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ILFSL

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ILFSL 18-Jul-2019

(Continuation news of ILFSL): total term deposit should be reserved in Bangladesh bank as Cash Reserve Ratio (CRR) which appeared BDT 314,459,152 of average term deposits of BDT 12,578,366,099. But management has computed and reported CRR amounting to BDT 6,349,453 based on average term deposit of November 2018 which is 98% lower than required CRR. (2) Reference Note No.- 12.3: Capital Adequacy Ratio (CAR): 'Capital Adequacy Ratio (CAR)' of notes to (cont. 6)

ILFSL 18-Jul-2019

(Continuation news of ILFSL): Emphasis of Matters: We also draw attention to the various notes of the financial statements, which describe the effects of events or matters. Our opinion is not modified in respect of those events or matters. (1) Reference Note No.- 3.3(a): Cash Reserve Ratio (CRR):An amount of BDT 6,349,453 has shown as Cash Reserved Ratio (CRR) maintained with Bangladesh Bank. As per FID circular no, 06 of Bangladesh Bank dated 06 November 2003 2.5% of (cont. 5)

ILFSL 18-Jul-2019

(Continuation news of ILFSL): doubt to going concern basis. (1) Operating cash flow of the company is negative as on 31 December 2018. (2) Due to short term Liquidity crisis, the company is in problem to make payment to some of its? depositors and creditors. (3) The company had excessive reliance on short term borrowings to finance long term assets. (4) Classified invested assets (Loans, leases and advances) has been increased by 2.11%. (cont. 4)

ILFSL 18-Jul-2019

(Continuation news of ILFSL): note no. 38 to the financial statements describe the events or matters that may cast significant doubt on the Company's ability to continue as going concern. Our opinion is not modified in respect of events or matters that disclosed note no. 38. Note 38: Disclosure regarding Going Concern: There is no material uncertainty relating to going concern basis but the following matters exists at the time of preparation of the financial statements that may cast (cont. 3)

ILFSL 18-Jul-2019

(Continuation news of ILFSL): FID circulars by Bangladesh Bank. During our audit we have verified investment asset (loan, lease and advance) and identified provision BDT 2,584,370,665 should be maintained against classified investment asset (loan, lease and advance) but provision maintained the Company against classified investment asset (loan, lease and advance) is BDT 59,584,853 which is provision shortfall of BDT 2,524, 785,812. Going Concern: We draw attention to (cont. 2)

ILFSL 18-Jul-2019

The auditor of the company has given the following "Basis for Qualified Opinion", "Going Concern" and "Emphasis of Matters" in the audit report of the company prepared for the year ended on 31 December 2018. Basis for Qualified Opinion: (1) Reference Note No.- 11: Other Liabilities, As per FID circular no. 08 dated 03 August 2002, Financial Institute should maintain provision against invested asset (classified or declassified) considering the quality of investment according to (cont. 1)

ILFSL 30-Jun-2019

The Company has further informed that 23rd AGM of the Company will be held at 11:00 AM. Other information of the earlier disclosure will remain unchanged.

ILFSL 30-Jun-2019

(Continuation news of ILFSL): v) Provision for Diminution in value of Investment has decreased by BDT 86 million as most of the provision is realized. vi) Provision for leases, loans and advances is increased by BDT 43 million as the quality of assets is increased. (end)

ILFSL 30-Jun-2019

(Continuation news of ILFSL): iii) Investment income is increased by 167.28% in comparison from the same period due to increased investment income of the subsidiary company. iv) Commission, fees, exchange and brokerage income is increased by 109.74% in comparison from the same period due to increased Commission, fees, exchange and brokerage income of the subsidiary company. (cont. 3)

ILFSL 30-Jun-2019

(Continuation news of ILFSL): The Company has further informed that Net Profit After Tax (NPAT) has declined by 80.39% compared to last year for the following reasons: i) In comparison for the same period in 2018, Interest income is increased by 9.6% due to increase of the weighted lending rate of Loans and advances. ii) Interest expense is increased by 26.73% in comparison from the same period due to increase of the cost of fund of the company. (cont. 2)

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