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FASFIN

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FASFIN 24-Nov-2021

As per Regulation 16(1) of the Dhaka Stock Exchange (Listing) Regulations, 2015, the Company has informed that a meeting of the Board of Directors will be held on November 30, 2021 at 3:00 PM to consider, among others, un-audited financial statements of the Company for the Third Quarter (Q3) period ended on September 30, 2021.

FASFIN 14-Nov-2021

(Continuation news of FASFIN): which is a common local practice in Bangladesh for all banks and merchant bank. Although IFRS 9: Financial Instrument requires the investment to be presented at market value after adjusting provision for diminution losses. (end)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): 5. During our audit we were not able to check and confirm the Statement of cash flows, which is limitation of our audit work. Emphasis of Matter Paragraph: We draw your attention to the policy note no. 1(f) where it has been disclosed by company that they record their investment in shares at cost and provision is made for the diminishing in value of investment (cont.17)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): However, such eligible securities were revalued of TK. 4.73 core (in last year it was valued at TK. 19 crore at the time loan guaranty). This is the sign of over valuation of eligible securities of other loan and advances also. So, the company shall carry out re-evaluation all the eligible securities taken against the loan & advance and required loan loss provision. (cont.16)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): BSEC prescribe fund, no such transaction is taken place. 3. Bangladesh Bank (letter # DFIM @/1054/10/2020 dated November 12, 2020) has made an order to the company for accruing interest income only on realization basis some of loan, advance and lease investment. 4. During the year under review, loan of TK. 17 crore has partially been received of TK. 3 crore selling eligible securities. (cont.15)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): about it's (company's) going concern assumptions. Emphasis of Matter: 1. According to IAS 24 (Related Party Disclosures) company should disclose all the related party transaction in the related party disclosure. However, the company has not disclosed all the related party transaction. 2. According to BSEC directive dated January 14, 2021 if any dividend remains unpaid or unclaimed for a period of three years then this fund should be transferred to the (cont.14)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): The corresponding error may be in borrowing from other bank & financial institution and provision for expenses in statement of cash flows. 11. The accompanying financial statements have been prepared under going concern basis assuming that the company will continue its existence for foreseeable future. However, significant impairment of margin loan, recurring huge loss, negative equity balance and poor current ratio 0.49 expose concern (cont.13)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): 10. The interest on FDR 3.08 crore out of which TK. 2.84 (two point eight four) crore respectively was just charged and accrued to the receivable of FDR interest, which has been shown as receipt in the statement of cash flows. On the other hand, interest paid shown in statement of cash flows is overstated by Tk. 8.94 (eight point nine four) crore as this interest is just accrued and charged in Books of accounts and no impact was in the company's cash flows. (cont.12)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): instead of disclosed NAV per share of Tk. (2.47) (two point four seven). However, the Bangladesh Securities and Exchanges Commission directive no. BSEC/CMRRCD/2009-193/196 is required to make provision five equal quarterly instalment starting from December 31, 2020. So, the company is required to maintain provision of TK. 29.89 crore (twenty-nine point eight nine). (cont.11)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): (margin loan with negative equity), which is not recoverable. The company has just maintained of TK. 8.97 (eight point nine seven) crore as provision for margin loan. The short fall of required margin loan provision is TK. 149.44 crore (one forty-nine point four four). If the whole impairment loss is adjusted in financial statements, then Net Asset Value (NAV) would be Tk. 62.25 (Taka sixty-two point two five) (cont.10)

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