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WATACHEM

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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)

WATACHEM 25-Nov-2021

The auditor of the Wata Chemicals Limited has given the "Qualified Opinion" & "Emphasis of matters" paragraphs in the Auditor's Report for the year ended on 30 June, 2021. Basis for Qualified Opinion: 1. Reference to Note # 02 to the financial statements, no depreciation has been charged on LABSA plant and BCP plant of the company on the ground that these plants are not in use since 2008. However, as per Para 55 of IAS 16, (cont.1)

WATACHEM 21-Nov-2021

(Continuation news of WATACHEM): with a statement with the details (Shareholders name, BO ID number, client wise shareholding position, gross dividend receivable, applicable tax rate and net dividend receivable) of their margin loan holders who holds the Company's share as on the Record Date, alone with the name of the contact person in this connection, to the Corporate Office. The concerned Brokerage Houses are also requested to provide their Bank Account name and number etc. to said email address. (end)

WATACHEM 21-Nov-2021

The Company has requested the shareholders to update their respective BO account with e-TIN, Bank Accounts, Address, Mobile Number and email address in the BO Account through their respective Brokerage Houses/DPs before the record date. If anyone fails to update their e-TIN before the Record Date, disbursement of respective dividend will be subject to deduction of AIT @ 15% instead of 10% (in the case of individual) and also requested the concerned Brokerage Houses/DPs to provide (cont.)

WATACHEM 21-Nov-2021

There will be no price limit on the trading of the shares of the Company today (21.11.2021) following its corporate declaration.

WATACHEM 21-Nov-2021

(Continuation news of WATACHEM): The Company also informed that during Pandemic Corona Virus (COVID- 19) crisis, Production and Sales become frustrated. As a result, Net income after deduction of Tax decreased by Tk. 2,83,66,145.00 which causes the significant deviation in EPS. (end)

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