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ILFSL

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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)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): (TK.795541897) and 2019 (TK.424,400,000) and interest thereon is Taka 330,501,829. Reasons for such disbursements or bank transfers to these four companies' accounts are unknown as there were no formal arrangements or Board approval against these disbursements. ii. Leases, loans and advances also included Taka 104,500,000 as Term Loan under an existing, borrower namely Design & Source Limited (TL # 11812513-0-0). (cont.10)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): Apparently this amount was recorded deliberately under one party in FICL 3A of the company through creation of false Term Loan Accounts during the year 2019. It was unearthed that out of the abovementioned total amounts, an amounts of Taka 1,219,941,897 originally disbursed to the account off our other different companies through 20 (twenty) Account Payee Cheques/Bank Transfers during the accounting years 2017 (cont.9)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): In connection with, the net negative Operating Cash Flows is also showing Taka 2,117,277,907 (Per share TK. -9.55). 02. Reference to Note # 06, the Financial Statements of the company has been materially misstated by Leases, loans and advances for Take 2,046,869,458 as follows; i. Leases, loans and advances included Taka 1,550,442,830 as Term Loan under one party namely Zenith (TL # 1762395-0-0, TK. 1,550,442,830). (cont.8)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): (65.83%) and (62.54%) respectively. Leases, loans and advances to Deposit is 1.02:1. The Cost of fund increase as 12.29% comparing with previous year as 12.03%. The main source of cash inflows are the interest on lease, loan and advance. However, Total 90.31% of leases, loans and advances are classified. So, the company is under liquidity crisis to meet up their depositor's demand. As well as, dependency increase on the short term borrowing. (cont.7)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): the minimum requirement. IV. The carry forward loss up-to 31 December 2019 has been provisionally arrived Taka 28,033,359,431 as against the Paid-up Capital and Statutory Reserve of the company are Taka 2,218,102,460 and is BDT 456,184,825 respectively. Hence, the provisional carry forward loss is therefore 10.483 times of total capital amount. Return on investment (RoI) and Return on Asset (RoA) are adversely showing (cont.6)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): have been maintained at Taka 2,333,658,568 as per section 4 (Gha) of the Financial Institutions Regulations 1994 (as amended) and Bangladesh Bank circular no. 05 and 08 dated 24 July 2011 and 02 August 2010 respectively of The Department of Financial Institutions and Markets (DFIM). However, the capital of the Company is Taka (25,202,194,365). The shortfall in regulatory capital of Take 27,535,852,933 stands 1179.94% lower than (cont.5)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): Bangladesh Bank as Cash Reserve Ratio (CRR) which comes to BDT 304,598,139 (2.5% of term deposits of BDT 12,183,925,560). But management has kept CRR amounting to BDT 2,073,140 based on average term deposit of November 2019. The actual CRR is thus 99.32% lower than the required amount as at 31 December 2019. III. Reference to the Note # 12.3, Regulatory capital (core capital and supplementary capital) should (cont.4)

ILFSL 27-Dec-2020

(Continuation news of ILFSL): the Anti- Corruption Commission (ACC) is in the process of carrying out investigation and enquiry against all the Directors, Managing Director and others Related Parties. II. Reference to the Note # 3.3, an amount of 2,073,140 has been shown as Cash Reserve maintained with Bangladesh Bank. As per FID circular no. 06 of Bangladesh Bank dated 06 November 2003, 2.5% of total term deposit should be kept as reserve with (cont.3)

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