for all amounts reported in the financial statements, both face of financial sternness and notes, unless another standard requires otheiwke.

Structure and content of financial statements in general clearly den tify:     

The financial statements He reporting enterprise Whether the statements are for the enterprise or for a group The date or period covered the presentation currency The level of precision (thousands, millions, etc.)

4.4 Repeat period There is a presumption that financial statements will be prepared at least annually. If the annual reporting period changes and financial statements are prepared for a different period, the enterprise must disclose the reason he chance and a warning about problems of comparability.

4.5 Balance sheet Intertek testing service Bangladesh must normally present a classified balance sheet, separate current and non current assets and liabilities. Only if a presentation based on liquidity provides information that is reliable and more relevant may the current/non current split be omitted. In either case, if an asset (liability) category commingles amounts that will be received (settled) after 12 months with assets (liabilities) that wilt be received (settled) within 12 months, note disclosure is required that separates the longer-term amounts from the 12month amounts. Current assess are cash; cash equivalent; assets held for collection, sale, or consumption within the enterprise’s normal operating cycle; or assets held for trod up within the next 12 months. All other assets are non current.

Are those to he settled within the enterprise’s normal operating cycle or due within 12 months, or those held for trading, or those of which the entity does not have an unconditional right to defer payment beyond 12 months. Other liabilities are non current. Long-term debt expected to be refinanced under an existing loan facility is non current, even if due within 12 months. lf a inability has become payable on demand because Intertek testing service Bangladesh has breached an undertaking under a long-term loan agreement on or before the balance sheet date, the liability is current, even if the ender has agreed, after the balance sheet date and before the authorization of the financial statements for issue, not to demand payment as a consequence of the breach. However, the liability is classified as non-current it the lender agreed by the balance sheet date to provide a period of grace ending at least 12 months offer i he balance sheet date, within which the entity can rectify the breach and during which the lender cannot demand immediate repayment.

4.6 Income statement All items of income and expense recognized in a period must be included in profit or loss unless a standard or an interpretation requires otherwise.

Minimum if on the face of the income statement should include:  Revenue;

 Finance costs;  Share of the profit or loss of associates and joint ventures accounted for using the equity method; o Td) a single amount comprising the total of  The post-tax profit or loss of discontinued operations and (ii) the post-tax gain or loss recognized on the disposal of he assets or disposal group(s) constituting the discontinued The following items must also be disclosed on the face of the income statement as allocations of profit or loss for the period: profit or loss attributable to minority interest; and (b) profit or loss attributable to equity holders of the parent. Additional line items may be needed to fairly present the enterprise’s results of operations. No items may he presented on the face of the income statement or in the notes as “extraordinary items’. Certain items must be disclosed either on the face of the income statement or in the notes, if material, including:  Wrjedcwrs of inventories to net realizable value or of property, plant and recruitment to recoverable amount, as we as reversals of such write-downs;  Restructurings of the activities of Intertek testing service Bangladesh and revecals of any provisions for the costs of restructuring;  Disposes of items of property, plant and equipment;  Disposals of investments;  Discontinuing operations;  Litigation settlements; and Intertek testing service Bangladesh would present a statement of changes in equity as a separate component of the financial statements. The statement must show: a) Profit or loss for the period; b) Each item of income and expense for the period that is c) Recognized distantly in equity.. And the total of those items; d) Total income and expense for )he period (calculated as the e) (b)), showing separately the total amounts attributable f) Equity holders of the parent and to minority interest; and 4.7 Presentation 01 the cash flow statement Cash flows must he analyzed between operating, investing and financing acclivities, principles for the preparation of a cash flow statement are as follows: perching activities are the main revenue-producing activities of the enterprise that are not investing or financing activities, so operating cash flows include cash received from customers and cash paid to suppliers and employees. Investing activities are the acquisition and disposal of long-term other investments that are not considered to be cash financing activities are activities that alter the equity capital and borrowing structure of the enterprise. Tersest and dividends received and paid may be classified as operating, investing, or financing cash flows, provided that they are classified consistently from period to period.

Direct method shows each major class of gross cash receipts and gross cash payments. The operating cash flows section of the cash flow statement under the direct method would appear screeching like this: Cash receipts from customers xx, xxx Cash paid to supplier’s xx, xxx Cash paid to employee’s xx, xxx

Cash paid or other operating expenses xx, xxx Interest paid xx, xxx Income taxes paid xx xxx Net cash from operating activities xx, xxx The indirect method adjusts accrual basis net profit or loss for the of non-cash transactions.

The operating cash flows section of the cash flow statement under the indirect method would something like this: Profit before interest and tax Acid hack depreciation xx, xxx Add hack amortization of goodwill xx, xxx Receivables xx, xxx Decry in inventories xx, xxx Rc case in trade payable (es xx ,xxx In an expense xx, xxx<td &nbsp;<td> Cash flows relating to extraordinary items should be classified as operating, investing or financing as appropriate and should be separately disclosed. The exchange rate used for translation of transactions denominated in a foreign currency and the cash flows of a foreign subsidiaryâ&#x20AC;&#x2122; should be the rate in effect at the date of the cash flows. Cash flows of foreign subsidiaries should be translated at the exchange rates prevailing when the cash flows took place. As regards the cash flows of associates and joint ventures, where the equity method is used, the cash flow statement should report only cash flows between the investor and the invested; where he ventureâ&#x20AC;&#x2122;s share of the cash flows of the invested cash flows relating to acquisitions and disposals of subsidies arid other business units should be presented separately and classified as investing activities, with specified additional disclosures. The aggregate cash paid or received as consideration should be reported net of cash and cash equivalents acquired or disposed of. Cash flows from investing and financing activities should be gross by major class of cash receipts and major class of cash payments except for the following cases, which may be cash receipts and payments on behalf of customers (for example, receipt and repayment of demand deposits by banks, and receipts collected on behalf of and paid over to the owner of a property) Cash receipts and payments for items in which the turnover is quick, the amounts arr. Large, and the maturities are short, generally less than three months (for example, charges and collections from credit card customers, and purchase and sale of investments) cash recoups and payments relating to fixed maturity deposits cash advances made to customers and repayments aero investing and financing transactions which do not require the use of cash should be excluded from the cash flow statement, but they should be separately disposed elsewhere in the financial the components of cash and cash equivalents should be and a reconciliation presented to amounts reported in The balance sheet. The amount of cash and cash equivalents held by the enterprise that is not available)e for use by the group should be disposed, 4.8 Introduction Examples of investment property: a) Land held for long-term capital appreciation

b) c) d) e)

Land head for undecided future use Building leased out under an operating lease Vacant building held to be leased out under an operating lease Napery held for use in the production or supply of goods or services or for administrative purposes. f) Property held for sale in the ordinary course of business or in the process construction of development for such sale. g) Primary being constructed or developed on behalf of third. h) Owner-accepted property (lass 16 property, plant and erumpent). Incident property held for future use as owner occipital property, property held for future development and subsequent use as owner-occupied property, property occupied by employees and owner-occupied property awaiting disposal; primary that is being constructed of developed or use as an i investment property (las 16 applies to such property until construction or development is complete). However, lass 40 does apply to existing investment property that is being redeveloped for continuing use as investment property. Property eased to another entity under an finance lease.

4.9 Other classification issues Property held under an operating lease A property interest that is held by a lessee under an operating lease may he classified and accounted for as investment property provided that:    

The rest of the definition of investment property is met; The operating lease is accounted for as if it were a finance lease The lessee uses the fair value model set out in this standard for the asset recognized.

Intertek testing service Bangladesh may make the foregoing classification on a pr party-by-pr poetry basis.

4.10 Partial own use If the owner uses part of the property for its own use, and part to earn rentals or for capital appreciation, and the portions can be sold or leased out searches are cocooned for separately.

Therefore the part that is rented out is investment property. If the portions cannot be sold or leased out separately, the property is investment property only if the owner-occupied portion is insignificant.

Recognition Investment property should be recognized as an asset when it is probable that the future economic benefits that are associated with the property will flow to the enterprise, and the cost of the property can be reliably measured. Investment property is initially measured at cost, including transaction costs. Such cost should not include start-up costs, abnormal waste, or initial operating asses incurred before the investment property achieves the planned level of occupancy. After finial recognition, investment property is accounted for in accordance with the cost model as set out in lass 16, property, plant and 4.11 Transfers to or from investment properly classification  Comnencernent of owner-occupation (transfer from investment property to owneroccupied property);  Commencement of development with a view to sale (transfer from investment property to inventories);

 End of owner-occupation (transfer from owner-occupied property to investment property);  Commencement of an operating lease to another party (transfer from inventories to investment property); or  End of construction or development (transfer from property in the court of construction/development to investment property.

When a property is sold without development, the property is not reclassified as investment property but is dealt with as investment property until ii is disposed of. The following rules apply for accounting 4.12 Disposal An investment property should be derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The gain or loss on disposal should be calculate as the adherence Larsen the proceeds and the carrying amount of the asset and should be recognized as income or expense in the income statement. Compensation from third parties is recognized when it becomes receivable.

Changes in accounting policies, estimates & errors Accounting policies are the specific principles, bases, conventions, rules and practices applied by Intertek testing service Bangladesh in preparing and presenting financial statements.  A change in accounting estimate is an adjustment of the carrying amount of an asset or liability, or related expense, resulting from assessing he expected future benefits and obligations associated with that asset our liability.  Materiality. Omissions or misstatements of items are material if they could, by their size or nature, individually or collectively; influence the economic decisions at users taken on the basis of the financial statements.

4.13 Selection and application of financial policies When a standard or an interpretation specifically applies to a transaction, other event or condition, the accounting policy or policies applied to that item must be determined by applying the standard or interpretation and considering any relevant implementation guidance issued by the for the standard or interpretation.

In the absence of a standard or an interpretation that specifically applies 10 0 transactions, other event or condition, management must use its judgment in developing and applying an accounting policy that results in notion that is relevant and reliable. In making that judgment, mcmupemnenis music refers to, and considers the applicability of, the sources u descending order: The requirements and guidance in iambs standards and interpretations dealing with similar and related issues; and the definitions, recognition criteria and measurement concepts for an is liabilities, income and expenses in the framework.

Management may also consider the most recent pronouncements of other standard—setting bodies that use a similar conceptual framework to develop accounting standards, other accounting literature and accepted industry practices, to the extent that these do not conflict with the sources 4.14 Our finance policies Dhaka shall select and apply its accounting policies : similar transactions, other events and conditions, unless a or on interpretation specifically requires or permits of items for which different policies may be appropriate, if a standard or an interpretation requires or permits such categorization, an appropriate accounting policy shall be selected and applied consistently to each category.

4.15 Changesn financial policies Intertek testing service Bangladesh is permitted to change financial policy only if the change: required by a standard or interpretation; or tourist in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity’s financial position, financial performance, or cash flows.

Note thet charges in accounting policies do not include applying an accounting policy to a kind of transaction or event that did not exist in the application means adjusting the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied. However, if it is impracticable to determine either the period-specific effects or the cumulative effect of the change for one or more prior periods presented. The entity shall apply the new accounting policy to the carrying amounts of assets and liabilities as at the beginning of the earliest period for which retrospective application is practicable, which may be the current period, and shall make a corresponding adjustment to the opening balance of each affected component of equity for that period.

Also, if it is impracticable to determine the cumulative effect, at the beginning of the current period, of applying a new accounting policy to all Disclosures relating to changes in financial policy Disclosures relating to changes in accounting policy caused by a new standard or interpretation include the title of the standard or interpretation causing the change; application is impracticable, an explanation ascription of how the change in accounting policy was a p plied. Financial statements of subsequent periods need not repeat these disclosures. Disclosures roofing to voluntary changes in accounting policy include: 4.16 The nature of the change in accounting policy;  The reasons why applying the new accounting policy provides reliable and more relevant information;  For the current period and each prior period presented, to the extent practicable, the amount of the adjustment:  Tor each financial statement line item affected; and  For basic and diluted earnings per share (only if the entity is applying lass 33);  The amount of the adjustment relating to periods before those presented. To the extent practicable; and

ď&#x192;&#x2DC; If rcirspective application is impracticable, an explanation and description of how the change in accounting policy was applied. ď&#x192;&#x2DC; Fact and any and known or reasonably estimable information relevant to assessing the possible impact that the new pronouncement will have in the year it is applied.

4.17 Financial estimate Change in an accounting estimate shall be recognized inducing if in profit or loss in: the period of the change, if the change affects that period only; or the period of the change and future periods, if the change affects both. However, to the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of equity. It is recognized by adjusting the carrying amount of the related asset, liability, or equity item in the period of the change.

Disclosures relating to changes in financial estimate A. The nature and amount of a change in an accounting estimate that has an effect in the current period or is expected to have an effect in future periods amount of the effect in future periods is not disclosed because estimating it is impracticable, Intertek testing service Bangladesh shall disclose that fact.

4.18 Errors HoweverIf it is impracticable to determine the period-specific effects of an error on corporative information for one or more prior periods presentedthe unify must restate the opening balances of assets, inanities, and equip for the earliest period for which retrospective restatement is practicable (which may be the current period). Further, to determine the cumulative effect, at the beginning of the current period, of an error on all prior periods, the entity must restate the comparative information to correct the error prospectively from the earliest date practicable.

4.19 Accounting principles Basis of accounting: Intertek testing service hall maintain its accounts on accrual basis of accounting in accordance with the international financial reporting standards (ifrs) as adopted by the institute of chartered accountants of Bangladesh. It shall follow the double entry system of book-keeping for recording and accounting of its financial transactions.

All incomes received or deemed to be received during a particular year shall be accounted for as income in the year to which it relates. Any income received in advance in a particular year, which are due or subsequent years. Shall not be treated as income in the year of receipt.

A!L payments made or expenditure incurred but not paid during a particular year shall be considered as expenditure for the year in which those are incurred.

4.20 Business entity Under the business entity concept, for accounting purpose, every business is conceived to be and is treated as a separate entity, separate and distinct from its owner or owners and from every other business. Business are so conceived and treated because, insofar as a specific business is concerned, the purpose of accounting is to record its transactions and periodically report us financial position and profitability. Consequently, the records and reports of a business should not include either the transactions or assets another business or the personal

assets and transactions of its 4.21 Cost principle Under this concept, all goods and services purchases are recorded at cost and appear on the statements at cost. In applying the cost principle, costs are measured at the cash or cash equivalent basis. If the consideration given for an asset or service in cash, cost is measured at the entire cash outlays made to secure the asset or service. If the consideration is something other than cash, cost is measured at the cash value of the consideration given or the cash equivalent value of the thing received, whichever is more clearly evident.

5.22 Objectivity principles The objectivity principle supplies the reason transactions are recorded at cost, since if requires that transaction amounts be objectively established. To be fully useful, accounting information must be based on objective data. As a rule, costs are objective, since they normally are established by buyers and sellers, each striking the best possible bargain for them.

4.23 Principle:  Defines revenue as on inflow of asset (not necessarily cash) in exchange for goods and services.  Revenue is recognized at the time, not before, it earned. (iii) the amount of revenue recognized be measured by cash received  Plus the cash equivalent of any other asset or assets received. This principle:  Defines expenses as an outfit of asset (not necessarily cash)  In exchange for goods and services.  Expenses be recognized at the time, not before, it earned. (the amount of expenses recognized is measured by cash 4.24 Matching principles Under this principle, transactions and events are recognized when they occur (and not as cash or cash equivalent is received or paid) and they ore recorded in the accounting records and reported in the financial statements of the period to which they relate.

4.25 Money measurement principle This principle, transactions must be measured, recorded and reported in terms of money. In our country, measuring, recording and emoting process, taka has been treated as a stable unit of measurement.

Conservatism principle This principle, anticipate loss but not profit. So provision for tic ipo loss Is recorded and reported in financial statements.  Income  Income includes any amount received or deemed to be received by v/ov of revenue or any other receipts having no obligation to refund. He same shall be accounted for in the year to which if relates.  Expenditure  Expenditure includes any amount paid or incurred against supply of goods or services and other recurring payments/expenses, other than capita! Assets and advances by its.

All expenditures paid, accrued or made shall be accounted for in the year to which it is related.  Liabilities  Liabilities represent any obligation to any party, arising due to receipt of goods or services and any amount payable to any person or organization by its sector. All liabilities and obligations must be accounted for in the accounts before the year end closing date.  Sets and properties  Asset / property represent any item of capital nature which has been acquired out of its sector or its for increase of its sector efficiency. Benefits of which are expected to be derived for more than 1 year. Advances paid. Socks, etc. Shall also be treated as asset.  4.26 vouchers Its sector use 3 (three) types of vouchers to record its financial if depending upon the nature and type of transactions. These a 5.27 receipt voucher Any amount received in cash by way of collection against revenue, advances, collection against dues, etc. Shall be treated as cash receipt transaction. Any amount received in the form of check i pay order / demand draft i. Credit card i debit card shall be treated as bank transaction and shall be recorded through receipt voucher.

• all cash or bank receipt transactions shall be accounted for through receipt voucher (shown in annexure - c).

2. Payment voucher Any amount paid in cash on account of expenditure, purchase cit assets, purchase of stocks, settlement of accounts or any other payment made by its sector shall be considered as cash payment transaction.

• any amount paid by cheque, draft, pay order or account transfer on account of expenditure, purchase of assets, purchase of stocks, settlement of accounts or any other payment other than cash made by its sector shall be considered as bank payment transactions.

All payment transactions shall be accounted for through payment voucher (shown in annexure - d).

3. Journal voucher Journal voucher is recognized as voucher for paper transactions, where receipt or payment of money is not involved. Journal voucher shah be used for transfer or adjustment of ledger account balances on one account to another account. All account adjustments or transfer of general ledger account balances shall be recorded though journal voucher.

4.28 Expenditure, payments and advances Introduction Ah payments made or expenditure incurred but not paid during a particular year be considered as expenditure for the year in which those are incurred. All expenditures shall be classified and segregated under major groups in accordance with chart of accounts depending the nature of expenses and purpose of payment.

4.29 payments Payment attributes all outflows of its sector both revenue and capital. All payments shall be booked under respective head of outs following the chart of accounts.

Expenditure Capital assets / fixed assets Any amount paid against purchase of capital assets shall be considered as fixed asset, not as an expense. All fixed assets records of its holdings ltd shall be entered into the fixed assets register to be maintained at its sector under his.

Fixed assets of corporate office shall also be recorded in the same fixed assets register on the basis of information received by its sector from corporate office.

Fixed assess shall be procured through or its sector both from local source as well as import.

Initiatives and processing for capital expenditure shall be done by its sector supply chain department by following the procurement manual. Shall be issued by its sector material department for each and every assets and equipment. However, for assets of corporate office shall be issued after having a receipt memo from gm.

(Procurement & logistic).

Its sector shall maintain total value of fixed assets in general ledger with group wise detail. The depreciation shall be calculated by its sector finance through system a detail fixed assets register shall be obtainable at any point of time from his as a report.

4.30 payments against liability Any amount disbursed to pay off recognized liability, benefits of which had been received earlier and duly accounted for, shah not be considered as expense. Advance against supply of goods & services any count to any person or organization as advance against supply of goods or services shall be considered as an advance, not as a charge or expense. Accordingly, any amount paid to any its sector staff member, than due salary and benefits, shall also be considered as an advance.

4.31 advances to employees The principal issues are the timing of recognition of assets, the determination of their carrying amounts, and the depreciation charges to he recognized in relation to them.

This recognition principle is applied to all property, plant, and equipment costs at the time they are incurred. These costs include costs incurred initially to acquire or construct an item of property, plant and equipment costs incurred subsequently to add to, replace part of, or service it.

Paik of some items of property, plant, and equipment may require replacement at regular intervals. The carrying amount of an item of property, plant, and equipment will include the

cost of replacing the part of such an item when that cost is incurred if the recognition criteria (future benefits and measurement reliability) are met.

Also, continued operation of an item of property, plant, and equipment (for example, an aircraft) may require regular major inspections for faults regardless of whether parts of the item are replaced. When each major inspection is performed, its cost is recognized in the carrying amount of the item of property, plant, and equipment as a replacement if the recognition criteria are satisfied. If necessary, the estimated cost of a fulure similar inspection may be used as an indication of what the cost of the existing inspection component was when the ifem was acquired or constructed.

4.32 Initial measurement They should be initially recorded at cost. Cost includes all costs necessary to bring the asset to working condition for its intended use. This would include not only its original purchase price but also costs of site preparation, delivery and handling, installation, related professional fees for architects and engineers, and the estimated cost of dismantling and removing the asset and restoring the site 4.33 Cash management Cash management Cash is he important current assets tar the operations of the business. Cash is the basic input needed to keep the business running on a continuous basis. It also the ultimate output expected to be realized by the service ( medical service of its sector ). Its sector keep sufficient cash, either nor less. Cash shortage wilt disrupt the the function while excessive cash will simply ideal, without contributing towards the itâ&#x20AC;&#x2122;s sector . Thus major functions its sector maintain a sound cash pos lion.

Cash management is concerned with the managing of (i) Cash flow into and cash outflow of the its sector.

Cash flows within the its sector and (iii) Cash balances held its sector at a point of time by financing deficit or investment surplus cash.

Represented by cash management cycle as shown in he below: Its sector evolve the strategies regarding the following four facts of cash.

I) cash planning It) managing the cash flow Illoptimum cash level Iv)investing surplus cash (ii)

Motive for holding cash Hd need to hold cash may be attributed to the following three mofiv es: The transactions motive. â&#x20AC;˘ the precautionary motive. The speculative motive.

Cash planning Cash flows are inseparable parts of the business operations of its sector . ITS Sector needs to invest in inventory, receivable, and hxed assets and to make payment for operating expenses in order to maintain growth in sales and earnings.

Cash planning can help to anticipated the futu re cash flows and needs of the its sector and reduce the possibility of idle cash balances.

Short term forecast Cash management of its sector is managed by short term forecast. The important functions of carefully developed short term cash forecast ore: • • •

to determine operating cash requirements to anticipate short term cash requirements to manage investment of surplus cash.

working capital & ratio analysis Souls of working capital  Its sector typist sources of working capital are summarized below:  Fund born operations.  Sale long term investment  Of intangible assets like goodwill, patents or copyright  Long urn financing.  Short time financing such as bank borrow.  Uses of working capital  Uses of working capital are as follows by ITS Sector  Redemption of redeemable preference shares payment of cash dividend.

4.34 Financial ratio analysis Haricot analysis is he process of identifying the financial strength and weakness of its sector by property establishing relations between the items of the balance sheet and the profit & loss account. Financial analysis can be undertaken by management of its sector, creditors, Investors & others. The nature of analysis wilt differ depending on the purpose of the its sector management.

Trade creditors Suppliers at on term debt Current raffle: current ratio includes the cash and those assets which con be converted into cash within in a yea Quick ratio: quick ratio establishes a relationship between quick or assets and current liabilities. Cash ratio: thee cash is the most liquid assets of its sector , a finance may examine cash ratio and its equivalent to current liabilities. Trade investment or marketable securities are equivalent of cash therefore they may be included in the computation of cash ratio. Other most common ratio use by its sector is debt ratio, debt-equity .

4.35 Current tax Correct the current and co periods should be recognized as a to the extent that if has not yet been settled, and as an asset to the exact that the amounts already paid exceed the amount due. The benefit of a fax loss which can be carried back to recover current tax of a period should ho recognized as an asset. Current tax assets and liabilities should be measured at the amount expected to be paid to (recovered iron) taxation authorities, using ~he rates/laws that have been named or substantively enacted by the balance sheet dale. The grout principle is that deferred tax liabilities should be recognized tar al! Taxable temporary differences. There

are 3 exceptions to the require meant to recognize a deferred tax liability, as follows4:  Liabilities arising from goodwill for which amortization is not deductible for tax purposes;  Liabilities arising from the initial recognition of an asset/liability other than in a business combination which, at the time of the reason, does not affect either the accounting or the taxable proof; and  Liabilities arising horn undistributed profits from investrnent where the enterprise is able to control the timing of the reversal of the conference and it is probable that the reversal will not occur in the oresooahie future.

4.36 Deferred tax assets A deferred tax asset should be recognized for deductible temporary inferences, unused tax asses and unused tax credits to the extent that it is probative that taxable profit will be available against which the deducible temporary differences can be utilized, unless the deferred tax asset irrelative goodwill which was treated as deferred income. Business combinations; or the initial recognition of an asset/liability other than fl a business corn which, at the time of the transaction, does not affect the accounting or the taxable profit.

The carrying amount of deferred tax assets should be reviewed at each laic sheet date and reduced to the extent that it is no longer probable hat sufficient taxable profit will be available to allow the benefit of part that deferred tax asset to be utilized. Any such reduction should subsequently reversed to the extent that it becomes probable far sufficient taxable partite will be available.

A ae1crred tax asset should be recognized for an unused tax loss carry forward oi unused tax credit if, and only if, it is considered probable that mere will be sufficient future taxable profit against which the loss or credit carry forwards can be utilized. Deferred tax assets and liabilities should be measured at the tax rates that expects to apply to the period when the asset is realized.

4.37 disclosures relating to prior period errors Disclosures relating to prior period errors include:  The nature of he prior period error; For each prior period presented, to the extent practicable, the amount of ~he correction:  The amount of the correction at the beginning of the earliest prior period presented; and  If retrospective restatement is impracticable, an explanation and description of how the error has been corrected.

Financial statements of subsequent periods need not repeat these disclosures Opinions Chapter wise data processing and analysis 5.1 Monitoring of ITS Budget Budget shall be closely monitored by the Finance Department of ITS who is responsible for preparation of Financial Statement , Variance report showing budget BS actual amounts. The Finance Department shall forward the Variance report to the management and comments on the variances.

ITS will l oversee the budget monitoring/controlling process in coordination with

Finance Department.

Sample of Budget Analysis Operating profit/ (Loss): Taka 9380796 June 10 May 10 Valance with Actual Budget Actual Budget May 10 Taka Taka Taka taka Taka Net Revenue 109,252789 156,840,000 1 19,689,650(47,587,211) (10,436,861) Operating Expenses 58,572,434 72,066,288 60,924,477 13,493,853 2,352,043 Gross Contribution 50,680,355 84,773,712 58,765,173 (34,093,358)(8,084,818) administrative 1rutivo expenses 41 ,299,559 43, 743, 08540, 010,4882, 43,526 Operating Profit 9,380,796 41,030,628 18,754,685 (31,649,832)(9,373,889) Other income 407,733 1,110,000 766,238 (702,267) (358,505) Earning before Interest, tax & Depreciation (EBITD) 9,788,529 42,140,628 19,520,923 (32,352,099)(9,732,394) Financial Expenses Interest lease and financial charges 10,766,6366,267,6008,988,481 (4,499,036)(1,778,155) Earning before Pariculars

Depreciation & Tax (EBDT) 0,54Y) Deprecation & amortization Net Profit,! (Loss)

(978,107) 35,873,028

10,532,442 (36,851,135)

(11,51

15,977,312 15,934,597 (16,955,419) 19,938,431 (11,532,369)

15,955,492 (42,715) (5,423,051) (36,893,850)

(21,820)

The Months ended with on operating profit of Taka 9.38 million and gross contribution for the month was Taka 50.68 million. Both operating profit and gross contribution is unfavorable in compare with last month. Budgeted numbers could not be achieved due to low performance of revenue of Taka 109.25 million as against the projection of Taka 156.84 million. Due to low performance in achieving the budgeted revenue the overall result was much behind the expected result. Revenue has beer decreased from last month and result of that leads to decrease the overall profitability status.

Net loss for the month has been increased due to decrease of revenue, increase of marketing expense, increase of repair & maintenance, increase of financial charges etc. Payroll cost (including consultant fees) is almost 45.58% of net revenue which was 41.52% in May. This percentage has been increased due to the fall of revenue in June.

During the month there is no major variation noted under direct operating expense, consultant fees and depreciation. Consumable expenses decreased by Taka 1.52 million due to decrease of surgery. However we noted major increase of repair and maintenance by Taka 1 .57 million under general and administrative overhead due to Taka 2.37 million has been paid against repair of CT Scan machine. Also financial expenses has been increased by 1 .78 million due to interest

chaired by IDLCS 1.04 million against IVF lease finance for Taka 16.0 million.

The bottom line is negative due to the aggregating of financial expenses, lease rentals and depreciation amounting to Taka 26.74 million . The amount is so significant that tailed to address through unfeeling profit.

Budgeted revenue for June 2008 was Taka 156.84 million of which we achieved Taka 109.25 million i.e. we achieved only 69.65% of the projection. At the end of June achievement of budgeted revenue is 77.61%. Cumulative revenue for the first six moth of this year is Taka â&#x20AC;&#x2DC;6535 million where as if was Taka 635.84 million in the same period last year. Average growth unto June is only 4.64% as against 29% of budgeted growth.

During June revenue falls significantly Taka 10.43 million from last month and per day revenue reduced to Taka 3.64 million from Taka 3.86 million. Revenue has been significantly decreased by Taka 5.97 million and Taka 5.22 million under ITS Sector respectively. t is only 22 CABG done in June while it was 50 in May. In 5.2 Major findings 1. The customers of inter Testing service Bangladesh, its Labtest Bangladesh are different ages and occupation they have. The majority people are service holder and business men because the branch is mainly based on investment and foreign exchange and most importantly it is situated on TK Bhaban (5th and 6th Floor), 13 Kawran Bazar C/A, Dhaka1215, Bangladesh . So all types of customer are their target customer especially service and business man. Both male and female have the equal opportunity to get the product and service.

2. Different types of income level people have transaction with the its Labtest Bangladesh and medium income groups choose their likable scheme, higher income group deal with investment and foreign exchange department for opening or others service transaction.

3. Majority of customers are an account holder of this its Labtest Bangladesh because they have the opportunity to choose various types of shariah based accounts. In this branch customers prefer savings and current deposits a other accounts.

4. Intertektesting service Bangladesh, its Labtest Bangladesh is a very busy branch compared to other branches because the place is commercial area. So, there are many business based people are their main and focused customers. So people have a great influence of investment & foreign exchange section for getting standard investment service of Intertektesting service Bangladesh.

5. Customers like the brand name of Intertektesting service Bangladesh and fully satisfied with this.

6. Intertektesting service Bangladesh does not introduce new product for the actual and potential customers and it is not dynamic to generate ideas and introduce affordable products in this competitive market. They have not r&d department.

7. People are satisfied about the location of this branch and this place is suitable for financial transaction a others its Labtest Bangladesh.

8. The majority of customers donâ&#x20AC;&#x2122;t know about advertisements or promotional activity and they are not satisfied about that.

9. INTERTEKTESTING SERVICE BANGLADESH ltd. Is operating the business in a very expert style with energetic and well behave employees. They are very respectful to the Bangladesh its Labtest Bangladesh â&#x20AC;&#x2122;s policies and very much serious to fulfill customer

satisfaction. Again, they are very cooperative to their customers as well. They always try to help the customers at their best.

10. INTERTEKTESTING SERVICE BANGLADESH ltd. has very good traditional documentation process. Although they are not following any high technology or so but the having a very good record of the documents- where are those placed and the serial is been properly maintained too.

11. Majority of customers does not say anything, it is clear that working and processing speed was ineffective to meet the customer expectation and they also felt that employee are not rapidly came to solve the problems.

12. INTERTEKTESTING SERVICE BANGLADESH ltd. Is not creative on their exterior design.

Majority of respondent said that its Labtest Bangladesh is not good in terms of it’s the exterior decoration.

13. The its Labtest Bangladesh is good in terms of its interior design. But there is no enough space inside the its Labtest Bangladesh to move freely. (general its Labtest Bangladesh ) has such small space that it is not enough for attracting the customers.

5.3 Recommendations based on the survey • Use of marketing research The management of Intertektesting service Bangladesh should regularly administer marketing research activities in order to keep a regular track of satisfaction levels. Regular research should also be conducted to find out customer expectations about various service aspects. As customer expectations and satisfaction are not static, regular research at intervals should be conducted.

• Complaint management Intertektesting service Bangladesh should actively manage the complaints of various customers and encourage customers to give feedback about the services. The management should collect, document complaints, use that information to identify dissatisfied customers, correct individual problems where possible and identify common service failure points.

Research showed that this strategy will radically improve the overall customer satisfaction.

• New innovative products New innovative schemes or products should be introduced to meet customer demands. New personal savings, future investment products, affordable schemes should be launched to stay ahead of competition and better satisfy customer requirements.

• Redesign exterior plan Each and every its Labtest Bangladesh should pay attention towards the its Labtest Bangladesh exterior design. Like that, INTERTEKTESTING SERVICE BANGLADESH ltd. Is not creative on their exterior design. It is very important to catch the potential customers as well as to hold on the existing. Most of the customers express dissatisfaction about the design. So they should redesign the plan to attract the potential customer.

• System redesign: In general its Labtest Bangladesh department they follow the traditional its Labtest Bangladesh. The entire general its Labtest Bangladesh procedure is not fully computerized. So they must be redesign the system and working procedure. They should replace full computerizes system for decrease the waste of time and it also increase efficiency.

• Increase investment for promotional program: INTERTEK TESTING SERVICE BANGLADESH ltd. has put less effort in advertising. They have utilized enough advertising channels too. So to attract and catch the large audience they must be investing more for promotional program. Must be increase advertisement to influence mass customers, should increase billboards and newspapers advertisement and others promotional program. As a result customers will learn about the Labtest Bangladesh, activity and facilities etc.

• Increase customers waiting space: This branch has not enough space inside the Labtest Bangladesh to move freely. They should emphasis on customers waiting space increase its comfort level, it increase a good impression about the customer mind.

• Appropriate parking space: Most of the customers are not satisfied about the parking space of the Intertektesting service Bangladesh. The office is situated besides the main road so it has no parking space for its customers. Intertek testing service Bangladesh must emphasis on customer needs and wants.

They should take action or take alternative for parking facility for their customer happiness.

• Employee trainings Employee trainings and workshops should be administered in order to give them knowledge and professionalism in customer interactions. With a more professional base, employees can better satisfy the customers. They should be taught about how to deal with problem customers and problematic situations. The survey showed significantly low for employee’s response about rapid action. Thus this aspect should be considered.

5.4 Conclusion & Recommendation ITS is following all of the accounting policies in accordance with nutritional Accounting Standards and reporting its financial statements as per International Financial Reporting Standards. It uses computerized accounting software and maintain and recording transactions in such a way that:  Information is useful in making resources allocation decisions.  Information emotion is useful in assessing services and ability to provide services.  Information is useful in assessing management stewardship and  performance.  Information about assets, liabilities and equity as a point in time and changes in those elements over a period f time cements over a period of time  Information is useful in systematic audit.  Information’s is useful to maintain their record systematically.  The Finance department of ITS is very much efficient much efficient and or important role for achieving organizational goals & development 6.1 Appendix- 01 bibliography • Kothare c.r quantities technique new delhi,, vikash pbulishing hose pvt. Ltd. 1990.

• My khan and pk jain financial management , 3rd edition, tata mc will publication .

• • • • • •

Pny and larson , financial accounting principles , 10th edition richard d. Ilrin inc , usa 2003 Richard. Valdean c . Limber and thomas e. King davanced financial accounting 5 th edition mcgraw-hill irwing uas 2003 Financial management 8th edition . Im pandey Investment 6th edition , bodie / kane/ marcus International financial management 9th edution, jaf madura Steven m. Bragg. Accounting and finance for your small business 2nd edutin (e-book)

Appendix 2 monthly report of mid June 08 appendix. 3 periodicals & journals:  Abacus : amount of accounting. Finance and business studies  Accounting and business research  Policies & quality assurance  Monthly accounts snort of its appendix 4 las & 1frs  International: accounting standards(ias), 2004, las-i  International accounting standards(ias), 2004, ias-2  Intornationcil accounting standards(ias), 2004, ias-7  Lancination! Accounting standards(ias), 2004, ias-12  Inter national accounting standards(1as), 2004, las-i 6  International accounting standards (las), 2004 ias-17  International accounting standards (las), 2004 ias-j8  International financial reporting standards (ifrs)-2  International financial reporting standards (1frs)-3  International financial reporting standards (ifrs)-5  International financial reporting standards (ifrs)-6 6.2 appendix s report & webste • annual report of Intertek testing service Bangladesh, 2010 • www.Intertek.com www. Intertekenterprize .com