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AGRANINS

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AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): the Company did not record appropriate deterred tax calculations which resulted in an understatement of deferred tax liabilities. For the current year, the Company reversed deferred tax expenses charged in prior years and performed a detailed calculation of temporary taxable differences between the tax and accounting base of assets/liabilities and calculated the deferred tax liabilities as at January 01, 2018. Due to this error correction, (cont. 10)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): an unrealized loss of BDT 9,877,982 was recognized in the P/L Statement. Details of the calculation are provided in Note 18 to the financial statements. In addition, since the shares are presented at FV, the share fluctuation reserve of BDT 21,000,000 was deemed inappropriate and therefore was reversed as at December 31, 2018. 4. Deferred Tax Liabilities: During the financial statement preparation and audit, it was noted that in prior years, (cont. 9)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): IFRS 9 which states that such shares should be presented at fair value and any changes in the fair value should be recognized through profit/loss statement. This non-compliance of IFRS has been corrected. Due to this error correction, the opening value of the investment and opening retained earnings as at January 01, 2018 was increased by BDT 3,760,097. The same error correction was done for December 31, 2018. As part of the error correction, (cont. 8)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): The Company's investment in Government Treasury Bonds of BDT 25,000,000 has been separated from Investment in Shares and presented as a separate line item to match current year's presentation. 3. Investment in Shares: During the financial statement preparation and audit, it was noted that investment in shares that are quoted in a public market are recognized on the statement of financial position at cost. This is non-compliance of (cont. 7)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): & restated figure was Tk. 82,857,005.00. P/L Appropriation for the year ended 31-Dec-18 as reported figure was Tk. 92,526,644.00 & restated figure was Tk. 88,256,481.00. 1. Presentation change of PPE: PPE in prior years was presented as two (2) separate line items: Building property and other fixed assets. These two line items have been combined and presented as one line to match current year's presentation. 2. BGTB Statutory Deposit: (cont. 6)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): Prior Year Financial Statement restatement: Statement of Financial Position as at 31-Dec-18 as reported balance was Tk. 806,134,581.00 & restated balance was Tk. 791,722,859.00. Statement of Financial Position as at 01-Jan-18 as reported balance was Tk. 725,885,038.00 & restated balance was Tk. 721,351,298.00. P/L Statement for the year ended 31-Dec-18 as reported figure was Tk. 82,857,005.00 (cont. 5)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): In line with IAS 8 Paragraph 42, each error has been corrected in these financial statements by restating each of the financial statement line items for the prior years. Details for each change is provided in Annexure A2. Annexure A4 also includes changes made for presentation purposes so that prior year statements are in line with current year presentation. Annexure-A2 - Details of Retrospective Error Correction and (cont. 4)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): have been restated. Our audit opinion is not qualified in regards to this matter. Note 1.04 - Retrospective restatement of prior-year financial statements: During the preparation of and audit of December 31, 2019 financial statements, various errors were discovered affecting certain balances in the Company's accounts for the years ended December 31, 2018 and December 31, 2017. (cont. 3)

AGRANINS 07-Sep-2020

(Continuation news of AGRANINS): rather recognized as an Asset on the statement of financial position which is a departure from IFRS. The Company has however noted that this asset will be amortized over the next three (3) years. Emphasis of Matter: We draw attention to Note 1.04 and Annexure-A2 to the Financial Statements which explains that certain comparative information as at 31 December 2018 and 01 January 2018 and for the year ended December 31, 2018. (cont.2)

AGRANINS 07-Sep-2020

The auditor of Agrani Insurance Co. Ltd has given the following "Qualified Opinion & Emphasis of Matter" in the audit report of the Company prepared for the year ended on December 31, 2019. Qualified Opinion: The Company has recorded a deposit to VAT authority worth BDT 4,10,00,000 under Sundry Debtors on the Statement of Financial Position. This balance represents VAT expenses related to and paid in prior financial years. However, these balances have not been expensed but (cont.1)

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