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BDWELDING

All Eps Dividend Board Agm Q1 Q2 Q3

BDWELDING 03-Jan-2017

(continuation news of BDWELDING): does not have sufficient arrangements to meet this liability. Emphasis of matter: In addition our qualified opinion we also mention that the company has incurred a substantial amount of loss compared with profit of previous year. Due to such loss the company was unable to repay the bank loan with interest as per loan agreement. Consequently the loan has been classified as overdue and all banking facilities have been postponed by the lending bank. (cont. 7)

BDWELDING 03-Jan-2017

(continuation news of BDWELDING): of the company could have been changed. We could not calculate the amount of deferred tax for want of necessary information. e) Unclaimed dividend as per financial statements is Tk. 32,68,007 but no fund exists as such in the financial statements. The company could not provide any bank statement or bank certificate wherein this fund was kept reserved in favour of this unclaimed dividend which indicates that the company (cont.6)

BDWELDING 03-Jan-2017

(continuation news of BDWELDING): with a view to confirm the balance as on 30 June 2016 but no response yet received. As a result, we could not confirm the amount receivables reported in the financial statements. d) Deferred tax has been calculated only on revaluation surplus and accounted for in the financial statements without taking into consideration the temporary difference in the financial statements the operational results for the year and financial position at the end of the year (cont. 5)

BDWELDING 03-Jan-2017

(continuation news of BDWELDING): As a result, physical existence of inventory could not be verified. We had no other practical alternative audit procedure that we could not apply to authenticate the physical existence as well as the value thereof as on 30 June 2016. c) The company has reported an amount of Tk. 22,79,54,578 as receivable from customers. During audit we were provided a partial list of receivables and from which ten (10) customers were sent balance confirmation letter (cont. 4)

BDWELDING 03-Jan-2017

(continuation news of BDWELDING): requires impairment test of property, plant and equipment and necessary disclosure in this regard. The company has no laid down policy and procedure in regard to impairment test, and no such test was carried out. b) The evidence with respect to inventory having a carrying amount of Tk. 21,00,77,780 was limited because we did not observe the counting of physical inventory as of 30 June 2016 as well as no inventory record was provided to us during audit. (cont. 3)

BDWELDING 03-Jan-2017

(continuation news of BDWELDING): during the year with reference to their specifications, code, location, quantity and value thereof. In addition during audit we were not provided sufficient appropriate evidence in support of additions to property, plant and equipment for Tk. 1,58,61,262. Moreover during physical verification in factory we observed that a significant part of machinery was fully unusable. Bangladesh Accounting Standards (BASs) 36 (cont. 2)

BDWELDING 03-Jan-2017

(Qualified Opinion and Emphasis of Matter): The auditor of the company has given the following qualified opinion and emphasis of matter in the audit report of the company for the year ended on 30 June 2016: Basis of Qualified Opinion: a) The carrying amount of property, plant and equipment as reported in the financial position as at 30 June 2016 is Tk. 49,30,66,335. In absence of updated fixed assets register, we could not verify the property, plant and equipment including additions (cont. 1)

BDWELDING 02-Jan-2017

In response to a DSE query dated January 01, 2017 regarding unusual price hike of shares, the Company has given, among others, the following response: "We do not have any undisclosed material decision/information right at this moment; rather we are facing tremendous difficulty in running the business of the Company in the absence of Banking Loan facility and not getting the insurance claim for the flood loss occurred on July 2015."

BDWELDING 22-Nov-2016

(Q1 Un-audited): EPS was Tk. (0.29) for July-September, 2016 as against Tk. (0.30) for July-September, 2015; NOCFPS was Tk. (0.27) for July-September, 2016 as against Tk. (0.27) for July-September, 2015. NAV per share was Tk. 12.59 as of September 30, 2016 and Tk. 12.87 as of June 30, 2016.

BDWELDING 15-Nov-2016

Trading of the shares of the Company will resume on 16.11.2016 after record date for EGM & AGM.

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