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JUTESPINN

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JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): 8. Financial Expenses: In note no. 24.00 of notes to the financial statements, financial expenses of Tk. 59,597,044 among which Tk. 57,320,785 has been provisioned from year to year for same amount. The company did not provide any updated information related to the blocked interest or suit filed by Janata Bank Ltd. 9. Income taxes (IAS-12): a) Current tax: Disclosure regarding calculation of income Tax Expenses: (cont.20)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): No information is also available of any disputes or litigation with the parties. There is a risk that the company's liabilities might be higher than those that have been shown. We could not confirm the balances directly from parties due to lack of contact information of the parties and thus were unable to determine the obligation in respect to these liabilities reported in the financial statements due to absence of information. (cont.19)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): 2006 as amended 2013 as well as Employee Benefits (IAS-19). 7. Liability for Goods & Advance Against Sales: Liability for Goods (note 18.00) amounting Tk. 70,214,737 and Advance against Sales (note 15.00) amounting Tk. 75,190 has not been adjusted for long period of time. No proper evidence could be provided for the existence of these amounts as liability to be paid in future or that these amounts are under/over provisioned. (cont.18)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): It also appears that the Company has not distributed or utilized the Workers' Profit Participation Fund Tk. 13,744,387 of WPPF for a long period of time violating the Section 242 of the Bangladesh Labour Act, 2006 as amended 2013. b) The company did not form any Gratuity Fund (GF) and Provident Fund (PF) during the year or made any provision for the year. This is also non-compliance of the Bangladesh Labor Act, (cont.17)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): for Debtors and Advances, Deposits & Prepayments have not been made. 6. Non -payment of Worker's Profit Participation Fund (WPPF) and Welfare Fund (WF): a) Constitution of management board 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. (cont.16)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): that the major portion of money has not been realized by the company. No proper evidence could be provided for the existence of these amounts or possibility of realization of these amounts. Resulting, these current assets might be subject to credit loss for which the company did not make any provisions. It appears from Note # 7.00, and 8.00 of the financial statements that the disclosure requirement (Ageing Schedule i.e., analysis of the age of financial assets) (cont.15)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): c) Major portion of transaction with directors have been made by cash which is a violation of Companies Act 1994 and Income Tax Ordinance 1984. 5. Accounts Receivable and Advance, Deposits & Prepayments: 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 period of time and (cont.14)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): the company become solvent. Therefore, no interest was charged by the company against the loan amount. b) 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. Interest has been charged in the financial expenses (note 24.00) for five years during the year against the said amount of Tk. 2,275,000 which is unpaid and included in liability for expenses. (cont.13)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): a) The Company has taken loan total amount Tk. 21,217,041 from the Managing Director. But no agreement was made between the Managing Director and the Company which is a material misstatement by quality/nature. However, in a board meeting, the board approved any transaction with the managing director & CEO and any Directors as and when required for the interest of the company subject to the loan will be refund without any interest when (cont.12)

JUTESPINN 16-Nov-2021

(Continuation news of JUTESPINN): whether it is obsolete or in unusable condition (Raw Jute, Finished Goods, Work in Progress & Stores and Spares). No provision has been made for writing off the value of inventories due to its obsolescence or non-existence. Consequently, inventory is overstated or asset of the company and loss/retained earnings is understated. 4. Related Party Transactions and Disclosure (IAS-24): (cont.11)

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