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ILFSL

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ILFSL 27-Dec-2020

(Continuation news of ILFSL): Note # 19, interest income of the company for the year under audit has been reversed by Taka 7,593,335,136 through some JV adjustments. Reason for such reversal entries/adjustments are disclosed in the financial statements. As a result, total interest income of the company for the year ended December 2019 is shown negative at the amount of Taka (2,707,421,122). 10. Reference to Note # 11, the company has yet to make payment (cont.20)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): performance appraisal and any approval from the Board. Moreover, a total of 37 (thirty-seven) contractual employees were employed by the company in the year of our audit without any Board approval. In addition, no tax was also deducted from the payment of salary and allowance to the contractual employees of the company during the year 2019 which is non-compliance with Section 50 of Income Tax Ordinance 1984. 09. Reference to (cont.19)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): Such illegitimate expenditure has been incurred by the company at the cost of interest of the depositors. Expense of the company for the year 2019 has been overstated by such expenditure. 08. Reference to Note # 24, total Salary and allowances of the employees of ILFSL for the year 2019 is Taka 97,137,252 which includes unauthorized increments given to its employees abnormally ranging from 9% to 25% without conducting any (cont.18)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): advances to a software provider which has been unadjusted for more than a year. This is non-compliance with the respective circular. 07. Reference Note # 20, interest expense on deposits and borrowings etc. include deposit mobilization expense of BDT 140,164,146. Reportedly this significant amount was spent as commission or pocket expense to procure deposit for the company during the year 2019 without any approval from the Board. (cont.17)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): statements of ILFSL for the year 2019 for its Fixed Deposit amounting to Take 1,405,552,500 with People Leasing and Financial Services Ltd. although there is a significant risk involved as the company is no more operating as going concern. 06. Reference Note #8.4, no provision has been maintained to comply with the requirement of the FID circular no. 08 dated 03 August 2002 for the amount of BDT 13,500,000 paid as (cont.16)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): provision against Lease, Loans and Advances due to charging excess interest suspense during the year by the ILFSL. 05. Reference Note # 04, IFRS 09 requires that the company measures loss allowances for financial assets at an amount equal to Lifetime Expected Credit Loss (ECL) when the credit risk of a financial asset has increased signi?cantly. However, no provision for loss allowance has been maintained in the financial (cont.15)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): no. 08 dated 03 August 2002, ILFSL should have maintained provision of Taka 22,192,303,088 for the year 2019 against classi?ed Lease, Loans and Advances. The company has maintained provision of Taka 20,802,181,291 as against the required provision. Hence, the liability and income of the company for the year 2019 have been understated and overstated respectively by the shortfall amount of Taka 1,390,121,797 in making (cont.14)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): (means Outstanding Balance of a loan as on a particular date less deposit by a customer). No Board approval in this regard can be found during our audit. 03. An amount of Take 73,000,000 was disbursed beyond Board approved/sanctioned amounts of Take 30,000,000 to the account of a party as House Finance Loan having loan ID-HL#1742341-0-0 103,000,000 during years 2017 and 2018. 04. Reference Note # 11, as per FID circular (cont.13)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): Reasons for such disbursements or bank transfers to these three companies' accounts without any formal arrangements or Board approval are unknown. iii. Leases, loans and advances also included taka 391,926,628 as Term Loan and Lease Finance since long under 06 (six) borrowers in FICL 2B and FICL3B. However, these loans are supposed to be adjusted but ILFSL has kept these loans unadjusted to defer the balanced amount (cont.12)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): Apparently the amount was recorded deliberately under the borrower in FICL 3A of the company through creation of false Term Loan Account during the year 2018. It was unearthed that this total amount of Take 10,45,00,000 originally disbursed to the account of three other different companies through 06 (six) Account Payee Cheques during the accounting year 2018 and interest thereon is recorded Taka 31,130,556. (cont.11)

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