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BDWELDING

All Eps Dividend Board Agm Q1 Q2 Q3

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): for Bad and Doubtful Debts was Tk. 0 & 0 as at 30.06.2019 and as at 30.06.2018 respectively. Note 22.06 - Provision for registration, mutation and cost: Balance of Provision for registration, mutation and cost was Tk. 26,106,500 & 26,106,500 as at 30.06.2019 and as at 30.06.2018 respectively. Above amount represents CDA Permission fee and other expenses related to non Muted land .26 Decimal with CDA. Note 6.00- Inventories: (cont. 9)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): in the absence of getting insurance claim and not being able to adjust the liability of the bank against goods under LTR/pledge. Since the factory shifting continuing, retaining of the damaged goods and carrying the same to the new-factory becoming meaningless. The liability of the bank against damaged goods has been adjusted, hence this provision was made. Note 22.05 - Provision for Bad and Doubtful Debts: Balance of Provision (cont. 8)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): company estimates that the resource available adequate to meet its fund requirement in the foreseeable period. Thus the management deemed it appropriate to prepare the financial statements on going concern basis. Note 22.04 - Provision for Obsolete Inventories: Balance of Provision for Obsolete Inventories was Tk. 0 & 0 as at 30.06.2019 and as at 30.06.2018 respectively. The Company had to maintain the stock of flood damaged goods (cont. 7)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): 13 June 2017 sold land 2.49 Acre and RCC structure of factory building at Tk. 398,465,000. The company received Tk. 327,125,445 against agreed value. Out of the fund, the company paid the bank loan in full and a part of other liabilities. The balance amount of Tk. 71,339,555 remained outstanding with the buyer of the land. This amount has been earmarked for utilizing for shifting and erecting the factory shed. The management of the (cont. 6)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): receivable and registration & mutation purpose. c) Notes # 6.00 to the financial statements, which describe that due to limited operation for applicable year the wastage of raw materials has caused significant deterioration in the company's financial performance during the year. d) The production facilities of the company is not operative. Note 2.04 - Going Concern: During the year the company through an agreement of sale and power of attorney dated (cont. 5)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): of prior year adjustment. Emphasis of Matter: Without qualifying our opinion, we draw attention to a) Note # 2.04 to the financial statements in which the management of the company explained its position as to why the financial statements have been prepared on going concern basis. b) Note # 22.04, 22.05 & 22.06 to the financial statements in which the management of the company explained the reasons as to why provisions have been made for inventories, (cont. 4)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): accounted for in the financial statements without taking into consideration the temporary difference amount. e) We could not verify the challan for payment of VAT amounting to Tk. 143,755. f) Unclaimed dividend as per financial statements is Tk. 32,68,007 but no fund exists as such in the financial statements to meet this liability. We could not verify the detailed as the list for this item were not provided. g) We could not verify the item (cont. 3)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): As a result, physical existence of inventory and value thereof could not be verified. b) We could not verify the addition to the fixed assets amount as the proper detail vouchers have not been provided except the value of the land. c) We could not verify the pending legal matters as the information was not provided to us and opinion from the legal adviser were also not available. d) Deferred tax has been calculated only on revaluation surplus and (cont. 2)

BDWELDING 07-Sep-2020

The auditor of Bangladesh Welding Electrodes Ltd. has given the following "Qualified Opinion & Emphasis of Matter" in the audit report of the Company prepared for the year ended on June 30, 2019. Qualified Opinion: a) The evidence with respect to inventory having a carrying amount of Tk. 15,50,30,865 was limited because we could not observe the counting of physical inventory as of 30 June, 2019 as well as no proper inventory record was provided to us during audit. (cont. 1)

BDWELDING 07-Sep-2020

(Continuation news of BDWELDING): produced using wrong materials. Company had to pay compensation to some users whose ship got cracked using the welding rod supplied by the previous management. (end)

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