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WATACHEM

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WATACHEM 06-Dec-2021

As per Regulation 16(1) of the Dhaka Stock Exchange (Listing) Regulations, 2015, the Company has informed that a meeting of the Board of Directors will be held on December 07, 2021 at 5:00 PM to consider, among others, un-audited financial statements of the Company for the First Quarter (Q1) period ended on September 30, 2021.

ঢাকা স্টক এক্সচেঞ্জ (লিস্টিং) রেগুলেশন, 2015-এর রেগুলেশন 16(1) অনুযায়ী, কোম্পানিটি জানিয়েছে যে 07 ডিসেম্বর, 2021 তারিখে বিকাল 5:00 টায় পরিচালনা পর্ষদের একটি সভা অন্যান্যদের মধ্যে বিবেচনা করার জন্য অনুষ্ঠিত হবে, 30 সেপ্টেম্বর, 2021-এ শেষ হওয়া প্রথম ত্রৈমাসিকের (Q1) সময়ের জন্য কোম্পানির অ-নিরীক্ষিত আর্থিক বিবৃতি।

WATACHEM 05-Dec-2021

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 06.12.2021 to 07.12.2021. Trading of the shares of the Company will remain suspended on record date i.e., 08.12.2021.

কোম্পানির শেয়ারের লেনদেন শুধুমাত্র স্পট মার্কেটে অনুমোদিত হবে এবং ব্লক লেনদেনগুলিও 06.12.2021 থেকে 07.12.2021 পর্যন্ত কাম সুবিধা সহ স্পট সেটেলমেন্ট চক্র অনুযায়ী নিষ্পত্তি করা হবে৷ কোম্পানির শেয়ারের লেনদেন রেকর্ড তারিখে অর্থাৎ 08.12.2021 তারিখে স্থগিত থাকবে।

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): must introduce group insurance in the manner prescribed by rules". However, the company has not introduced yet group insurance for permanent employees despite being employed more than 100 permanent employees. This indicates non-compliance of the provision of the section 99 of the Labor Act 2006 as amended in 2013. (end)

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): However, a portion of such expenditure was financed by short term loan instead of long term loan. 5. Reference to Note # 02 to the financial statements, the company has disclosed the policy of impairment testing as per IAS 36 in respect to its non-current assets. 6. As per Section 99 of the Labor Act 2006 as amended in 2013, it is required that "In the establishments wherein minimum of 100 permanent workers are employed, (cont.8)

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): the Company has explained the reason for not making any loss allowance against Trade Receivable for Expected Credit Loss (ECL) in accordance with the requirements of IFRS 9. 4. As disclosed in Note # 8.02 to the financial statements "Advances, Prepayments and Deposits" include Taka 268,433,846 as advance against capital expenditures payment to suppliers for BMRE works in respect of new Plant & Equipment. (cont.7)

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): Commissioner of Customs Excise and VAT Directorate. The Company has filed an appeal to the Appellate Tribunal which is still pending. 2. Reference to Note # 33 "Earning per Share" of its financial statements, the management of the Company has explained the reasons for decrease in EPS from Taka 8.05 in the previous year to Taka 6.14 this year. 3. Reference to Note # 06 to the financial statements, (cont.6)

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): Moreover, the fund amount has been used by the company in its operation as internal source of financing without providing any interest for such usage as per section 240 (3) of the said Act. Emphasis of Matters: Without modifying our opinion, we report as follows: 1. Reference to Note # 51 to the financial statements, the company has disclosed the "Contingent Liabilities" of Taka 41,427,896 against the claim from (cont.5)

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): "Workers Profit Participation Fund and Welfare Fund" as current liabilities in the financial statements as on 30 June 2021. However, the amount has not been distributed yet with a proportion of 80:10:10 to the Participatory Fund, Welfare Fund and Workers' Welfare Foundation Fund respectively as per the Labor Act 2006 as amended in 2013 although the company has executed Trust Deeds this year. (cont.4)

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): depreciation based on the asset's original cost was not transferred from Revaluation Surplus to Retained Earnings for a total of 04 (Four) years from 2008-2011 as per Para 41 of IAS 16. Moreover, the Company has not maintained fixed assets register properly. 3. Reference to Note # 23 to the financial statements, provision for WPPF of Taka 40,073,872 has been provided by the company and the same is shown under the head of (cont.3)

WATACHEM 25-Nov-2021

(Continuation news of WATACHEM): a company should not cease the depreciation when the assets become idle or is retired from active use unless the assets are fully depreciated. As a result, depreciation for the current year has been undercharged by Taka 6,729,166. 2. Reference to Note # 12 to the financial statements, the Company has revalued its Property, Plant and Equipment in 2008 but the amount of surplus between depreciation based on the revalued carrying amount of the assets and (cont.2)

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