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BDSERVICE

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BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): The arbitrators differed on certain matters and sent their reports to the umpire. The umpire has given the following awards on 02 April 1998: i) The Company shall refund the entire amount of VAT amounting to Taka 7,003,669 to the contractor as deducted from the invoices. Ii) The contractor is also entitled to claim damages to the extend of Taka 2,196,677 for payment of its invoices by the Company. (Cont.9)

BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): in accordance with the provision of the arbitration Act 1940. Both the parties nominated their Arbitrators; Late Justice Badrul Haider Chowdhury was nominated by the contractor and Mr. M.S.I Chowdhury was nominated by the Company and the arbitrators appointed Justice Kemaluddin Hossain, the former Chief Justice of Bangladesh as umpire and thereafter arbitral proceedings started. (Cont.8)

BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): A) Letter of guarantees: Balance of Letter of guarantees as at and for the year ended 30 Jun 2019 was BDT 9,200,346 and as at and for the year ended 30 Jun 2018 was BDT 9,200,346. In the course of executing the contract work, certain disputes have arisen between the Company and its contractor Mir Akhter Hossain Limited. As per the terms of contract, the contractor was authorized to refer the matter to arbitrator for resolution of the dispute (Cont.7)

BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): and supplementary duty from Large Taxpayers Unit (VAT) and additional tax demand from income tax assessing authority, the uncertainties of getting judgment in favour of the Company and management's position on the same. Our opinion is not qualified of this matter. Note: 32: Contingent liabilities and claims: (Cont.6)

BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): (2018: BDT 554,504,987) due the renovation work of the hotel for which the Company's Hotel operation had been temporarily suspended, as well incurring loss from the operations of Bangabandhu International Conference Center. After completion of renovation, the Company has been rebranded as InterContinentaI Dhaka and started commercial operations from 1 December 2018 and has started generating operating cash flows to finance its obligations. (Cont.4)

BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): foreseeable future. Accordingly,these financial statements have been prepared on going concern basis. Our opinion is not qualified in respect of this matter. Note: 1.8: Going Concern: Notwithstanding the fact that, at 30 June 2019 the Company has a current assets deficit of BDT 1,063,490,563 (2018: BDT 881,324,765), these financial statements are prepared under going concern basis. The Company has incurred net loss of 364,393,077 for the year ended 30 June 2019 to (Cont.3)

BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): incurring loss from the operations of Bangabandhu International Conference Center. After completion of renovation, the Company has been rebranded as InterContinental Dhaka and started commercial operations from 1 December 2018 and has started generating operating cash flows to finance its obligations. The Board and management of the company are closely reviewing the matters and determined that the Company has adequate resources to continue its operations for the (Cont.2)

BDSERVICE 05-Dec-2019

Qualified Opinion: Without qualifying our opinion, we draw attention to note 1.8 to the financial statements which indicates that as of 30 June 2019 the company's current liabilities exceeded its current assets by BDT 1,063,490,563 (2018: BDT 881,324,765), as well as incurred net loss of BDT 364,393,077 for the year ended 30 June 2019 (2018: 554,504,987) mainly due to the renovation work for which the Company's Hotel operation is temporarily suspended and (Cont.1)

BDSERVICE 05-Dec-2019

(Continuation news of BDSERVICE): The Board and management of the Company are closely reviewing matters and determined that the Company has adequate resources to continue its operations for the foreseeable future. Accordingly, these financial statements have been prepared on going concern basis. We also draw attention to note 32 to the financial statements where management explains the circumstances of various contingencies and additional claims of value added tax (VAT) (Cont.5)

BDSERVICE 28-Nov-2019

Trading of the shares of the Company will be allowed only in the Spot Market and Block transactions will also be settled as per Spot settlement cycle from 01.12.2019 to 11.12.2019. Trading of the shares of the Company will remain suspended on record date i.e., 12.12.2019.

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