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POWERGRID

All Eps Dividend Board Agm Q1 Q2 Q3

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): written to FRC for exemption from the above-mentioned circular. But, FRC advised the Company to discuss the matter with the relevant officers of the Ministry and take necessary action. 7.In note # 14 to the financial statements, the Company discloses 'Term loan-interest bearing' amounting to BDT 185,431,692,703. 'Term loan-interest bearing' includes the loans provided by the development partners, loan taken from the Government (cont.17)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): During the year, the Company refunded SMD amounting to BDT 1,257,628,787, out of which BDT 1,253,075,287 was refunded after the publication of the gazette mentioned above. Also, the Company have neither converted the SMD into Share Capital nor considered the SMD while calculating the EPS. The earnings per share (EPS) for the year 2019-20 would have been adversely affected to that extent. The Company had already (cont.16)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): received as Share Money Deposit (SMD) or whatever name, included in the Equity, is not refundable. And money received under SMD should be converted to Share Capital within 6 months of receipt of the money. The above-mentioned gazette also requires that, until converting the SMD into Share Capital, SMD amount should be considered as Potential Share Capital and also for the calculation of Earnings Per Share of the Company. (cont.15)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): amounts in full. Had adequate provisions been made for the above, the earnings per share (EPS) for the year 2019-20 and net asset value (NAV) as at 30 June 2020 would have been adversely affected to that extent. 6.In note # 12 to the financial statements, the Company discloses BDT 58,858,845,659 as 'Deposit for Shares'. As per gazette # 146/FRC/Admin/Notification/2020/01 dated 02 March 2020, any money (cont.14)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): above are increasing year by year till to date. It includes disputed amounts with DPDC, DESCO, BPDB, PBS, WZPDCL, M/S Abul Khair steel Product and BWDB GK Project (Bheramara, Kushtia) amounting to BDT 698,508,019, BDT 5,589,781, BDT 2,183,080,320, BDT 16,418,006, BDT 70,716, BDT 6,433,733 and BDT 1,560,621 respectively. In our opinion, the Company is very unlikely to recover the (cont.13)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): reports an amount of BDT 6,226,149,623 as "Accounts and other receivables". It includes receivables from DPDC, DESCO, BPDB, PBS, WZPDCL, M/S Abul Khair Steel Product and BWDB GK Project (Bheramara, Kushtia) amounting to BDT 982,852,325, BDT 279, 419,664, BDT 2,650,888,558, BDT 1,864,364,829, BDT 175,425,309, BDT 6,433,733 and BDT 1,560,621 respectively. Amounts as stated (cont.12)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): BDT 512,798,455 as against BDT 342,990,142 as per the accounts ledger, the difference being BDT 169,808,313. As a result, the physical existence and value of the inventory could not be confirmed. We had no other practical alternative auditing procedure that we could apply to confirm the physical existence as well as the value thereof as on 30 June 2020. 5. As disclosed in note # 8 to the financial statements, the Company (cont.11)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): understatement of capital work-in-progress. 4. In note # 7 to the financial statements, the Company disclosed BDT 2,069,593,343 as inventories. Movement of inventories was not properly recorded, and mismatches were found between store ledger and accounts ledger balances at the cost centers we visited. During our visit to 10 GMDs, we observed that the physical store statement showed the inventory of (cont.10)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): plant & equipment and overstatement of capital work-in-progress. Also, Note-7 to the financial statements discloses inventories BDT 2,069,593,343 out of which BDT 19,748,332 has been delivered to the project named, "National Power Transmission Network Development (NPTND) " in 2018-19, but no accounting entry for this delivery has been given, thus resulting in overstatement of inventory with corresponding (cont.9)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): statements, the inventory in transit of BDT 140,227,650 is shown under Capital work-in-progress. Out of this inventory in transit, BDT 118,580,523 has remained unchanged since 2014 without any adjustment. It is very unlikely for any inventory booked in transit account to remain unchanged for such a long period without recognizing it as a part of property, plant & equipment, thus resulting in understatement of property, (cont.8)

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