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JUTESPINN

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JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): Emphasis of Matter: 1. In note no. 14.00 Short Term Loan P.C. A/c Tk. 40,252,040 has been shown by the company but in the Artha Rin Suit No. 125/2018, bank claimed an amount Tk. 41,999,839. Note 14.00 Short Term Loan: Balance of Short Term Loan as on 30.06.2019 was Tk. 322,995,490 and as on 30.06.2018 was Tk. 322,967,990. (cont. 16)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): Note 7.00 Advances, Deposits and Pre-payments: Balance of Advances, Deposits and Pre-payments as on 30.06.2019 and as on 30.06.2018 was Tk. 17,592,139. Note 8.00 Accounts Receivable: Balance of Accounts Receivable as on 30.06.2019 and as on 30.06.2018 was Tk. 307,716. (cont. 15)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): 13. 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 portion of money has not been realized by the company. Resulting, these current assets might be subject to credit loss for which the company did not make any provisions. (cont. 14)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): a prayer to settle the case and pay the dues and start the production. Now maintenance work is going on to production of the mill. 12. In note no. 09.00 Cash & Cash equivalents, the E.R.Q Account Tk. 136,874 was not confirmed by us because the company did not provide us bank statements. Note 9.00 Cash and Cash Equivalents: Balance of Cash and Cash Equivalents as on 30.06.2019 was Tk. 177,271 and as on 30.06.2018 was Tk. 703,590. (cont. 13)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): different classification with Janata Bank Limited, Local Office, Motijheel, Dhaka. The account is now classified and the loan amount is Tk. 49,16,69,209.48 dt.: 31-05-2018. The Bank filed a suit against Jute Spinners Ltd. and the others Directors in the 1st Artha Rin Adalat, Dhaka. The suit number is Artha Rin Suit No. 125/2018. Jute Spinners Limited attended the case and immediately compromised with the Bank and already submitted (cont. 12)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN):11. In note no. 14:00 Short Term Loan P.C. A/c Tk. 40,252,040 was not confirmed because the company did not provide us bank statements. In addition, the company charged bank interest of around 13% amount Tk. 5,493,433 against this loan. Note 14.00 Short Term Loan: Balance of Short Term Loan as on 30.06.2019 was Tk. 322,995,490 and as on 30.06.2018 was Tk. 322,967,990. Jute Spinners Limited, has used loan facilities under (cont. 11)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): in section 232 to 235 of the Bangladesh Labour Act, 2006 as amended 2013 and amount of Tk. 13,744,387 of WPPF has not been distributed for long times. 9. The company did not form Gratuity Fund (GF) and Provident Fund (PF) during the year. 10. Major portion of transaction with directors have been made by cash which is a violation of Companies Act 1994 and Income Tax Ordinance 1984. (cont. 10)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): 7. The carrying amount of property, plant, and equipment (PPE) comes to Tk. 25,582,753. We were not provided with any document regarding checking of physical existence as a part of internal control as of statement of financial position. 8. Constitution of management board and management of the fund regarding Workers Profit Participation Fund (WPPF) has not been maintained in accordance with the provision made (cont. 9)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): But no Board resolution or agreement was made between the Managing Director and the Company. Therefore, no interest was charged by the Company against the loan amount. 6. The company has taken loan from Mrs. Ayesha Kadir amounting to Tk. 3,500,000 which remained unpaid and no interest has been provided in the accounts resulting understatement of liability. (cont. 8)

JUTESPINN 30-Jul-2020

(Continuation news of JUTESPINN): ii. The company has not disclosed write down policy of inventories in the notes to the financial statements 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. The company has taken loan total amount Tk. 19,236,541 from the Managing Director. (cont. 7)

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