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FIRSTFIN

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FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): and as on 31 December 2018 is respectively BDT 305,359,863 and BDT 1,276,916,714. Balance of Grand Total of Current accounts with, Short-term deposit accounts with and Fixed deposit accounts with as on 31 December 2019 and as on 31 December 2018 is respectively BDT 327,901,120 and BDT 1,328,493,469. Regarding TRD of Tk. 10.00 Crore with People's Leasing and Financial Services Limited, it may be stated that, (cont.10)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): regarding the improvement of cash in flow. Note 4.01- Inside Bangladesh: Balance of Current accounts with as on 31 December 2019 and as on 31 December 2018 is respectively BDT 2,801,683 and BDT 11,833,967. Balance of Short-term deposit accounts with as on 31 December 2019 and as on 31 December 2018 is respectively BDT 19,739,575 and BDT 39,742788. Balance of Fixed deposit accounts with as on 31 December 2019(cont.9)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. About Net Negative Cash Flow, it can be stated that the negative cash flow position is improving in 2019 in comparison to 2018. In 2019 the Net Operating Negative Cash flow was Tk. (91,034,555) and in 2018 it was Tk. (400,738,138). We have an approved 5 years strategic plan where we have a plan for next 5 year(cont.8)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): FFL has created a deferred interest expenses asset in the balanced sheet which is being amortized since then. The total interest expense yet to be amortized is BDT 82,994,924 of which BDT 80,800,000 has expensed in 2019 and BDT 2,194,924 will be amortized in 2020. Emphasis of Matter: We draw attention to the fact disclosed in note- 2.02.01, 4.01, & 15.06.01. Note 2.02.01- Going Concern: The financial statements have been prepared (cont.7)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): 8. We draw your attention to Note 10.03 of the financial statements which describe the impact an under-accrual of interest expense on term deposit. The company had under-accrual interest expense worth BDT 24.15 crore as at December 31, 2016. The company has obtained permission from Bangladesh bank through letter No. DFIM(C) 1058/42/2017 to adjust this difference over three (3) years starting from June 2017. As detailed in note 10.03, (cont.6)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): BDT 205,804,139 exists in the leases, loans and advances balances between the FICL statement and the company's general ledger. The company has obtained permission from Bangladesh Bank through letter no. FIID/I-10/2018/1182 dated November 13, 2018 to adjust this difference over three (3) years starting from March 2019.During the year adjusted amount Tk.68,600,000, remaining unadjusted amount Tk. 137,204,139. (cont.5)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): The company has obtained permission from Bangladesh Bank through letter no. DFIM(C) 1054/42/2019-1272 dated 23 June 2019 to adjust this shortfall and increase the provision amount within 5 years starting from the 2020. 7. We draw your attention to Note 07 of the financial statements which describe the effect of a difference in the balance of leases, loans, advances between the FICL statement and the company's general ledger. A difference of (cont.4)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): 5.Tax assessment of the company did not finalize yet (From 2006-2019) which indicates additional tax liability may arise and if it is not practicable to quantify the financial effect in this regard. 6. We draw your attention to note 7.08 of the financial statement, which describe the effect of a provision shortfall against leases, loans and advances. The provision recorded by the company as at 31st December 2019 as a shortfall 460,000,000. (cont.3)

FIRSTFIN 28-Mar-2021

(Continuation news of FIRSTFIN): 2. The entity did not comply IFRS-16 (tease) for office rent expense. 3. As per labor law 2006 (Amendment 2013) Sec-234, a company must maintain WPPF but the company did not comply the said Law. 4. Withholding tax payable is amounting of Tk. 24,167,868 at 31.12.2018. Additional amount is imposed @ 2% amounting of Tk. 15,344,767 on the payable amount. So loss comes to amounting of Tk. 15,344,767 understated in accounts. (cont.2)

FIRSTFIN 28-Mar-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 30 June 2020. Qualified Opinion: 1. As per FRC Circular no- 146/FRC/2020/01 dated 11-02-2020, any amount received as share money deposit must converted to share capital within 6 months from the receiving date. The company receipts amounting Tk. 159,916 but didn't convert to share which is violation the said circular. (cont.1)

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