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FAREASTFIN

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FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): contemplates the realization of assets and the settlement of liabilities in the normal course of business. The current credit facilities and resources of the company provides sufficient fund to meet the present requirements of its existing business operation. (end)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): collecting the loans and leases amount from the customers. Accordingly, the accompanying Company's financial statements have been prepared assuming that the Company will continue as a going concern which (cont. 9)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): Tk. 1,532,764,232 (Tk. 4,019,249,424 - Tk. 2,486,485,192) and the Company's Shareholders equity has decreased from Tk. 1,184,855,468 to Tk. 466,857,876 from the year 2018 to 2019 respectively. Fareast Finance and Investment Limited management believes that the Company will be able to recover from losses in the next succeeding years. The company has extended its current credit facilities and trying to increase its income and (cont. 8)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): has sustained an accumulated loss of Tk. 1,522,224,822 on December 31, 2019 which includes net loss after Tax Tk. 717,997,592 for the year ended December 31, 2019. The Net asset value per share (NAV) has been reduced from Tk. 7.22 to Tk. 2.85 and net operating cash flows per share (NOCFPS) has also been reduced from Tk. 3.47 to Tk. (1.19) from the year 2018 to 2019. The company's net liability exceeds its assets within one year (cont. 7)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): for loans, advances and leases, other assets and balance with other banks and financial institutions as per the letter # DFIM(C) 1054/09/2020-1420 dated 25 August 2020. Balance of shortfall of provision as on 31 December 2019 was BDT 756,534,714. Note - 2.40 Going Concern: The financial statements are prepared on the assumption that the entity is a going concern-and will continue its operations for the foreseeable future. The company (cont. 6)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): cast doubt and may arise additional expected credit losses of the company. Note - 8.9.1 Shortfall of provision for loans, advances and leases, other assets and balance with other banks and financial institutions: According to the company's request, Bangladesh Bank has given 5 (five) years time i.e. 2019, 2020, 2021, 2022 and 2023 for maintaining equally the required provision/provision shortfall of Tk. 94.57 crore as on 31 December 2019 (cont. 5)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): on the reports. According to available documents & CL statements Fareast Finance & Investment Limited shown Term Loan given to Fareast Stocks & Bonds Limited amount in Tk. 2,754,580,768 but according to Auditors opinion of Fareast Stocks & Bonds Limited they have found Tk. 2,522,206,023 in the books of accounts differences is Tk. 232,374,745. Which indicates that the recoverability of Term loan amount may (cont. 4)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): In connection with our audit, we have performed audit procedures to evaluate management's assumptions as to the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. 3. The company has one associate company namely Fareast Stocks & Bonds Limited is audited by other auditor whose report has been furnished to us and our opinion is as so far as it relates to the amounts included based (cont. 3)

FAREASTFIN 23-Sep-2020

(Continuation news of FAREASTFIN): an extended time span for four years for maintaining the shortfall provision. 2. We draw attention to Note 2.40 in the financial statements, which indicates that the Company incurred a net loss of Tk. 717,997,592 during the year ended December 31, 2019 and, as of that date, the Company's current liabilities exceeded its total assets by Tk. 1,532,764,232 As stated in Note 2.40, these events or conditions, along with other matters as set forth in Note 2.40. (cont. 2)

FAREASTFIN 23-Sep-2020

The auditor of Fareast Finance & Investment Limited has given the following Emphasis of Matter in the audit report of the Company prepared for the year ended on 31 December 2019. Emphasis of Matter: 1. We draw attention to note - 8.9.1 of the financial statements which describes the shortfall of required provision against classified loans, advances and leases, other assets and balance with other banks and financial institutions Tk. 756,534,714. The Bangladesh Bank has given (cont. 1)

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