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JUTESPINN

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JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): required information in the policy notes regarding Revaluation of Property Plant and Equipment. As such it is not understandable whether the Property, Plant and Equipment is presented at fair value. 3. Impairment of Assets (IAS-36): As per IAS-36 para-9, an entity shall at the end of each reporting period assess whether there is an indication that assets may be impaired (if any) such indication exists the entity shall estimate (cont.8)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): recent market transactions on arm's length terms or were estimated using other valuation techniques; (e) for each revalued class of property, plant and equipment, the carrying amount that would have been recognized had the assets been carried under the cost model; and (f) the revaluation surplus, indicating the change for the period and any restrictions on the distribution of the balance to shareholders. But the company did not disclose any (cont.7)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): According to Para 77 of IAS 16, If items of property, plant and equipment are stated at revalued amounts, the following shall be disclosed; (a) the effective date of the revaluation; (b) whether an independent valuer was involved; (c) the methods and significant assumption applied in estimating the items' fair values; (d) the extent to which the items' fair values were determined directly by reference to observable prices in an active market or (cont.6)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): Para-34, revaluation shall be made with subsequent regularity i.e. 3 to 5 years that carrying amount does not differs materiality from the fair value at the end of the reporting period. As such the value of the assets has significantly changed from the date of last revaluation, the reflection of which was not demonstrated in the financial statements which led us to believe that the financial statements contain material misstatement. (cont.5)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): that may cast significant doubt on the Company's ability to continue as a going concern and that the financial statements do not adequately disclose this matter. 2. Revaluation of Property, Plant and Equipment (IAS-16): The Revaluation of Property Plant and Equipment of Jute Spinners Limited were affected in 1990 and subsequently no other revaluation has been commensurate till the date of reporting. As directed by IAS-16, (cont.4)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): emergence of a highly successful competitor, Loss of market & customer(s), inefficiency of key management and negative operating cash flows indicated by financial statements of the company. Furthermore, loan holders (Janata Bank Ltd.) and one of the supplier's namely West Zone Power Distribution Company Ltd initiated legal proceedings against the company. These events or conditions indicate that a material uncertainty exists (cont.3)

JUTESPINN 22-Nov-2020

(Continuation news of JUTESPINN): liabilities stood Tk. 615,721,258 which exceeded its total assets of Tk. 291,990,067 by Tk. 323,731,191. We also draw attention to the labor difficulties, inability to pay creditors on due dates, adverse key financial ratios, discontinuance of dividends, inability to obtain financing for essential new product development, dis-continue existing production or other essential investments, inability to comply with terms of loan agreements, (cont.2)

JUTESPINN 22-Nov-2020

The auditor of the Jute Spinners Ltd has given the "Qualified Opinion" & "Emphasis of Matter" paragraphs in the Auditor's Report for the year ended on 30 June 2020. Qualified Opinion: 1. Material Uncertainty Related to Going Concern (ISA -570): The Company incurred a net loss of Tk. 77,230,894 during the year ended 30 June, 2020 and the accumulated loss of the company as on 30 June, 2020 stands at Tk. 610,276,510. As of that date, the Company's current (cont.1)

JUTESPINN 18-Nov-2020

Trading of the shares of the Company will remain suspended on record date i.e., 19.11.2020.

JUTESPINN 15-Nov-2020

Trading of the shares of the Company will be allowed only in the Spot Market and Block transactions will also be settled as per Spot settlement cycle from 16.11.2020 to 18.11.2020. Trading of the shares of the Company will remain suspended on record date i.e., 19.11.2020.

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