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TITASGAS

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TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): a total of Tk. 61.50 crore as advance against incentive bonus to its employees for the years from 2014-15 to 2019-20. Out of the said amount Tk.11.89 crore has been distributed to the employees during the year under audit. Further, Tk. 17.22 crore has been adjusted against the said advance at the time of final settlement of the outgoing employees from the year 2014-15 to 2019-20. As a result, the outstanding amount of Advances against (cont.23)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): ended 30 June 2020. h. As per letter no. 07.01.0000.02.02.55.2015/270 dated 17 August 2015 of the Finance Division of Ministry of Finance regarding approval of incentive bonus, the subsidiaries along with Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) shall take prior approval from the Finance Division of Ministry of Finance before distributing any incentive bonus to their employees. The Company has distributed (cont.22)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): be considered in calculation of Earnings per share. However, the outstanding amount of such share money deposit stands at Tk. 178.49 crore as at 30 June 2020. But the Company has not converted this Share Money Deposit into the share capital of the Company as per the instruction given by FRC. Further, the Company refunded Tk. 0.14 crore in account of share money deposit after issuance of such letter from FRC for the year (cont.21)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): As per Gazette Notification No. 146/FRC/Admin/Notification/2020/01 dated 02 March 2020 by Financial Reporting Council (FRC), the capital received as share money deposit or whatever the name which is included in the Equity part of any company that cannot be refunded and the said amount shall be converted into share capital within 06 (six) months from the date of such receipt. Further, such share money deposit shall (cont.20)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): information. However, the Company has provided an amount of Tk. 491.05 crore against the above said disputed volume of gas which is 3% above the allowable system loss. g. As per subsidiary loan agreement (SLA) between the Government of the Republic of Bangladesh and Titas Gas Transmission and Distribution Company Limited (TGTDCL), the Company has received Tk. 27.42 crore as equity and recognized it as share money deposit. (cont.19)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): The Committee has, reportedly, been working on the disputed issue and the outcome of the settlement is yet to be known. The value of the said excess gas volume has been estimated at Tk. 2,154.27 crore but the gas supplying companies have not yet raised any invoices except for Tk. 103.33 crore claimed by GTCL. We could not determine the actual volume and value of excess loss of gas by the Company due to lack of reliable (cont.18)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): Being the said excess system loss for the year 2019-20 abnormal the Company has referred this disputed matter to Bangladesh Oil, Gas and Minerals Corporation (Petrobangla), the parent company of TGTDCL and all other gas supplying and transmitting companies, for settlement and as such a committee comprising members from all the supplying and transmitting companies including TGTDCL has been formed by Petrobangla. (cont.17)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): But there are no measurement tools at the supplying and receiving points for gas transmitted by GTCL to TGTDCL. The management of the Company informed that GTCL has calculated the supply volume of gas based on their assumption as they do not have accurate metering system at their transmitting points and they did not consider the loss of gas due to leakage, their own usages, gas purging, etc. at the time of transmitting by them. (cont.16)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): had supplied 2,139,913,063 CM more gas to TGTDCL than the recorded and reported quantities. This difference of gas volume (beyond the allowable system loss) is about 13.88% more than the reported volume of purchase. The actual excess system loss for previous year was 3.72% and the average for last five years was 0.95%. The Company had received around 88.19% of gas it had sold during the year through the pipeline of GTCL. (cont.15)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): from the supplying companies through its own pipelines and 2.25% on the gas volume received via pipelines of Gas Transmission Company Limited) on the volume/quantities of gas sold by the Company to its Customers during the year. Our examination of records, papers and correspondences with the supplying and transmitting companies regarding supply of gas to TGTDCL during the year under audit reveals that the supplying companies (cont.14)

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