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JAMUNAOIL

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JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): Chattogram Development Authority for constructing airport road without paying any compensation to the company. Emphasis Matter: Without qualifying our opinion, we draw attention to the following: i) No balance confirmation certificate has returned by the related party to verify the amount of BDT. (20,558,964,631) of related party balance. (Note ? 34.00) Note 34 (b): Balance of Transaction with BPC & Other Related Companies as on 30 June 2019 (cont.8)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): During the company has paid to the Participation Fund and Welfare Fund only but the company has not paid to Workers Welfare Foundation Fund amount since long. (Note -16.2.1) Note 16.2.1: Balance of Workers' Profit Participation & Welfare Fund as on 30 June 2019 was Taka 197,173,168 and as on 30 June 2018 was Taka 210,294,137. (end)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): (Note ? 14.00) Note 14: Balance of Provision for Gratuity as on 30 June 2019 was Taka 863,750,437 and as on 30 June 2018 was Taka 857,076,990. iii) As per The Bangladesh Labour Act, 2006 (amended in 2013), section 234 sub-section (1) clause (b), requires a company pay five percent (5%) of the net profit before WPPF of the previous year at the proportion of 80:10:10 to respectively the Participation Fund, Welfare Fund and Workers Welfare Foundation Fund. (cont.10)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): was Taka (20,558,964,631) and as on 30 June 2018 was Taka (30,192,870,597). (ii) The company operates an unfunded Gratuity Scheme for the permanent employees in accordance with gratuity rules. The gratuity liability as on 30 June 2019 stand at TK. 863,750,437. Although the company is fully covered as far as risk is concerned the provision has not been created in accordance with Actuarial computation as required by IAS-19. (cont.9)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): Chittagong Dry Dock Ltd. to execute lease agreement or to return the possession of the land. Eventually, the Company is deprived of economic benefit that could have been generated from said asset (Note-3.2) Note 3.2 Freehold land: Out of total 59.9703 acres of freehold land, 2.30 acres are yet to be registered in the name of the company. Land measuring 1.7116 acres possessed by Chittagong Dry Dock Ltd and 0.3859 acres of land has already acquired by the (cont.7)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): out of which land measuring 2.30 acres are yet to be registered in the name of the company. Out of the freehold land, land measuring 1.7116 acres possessed by Chittagong Dry Dock Ltd and 0.3859 acres of land acquired by the Chittagong Development Authority for constructing Airport road without payment of compensation to the company. The company has no agreement with Chittagong Dry Dock Ltd for using possession although the company sent several reminders to (cont.6)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): and existence of opening carrying amount of Property, Plant and Equipment. (Note-3.1) Note 3.1: Balance of Property, Plant & Equipment at cost as on 30 June 2019 was Taka 1,997,824,576 and as on 30 June 2018 was Taka 1,742,516,415 and written down balance of Property, Plant & Equipment as on 30 June 2019 was Taka 948,870,607 and as on 30 June 2018 was Taka 805,413,280. 4) The Company has total 59.9703 acres of freehold land valued at BDT. 2,78,49,084, (cont.5)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): The company made correspondences with parties to realize the outstanding balances but the amount are yet to be realized. (Note-8) Note 8.1: Balance of Accounts Receivable as on 30 June 2019 was Taka 1,722,013,356 and as on 30 June 2018 was Taka 1,763,365,017. 3) Property, Plant and Equipment of Tk.1,742,516,415 has carried forward without maintaining any comprehensive records. We could not obtain sufficient appropriate audit evidence relating to the location (cont.4)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): and other portion was utilised to settle Bangladesh Pettrolium Corporation (BPC)'s dues. 2) The Company's Trade Receivables are carried forward in the statement of financial position amounting to Tk. 1,722,013,356. Out of which Tk. 134,578,955, Tk. 50,100,405 and Tk. 5,770,737 remaining as receivable from Power Development Board, Bangladesh Chemical Industries Corporation and Chattogram City Corporation respectively since long time. (cont.3)

JAMUNAOIL 28-Nov-2019

(Continuation news of JAMUNAOIL): has not been taken into account. In consequence of such premature encashment Company's retained earnings was overstated during afforested previous years by the amount of loss of interest income. (Note-5.2) Note 5.2: Balance of Long term investment in FDR as on 30 June 2019 was Taka 0.00 (Nil) and as on 30 June 2018 was Taka 6,806,720,000. During the year entire FDR was encashed, a portion of such encashment was reinvested (cont.2)

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