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POWERGRID

All Eps Dividend Board Agm Q1 Q2 Q3

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): 'Liabilities for other finance'. However, the loan interest calculations thereon have been correctly made from the disbursement dates. In addition, in note # 14.3 to the financial statements, the Company discloses 'Assigned loan from BPDB' and 'Assigned loan from DPDC(DESA) ' amounting to Tk.0 (zero) (2018-19: BDT 49,794,639) and BDT 3,599,172,321 (2018-19: BDT 3,599,172,321) respectively. (cont.19)

POWERGRID 18-Nov-2020

(Continuation news of POWERGRID): of Bangladesh, Assigned Loans, and loans from some other parties. In the case of recognizing loans from development partners, the Company recognized the loans when the Company issued payment certificates /withdrawal notifications, even though the loans were disbursed at later dates by the development partners. As a result, the Company has recognized more loans from the development partners instead of recognizing (cont.18)

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)

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