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FIRSTFIN

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FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): Surplus amount was Tk. 6,917,422.00 as on 31 December 2018 and Tk. (47,417,887.00) as on 31 December 2017. Note no. 42.00 ? Related party transactions: Amount was Tk. 5,066,107.00 as on 31 December 2018 and Tk. 6,424,472.00 as on 31 December 2017. (End)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): Note no. 7.00 ? Lease, Loans and Advances: Amount was Tk. 8,794,051,760.00 as on 31 December 2018 and Tk. 9,554,739,490.00 as on 31 December 2017. Note no. 10.03 ? Deferred interest expense: Amount was Tk. 82,994,924.00 as on 31 December 2018 and Tk. 163,794,924.00 as on 31 December 2017. Note no. 3.01.01 (a) ? cash reserve requirement: (cont. 10)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): The relevant notes are given below: Note no. 7.08 - Particulars of required provision for loans and advances: Required provision was Tk. 961,983,382.00 as on 31 December 2018 and Tk. 521,505,685.00 as on 31 December 2017. Short fall of provision was Tk. 460,000,000.00 (including Tk. 2.00 crore for other assets which is disclosed in note no. 14.08) for the year ended on 31 December 2018. (cont. 9)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): (5) We draw your attention to Note 42.00 of the Financial Statements, which describe the fact that FFL sanctioned a related-party loan to one of its directors amounting to Tk. 70.00 Lac without obtaining approval from the shareholders. Management has stated that this approval will be obtained during the Company's next Annual General Meeting (AGM). (cont. 8)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): Bangladesh Bank has further penalized the Company amounting to Tk. 62,37,646.00 for the shortfall of CRR for the month of July 2018. The Company has however applied to Bangladesh Bank for condonation and recorded a provision of Tk. 10,00,000.00 against this penalty based on previous settlement amount with Bangladesh Bank related to similar violations. (cont. 7)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): which Tk. 8,08,00,000.00 will be expensed in 2019 and Tk. 21,94,924.00 will be amortized in 2020. (4) Referring to Note 3.01.01 (a) of Financial Statements, in respect of Cash reserve requirement (CRR), there was shortage in maintenance of CRR for the months of January to June 2018 for which the company has paid a token penalty to Bangladesh Bank amounting to Tk. 20,00,000.00. (cont. 6)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): 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, FFL has created a Deferred Interest Expenses asset in the balance sheet which is being amortized since then. The total interest expense yet to be amortized is Tk. 8,29,94,924.00 of (cont. 5)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): Bangladesh Bank through letter no. FllD/l-10/2018-1182 dated 13 November 2018 to adjust this difference over three (3) years starting from March 2019. (3) We draw your attention to Note 10.03 of the Financial Statements which describe the impact an under-accrual of Interest Expense on Term Deposits. The Company had under-accrued Interest Expense worth Tk. 24.15 Crore as at 31st December 2016. (cont. 4)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): (2) We draw your attention to Note 7:00 of the Financial Statements which describe the effect of a difference in the balance of Lease, Loans and Advances between the FICL statement and the Company's general ledger. A difference of Tk. 20,58,04,139.00 exists in the Leases, Loans, and Advances balances between the FICL statement and the Company's general ledger. The Company has obtained permission from (cont. 3)

FIRSTFIN 16-Jul-2019

(Continuation news of FIRSTFIN): which describe the effect of a provision shortfall against Leases, Loans and Advances. The provision recorded by the Company as at 31st December 2018 has a shortfall of Tk. 460,000,000.00. 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 five (5) years starting from the year 2020. (cont. 2)

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