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WATACHEM

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WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): (c) We draw attention to Note 8.00 "Loans, Advances & Deposits" of the financial statements which includes Tk. 529,619,059 pertaining to advance payment to suppliers for BMRE works in respect of new plant and Equipment. (cont. 14)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): and also increase of sales price per unit during the period of our audit. Our opinion is not modified in respect of this matter. Note 35.00: Earning Per Share as on 30.06.2019 was Tk. 11.63 per share and as on 30.06.2018 was Tk. 4.40 per share. (N.B.: Previous year?s EPS restated on the basis of 11,858,095 shares.) (cont. 13)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): and Restated EPS for the same period is Tk. 4.40 per share. (iii) No impracticable event /condition was occurred for the above case. (b) We draw attention to Note 35.00 "Earnings Per Share" of the financial statements which describes the reasons for increase in EPS from 4.40 in the previous year to 11.63 this year which is mainly high growth in the sales volume (cont. 12)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): (i) Reserve and Surplus has been credited and Revaluation Reserve has been debited by Tk. 2,139,110 as at 01 July 2017 & Tk.1,952,331 as at 30 June 2018 (ii) Basic EPS has been restated to the following figures: Basic EPS for 01-Jul-18 to 30-Jun-19 is Tk. 11.63 per share; 01-Jul-17 to 30-Jun-18 is Tk. 4.24 per share (cont. 11)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): Following disclosure is given as per Para- 49 of IAS-8: 1. Nature of the prior period error: Deferred tax on revaluation of assets has been charged as expense in Statement of Comprehensive Income rather than adjusting from Revaluation Reserve. 2. For each prior period presented, to the extent practicable, the amount of the correction. (cont. 10)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): Note 01.33 Restatement - Previous year's figures have been restated due to error occurred before the earliest period for adjustment of deferred tax on revaluation of asset to Reserve and Surplus rather than revaluation Reserve in line with IAS-8 "Accounting policies, Changes in Accounting Estimates and Errors." (cont. 9)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): Emphasis of Matter: (a) We draw attention to Note 1.33 restatement" of notes to the financial statements which describes the effects of restatement of the last year?s comparative figures in the financial statements. Our opinion is not modified in this respect. (cont.8)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): During the year, the Company has not made tax provisions on new addition in Workers' Profit Participation Fund (WPPF) amounting Tk. 9,367,626 tax charge on which comes at Tk. 2,341,906. Resultantly net Profit after tax has been overstated by Tk. 2,341,906 and EPS has been overstated by 0.19 (cont. 7)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): 4. Difference of tax provision on final assessment of previous years has been treated as deduction from Reserve & Surplus as presented in Note 21.00 "Reserve & Surplus" in the year 2017-2018. (cont. 6)

WATACHEM 19-Nov-2019

(Continuation news of WATACHEM): An amount of Tk. 26,662,839 has been shown under the head of "Workers Profit Participation Fund" as current liabilities. However, no amount has been disbursed as employees' benefits to the workers. This indicates the violation of the provision of Labor Act 2006 section 242(1) as amended in 2013. (cont. 5)

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