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FIRSTFIN

All Eps Dividend Board Agm Q1 Q2 Q3

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): recognized on the Balance Sheet includes two (2) loans for which the Company has overstated the Eligible Security amount on their books by BDT 19,739,860. Due to this overstatement, the overall required provision recognized by the Company is understated and the net income recognized for the period has been overstated by the same said amount. 8) We draw your attention to Note 7.08 to the financial statements which describe the effect of a (cont.9)

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): financial statements as 31 December 2018 for which the Company obtained permission from Bangladesh Bank (through letter no FIID/I-10/20181/1182 dated November 13, 2018) to adjust over three (3) years starting from March 2019. During the year, the Company adjusted an amount of BDT 68,600,000 leading to a final difference between their FICL statement and the financial statements of BDT 68,604,139. 7) The leases, loans and advances balance (cont.8)

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): liabilities for the Company present on the Balance Sheet as at 31 December 2020 is understated by BDT 5,299,936. 6) We draw your attention to Note 07 to the financial statements which describe the effect of a difference in the balance of leases, loans and advances between the FICL statement and the amount reported on the financial statements. A difference of BDT 205,804,139 existed in the leases, loans and advances balance between the FICL and (cont.7)

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): to calculate the recoverable amount which is a violation of paragraph 9 of FAS 36. It is not possible to quantify the financial impact on this regard based on the information available on hand. 5) Based on the Company's internal records which we audited, the total Term Deposit liability as at 31 December 2020 was BDT 6,057,308,657 white the liability presented on the Balance Sheet as at 31 December 2020 is BDT 6,052,008,721. Therefore, the total (cont.6)

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): has not recognized this reduction in recoverable amount as an impairment loss which is a violation of paragraph 59 of IAS 36. b) The Company has four properties worth BDT 16,074,661 for which the Company is currently going through a litigation process. The legal proceedings have been going on for a significant number of years and there are significant indications that these assets have been impaired. The Company has not performed an estimate (cont.5)

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): recognized BDT 195,987,070 worth Non-Banking Assets on the Balance Sheet as at 31 December 2020. Out of this asset class, there are several assets which have been impaired which the Company has not recorded for. The details are provided below: a) The Company has two properties worth BDT 19,310,338 whose recoverable amount has reduced by BDT 13,310,338 based on the auctions where these properties have been put for sale. The Company (cont.4)

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): represent unpaid taxes which have been collected and deducted by the Company. As per Section 57 of Income Tax Ordinance 1983, failure to remit collected or deducted taxes can result in additional penalty of 2% per month. Unpaid taxes collected by the Company will result in additional penalty of BDT 30,302,736 which the Company has not recognized on the Profit & Loss Account for the year ended 31 December 2020. 4) The Company has (cont.3)

FIRSTFIN 24-Nov-2021

(Continuation news of FIRSTFIN): violation of said circular. 2) As per Labour law 2006 (Amendment 2013) Sec-234, a company must maintain WPPF but the Company did not comply with said law. 3) In accordance with Section 59 of Income Tax Ordinance 1983, all sums collected or deducted as taxes should be remitted to the government within the prescribed time. The Company has recorded BDT holding tax payable worth BDT 156,683,083 as at December 31, 2020. These amounts (cont.2)

FIRSTFIN 24-Nov-2021

The auditor of the First Finance Limited has given the "Qualified Opinion" & "Emphasis of matter" paragraphs in the Auditor's Report for the year ended on 31 December, 2020. Basis for Qualified Opinion: 1) As per FRC Circular no-146/FRC/2020101 dated 11-02-2020, any amount received as share money deposit must be converted to share capital within 6 months from the receiving date. The Company receipts amount to BDT 159,916 but didn't convert to share which is a (cont.1)

FIRSTFIN 22-Nov-2021

Refer to their earlier news disseminated by DSE on 15.11.2021 regarding Dividend Declaration of the Company, the Company has further informed that NOCFPS of the company will be Tk. (0.99) instead of Tk. 1.81 for year ended on December 31, 2020. All other information will remain unchanged.

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