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SONALIANSH

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SONALIANSH 11-Dec-2018

(Continuation news of SONALIANSH): 10. Provision for salary & wages (Note: 21) included debit balance of Taka 9,077,512 against provision for salary. No satisfactory explanation for such debit balance could be obtained from the management. Further, the offsetting of this debit balance against credit balance of provision for wages and other items is not permitted by Para 32 of IAS 1 "Presentation of Financial Statements". (cont.8)

SONALIANSH 11-Dec-2018

(Continuation news of SONALIANSH): with the IFRS 15 "Revenue from Contracts with Customers". 9. Sales quantity reconciliation (Note: 24.2) included process loss of 229.47 metric ton. This process loss comes to 4.52% of the production during the year, although there was no process loss in the previous years. We could not obtain any satisfactory explanation and appropriate audit evidences in this respect. (cont.7)

SONALIANSH 11-Dec-2018

(Continuation news of SONALIANSH): 8. As per the accounting policy adopted by the Company, revenue is recognized when 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 (cont.6)

SONALIANSH 11-Dec-2018

(Continuation news of SONALIANSH): 242(1) of the Labour Act 2006 (as amended in 2013). Furthermore, the above fund is being utilised by the Company but no interest has been credited to the fund at applicable rate as per Section 242(1) of the said Act. 7. The assessments of 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. (cont.5)

SONALIANSH 11-Dec-2018

(Continuation news of SONALIANSH): 5. Included in the trade receivables (local) (Note: 8.2) an amount of Taka 7,575,115 receivable from Saiful Enterprise since 2016 is being doubtful of recovery but no provision has been made in the financial statements. 6. WPP & Welfare fund of Taka 5,214,827 (Note: 22.3) from the financial year 2005-2006 to 2016-2017 has not been distributed by the Company as per Sections 234(1) and (cont.4)

SONALIANSH 11-Dec-2018

(Continuation news of SONALIANSH): 3. Deferred tax liabilities have 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 Taxes (Note-15). 4. Intangible addition of Taka 55,975,624 in the account (Note: 05) deviates the principle of accounting practice and have resulted in journal entries for invisible assets and corresponding unearned income, which has inflated the accumulated profit. (cont.3)

SONALIANSH 11-Dec-2018

(Continuation news of SONALIANSH): overstated to the extent of chargeable depreciation. The net profit after tax and earnings per share are also being shown overstated to that extent. 2. The Company has not done any impairment review on the revalued fixed assets (Note: 13) as required by IAS 36: Impairment of Assets. In consequence the net assets value of the Company remained overstated to the extent of chargeable impairment, if any. (cont.2)

SONALIANSH 11-Dec-2018

(Adverse Opinion): The auditor of the company has given the following Adverse Audit Opinion in the audit report of the company for the year ended on 30 June 2018. Basis for Adverse Opinion: 1. The Company has not been charging depreciation on the additional value resulting from revaluation of fixed assets (Note: 13) as required by IAS 16: Property, Plant & Equipment since financial year 2006-2007. In consequence the net assets value of the Company remained (cont.1)

SONALIANSH 04-Dec-2018

(Continuation news of SONALIANSH): starting from Article 1 to Article 150 (Page 1 to 26) be and are hereby amended to the extent as aforesaid and a new Articles of Association comprising Articles 1 to Articles 261 (Page 1 to 33) be and are hereby adopted to give effect to the provisions of the Companies Act, 1994. (end)

SONALIANSH 04-Dec-2018

(Continuation news of SONALIANSH): as security for loans and/or any credit facilities to be given to any associate company or companies or third party and also to give guarantee securing liabilities of such associate company or companies and/or third party. Articles of Association: All objects of the existing Articles of Association of the Company (cont. 4)

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