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FASFIN

All Eps Dividend Board Agm Q1 Q2 Q3

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)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): The market value of portfolio of negative equity holders is just of TK. 77 crore. There is a significant doubt regarding collectability of said margin loans. As such, the company is required to make provision or written off the long outstanding unsecured loan, which is not less than of TK. 158.41 crore as of December 31, 2020. The paragraph 5.4.4 of IFRS 9: Financial Instrument requires to written off the entire or part of the financial assets (cont.9)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): negative Gross Profit Margin and Net Profit Margin, recurring huge loss, shortage of fund and negative equity expose a concern about its (company's) going concern assumption. Subsidiary Qualified Opinion: 9. The margin loan balance with negative equity of the company is Tk. 159.18 crore as of December 31, 2020. The company has no other security over this margin loan except margin loan holders' share portfolio. (cont.8)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): the directors and sponsor of the listed security must hold jointly 30% of paid up capital. But the directors and sponsor of the company has not hold any share of the company. 8. The accompanying financial statements have been prepared under going concern basis assuming that the company will continue its existence for foreseeable future. However, significant amount of non-performing loan and loan loss provision, (cont.7)

FASFIN 14-Nov-2021

(Continuation news of FASFIN): "Term or Fixed Deposit", but company didn't maintain such provision, which is the violation of required rules and regulations. 6. During our audit we did not obtain third party confirmation in all respect. Though we sent the letter of request to third party through the entity but third-party didn't respond on our request. 7. In reference to the BSEC directive no. SEC/CMRRCD/2009-193/120/Admin/34 dated November 22, 2011, (cont.6)

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