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SONALIANSH

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SONALIANSH 02-Dec-2019

Trading of the shares of the Company will be allowed only in the Spot Market and Block transactions will also be settled as per Spot settlement cycle with cum benefit from 03.12.2019 to 04.12.2019. Trading of the shares of the Company will remain suspended on record date i.e., 05.12.2019.

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): have remain uncollectible since more than four years which indicates significant doubtful of recovery but no provision has been made in the financial statements. Note: 8.2: Trade Receivables (Local): Trade Receivables (Local) as at 30 Jun 2019 was Tk. 13,181,404 and as at 30 Jun 2018 was Tk. 12,731,681. (end)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): and for the year ended 30 Jun 2018 was Tk. 632,084,703. 8. The effects of foreign exchange transactions (gain/loss) have not been shown in respect of sales (foreign) and trade receivables (foreign) as at 30 June 2019 in the financial statements as per IAS 21 "The Effects of Changes in Foreign Exchange Rates". 9. Included in the trade receivables (Local) (Note: 8.2), an amount of Taka 7,575,417 from 2 customers (cont. 10)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): deliveries are made and risk of ownership has been transferred to the customer. But while making the actual transactions, the Company has recognized sales revenue (Note: 24) at the time of realization of receivables from the respective customers which is inconsistent with the policy adopted by the Company and also inconsistent with the IFRS 15 "Revenue from Contracts with Customers". Note: 24: Sales: Sales for the year ended 30 Jun 2019 was Tk. 393,411,449 (cont. 9)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): 6. The assessments of the financial year 1995-96 was finalized (Note: 36) but no accounting treatment has been given in the books of account for creation of additional tax provision of Taka 866,750 and adjustment of advance taxes thereof. Note: 36: Tax Assessment Status: Tax demanded by income tax authority for accounting year 1995-1996 was Tk. 866,750. 7.As per the accounting policy adopted by the Company, revenue is recognized when (cont. 8)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): c) Export cash subsidy of Income year 2007-2008 & Assessment Year 2008-2009 claimed and to be assessed U/S 82?(C) of Income Tax Ordinance, 1984 as at 30 Jun 2019 was Tk. 25,617,741. Thus, Total Intangible Addition (Equivalent Cash) as on 30 Jun 2019 was Tk. 55,975,624. 5. Worker's Profit Participation & Welfare fund of Taka 6,087,629 (Note: 22.3) from the financial year 2005-2006 to 2017-18 has not been distributed by the Company as per (cont. 6)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): Sections 234(1) and 242(1) of the Labour Act 2006 (as amended in 2013). Furthermore, the above fund in being utilized by the Company but no interest has been credited to the fund at application rate as per Section 242(1) of the said Act. Note: 22.3: Worker's Profit Participation & Welfare Fund: Worker's Profit Participation & Welfare Fund as at 30 June 2019 was Tk. 6,228,622 and as at 30 June 2018 was Tk. 6,087,629. (cont. 7)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): and have resulted in journal entries for invisible assets and corresponding unearned income, which has inflated the accumulated profit. Note: 5: Intangible Addition (Equivalent Cash): a) Intangible addition: Balance as at 30 Jun 2019 was Tk. 7,947,698. b) Export cash subsidy of Income year 2006-2007 & Assessment Year 2007-2008 claimed and assessed U/S 82(C) of Income Tax Ordinance, 1984 as at 30 Jun 2019 was Tk. 22,410,185. (cont. 5)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): 3. Deferred Tax Liabilities has not been shown in the financial statements on the revaluation surplus of Property, Plant & Equipment from the year 2006-07 as prescribed by Para 20 of IAS 12: Income Tax (Note-15). Note: 15: Deferred Tax Liability: Deferred Tax Liability as at 30 June 2019 was Tk. 1,871,377 and as at 30 June 2018 was Tk. 2,068,397. 4. Intangible additions of Taka 55,975,625 in the account (Note 05) deviates the principle of accounting practice (cont.4)

SONALIANSH 27-Nov-2019

(Continuation news of SONALIANSH): In consequence the net assets value of the Company remained overstated to the extent of chargeable impairment, if any. Note: 13: Revaluation Reserve: Revaluation surplus as at 30 June 2019 was Tk. 504,310,971 and as at 30 June 2018 was Tk. 504,310,971. It represents revaluation surplus of Land, Building, Plant & Machinery etc. of the company as per revaluation report of Eastland Surveyors vide. letter no. ES/VAL-101/2007 dated 06 March 2007. (cont. 3)

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