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PLFSL

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PLFSL 22-Nov-2018

(Continuation news of PLFSL): and 1,854,405,970.00 respectively. As per DFIM circular no. 14 dated 28 December 2011 and article no. 2.6 and 2.7 of Prudential Guidelines on Capital Adequacy and Market Discipline (CAMD) for financial institutions issued by Bangladesh Bank, the company as a financial institution (cont. 9)

PLFSL 22-Nov-2018

(Continuation news of PLFSL): ratio-based nor risk-based. The regulatory authority requires a non-banking financial institution to have minimum paid up capital of Tk. 1,000.00 million. Paid up capital was Tk. 2,854,405,970.00 and 2,854,405,970.00 respectively as on December 31, 2017 and December 31, 2016 whereas required capital as per Bangladesh Bank for the above periods was Tk. 1,000,000,000.00. As a result, Excess capital for those periods came to Tk. 1,854,405,970.00 (cont. 8)

PLFSL 22-Nov-2018

(Continuation news of PLFSL): were to be transferred to its subsidiary and the subsidiary to be so formed is to deal with the margin loan and share business. Matter of Emphasis: Without qualifying our opinion, we draw attention to the fact disclosed in note 14.1: Note 14.1: The company is subject to the regulatory capital requirement as stipulated in DFIM circular no. 05 dated 24 July 2011 of Bangladesh Bank. The capital requirement for non-banking financial institution is neither (cont. 7)

PLFSL 22-Nov-2018

(Continuation news of PLFSL): of total equity. ii) The amount of Tk. 1,141,478,361.00 paid as loan to Mr. Motiur Raman is 36.53 percent of total equity. 7. We observed that the company has been dealing with the margin loan amounting to Tk. 1,520,014,328.00 without transferring the margin loan to subsidiary. The company did not comply with the policy directives of Bangladesh Securities and Exchange Commission (BSEC), margin loan accounts of the leasing companies (cont. 6)

PLFSL 22-Nov-2018

(Continuation news of PLFSL): shown as advance against land purchase but the land has not yet been registered in the name of Peoples Leasing and Financial Services Limited in the absence of regulatory approval. No provision has been made against the said advance. 6. Single borrower exposure exceeds the limit as per Financial Institutions Act 1993 Section-14 (C). The details are given below: i) The amount of Tk. 1,260,556,214.00 paid as Loan to PLFS Investment Limited is 40.34 percent (cont. 5)

PLFSL 22-Nov-2018

(Continuation news of PLFSL): against this unrecoverable asset. 5. The company entered into an agreement with Paramount Properties Limited (Zenith Holding Limited and Zephyr Holdings Limited-owned by previous directors of the company) to purchase a land measuring total 66.5 katha at green road at a cost of Tk. 1,236,640,000.00. The same amount was adjusted earlier against Directors' Loan in 2015 but in the absence of regulatory approval. The said amount has (cont. 4)

PLFSL 22-Nov-2018

(Continuation news of PLFSL): dated 20 August 2006. 4. The Company disclosed previous years loss of Tk. 15,686,553,599.00 (Margin Loan Tk. 3,073,729,000.00 and Other than Margin Loan 12,612,824,599.00) in note no. 09 under other assets and related note no. 2.3, detailed disclosure note regarding the reason for the such loss was not given and re-statement was not done adjusting profit or loss as per BAS-8. Moreover, as the asset is not recoverable, no provision has been made (cont. 3)

PLFSL 22-Nov-2018

(Continuation news of PLFSL): expenses of Tk. 1,566,430,505.00 and shown as other assets under note no. 09 but said expenditure cannot be deferred as per IAS 38: Intangible assets. 3. The cost value of the subsidiary company PLFS investment was Tk. 200,445,000.00. The equity of this subsidiary as on 31.12.2017 was Tk. 186,050,282.00 and as a result investment was reduced by Tk. 14,394,718.00. Provision against these investment was not made as per FID circular no. 06, (cont. 2)

PLFSL 22-Nov-2018

Basis for Qualified Opinion: The auditor of the company has given the following "Basis of Qualification" and Matter of "Emphasis" Paragraphs in the audit report of the Company for the year ended on 31 December 2017: Basis for Qualification: 1. The entity has shortfall of provision of Tk. 1,510,199,816.00 against classified loans and advance Tk. 1,504,814.00 for margin loan which was shown in Loan Classification Statement as unclassified. 2. The company has deferred its interest (cont. 1)

PLFSL 23-Oct-2018

(Q3 Un-audited): Consolidated EPS was Tk. (0.20) for July-September 2018 as against Tk. 0.16 for July-September 2017; Consolidated EPS was Tk. (0.69) for January-September 2018 as against Tk. 0.42 for January-September 2017. Consolidated NOCFPS was Tk. (1.12) for January-September 2018 as against Tk. 2.74 for January-September, 2017. Consolidated NAV per share was Tk. 10.20 as on September 30, 2018 and Tk. 11.31 as on September 30, 2017.

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