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JUTESPINN

All Eps Dividend Board Agm Q1 Q2 Q3

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): did not form Gratuity Fund (GF) and Provident Fund (PF) during the year. This is also non-compliance of the Bangladesh Labor Act, 2006 as amended 2013. 8. Accounts Receivable and Advance, Deposits & Prepayments: i. Advance, Deposits & Prepayments (note 7.00) amounting Tk. 17,592,139 and Accounts Receivable (note 8.00) amounting Tk. 307,716 have not been adjusted for long times. This illustrates that major (cont.18)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): shall be distributed in equal proportion to all beneficiaries in cash and one-third shall be invested in accordance with the provisions to all beneficiaries". But It appears that the Company has not distributed and utilised Workers' profit participation Fund Tk. 13,744,387 of WPPF for a long period of time violating the Bangladesh Labour Act, 2006 as amended 2013. iii.Non-Formation of Gratuity Fund & Provident Fund: The company (cont.17)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): and management of the fund regarding Workers Profit participation fund (WPPF) & Welfare Fund (WF) has not been maintained in accordance with the provision made in section 232 to 235 of the Bangladesh Labour Act, 2006 as amended 2013. ii. As per the Section 242 (Utilisation of participation fund) of the Bangladesh Labour (amendments) Act, 2013 - "Of the total amount deposited in the participation fund every year, two-thirds (cont.16)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): calculation schedule, some assets are fully depreciated and its nominal value comes to Tk. 1 of each assets. But those asset's values are included in depreciable asset. Lack of proper presentation, we are unable to identify the said assets and also unable to verify the accuracy of depreciation calculation. 7. Non-payment of Worker 's Profit Participation Fund (WPPF) and Welfare Fund (WF): i. Constitution of management board (cont.15)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): made by cash which is a violation of Companies Act 1994 and Income Tax Ordinance 1984. 6.Property, Plant and Equipment (IAS-16): The carrying amount of property, plant, and equipment's (PPE) comes to Tk. 21,498,732. We were not provided with any document regarding checking of physical existence as a part of internal control as of statement of financial position. However, in the fixed asset depreciation (cont.14)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): misstatement by quality/nature. Therefore, no interest was charged by the company against the loan amount. II. The company has taken Loan from Mrs. Ayesha Kadir, wife of Director- Muhammad Shams-Ul-Kadir amounting to Tk. 3,500,000 which remained unpaid and no interest has been provided in the accounts resulting understatement of liability. III. Major portion of transaction with directors have been (cont.13)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): since the factory was closed down from 2016, either the quality of the inventories is obsolete or unusable condition (Raw Jute, Finished Goods; Work in Progress & Stores and Spares). 5. Related Party Disclosure (IAS-24): I. The Company has taken loan total amount Tk. 20,557,041 from the Managing Director. But no Board resolution or agreement was made between the Managing Director and the Company which is a material (cont.12)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): Tk. 243,791,989 which represents 83.49% of its total assets. We were unable to determine the value & quantity of inventories to be reported in the financial statements as our appointment of statutory audit was post-dated on 24 September 2020. Consequently, inventory might be overstated so as to profit or asset of the organization. ii. The company has not disclosed write down policy of inventories in the notes to the financial statements (cont.11)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): the fixed assets of the organization. 4. Inventory (IAS-2): i. Inventories are being carried forward for the last three years at the same value at cost without considering the net realizable value. The company's policy note no. 3.5 Valuation of inventories indicates that management stated the inventories at lower of cost and net realizable value. And company has not disclosed any fair market value except cost of inventory (cont.10)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): the recoverable amount of the assets and compute impairment and reports to the statements of profit or less and other comprehensive income as impairment loss. Jute Spinners Limited has not reviewed any assets that could be impaired at the end of the year so this constitutes a departure of International Accounting Standards (IAS)-36 para-9. However, reporting assets without any impairment review shall overstate/ understate (cont.9)

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