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TITASGAS

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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)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): carrying amount of inventories of the Company as on 30 June 2020 appears to be overstated. f. As disclosed in Note no. 31 to the financial statements, the company has reported cost of sales at Tk. 15,877.46 crore against purchase of 15,416,777,365 CM gas from different gas supplying companies for the year ended 30 June 2020. This purchase volume of gas has been determined by adding allowable system loss (@2% on gas volume received (cont.13)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): adjustment in the accounts for the said items. Further, the Company conducted physical verification of inventories as on 30 June 2019. It identified huge quantities of dead and obsolete items but could not determine the value of such inventories. As a result, the value of inventories as on 30 June 2020 may include huge quantities of dead and obsolete items which could not be quantified thereof due to lack of information. Thus the (cont.12)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): state that inventories are valued at cost which is a non-compliance with International Accounting Standard (IAS) 2: Inventories. IAS 2 requires valuation of inventories at the lower of cost and net realizable value. Physical verification of inventories done at 30 June 2013 identified dead stock worth Tk. 10.44 crore and obsolete stock worth Tk. 3.33 crore by the inventory committee at that time. But the Company did not make any (cont.11)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): ICB Islamic Bank Limited. Because of weak credit worthiness of the said banks there is a substantial doubt as regards realization of the said investment which require full provision in the accounts. But necessary provision in this regard has not been made in the accounts. e. The carrying amount of inventories as shown in the statement of financial position as on 30 June 2020 is Tk. 184.89 crore. But the accounting policies of the Company (cont.10)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): remain unrealized for long. As a result, there is a substantial doubt as regards realization of the said penal interest, meter rent and high heating value receivable which require full provision in the accounts. d. Receivable from Encashment of FDR for Tk. 60.62 crore as disclosed in Note# 14 represents investment in Fixed Deposit Receipt (FDR) with Padma Bank Limited (formerly known as "The Farmers Bank Limited") and (cont.9)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): Value (HHV) from its Private Power customers amounting to Tk. 39.52 crore up to the year 2019-20. The Company has been recognizing these income and receivables since the year 2002. Out of the said aggregated amount of Tk. 168.33 crore, there is no realization till date. On a query we came to know that the said customers are not interested to pay such penal interest as well as meter rent, demand charges and high heating value which (cont.8)

TITASGAS 27-Oct-2020

(Continuation news of TITASGAS): on the bill amounts of the respective customers. As such a total amount of Tk. 54.20 crore has been recognized as interest income up to 30 June 2020 and included in Trade & other receivables shown in Note # 11. On the other hand, the Company accounted for meter rent and demand charges on its customer namely, PDB for Tk. 74.61 crore up to the year 2019-20. Further, the Company accounted for another income of Higher Heating (cont.7)

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