rN. I An association I · We conducted our audit in accordance with Bangladesh Standards on...
4
rlt/ G.KIBRTA& CO. \rN. Charrered Accounranrs An association of legally independent accounting firms worldwide AUDITORS'REPORT On Right Issue (RI) Proceeds Utilization We have audited the amexed statement of Rights Issue (RI) Proceeds Utilization of IFAD Autos Limited on December 31,2019. Management's Responsibility for the RI proceeds Utilization Management is responsible for the preparation and fair presentation of these Rights Issue (RI) proceeds utilization statements in accordance with Bangladesh Securities and Exchange Commission (BSEC) guidelines. Auditors' Responsibility Our responsibility is to express an independent opinion on these Right Issue (RI) proceeds utilization statement based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA) and Bangladesh Securities and Exchange Commission (BSEC) guidelines. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the Statement of Right Issue (RI) proceeds utilization, prepared in accordance with Bangladesh Securities and Exchange Commission (BSEC) guidelines, gives a true and fair view of the statement as on December 31,2019 and complies with the Rights Share Offer Document (ROD). We draw attention to the following matter: 1. The Company has utilized total amount of BDT. 1,045,044,097 from RI proceeds as described in the ROD in the following manner: a. In respect of civil and steel works, the company has utilized an amount of BDT. 315,4i6,305 for expansion of Assembling, Body building and Cabin manufacturing unit. Out of this, an amount of BDT. 28.289,474 have been paid by the Company as advances to their cortractors. Annexed report shows detail breakdown. b. h respect of Machinery and Equipment's of Assembling, Body building and Cabin manufacturing units, the Company has utilized an amount of BDT. 151,627,883. Amexed report shows detail breakdown. c. The company has utilized an amount of BDT. 160,042,489 in respect to acquisition and payment of registration expense related to Land and Land Development. Specially, the company has acquired total 664.75 decimals land in Gazipur Maona and expended land development expenses amounting to BDT 15,290,826. The company has also acquired total 766.19 decimals land in Dhamrai, Dhaka and expended land development expenses amounting to BDT 10,734,963. Annexed report shows detail breakdown. d. [n respect of Repayment of Loans, the Company has utilized an amount of BDT. 350,000,000 to repay loans to Mercantile Bank Ltd., Prime Finance & Investment Ltd., and Premier Leasing & ' Financing ltd. Annexed report shows detail breakdown. Sadharan Bima Sadan (5th Floor), ZA-25, Dilkusha CiA, Dhaka - 1000 Tel; +8 8-02 -95 6801 l, 9 57 0'7 17, 9 57 5324, F ax +8 8-02-95 53 63 0 Email: [email protected], [email protected], Web: https://gkibriaandco.com An independent member of international
Transcript of rN. I An association I · We conducted our audit in accordance with Bangladesh Standards on...
rlt/ G.KIBRTA& CO.\rN. Charrered Accounranrs An association of legally independent accounting firms worldwide
AUDITORS'REPORTOn Right Issue (RI) Proceeds Utilization
We have audited the amexed statement of Rights Issue (RI) Proceeds Utilization of IFAD Autos Limited onDecember 31,2019.
Management's Responsibility for the RI proceeds Utilization
Management is responsible for the preparation and fair presentation of these Rights Issue (RI) proceeds utilizationstatements in accordance with Bangladesh Securities and Exchange Commission (BSEC) guidelines.
Auditors' Responsibility
Our responsibility is to express an independent opinion on these Right Issue (RI) proceeds utilization statementbased on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA) andBangladesh Securities and Exchange Commission (BSEC) guidelines.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.
Opinion
In our opinion, the Statement of Right Issue (RI) proceeds utilization, prepared in accordance with BangladeshSecurities and Exchange Commission (BSEC) guidelines, gives a true and fair view of the statement as onDecember 31,2019 and complies with the Rights Share Offer Document (ROD).
We draw attention to the following matter:
1. The Company has utilized total amount of BDT. 1,045,044,097 from RI proceeds as described in theROD in the following manner:
a. In respect of civil and steel works, the company has utilized an amount of BDT. 315,4i6,305 forexpansion of Assembling, Body building and Cabin manufacturing unit. Out of this, an amountof BDT. 28.289,474 have been paid by the Company as advances to their cortractors. Annexedreport shows detail breakdown.
b. h respect of Machinery and Equipment's of Assembling, Body building and Cabinmanufacturing units, the Company has utilized an amount of BDT. 151,627,883. Amexed reportshows detail breakdown.
c. The company has utilized an amount of BDT. 160,042,489 in respect to acquisition and paymentof registration expense related to Land and Land Development. Specially, the company hasacquired total 664.75 decimals land in Gazipur Maona and expended land development expensesamounting to BDT 15,290,826. The company has also acquired total 766.19 decimals land inDhamrai, Dhaka and expended land development expenses amounting to BDT 10,734,963.Annexed report shows detail breakdown.
d. [n respect of Repayment of Loans, the Company has utilized an amount of BDT. 350,000,000 torepay loans to Mercantile Bank Ltd., Prime Finance & Investment Ltd., and Premier Leasing &
' Financing ltd. Annexed report shows detail breakdown.
Sadharan Bima Sadan (5th Floor), ZA-25, Dilkusha CiA, Dhaka - 1000Tel; +8 8-02 -95 6801 l, 9 57 0'7 17, 9 57 5324, F ax +8 8-02-95 53 63 0Email: [email protected], [email protected], Web: https://gkibriaandco.com
An independent member ofrIIIIIrIIrIrffIfIIIrI
international
The company has utilized an amount of BDT. 50,000,000 as working capital. Annexed reportshows detail breakdown.
The company has utilized an amount of BDT. 11 ,957,420 against Right issue expenses. Thecompany has also expensed, an additional BDT. 1,493,46g in excess of the ROD. The additionalexpense has been fundgd l|rough the company's own funds without using the RI proceeds.Annexed report shows detail breakdown.
The company with prior approval of Bangladesh Securities Exchange commission through letterno' BSEC/cFDl35/2olsPart-Y/37 dated May 22, 2ol9 have revisled some conditions of RightOffer Document (ROD), which is stated as under:
I' The job of BDT 40,000,000 will be given to Naif Engineering & Builders instead of GLSteel Ltd. for the remaining task. (Size of assembring unit has been reduced by 22,000
II' $i.t^**o* will purchase approximately 1050 Decimars tand by BDT approximately118,800,000 at Dhamrai, Dhaka instead of Gazipur.m' The company will purchase another 820 decimals land by approximately BDT
ry' ililt*"il"#i'##1x1? savine barance arise ror chaages ordesign in Expansionv !:i::, [f '"yi:'"inT:tf l;I3ff ];f ]lt]:,#i I*,1ffi1 _.^ ;;;the date specified in Rights Offer Documents 6OO;.
h' During the quarter ended December 3 1, 2019, to comply the vAT Act 2012,the company had topay vAT at higher rate, as a result they expended additionar amount of BDT 936,gg9 in excessof RoD in respect of civil and steel work, machinery and equipment & working capital.Management has noted that the excess amount is covered by interest income earned fromconcern Bank Account to manage the proceed from fught Share Issue.
2' The company has been maintaining a Bank Account with BRAC Bank Limited vide No.1501202256549005 to manage the proceeds from Right Share Issue.
We also state that referred to above:
a) RI proceeds have been utilized for the purposes as specified in the Rights Share offer Document (RoD);b) RI proceeds have been utilized in line with the condition of BSEC,s approval letter for RI;c) Utilization of RI proceeds is being under completion within the time schedule as specified in the fughtsShare Offer Document;d) utilization of RI proceeds is accurate for the purpose of the company as mentioned in the Rights ShareOffer Document;e) (i) Assets are being procured/imported./constructed maintaining proper/required procedures as well as at areasonable price; and
(ii) Audit report has been made on verification of all necessary documents/papers/vouchers in support ofutilization of Rights Issue proceeds making reconciliation with Bank Statement.
o
Date: Jaauary 14,2020Place: Dhaka'
G.?c:=KA\..G. KTBRIA & CO.
E
lrllEtrtr!IfT!!!!T
!
>9
ss
.:f<,e
3
"Jq
E<
3q
o- j
de
3 9
ia
d:
.:56EA
.=zzH€
3n= ?.!. I! ;o +: ! <:: "!_t\a
-?.
-_=c) = i - ) * ?9
?aEPZ=zi
zee.=zd
d?_
^ P.<6r
?E^\aa )
.!;?
gi3
.=;I5 3;
s=-I;dP
.Etg
s6EddP
^ PE.Etg!6S
?-a?
.s;g
a
qf
qo
o
tr3.9u
HO
.E
EqE
O=
ql
;9
ocf
EZdo Of
.u6b9
>n
v9a z
qz
6l
o
o
o
!
oo
IItIIIIT
IT
ItII
EEtr, E
!:N-E
.;-6
9LaO ! *s E
.= -- >O E-XN^--:?:.o
Ei-4*1
oo
16
?E
ee
> i.9A !E ti ? u!P -a a ?
2<d&j
InT-
3E
Ti&IE
-
{B
'E
j
$(1
\_rlg
#eE
5
Q
O;P;5e>-E&rh
Atr
;YEBk!
Jo.E1vs3v4
dd
.:NU5
: -: d-*il - o uY
'; - r' ^ .Et-gvtr+':i*
, i (l; F= !3I i d bd
=!6 ;.!!;' ot! ! .-- . ii au ::
k t-: 9 <€€.:. u **i;"^E E =s;;*aE.. E ii'
T +.: r = f, tr.=
i x:c 3 -6, -E*1!3.o=,^9b!!- i E 5! n -gT'EU EE E.3!riE5 1E :>EEAa 6- ceo ; EeAF6= c- *E-
==E*i"!I s"iEiAe=_E:= df2iiE5x232-"
s x
sa
x
+^
E3-6-!i=! a J ou;l
4.8,i;z:
i.^ i= ^ ; i!
; E; EE 3?;;ls .Zeizli;zE gE *= i5Eiil|lliii!=E!;;.=;=E; *a !ii;4=;=. E 3 ! i t E : ao
d2_
^ Se.E;P
49-^'!ju R
^ idE
Si, 9-;
5 9,:*-'E6 9Jr:= E Ed
EEEs>E.EJ
->o-
DU
c a ts-E *d : o L i.5 E:6 L--a--a
d!.^r.o€c_o.*
,liEgFEEAEB 5 E E E;o!dt-Edo:>:e,E-! ge E * e E g .
JJO
t+
,a
a2
O
ItI
3Ij
ilItt*ltltltlltf
lf
II'l
![Closing date for subscription: [*] DRAFT PROSPECTUS Of · BSEC (), DSE (), CSE () and Public Reference room of the Bangladesh Securities and …](https://static.fdocuments.us/doc/165x107/5ad346107f8b9a05208dc3af/closing-date-for-subscription-draft-prospectus-of-dse-cse-and.jpg)
