3. Statutory Requirements for Financial Reporting

8/10/2019 3. Statutory Requirements for Financial Reporting

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Statutory/Local Requirements of Corporate Financial Reporting

A. Companies Act 1994: Relevant Sections are 1!1" 1!#" 1!4"

1!$" 1!%" 1!&" 1!9" 19' an( Sc)e(ule *+.

Section 1!1: ,oo-s to e -ept y company an( penalty for not

-eeping t)em:

(1) Every company shall keep proper oo-s of account 0it) respect to-

(a) all sums of money receive( an( epen(e( by the company

and the matters in respect of which the receipt and expenditure

take place;(b) all sales an( purc)ases of goods by the company;

(c) the assets an( liailities of the company; and

(d) in the case of a company engaged in production, distribution,

marketing, transportation, processing, manufacturing, milling

extraction and mining activities, such particulars relating to

utili2ation of material" laour an( ot)er items of over)ea( cost

(!) "or the purpose of sub-section (1), proper books of account shall not be deemed to be kept with respect to the matters specified therein if

there are not kept such books as are necessary to give a true an(

fair vie0 of the state of the affairs of the company and to explain its

transactions

(#) $he books of account s)all e -ept at t)e registere( office of the

company and shall at all times be open to inspection by directors during

business hours%

&rovided that all or any of the books of account may, for a perio( not

ecee(ing si mont)s, be kept at such other place in 'angladesh as the

board of irectors may decide and when the board of irectors so

decides, the company s)all 0it)in seven (ays of t)e (ecision" file 0it)



t)e Registrar a notice in 0riting giving t)e full a((ress of t)at ot)er

place.

() where a company )as a ranc) office, whether in or outside

'angladesh, the company shall be deemed to have complied with the provisions of sub-section (1), if proper books of account relating to the

transactions effected at the branch office are -ept at t)at office and

proper summari2e( returns" ma(e upto (ate at intervals of not more

t)an t)ree mont)s, are sent by the branch office to t)e company at its

registere( office or the other place referred to in sub-section (#)

(*) $he books of account of every company relating to a period of not

less t)an t0elve years imme(iately prece(ing t)e current yeartogether with vouchers relevant to any entry in such books of account

s)all e preserve( in good order;

&rovided that in the case of a company incorporated less than twelve

years before the current year, the books of account for the entire period

preceding the current year together with the vouchers relevant to any

entry in such books of account shall be so preserved

(+) f any of the persons referred to in sub-section () fails to take all

reasonable steps to secure compliance by the company with the

re.uirements of this section, or has, by his own wilful act, been the

cause of any default by the company thereunder, he shall, in respect of

each offence, be punishable with imprisonment for a term which may

extend to si mont)s or with which may extend to five t)ousan( ta-a

or 0it) ot)

() $he persons referred to in sub-section (+) are the following,namely%-

(a) where the company has a managing agent, managing (irector

eecutive (irector, general manager or manager, such managing

agent, managing director, executive director, general manager or



manager and all officers ut eclu(ing t)e an-ers" au(itors an(

legal a(visers3

(b) where such managing agent is a firm, every partner in the firm;

(c) where such managing agent is a body corporate, every director

of such body corporate;(d) where the company has neither a managing agent nor managing

director nor executive director nor general manager nor manager,

every (irector of t)e company

Section1!#: Annual alance s)eet:

(1) $he 'oard of irectors of every company shall, at every annualgeneral meeting, lay before the company a alance s)eet toget)er

0it) t)e profit an( loss account or in the case of a company not

trading for profit an income an( epen(iture account for the period

specified in sub- section (!) of this section

(!) $he said profit and loss account or the income and expenditure

account s)all e prepare( for t)e flo0ing perio(, namely%-

(a) in the case of the first annual general meeting for the period beginning with the date of incorporation of the company and

ending on a date 0)ic) is 0it)in nine mont)s prece(ing t)e (ate

of t)e meeting; and

(b) in the case of any susequent annual general meeting, for the

period beginning with the date immediately after last account and

ending on a date which is-

(i) a date within nine mont)s prece(ing suc) meeting; or

(ii) in the case of a company carrying on business or having

interest outside 'angladesh, a date 0it)in t0elve mont)s

preceding the date of such meeting; or

(iii) in a case where and extension of time has been granted for

holding the meeting under section /1, a date within the said nine or

twelve months, as the case may be, preceding the date of holding

such meeting under that section



&rovided that date the 0egistrar may, on an application being made to

less before the expiry of the said nine or twelve months, eten( t)e

perio( y a perio( not ecee(ing t)ree mont)s

(#) $he balance sheet and the profit and loss account or income and

expenditure account shall be caused to e au(ite( y t)e au(itor of t)e

company as in this ct provided and the auditor2s report shall be

attached thereto or there shall be inserted at the foot thereof a reference

to the report and the report s)all e rea( efore t)e company in

general meeting.

() $he period to which the account aforesaid relates is referred to in thisct as a 3financial year4 and it may e less or more t)an a calen(ar

year, but shall not exceed fifteen mont)s

&rovided that it may extend to eig)teen mont)s where special

permission had been granted in that behalf by the 0egistrar

(*) f any person, being a director of a company, defaults in taking all

reasonable to comply with the provision of this section, then he shall, inrespect of each such offence, be punishable with fine 0it) may eten(

to five t)ousan( ta-a.

(+) $here shall be -ept at t)e registere( office of the company a copy

of t)e alance s)eet inclu(ing profit an( loss account or income an(

epen(iture, as the case may be, and the director2s report for inspection

of t)e memers and other categories of persons as are entitled thereto

for a period of at least fourteen (ays efore t)e general meeting of

t)e company

1!4. ,oar(s report:-



(1) $here s)all be attac)e( to every balance sheet laid before a

company in general meeting a report y its ,oar( of irectors, with

respect to-

(a) t)e state of t)e company5s affairs;

(b) the amount, if any, which the 'oard proposes to carry to anyreserve in such balance sheet;

(c) the amount, if any, which the 'oard recommends should be

pai( y 0ay of (ivi(en(;

(d) material c)anges an( commitments, if any, affecting the

financial position of the company which have occurred between

the end of the financial year of the company to which the balance

sheet related and the date of the report

(!) $he 'oard2s report s)all, so far as is material for the appreciation of

the state of company2s affairs by its members, deal with any changes

which have occurred during the financial years %-

(a) in the nature of the company2s business;

(b) in the company2s susi(iaries or in the nature of the business

carried on by them; and

(c) generally in the classes of usiness in which the company has

an interest(#) $he 'oard shall also be oun( to give t)e fullest information and

explanations in its report aforesaid on every reservation, .ualification

or adverse remark containe( in t)e au(itor5s report.

() $he ,oar( report an( any a((en(um thereto s)all e signe( y

its C)airman if he is authori5ed in that behalf by the 'oard, and where

)e is not so aut)ori2e( 6, shall be signed by such number of director as

are re.uired to sign the balance sheet and the profit and loss account or

the income and expenditure account, of the company by virtue of sub-

section (1) and (!) of section 1!9.

(*) f any person, being a director of a company, fails to take all

reasonable steps to comply with the provision of sub-section (1) to (#) or

being the chairman, signs the 'oards report otherwise than in conformity



with the provisions of sub-section (), he shall, in respect of eac)

offence, be liable to fine which may eten( to five t)ousan( ta-a

1!$. Form an( contents of alance s)eet an( profit an( loss

accounts:

(1) $he balance sheet of a company s)all contain a summary of t)e

property an( assets and of the capital an( liailities of the company

giving a true an( fair vie0 of affairs as at the end of the financial year,

and it shall, sub7ect to the provisions of this section e in t)e forms set

out in 6art+ of Sc)e(ule *+ or as near thereto as circumstance admit or

in suc) ot)er form as may be approved by the 8overnment either

generally or in any particular case; and in preparing the balance sheet

due regard shall be had, as far as may be, to the general instructions forpreparation of alance s)eet un(er t)e )ea(ing 78otes7 at t)e en(

of t)e 6art:

&rovide that nothing contained in this sub-section shall apply to any

insurance or an-ing company or any company engaged in the

generation or supply of electricity

(!) Every profit an( loss account of a company shall gave a true andfair view of the profit and or loss of the company for the financial year

and shall, sub7ect as aforesaid, comply with the requirements of 6art ++

of Sc)e(ule *+ so far as applicable thereto%

&rovided that nothing contained in this sub-section shall apply to any

insurance or an-ing company or any company engaged in the

generation or supply of electricity

(#) $he 8overnment may, by notification the official 8a5ette, exampleany class of companies from the re.uirements of 9chedule : if, in its

opinion, it necessary to grant t)e eemption in the public interest; and

any such exemption may be granted either unconditionally or sub7ect of

such conditions as may be specified in the notification



() $he 8overnment may, on the application or with the consent of the

'oard of irectors of the company, by order, mo(ify in relation to t)at

company of the re.uirement of this ct as to the matters to be stated in

the balance-sheet or profit and loss account for the purpose of adopting

them to the circumstances of the company;

(*) $he balance sheet and the profit and loss account of a company s)all

not e treate( as not disclosing a true and fair view of the state of

affairs of the company merely e reason of t)e fact t)at t)ey (o not

(isclose

(i) in the case of an insurance company, any matters which are not

re.uired to be disclosed by the nsurance ct, 1#/ (< of 1#/);

(ii) in the case of a banking company, any matters which are notre.uired to be disclosed by the 'anking =ompanies ct

(iii) in the case of a company engaged in the generation or supply

of electrify, any matters which are not re.uired to be disclosed by

the Electricity ct, 11> (: of 11>);

(iv) in the case of a company governed by any other law for the

time being in force, any matters which are not re.uire to be

disclosed by such law;

(v) in the case of any company, any matters which are not re.uiredto be disclosed by virtue of the provisions contained in 9chedule

: or by virtue of the notification issued under sub-section (#) or

an order issued under subsection ()

(+) "or the purposes of this section, except where the context otherwise

re.uires any reference to balances-sheet or to profit and loss account

s)all inclu(e any notes )ereon or (ocuments annee( t)ereto" giving

information require( y t)is Act an( allo0e( y t)is Act to e given

in t)e form of suc) note( or (ocuments.

() f any such person as is referred to in sub-section () of section 1/1,

fails to take all reasonable steps to secure compliance by the company,

as regards any accounts laid before the company in general meeting,

with this section and with the other re.uirements of this ct as to in the



accounts, he shall, in respect of each offence, be punishable with

imprisonment for a term which may eten( to si mont)s or 0it) fine

0)ic) may eten( to five t)ousan( ta-a or 0it) ot):

&rovided that no person shall be sentenced to imprisonment for any suchoffence unless it was committe( 0illfully.

1!%. ,alance s)eet of )ol(ing company to inclu(e certain particulars

as to its susi(iaries:

(1) $here s)all e attac)e( to the balance sheet of a )ol(ing company

)aving a susi(iary or subsidiaries as the end of the financial year as at

which the holding company2s balance sheet is made out, the following(ocuments in respect of suc) susi(iary or each such subsidiary, as

the case may be-

a a copy of t)e alance s)eet of t)e susi(iary3

(b) a copy of the its profit and loss account;

(c) a copy of the report of its 'oard of irectors;

(d) a copy of the report of its auditors;

(e) a statement of the holding company2s interest in the subsidiary

as specified in sub-section (+);(f) the statement referred to in sub-section (/), if any; and

(g) the report referred to in sub-section (), if any

(!) $he balance sheet referred to in clause (a) of sub-section (1) shall be

made out in accordance with the re.uirement of this ct as at the end of

the financial year of the subsidiary net efore the day as at which the

)ol(ing company5s alance s)eet is ma(e out.

(#) $he profit and loss account and the reports of the 'oard of directorsand of the auditors referred to in clause (b), (c) and (d) of subsection (1)

shall be made out in accordance with the re.uirements of this ct for the

financial year of the subsidiary referred to in susection ;.



() the financial year aforesaid of the subsidiary s)all not en( on a day

which the holding company2s financial year ends y more t)an si

mont)s

(*) ?here the financial year of subsidiary is shorter in duration than thatof its holding company, reference to the financial year of the subsidiary

in sub-sections (!), (#) and () shall be construed as reference to t0o or

more financial years of the subsidiary the duration of which, in the

aggregate is not less t)an t)e (uration of the holding company2s

financial year

(/) ?here the financial year or years of a subsidiary referred to in sub-

section (*)) do not coincide with the financial year of the holdingcompany, a statement containing information on the following maters

had also to be attached to the balance sheet of the holding company%-

(a) whether there had been any changes and, if so what change

took place in the holding company2s interest in the subsidiary

between the end of the financial year or of the last of the financial

years of the subsidiary and the end of the holding company2s

financial year;

(b) details of any material change, which have occurred betweenthe end of the financial year or of the last of the financial years of

the subsidiary and the end of the holding company2s financial year

in respect of(

i) the subsidiary2s fixed asset;

(ii) its investments;

(iii) the moneys borrowed by its for nay purpose other than

that of meeting cured liabilities

() f, for any reason, the 'oard of irectors of the holding company isunable to obtain information of any of the matters re.uires to be

specified by sub-section (), a report in writing to that effect shall be

attached to the balance sheet of the holding company



(1>) $he document referred to in clause (e), (f) and (g) of sub- section

(1) shall be signed by the persons by whom the balance sheet of the

holding company is re.uired to be signed

(11) $he 8overnment may on the application or with the consent of the'oard of irectors of the =ompany, direct that in relation to any

subsidiary, the provisions of this section shall not apply, or shall apply

only to such extent as may be specified in the direction

(1!) f nay such person as is referred to in sub-section (> of section 1/1

fails to take all reasonable steps to comply with the provisions of this

section, he shall, in respect of each offence, be punishable with

imprisonment for a terms which may extend to six months, or with finewhich may extent to one thousand taka, or with both%

&rovided that in any proceedings against any person in respect of an

offence under this section, it shall be a defense to prove that a competent

and reliable person was charged with the duty of seeing that the

provisions of this section were complied with and that he was in a

position to discharge that duty%

&rovided further that no person shall be sentenced to imprisonment for

any such offence unless it was committed willfully

1!9. Aut)entication of alance s)eet" profit an( loss account" etc:



accounts, reports or statements which, by virtue of section 1/+ are

re.uired to be attached to the balance sheet, the auditors, report, and the

'oard2s report referred to in section 1/* or if any default is made in

complying with other re.uirement of this section, the company and

every office of the company who is in default, shall be punishable withimprisonment for a term which may extend to si mont)s of with fine

which may extend to t0o t)ousan( ta-a or 0it) ot).

19'. Copy of alances)eet" etc. to e file( 0it) Registrar:

(1) fter the balance sheet and profit and loss account or the income and

expenditure account, as the case may be, have been laid before a

company at an annual general meeting as aforesaid, there s)all e file(0it) t)e Registrar" 0it)in t)irty (ays from t)e (ate on 0)ic) t)e

alance s)eet an( t)e profit an( loss accounts 0ere so lai(

or where the annual general meeting of a company for any year has not

been held, there shall be filed with the 0egistrar within thirty days from

the last day on which that meeting s)oul( )ave een )el( in accordance

with the provisions of this ct t)ree copies of the balance-sheet, and of

the profit and loss account or the income and expenditure account, as thecase may by signed by the managing director, managing agent, a manger

or secretary of the company or if there be none of these, by a director of

the company, together with three copies of all documents which are

re.uired by this ct to be annexed or attached to such balance-sheet or

profit and loss account or income and expenditure account%

&rovided that in the case of a private company, which is not an

subsidiary of a public company, no person other than a member of the

company shall be entitled to inspect or to obtain copies of the profit andloss account of that company

(!) f the annual general meeting of a company before which a balance

sheet is laid as aforesaid (oes not a(opt the balance sheet or, if the

annual general meeting of a company for any year has not been held, a



statement of that fact and of the reasons therefore s)all e annee( to

the balance-sheet and to the copies t)ereof require( to e file 0it) t)e

Registrar.

(#) f a company makes default in complying with the re.uirements of this section, it shall be liable to a fine not ecee(ing one )un(re( ta-a

for every (ay (uring 0)ic) t)e (efault continues , and every office of

the company who knowingly and willfully authori5es or permits the

default shall be liable to the like penalty

Securities an( <c)ange Rules 19!&:Relevant Rules are 1;" 1# an( 14 an( Sc)e(ule

1! Sumission of annual report y issuers- @(1) $he annual report

shall include a alance s)eet, profit an( loss account an( cas) flo0s

statement" an( notes to t)e accounts" collectively herein after referred

to as the financial statements

(!) $he financial statements of an issuer of a listed security shall be

prepared in accor(ance 0it) t)e requirements laid down in the

Sc)e(ule and the +nternational Accounting Stan(ar(s as adopted by

the nstitute of =hartered ccountants of 'angladesh

Explanation-n this sub-rule, nternational ccounting 9tandard refers to

the accounting standards issued by the nternational ccounting

9tandards =ommitteeA

@(#) $he financial statements of an issuer of a liste( security shall be

au(ite( by a partners)ip firm of chartered accountants within the

meaning of 'angladesh =hartered ccountants Brder,1# (& B ! of

1#) consisting of not less t)an t0o partners in practice for a



minimum of seven years none of whom were associate( in any way

with the issuer during the auditing period (which includes holding of

securities by themselves or through spouse or any other relatives and

their employees), in accordance with the +nternational Stan(ar(s on

Au(iting applicable in 'angladesh and the report of the uditors shall be in Form =,> annexed to the 9chedule

&rovided that, notwithstanding anything contained in this sub-rule, such

financial statements may also be audited by an auditor appointed by the

Commission, whenever such audit is deemed by the =ommission

necessary in the pulic interest and the auditor so appointed shall

furnish his report to the =ommission in such form and within such time

as the =ommission may specify%

&rovided further that the fee for such audit and all other expenses in

relation thereto shall be borne by the issuer concerne(

(#)$he financial statements referred to in sub-rule (1) shall be audited

0it)in one )un(re( an( t0enty (ays from the date on which the

issuerCs financial year ends and a copy of such audited financial

statements shall be submitted to the =ommission and the 9tock Exchange within fourteen (ays thereof%

&rovided that on the application filed by the issuer within the aforesaid

specified time the =ommission may on good cause shown and only

under extreme circumstances eten( the time for auditing the financial

statements or submission of the financial statements to the =ommission,

as the case may be, as it (eems fit%

&rovided further that if an issuer fails to get its financial statement,audited in the manner as specified in subrule (#) and fails to submit the

same to the =ommission and the stock exchange within the said

specified time, or extended time, as the case may be, the =ommission

may appoint an au(itor to audit the accounts of the issuer at the

issuerCs costA



@(#') ?here the =ommission on examination of the audited financial

statements of an issuer of a listed security fin(s that the audit has not

been conducted, or the audit report has not been prepared, in

accor(ance 0it) t)e provisions of t)ese rules" or where, in the opinion

of the =ommission, the audited financial statements do not reflect thetrue state of affairs of the issuer and the financial statements are deficient

in form or contents for which the concerned partnership firm of

chartered accountants or its partners are ?ointly an( severally liale, it

may, by order in writing giving reasons therefore, declare the firm of

chartered accountants which, or the auditor who, conducted the audit,

ineligile for acting as an au(itor of any issuer of a liste( security for

a perio( not ecee(ing five years: &rovided that before making any

such order, the =ommission s)all refer the matter to the nstitute of =hartered ccountants of 'angladesh constituted under the 'angladesh

=hartered ccountants Brder, 1# (&B Do ! of 1#), with a re.uest

to take appropriate disciplinary action against the firm of chartered

accountants and the partners concerned within a period of sity (ays

from the date of such reference and the =ommission may make the said

order after the expiry of the said period, if no action is ta-en by the

nstitute or if, in its opinion, action taken by the nstitute is not

satisfactory%

&rovided further that no such order shall be made without giving the

firm of chartered accountants or auditor concerned a reasonable

opportunity of being heardA

() Every issuer (listed company) s)all furnis) the annual report,

together with the balance sheet and the profit and loss account referred

to in sub-rule (1) to the s)are)ol(ers at least fourteen (ays before the

general meeting of the shareholders of the issuer at which the report is to be laid before them and shall simultaneously furnish a copy of such

report to the stoc- ec)ange or exchanges on which its securities are

listed and to t)e @Commission

(+) n issuer shall, within t)ree mont)s of the general meeting referred

to in sub-rule (), submit to the =ommission a list of t)e memers of



t)e issuer stating the facts as they stood on the date of that general

meeting (Generally use record date).

() $he list re.uired to be submitted under sub-rule (+) shall be the list

re.uired by section #+ of the =ompanies ct, 1 (:< of 1)A, to be submitted to the 0egistrar of oint 9tock =ompanies (36: Annual list

of members and summary)

(/) An annual report referred to in sub-rule (1) shall, in addition to the

matters re.uired to be included therein by the Brdinance, these rules or

any other law for the time being in force, inclu(e suc) ot)er

statements" reports" (ocuments" information or eplanations relating

to its affairs as the =ommission may, by order in writing, re.uire fromtime to time

Rule1#% Sumission of perio(ical report y issuer-

Every issuer shall, within one mont) of close of the first )alfyear,

transmit to t)e stoc- ec)ange in which its securities are listed, to the

security holders and to the Commission half yearly financial statements

which shall be prepared in the same manner an( form as the annualfinancial statementsA

Rule1#A. "orms prescribed for the purpose of preparing the financial

statements and the audit report may e a(apte( or amen(e(, if deemed

necessary, for compliance with the nternational ccounting 9tandards

(9) and nternational 9tandards of uditing (9)A (Fair Presentation

clause).

Rule14. Bo(e of filing or sumission of returns/reports" etc F ny person re.uired by the Brdinance or any of these rules to furnish any

document, statement, return or report to the =ommission, 9tock

exchanges and other agencies shall furnish it, either in person or through

an agent, or send it by registered post



SC<DL<

@See rule 1;;

1. Requirements as to ,alance S)eet:

$he assets and liabilities shall be classifie( un(er t)e )ea(ingsappropriate to the companyCs business, (istinguis)ing as regards assets

between fie( assets, longterm prepayments and (eferre( costs"

investments" loans an( a(vances an( current assets, and as regards

liabilities between s)are capital an( reserves" longterm loans an(

(eferre( liailities an( current liailities an( provisions.

! Fie( assets% - () "ixed assets shall be distinguished between

tangile an( intangile and shall be classified un(er appropriate su)ea(s, duly itemi5ed, such as %

i Eangile:

(a) land (distinguish between free-hold and leasehold);

(b) building (distinguishing between buildings on freehold land

and those on leasehold land);

(c) plant and machinery;

(d) furniture and fittings;

(e) vehicles;(f) capital work in progress including interest pai( out of capital,

if any; and

(g) others

(ii) +ntangile:

(a) goodwill;

(b) patents, copyright, trade marks and design; and

(c) others

(') Gnder each sub-head, ot)er t)an capital 0or- in progress, the

original cost, and the a((itions thereto and (e(uctions there from since

the date of the previous balance sheet shall be stated and the aggregate

amount 0ritten off , or provided or retained, up to the date of the balance

sheet, by way of provision for (epreciation or amorti5ation or

diminution in value shall be shown as deduction there from



(=) ?here sums have been written off on a reduction of capital or

revaluation of assets and where sums have been added by writing up the

assets, every alance s)eet susequent to t)e re(uction or

revaluation or 0riting up shall s)o0 t)e original cost" t)e re(uce( or

increase( figures" as the case may be, along with the (ate of andamount of the reduction or increase made

() n the case of a company which immediately before the

commencement of these 0ules, was providing for depreciation or

amorti5ation or diminution in value by way of lump sum charge to profit

or loss account or as appropriation of profit, without allocating the

amount so provided to different sub-heads, the amount retained in the

books of the company at the commencement of the said 0ules as provision or reserve for depreciation or amorti5ation or diminution in

value shall be allocated against the respective sub-heads

n every case where the original cost can not be ascertained without

unreasonable expense or delay, the valuation s)o0n y t)e oo-s s)all

e given. 9uch valuation shall be the net amount at which an asset stood

in the books of the company as at the commencement of these rules after

deduction of the amounts previously provided or written off for depreciation or amorti5ation or diminution in value

# Longterm prepayments an( (eferre( costs- Hong term

prepayments and deferred costs shall include prepayments for services

or benefits to be received after t0elve mont)s from t)e (ate of t)e

alance s)eet ny material items shall be stated separately together

with the basis on which each item is being amorti5ed or written off, and

in respect of each item of deferred costs the reasons for carrying forward

such costs shall be stated

+nvestments" loans an( a(vances.-

() $here shall be shown under separate su)ea(s the aggregate

amounts respectively of the companyCs (i) investments in an( loans an(

a(vances to susi(iary companies controlled firms and other associated



undertakings, (ii) investments in liste( companies other than

investments in subsidiary companies and other associated undertakings,

(iii) investments in unliste( companies other than investments in

subsidiary companies, and other associated undertakings, (iv)

investments in (eentures an( on(s issued by a 8overnment,Iunicipal =ommittee or other local authority, (v) investments in

immovale properties and (vi) other investments, loans and advances

(') $here shall be stated under sub-head () (i) the names of the

subsidiary companies, controlled firms and other associated undertaking

and the nature an( etent of t)e investment ma(e an( loans an(

a(vances given in eac) case" s)o0ing separately" in the case of each

subsidiary company and other associated undertaking, shares of differentclasses and of different paid-up values, debentures, loans and advances

and, in the case of each controlled firm, the amount invested as capital

and the amounts of loans and advances n the case of loans and

advances, t)e nature of collateral security s)all e state( company

whose principal business is lending of money may give such information

in consolidated form in the balance sheet and the details about the names

and the extent of investments etc in an annexure to the balance sheet

(=) $here shall be stated under sub-head () (ii) the names of the

o(ies corporate in every case 0it) t)e name of t)e managing

agent" if any in whose shares or debentures or bonds, investments have

been made and the nature and etent of t)e investment made in each

case, showing separately, shares of (ifferent classes and of different

pai(up values, nature of the (eentures" eg whether straight,

convertible or redeemable and the rate of interest etc company whose

principal business is lending of money may give such information in

consolidated form in the balance sheet and the details about the namesand the extent of investments etc in an annexure to the balance sheet

() $here shall be stated under sub-head () (iii) the names of the

unliste( companies (in every case with the name of the managing

agent, if any) in whose shares or debentures or bonds, investments have



been made and the nature and extent of the investment made in each

case, showing separately, shares of different classes and of different

paid-up values, nature of debentures, eg whether straight, convertible

or redeemable and the rate of interest etc company whose principle

business is leading of money may give such information in consolidatedform in the balance sheet and the details about the names and the extent

of investments etc in an annexure to the balance sheet

(E) $here shall be stated under sub-head () (iv) the names of the

8overnments Iunicipal =ommittees and other local authorities in

whose debentures or bonds investments have been made and the nature

and extent of the investment made in each case

(") $he mo(e of valuation of investments, eg cost or mar-et value,

shall be stated separately and, if investments in listed companies are

valued ot)er0ise t)an at mar-et value, t)e aggregate amount of t)e

mar-et value t)ereof s)all e s)o0n.

(8) Hoans and advances due for payment after a perio( of t0elve

mont)s from t)e (ate of t)e alance s)eet shall be shown under this

head

(J) $he following particulars shall be stated separately y 0ay of a

note of respect of sub-head () (vi)% (a) aggregate amount due by

directors (including the managing director), managing agents, managers

and other officers of the company and any of them severally or 7ointly

with any other person; and (b) aggregate amount due by associated

undertakings () &rovisions, if any, made for diminution in the value of

investments and in respect of losses of subsidiary companies shall be

shown as deduction from the gross amounts of the respective sub-heads

* Current assets %- () Current assets s)all e classifie( un(er su

)ea(s appropriate to t)e companys affairs" inclu(ing" 0)ere

applicale" t)e follo0ing :



(i) stores, spare parts and loose tools, distinguishing each from the other;

(ii) stock-in-trade, distinguishing, where practicable, between (a) stock

of raw materials and components, (b) work in progress, (c) stock of

finished products and (d) other stock; (iii) sundry debtors, which shall

include amounts due in respect of goods sold or services rendered or inrespect of other contractual obligations but shall not include the amounts

which are in the nature of loans or advances ets consi(ere( goo(

an( (ets consi(ere( (outful or a( s)all e separately state(

ebts considered good shall be distinguished between those which are

secure( and those for which the company holds no security other than

the debtorCs personal security ;

(iv) loans and advances due for repayment 0it)in a perio( of t0elvemonths from the date of the balance sheet, showing separately the

amounts (ue from susi(iaries, controlled firms and other associated

undertakings and also the amounts lent out to employees of the

company Hoans an( a(vances consi(ere( goo( an( loans an(

a(vances consi(ere( (outful or a( s)all e separately state(3

(v) trade deposits and short term prepayments for which services or

benefits are to be received within twelve months from the date of the

balance sheet and current account balances with statutory authorities(vi) bills receivable;

(vii) interest accrued or interest outstanding ;

(viii) alances on current account 0it) t)e managing agents"

managers an( (irectors t)e maimum amount )el( y any of t)em

at any time since t)e (ate of incorporation or since t)e (ate of t)e

previous alance s)eet" 0)ic)ever is t)e later" eing state( y 0ay of

a note 3

(ix) tax refunds due from 8overnment, showing separately excise duties,

customs duties, sales tax, income-tax etc and(x) cash and bank balances, distinguishing between (a) amount in hand,

(b) amount in transit and (c) balances with banks and agents

(') n the case of sub-heads *() (i) and (ii) the respective basis of

valuation shall be stated f the basis such as KcostL, KIarket valueL or

Kcost or market value, whichever is lowerL is given, there shall also be



given, to the extent practicable a general indication of the method of

determining the KcostL or Kmarket valueL eg Kaverage costL, Kfirst-in,

first outL, or Klast-in, first outL

(=) in respect of each of the sub-heads *() (iii) and (iv) the following particulars shall be stated separately %

(a) aggregate amount due by directors (including managing director),

managing agents, managers and

other officers of the company and any of them severally or 7ointly with

any other person;

(b) aggregate amount due by associated undertakings;

(c) maximum amount of debts, under each of the preceding items (a) and

(b) at any time since thedate of incorporation of since the date of the previous balance sheet,

whichever is the later (by

way of a note)

+ ssets in respect of which different methods or bases of valuation or

of provision for depreciation or diminution in value are used shall be

regarded as assets of different classes

&reliminary expenses, discount allowed on the issue of shares and

expenses incurred on the issue of shares or debentures, including any

sums paid by way of commission or brokerage on the issue of shares or

debentures, to the extent not written off or ad7usted, s)all e treate( as

assets an( s)o0n separately un(er eac) )ea(.

/ S)are capital an( reserves %- () 9hare capital and reserves shall be

classified under the following sub-heads %

(i) pai( up capital, distinguishing between different classes of preference and e.uity shares and the amount paid up in respect of each

class n the case of forfeited shares, the amount already paid thereon

shall be added to the paid-up capital =alls paid in advance shall also be

added to the paid-up capital; and



(ii) reserves" distinguishing between capital reserves and revenue

reserves Capital reserves shall include capital redemption reserve,

share premium account, surplus on revaluation of fixed assets, profit

prior to incorporation or on reissue of forfeited shares or any reserve not

available for distribution by way of dividend (to be specified), whilerevenue reserves shall include general reserve, dividend e.alisation

reserve, other reserves created out of profit (to be specified), and

unappropriate profit ie credit balance of profit and loss account after

appropriations for the period to the date of balance sheet dditions to

and deductions from each item of reserves shall be shown in the balance

sheet under the respective items unless they are disclosed in the profit

and loss account or a statement or a report annexed thereto

(') E)ere s)all e s)o0n in t)e alance s)eet :

(i) authori5ed share capital distinguishing between various classes of

shares and stating the number and value of each class ;

(ii) issued share capital, distinguishing between various classes of shares

and stating the number and value in respect of each class ;

(iii) subscribed share capital, distinguishing between various classes of

shares and stating the number and value in respect of each class ;

(iv) called up share capital, distinguishing between various classes of share and stating the number, value and the amount called up in respect

of each calls;

(v) calls unpaid as a deduction from called up share capital,

distinguishing calls unpai( by (a) directors (including managing

director), (b) managing agents, (c) managers, (d) officers and (e) others;

(vi) paid up share capital, distinguishing in respect of each class between

(a) shares allotted for consideration paid in cash, (b) shares allotted for

consideration other than cash and (c) bonus shares and stating the

number and value of each class;(vii) particulars of any option on unissued shares, such as amount of

option, class of shares, issue price, period during which option is

exercisable etc;

(viii) in the case of redeemable preference shares, the terms of

redemption or conversion, if any, together with the earliest date on



which the company has power to redeem or the company or the holder

of the shares has power to convert the shares; and

(ix) in the case of susi(iary companies, the number of shares class

held by the holding company as well as by the ultimate company, if any,

and its subsidiaries(=) ?here circumstances permit, authori5ed, issued, subscribed, and

paid up, capital or any two or more of them may be shown as one item

() $he word fund, in relation to any MreserveC shall be used only where

such a reserve is represented by specifically earmarked nvestment or

other assets realisable as and when re.uired at not less than the amount

of fund

Long term loans an( (eferre( liailities- () Hong-term loans anddeferred liabilities shall mean loans and liabilities which become due for

payment after t0elve mont)s from t)e (ate of t)e alance s)eet.

eferred liabilities shall include such other liabilities as are under

normal accounting principles appropriately so classified (') Hong-term

loans shall be classified as secured and

unsecured, under each class shall be shown separately%

(i) debentures ;

(ii) loans from banking companies and other financial institutions;(iii) loans for subsidiary companies, controlled firms and other

undertaking;

(iv) loans from directors (including managing director), managing agents

and managers; and

(v) other loans

(=) ?here any of the long-term loans or any other deferred liabilities are

secure( ot)er0ise than by the operation of law on any assets of the

company the fact that the liabilities are so secured shall be stated,

together with statement of the assets upon which they are secured, and,where more than one class of liabilities is so secured, their relative

priorities with respect to payment of interest and redemption

() $he rate of interest and terms of redemption or conversion, if any, of

the debentures issued shall be stated together with the earliest date on



which they may be redeemed or converted into shares and it shall also be

stated if any, sinking fund arrangement exists

(E) $here shall be stated, by way of a note or otherwise, particulars of

any redeemed debentures which the company has power to reissue

(") ?here any of the companyCs debentures are held by a nominee of, or a trustee for, the company, the amount thereof, calculated on the same

basis as the total amount standing in the balance sheet in respect of the

debentures of that class , shall, unless and until the debentures so held

are reissued or canceled be shown as deduction from the total by way of

a note

(8) eferre( liailities shall include items such as (i) deferred liability

for taxation, (ii) consumerCs deposits with utility companies and (iii)

amounts allocated or set aside and retained for ?orkersC &articipation"und, provident fund, pension, gratuity insurance and other staff benefit

schemes Every material item shall be stated separately

1> Current liailities.- () =urrent liabilities shall mean liabilities due

and payable (other than liabilities the payment of which may at the

companyCs option, be postponed) within twelve months from the date of

the balance sheet, together with such other liabilities as are under normal

accounting principles appropriately so classified(') =urrent liabilities and provisions shall, so far as they are appropriate

to the companyCs business be classified under the following sub-heads%

(1) 9hort-term loans, distinguishing between secured and unsecured and

between loans taken from -

(a) banking companies, and other financial institutions;

(b) subsidiary companies, controlled firms and other associated

undertakings;

(c) directors (including managing directors), managing agents and

managers;(d) installments of long-terms debt; and

(e) others;

(!) deposits;

(#) creditors;

() accrued expenses;



(*) bills payable;

(+) advance payment and unexpired discounts for the portion for which

value is still to be given, eg, in the case of newspapers, clubs and

steamship companies;

() interest accrued on secured loans ;(/) interest accrued on unsecured loans;

() other liabilities, if any (to be specified), eg , unclaimed dividend,

unpaid dividend;

(1>) provision for taxation, showing separately excise duties, customs

duties, sales tax, income tax, etc;

(11) proposed dividend; and

(1!) other provisions, if any (to be specified)

(=) ?here any short-term loans or any other liabilities of the companyare secured otherwise than by the operation of law on any assets of the

=ompany, the fact that the liabilities are so secured shall be stated,

together with a statement of the assets upon which they are secured and

where more than one class of liabilities is so secured, their relative

priorities with respect to payment of interest and redemption

11 Do liability shall stand in the balance sheet at a value less than the

amount at which is its repayable (unless the .uantum of repayment is at

the option of the company) at the date of the balance sheet or, if it is notthen repayable, at the amount at which it will first become so repayable

thereafter, less where appropriate, a reasonable deduction for discount

until that date

1;. E)ere s)all e a((e( a footnote to t)e alance s)eet" s)o0ing

separately :

(1) claims against the company not acknowledged as debt;

(!) uncalled liability on partly shares;

(#) arrears of fixed cumulative dividends on preference shares together with the period for which the dividends are in arrears f there is more

than one class of preference shares, the gross amount of dividends in

arrears, on each such class, shall be stated separately;

() the aggregate amount of contracts for capital expenditure remaining

to be executed and not provided for;



(*) other sums for which the company is contingently liable $he

aggregate amount of any guarantees given by the company on behalf of

the directors (including managing director), managing agents, managers

or other officers of the company or any of them severally or 7ointly with

any other person shall be stated separately, and where practicable, thegeneral nature and amount of each such contingent liability, if material,

shall also be specified; and

(+) ?here determinable, the capacity of the industrial until, actual

production and the reasons for shortfall, if any , except in a case where

the uthority upon an application agrees that such information need not

be disclosed in the public interest

1# ?here there has been any c)ange in t)e asis of accounting, eg,change in the mode of valuation of the stock-in-trade, change in the

method of changing depreciation, such changes, together with the effects

thereof, shall be stated by way of a note

1 E)ere s)all e state(" y 0ay of a note or ot)er0ise

(1) the basis on which foreign currencies have been converted into taka;

and

(!) the general nature of any credit facilities available to the companyunder any contact, other than trade credit available in the ordinary

course of business, and not availed of at the date of the balance sheet

1* f in the opinion of directors, any of the current assets and

investments, loans and advances do not have, on reali5ation in the

ordinary course of business, a value at least e.ual to the amounts at

which they are stated, the fact the directors are of that opinion shall be

stated by way of a note

1+ Except for the balance sheet for the year ending after the date of

commencement of these rules, every balance sheet shall also give the

corresponding amounts at the end of the immediately preceding

accounting year for all items shown in the balance sheet E)is

requirement s)all" in t)e case of companies preparing quarterly or



)alfyearly accounts relate to t)e alance s)eet as on t)e last (ay of

t)e perio( 0)ic) en(e( on t)e correspon(ing (ate of t)e

imme(iately prece(ing year.

1 ?here any items shown in the balance sheet or included in amountsshown therein cannot be determined with substantial accuracy an

estimated amount described as such shall be included in respect of that

items toget)er 0it) t)e description of the item

1/ Do provision with respect to the information to be given in the

balance sheet shall be deemed to re.uire the amount of any items that is

of no material significance to be given separately

1 ny information re.uired to be given in respect of any of the items

in the balance sheet, if it cannot be included in the balance sheet itself,

be furnished in a separate schedule or schedules to be attached to, and to

form part of, the balance sheet

6ARE ++

R<GD+R<B<8E AS EH 6RHF+E A8 LHSS ACCHD8E

1 $he profit and loss account shall be so made out as to disclose clearly

the result of the working of the company during the period covered by

the account and shall show, arranged under the most convenient heads,

the gross income and the gross expenditure of the company during the

period, disclosing every material feature and in particular thefollowing %-

() (1) the turnover, that is, the aggregate amount for which sales are

efected by the company, and the gross income derived from rendering

giving on supplying services or benefits, and showing as deduction

therefrom -



(a) commission paid to sole selling agents;

(b) commission paid to other selling agents; and

(c) brokerage and discount on sales, other than the usual trade discount;

(!) income from investments, showing separately income from each

subsidiary company, from each controlled firms, from each associatedundertaking and from other investments;

(#) income by way of interest on loans and advances and other interest;

() income from sale of bonus vouchers;

(*) profit on sale of investments;

(+) profit on sale of items of fixed assets;

() profit in respect of transactions, of an exceptional or non-recurring

nature, not usually undertaken by the company or not envisaged in the

normal course of business; and(/) other income, showing separately every material item and the nature

of each such items;

(') (1) the value of stock-in-trade, including raw materials and

components, work in progress and finished products, as the

commencement and the value as the end of the period;

(!) purchase of raw materials and components and finished products;

(=) expenditure on -

(1) stores and spare parts consumed ;(!) fuel and power;

(#) salaries and wages (including bonus, contributions to provident and

other funds recognised under the ncome $ax Brdinance, 1/ and

expenses on staff welfare), distinguishing 1/ and expenses on staff

welfare, distinguishing between manufacturing salaries and wages, if

any, and other salaries and wages and also showing by way of a note the

amount included in salaries and wages in respect of

persons who are directors (including managing director) of the

company ; () rent municipal rates and local taxes (excluding taxes onincome and capital gains);

(*) insurance;

(+) repairs and maintenance (being repairs to and maintenance of the

companyCs fixed assets); and



() patents, copyrights, trade marks, design, royalities and technical

assistance;

() the aggregate amount of auditors remuneration, whether fees ,

expenses or otherwise, for services rendered as auditors or in any other

capacity showing separately the remuneration for services rendered asauditors and the remuneration for services rendered in any other capacity

and stating the nature of such other services;

(E) other expenses, showing separately every items of an exceptional or

non-recurring nature and every material items ;

(") the amount provided for depreciation, renewals or diminution in

value of fixed assets $he value of the assets by various groups, the

additions or depletionCs thereto, the rate at which depreciation is

charged, the rate (s) at which depreciation, accelerated or for extra shifts,is charged shall be shown in the form of an annexure ?here such

provision is not made by means of a charge for depreciation, the method

adopted for making such provision shall be stated f no provision for

depreciation or for extra shift depreciation is made during the period, the

fact that no provision has been made and the reasons for not making it

shall be stated, and the amount which should have been provided and the

.uantum of arrears of depreciation, if any, shall be disclosed

(8) (1) the amount of interest on borrowings, showings separately the

amount of interest on the companyCs debentures, on other long term

loans and on short term loans, and showing by way of a note the amount

of interest on borrowings from the directors (including managing

director), the managing agents and the managers;

(!) loss on sale of investments;

(#) loss on sale of items of fixed assets;

() debts written off as irrecoverable;

(*) provision for doubtful or bad debts;(+) provision for diminution in value of investments;

() provision for losses of subsidiary companies, controlled firms and

associated undertakings; where loss is actually incurred the extent of

loss in the case of each subsidiary company, controlled firms and

associated undertaking shall be disclosed;



(/) remuneration of managing agents;

() provision for taxation on income, capital gains and other tax or taxes,

showing separately the provision for liability in respect of the profit of

the period and the provision for liability deferred due to the difference

between the rates of depreciation allowed for purposes of taxation onincome and those adopted by the company for the charge to profit and

loss account and distinguishing, where applicable, between the provision

for 'angladesh taxation and the provision for taxation elsewhere ?here

the provision for taxation in respect of the profits of the period is

reduced by the writing back of a part or the whole of the provision for

deferred liability made in previous periods the amount written back shall

be shown as deduction from the gross charge for taxation; and

(1>) other provision for meeting specific liabilities, contingencies or

commitments

(J) (1) the amount set aside or proposed to be set aside as reserve

showing separately the respective amounts in respect of each item of

reserve ; and

(!) the amount of the dividend proposed

! $he profit and the loss arising from MhedgeC and MforwardC contracts,trading in MfuturesC and Mbadla (contango and backwardation)C and other

transactions of a similar nature

carried forward or completd by Mmeeting the differenceCand not resulting

in actual purchase or sale of stock-intrade, shall not be deducted from or

added to the cost of item

(') (!) in paragraph 1 of this &art, and shall be shown separately in the

profit and loss account

# $here shall be stated by way of a note the respective amounts included

in items (8) () and (*) of paragraph 1 of this &art for (a) debts due by

the directors (including managing director) managing agents, managers

and other officers of the company and any of them severally or 7ointly

with any other person (b) debts due by associated undertakings



$he following shall be stated by way of a note F

(i) the aggregate amounts paid during the period to or in respect of, or

provided during the period for payment to or in respect of, the directors

(including managing director), managing agents and officers by thecompany and its subsidiary companies, controlled firms and other

associated undertaking as fees, remuneration, allowances, commission,

per.uisites or benefits or in any other form or manner and for any

services rendered, and shall give full particulars of such aggregate

amounts, separately for the directors (including managing director),

managing agents and

officers, under appropriate heads such as %

(a) fees;(b) managerial remuneration;

(c) remuneration or commission based on net profit or turnover;

(d) reimbursable expenses;

(e) pensions; gratuity ; companyCs contribution to provident,

superannuation and other staff funds

(showing by way of a note payments actually made out of such funds,

during the period being amounts in excess of membersC own

subscriptions and interest thereon); compensation for loss of office andin connection with retirement from office;

(f) buying commission, showing separately the amount provided for or

paid to an associated undertaking of the managing agent or to an

associated person of or partner in, or a director or officer of the

managing agent or of the company;

(g) selling agency commission, showing separately the amount provided

for or paid to an associated

undertaking of the managing agent or to an associated person of or

partner in, or a director or officer of the managing agent or of thecompany;

(h) other allowances and commission, including commission for

guarantee, specifying the nature of

the allowances and commission and the respective amounts;



(i) other per.uisites and benefits in cash or in kind stating their nature

and where practicable, their

approximate money values;

(7) the amount of commission to the managing agents, to an associated

person of the managing agent or to an associated person of a partner or adirector or officer of the managing agent or of the company as selling or

buying agents of other concerns in respect of contracts entered into by

such concerns with the company;

(k) the aggregate amounts of the companyCs purchases from and sales of

goods, material and services to the managing agents, to an associated

undertaking of the managing agent or to an associated person of a

partner or a director or officer of managing agent or of the company;

(l) the calculation of the commissions payable by way of a percentage of net profit to the directors

(including managing director), the managing agents or managers and

showing the computation of net profits with relevant particulars ; and

(m) the amounts, if material, by which any items shown therein are

affected by any change in the basis of accounting;

(ii) in the case of a sale of an item of fixed assets otherwise than through

a regular auction showing particulars of the original cost accumulated

depreciation charged thereon the written down value, the sale prices, themode of disposal (eg by tender or negotiation) and the particulars of the

purchasers indicating whether such purchaser was a director or officer,

managing agent or a shareholder owning !> percent of the voting shares

of the company

* company need not show the amount set aside as provisions other

than those relating to depreciation, renewal or diminution in value of

assets if, on application made by it, has been allowed by the uthority to

do so on being satisfied that the disclosure of such information would be

pre7udicial to the interests of the company, but shall so frame or mark the heading covering the amount of such provision as to indicate that it

has been so allowed by the uthority

+ $he profit and loss account shall be so drawn up as to disclose

separately the manufacturing, trading and operation results n the case



of a manufacturing concern the cost of goods manufactured shall also be

shown ?here an undertaking has more than one unit of operation or

line of business the working results of each such unit or line of business

should be separately given

() Except for the profit and loss account for the year ending after the

date of commencement of these 0ules every profit and loss account shall

give the corresponding amounts for the immediately preceding

accounting year for all items shown in the profit and loss account

(') $he re.uirement in sub-paragraph () shall, in the case of

companies preparing .uarterly or half yearly accounts relate to the profit

and loss account for the period which ended on the corresponding date of the immediately

preceding year

/ $he information re.uired to be given in respect of any of the items in

the profit and loss account shall, if it can not be included in the profit

and loss account itself, be furnished in a separate schedule or schedules

to be attached to and to form part of, the profit and loss account

n the case of a company not carrying on business for profit, the

provisions of this &art shall have effect as if for references therein to profit and loss account references to income and expenditure account

had been substituted



&art-

R<GD+R<B<8ES AS EH CAS FLHIS SEAE<B<8E

1 $he cash flows statement shall be so made out as to disclose clearly

the cash flows of the company from its operating, investing and financialactivities, disclosing every material feature and in particular, the

following%

() (1) the ma7or classes of gross cash receipts and gross cash payments

from operating activities, using the direct method;

(!) interest paid on short term borrowing; and

(#) taxes on income paid andNor deducted at sources

(') (1) cash payments for ac.uisition of fixed assets, long-term paymentand referred costs, investments, loans and advances; (!) cash receipts

from sales of fixed assets, intangibles and other long-term assets; (#)

cash receipts from repayments of long-term loans and advance; ()

ac.uisitions and disposals of subsidiaries and other business units; and

(*) interest and dividend received (=) (1) cash proceeds from issuing

shares at par, premium and discount; (!) cash proceeds from issuing

debentures, loans and other short or long term borrowings; (#) cash

repayments of amounts borrowed;() nterest paid on long-term borrowings; and

(*) dividend paid

! nvesting and financing transactions that do not re.uire the use of cash

or cash e.uivalents should be excluded from the cash flows statements

9uch transactions should be disclosed elsewhere in the financial

statements in a way that provides all the relevant information about these

investing and financing activities

# $he amount of significant cash and cash e.uivalents held by the=ompany that are not available for its use should be disclosed

$he components of cash and cash e.uivalents at the balance sheet date

together with a reconciliation of opening and closing balances thereof

should be presentedLA



* "orm MC annexed to the 9chedule shall be omitted

+ n "orm K'L annexed to the 9chedule, the existing "orm of the

uditor 0eport shall be substituted by the following new "orm of the

uditors 0eport%

Form of t)e Au(itors Report

?e have audited the accompanying financial statements for the period

fromto of in accordance with the

nternational 9tandards of uditing as adopted by the nstitute of

=hartered ccountants of 'angladesh; and we state that we have

obtained all the

information and explanations which we have re.uired, and after dueverification thereof, we report that, in our opinion% (a) $hese financial

statements have been drawn up in accordance with the re.uirements of

the 9chedule to the 9ecurities and Exchange 0ules, 1/; the =ompanies

ct, 1 and other relevant laws where applicable; and the

nternational ccounting 9tandards as adopted by the nstitute of

=hartered ccounts of 'angladesh; (b) $hese financial statements

which are in agreement with the 'ooks of ccount of the =ompany give

a true and fair view of the state of its affairs as at and of the result of its operations and cash flows for the periodNyear

then ended; (c) &roper 'ooks of ccounts have been kept by the

=ompany as re.uired by the relevant laws; and (d) $he expenditure

incurred was for the purposes of the =ompanyCs business

&lace%

ate%

"or

(Dame of the firm)

(9ignature with the name of &artnerN9ole &roprietor)

=hartered ccountsA

3. Statutory Requirements for Financial Reporting

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Transcript of 3. Statutory Requirements for Financial Reporting