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PRAGATIINS

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PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): verified and confirmed by us due to the absence of necessary records maintained for the initial recognition of cost, subsequent revaluation of value and charge of depreciation of the individual items of fixed assets; ii) International Accounting Standard (IAS) 40 requires that property generating rental income or used for capital appreciation should be presented as (cont. 12)

PRAGATIINS 23-Aug-2020

Continuation news of PRAGATIINS): of the Insurance Act 2010 read in conjunction with SRO # 280-law/2018 in respect of marine & hull insurance by an amount of BDT 81 Million. 5. Issues related to Property, Plant and Equipment: i) The Correctness of the net book balance of Fixed Assets as of 31 December 2019 (ref. Note 25-29 to the FS) amounting to BDT 2,292,171,000 could not be (cont. 11)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): in the manner as prescribed in SRO No. 353-law/2019 dated 14 November 2019. We did not verify the correctness of the Company's report on assets and liabilities in the prescribed manner (Schedule # 1) as mentioned in the said SRO. Management expenses including insurance commission were incurred and charged in excess of the limit set out in section 63 (cont. 10)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): was not produced for our examination. In addition to the above, deferred tax has not been calculated as required under IAS-12, and it could not be verified a balance of BDT 17,340,000 carried in the books of the company since long. 4. Compliance with IDRA rules: It could not be verified if the company has made investment in designated instruments and (cont. 9)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): could not be verified by us due to the absence of relevant information. We are not also aware of pending cases of assessment and related liabilities, disputed or agreed as the related information were not made available for our review. And the adequacy of the charge of BDT 72,000,000 set up against current year's tax liability could not be verified as the basis for the computation (cont. 8)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): despite the requirements of IAS 16. It could not also be ascertained if annual charges of depreciation on the property and calculation of deferred tax in relation to above have been duly accounted for. 3.Issues relating to current and deferred tax: Accumulated liability for income tax charges for several years reported on 31 December 2019 at BDT 537,754,453 (cont. 7)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): been charged to the profit and loss account and accordingly tax benefits have been availed under Income Tax Ordinance 1984. In accordance with the accounting standards the purpose, objective, legal or constructive obligation relating thereto and basis for such reserve were not found. In addition to the above reserve, the requirements, either legal or otherwise, (cont. 5)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): disclosures on direct method of cash flows applied. 2. Different types of reserves created without any basis: Reserve for exceptional loss are being carried in the books of the Company since long and a sum of BDT 935,319,047 (including current year amount of BDT 69,156,197) has been transferred to the reserve for exceptional loss and the same has (cont. 4)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): and Exchange Commission (BSEC) # BSEC/CMRRRCD/2006/208/Admin/81 dated 20 June 2018 have not been made in the accompanying financial statements: Reconciliation of net income or net profit with cash flows from operating activities making adjustments for non-cash items, for non-operating items and for the net changes in operating accruals, in addition to (cont. 3)

PRAGATIINS 23-Aug-2020

(Continuation news of PRAGATIINS): Ordinance 1984 about preparation and presentation of the financial statements as per International Financial Reporting Standard (IFRS) have not been followed properly in the preparation and presentation of the accompanying financial statements. In addition to the above, disclosure of the following item as required in the Notification of Bangladesh Securities (cont. 2)

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