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FASFIN

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FASFIN 09-Dec-2020

(Continuation news of FASFIN): as provision for margin loan. The short fall of required margin loan provision is Tk. 147.53 (one forth seven point fifty three). If the whole impairment is adjusted in financial statements then Net Asset Value (NAV) would be Tk. 127.54 (one hundred seven point five four) Crore and NAV per share would be Tk. (51.02) (Taka negative fifty one point zero two) Instead of disclosed NAV per share of Tk. 8 (Taka eight). (cont.10)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): the company is required to make provision or written off the long outstanding unsecured loan, which is not less than of Tk. 156.5 Crore as of December 31, 2019. The paragraph 5.4.4 of IFRS 9: Financial Instrument requires to written off the entire or part of the financial assets (margin loan with negative equity), which is not recoverable. The company has just maintained of Tk. 8.97 (eight point nine seven) Crore (cont.9)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): to bank through the entity but bank didn't respond on our request. 8. The margin loan balance with negative equity of the company is Tk. 157.8 Crore as of December 31, 2019. The company has no other security over this margin loan except margin loan holders' share portfolio. The market value of portfolio of negative equity holders is just of Tk. 1.3 Crore. There is a significant doubt of collectability of said unsecured loans. As such, (cont.8)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): FID Circular No. 06 dated 06 November, 2003 and FID Circular No. 02 dated 10 November, 2004. The company should maintain Reserve, 2.5% on 'Term or Fixed Deposit'. But company couldn't maintain such provision which is violation of circular. 7.During our audit we did not obtain third party confirmation in respect bank balance, FDR balance and loan balance through third party confirmation. Though we sent the letter of request (cont.7)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): Moreover, the poor price of that is sign of impairment as per IAS 36 Impairment of Assets. But no such impairment teat was taken place. Consequently, the asset and profit for the year are overstated. 5. At the year end, the current account balance with subsidiary company (Fas Capital Management Ltd.) does not agree due to unrecognized liability of TK 35 lakh by the company. 6. According to Financial Institution Regulations 1994 and (cont.6)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): asset held for sales" which was classified as non-current asset held for sale in the year 2010 (nine year ago). No disposal yet taken place since then due to not receiving of minimum offer price as mentioned in the financial statements. The IFRS 05 Non-current Assets Held for Sale and Discontinued Operations requires to sold out the noncurrent asset within one year form the date of classification as "Non-current asset held for sales". (cont.5)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): would be TK 651.31 Crore and TK (43.7) respectively. The NAV per share shall be TK (31.5) 3. Bangladesh Bank has made an order to the company for accruing interest income only on realization basis some of loan, advance and lease investment. The balance of said loan, advance and lease investment was TK 498 Crore, which was 27.7 total investment. 4. The Financial statements exhibit of TK. 44,665,893 as "Non- current (cont.4)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): 2. During the year, the interest income was overcharged by TK. 120.35 Crore, as a result of investment suspense was recognized as income. Consequently, the loss for the year was understated by that amount. If the interest income of the company is reduced by that that amount, then loss and EPS for the year, with taking into consideration of under provision described in serial 01 of Basis of qualified opinion paragraph, (cont.3)

FASFIN 09-Dec-2020

(Continuation news of FASFIN): TK 134.59 Crore has been accounted for as loan provision and rest of TK. 379.96 Crore with equal instalment shall be charged next 07 (seven) year. If whole required provision is charged to the profit or loss statement, then loss for the year would be TK. 530.96 Crore. And EPS (negative) would be (35.6) consequently, NAV per share at the year ended will also be reduced by the same amount. (cont.2)

FASFIN 09-Dec-2020

The auditor of the FAS Finance & Investment Limited has given the "Qualified Opinion" & "Emphasis of Matter" paragraphs in the Auditor's Report for the year ended on 31 December 2019. Qualified Opinion: 1.At the year ended, the company's non-performing (classified) loan stood of TK. 1,311 Crore which is 73% of loan advance and lease investment. As a result the required loan provision of loan advance and lease at the year was TK. 514.55 Crore. One which, (cont.1)

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