PRIVATE A]YD C Oly F ID E ]YTIAL

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PRIVATE A]YD C Oly F ID E ]YTIAL 22 PRIVATE A]YD C OlY F ID E ]YTIAL BAKHARABAD GAS DISTRIBUTION GOMPANY LTD. Head Office, Chapapur Cumilla, Bangladesh For the year ended 30 June, 2420 G. KIBRIA & CO. CHARTERED ACCOUNTANTS Head Office: SADHARAN BIMA SADAN (5TH FLOOR) 24-25, DILKUSHA COMMERCIAL-AERA DHAKA- 1 OOO, BANGLADESH Branch Office: Plot 51, Floor-2, Road 14, Block-G Niketon Gulshan-l, Dhaka-1212 TEL 0FF : +88 02 95580i1,95i0717,9575324,9553630 L^*-^il -nm BAKHARABAD GAS DISTRIBUTION COMPANY LTD. Head Office, Chapapur Cumilla, Bangladesh For the year ended 30 June, 2020 a23 G. KIBRIA & CO. ffiYbqmni CHARTERED ACCOUNTANTS member an association of legallyindependent accounting firms partnering for success lndependent Auditor's Report TO thE Shareholders of BAKHRABAD GAS DISTRIBUTION COMPANY LIMITED Report on the Audit of the Financial Statements 0pinion We have audited the tinancial statements of Bakhrabad Gas Distribution Company Limited ("the Company"), which comprise the statement of financial position as at 30 June 2020, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. ln our opinion, except for the possible effecls of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements give a true and fair view of the financial position of the Company as at 30 June 2020, and of its financial performance and its cash flows for the year then ended in accordance with lnternational Financial Reoorting Standards r" 't ! (lFRSs). t: Basis for Qualified 0pinion l, 1. The Company has not implemented IAS 12 and recorded temporary r taxable differences caused by differences in depreciation rates for accounting and tax purposes for the current and prior year. However, based on the lack of '- information available to management and provided to us, we are unable to quantify the impact on the financial {1, statements. E i=:: 2. The Company recorded fixed assetadditions worth BDT 76,248,414 for,the year ended June 30, 2020 on their statement of financial position and note 5 to linancialstatements. f: the We were unable to obtain sufficient appropriaie audit evidence :: due to the inability and unwillingness of management to provide sufficient access to financial information and records. t-- Consequently, we were unable to determine if an adjustment to these amounts is necessary and quantify the magnitude of the potential misstatement. 3. The Companytas recorded a reduction to depreciation expense worth BDT 87,237,983 in schedule-Ol of the financial statements due to excess depreciation charged in previous years. Due to the inability and unwillingness of management to provide necessary access to financial information and records, we were unable to obtain sufficient audit evidence. As a result, we were unable to determine if an adjusfnent to these amounts is necessary and quantify the rnagnitude of the potential misstatement. 4. As per note 6 to the financial statements, the Company has recognized an addition of BDT 9,599,154 (BDT 7,725,697 as at June 30, 2019) to Capital Work in Progress for the year ended June 30, 2020. We were unable to obtain sufficient appropriate audit evidence due to the inability and unwillingness of managementto provide sufficient trcess to financiat information and records. Consequently, we were unable to determine if an adjustment to these amounts is necessary and quantify the magnitude of the potential misstatement. 5. The Company has remgnized advance to employees worth BDT 528,519,523 in Note 8 to the financial statements as at June 30, 2020 (BDI 573,502,473 as at June 30, 2019) as advances to employees. ln addition, the Company has recognized interest income worth BDT 9,373,197 for the year ended June 3A,2020 (BDT 9,620,085 for the year ended June 30, 2019) in relation to the advances to employees. Due to the inability and unwillingness of management to provide necessary access to financial information and records, we were unable to obtain sufiicient audit evidence. As a result, I ! 2l The Company recognized accouRts receivables on the statement of financial position as at June 30, 2020 worth BDT 7,765,210,663 (BDT 5,730,19'1,607 as at June 30, 2019). We were unable to obtain sufficient appropriate audit evidence due to the inability and unwillingness of management to provide sufficient access to financial information and records. Consequently, we were unable to determine if an adjustment to these amounts is necessary and quantify tre magnitude of the potential misstatement, 7. The Company has recorded Cash and Bank balances worth BDT 3,778,771,948 as at June 30, 2020 (BDT4,900,073,956 as at June 30, 2019). Out of this balance, management was unable to provide access to financial records for 16 number of bank accounts and the total balance of those accounts are BDT 2A,592,248.58. Therefore, we.were unable to obtain sufficient appropriate audit evidence for those bank balances and as such we were unable to determine if an adjustment to these amounts is necessary and quantify the magnitude of the potential misstatement. The Company has presented a curent liability related to lnter-Company current accounts worth BDT 152,922,912as at June 30, 2020 (BDT 201 ,1 1 7,895 as at June 30, 2019). These balances represent current liability balances with other Petro Bangla Companies and were not reconciled by the Company since June 30, 2019. Due to the lack of any reliable financialdata that was provided by Management due to their inability and unwillingness, we were unable to determine if any adjustrnent to these balances is necessary. 9. The Company has presented Unsecured Loans worh BDT 308,049,875 as at June 30, N20 in Notes 21 and 26 i: (339,013,876 as at June 30, 2019) to the financial statements. We were unable to obtain sufficient appropriate audit !: evidence due to the inability and unwillingness of management to provide sufficient l: access to financialinformation and records. Consequently, we were unable to determine if an adjustment to these amounts is necessary and quantify the magnitude of the potential misstatement . We conducted our audit in accordance wih lntemational Standards on Auditing (lSAs). Our responsibilities under those standards are further described in the Audito/s Responsibilities for the"Audit of the Financial Statements section of our report. We are jr independent of the Company in accordance with the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We hlieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion, Responsibilities of Management and Those Charged with Governance forthe Financialstatements Management is responsible for the preparation of financial statements that give a true and fair view in accordance wifi lFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statemenb that are free ftom material misstatemenl whether due to fraud or error. ln preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic altemative but to ds so. Those charged with governance are responsible for overseeing the Company's financial reporting process. Audito/s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or eror, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with lSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial :- statements. As part of an audit in accordance with lSAs, we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: Ref: GKC/20-211N079 Page ii 25 and perfcrm audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriaie to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. disclosures made by management. evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. lf we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audito/s report. However, future events or conditions may cause the Company to cease to continue as a going concern. whether the flnancial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal conkol that we identify during our audit.
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