Professional Documents
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Independent Auditor's Report
Independent Auditor's Report
Independent Auditor's Report
Prepared For
MAZEDA SULTANA
Associate Professor
Department of Accounting & Information Systems
Jagannath University, Dhaka
Prepared By
Name ID No.
Labib Bin Omor B170201002
Md. Talha Zubair B170201006
Khan Saziduzzaman B170201008
Moin hasan Minar B170201055
Md. Shahadat Hossain B170201118
Shahriar Munna B170201148
0
Independent Auditor’s Report
Opinion:
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the company as of December 30, 2021. its financial performance and its
cash flows for the year then ended as per International Financial Reporting Standards (IFRSs),
the Companies Act 1994, the insurance Act 2010, the Insurance rules 1958, and other applicable
laws and regulations.
Basis of Opinion:
We have conducted our audit under International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for
the Audit of the Financial Statements section of this report. We are independent of the group and
the company following the International Ethics Standard Board for Accountants Code of Ethics
for Professional Accountants (IESBA Code). We believe that the audit evidence and information
we gathered are sufficient and useful to deliver us a basis for our opinion.
Matter of Emphasis:
We paid our attention to the following matters which include the process and control by the
company over the inter-company transactions:
Understanding and analysing the nature and reasons for inter-company transactions;
Obtained GL details and reviewed the financial statements of subsidiaries;
Checking the transactions between the Group entities on a sample basis.
Obtaining confirmations from the group entities at the reporting date on the closing balances
of inter-company receivable and its reconciliation where necessary.
Obtained letter issued by BSEC on withdrawal of restriction on intercompany loans. The
BSEC has decided to consider the inter-company loan of ACI Limited as the vertical
extension of the Group subject to compliance with all the securities-related laws.
Key audit matters for the audit of financial statements are as under:
We have tested the design and operating effectiveness of key controls over PPE, and the design
of control over the review of the investment impairment analysis. Our audit procedures included,
among others, considering the impairment risk of the assets.
Our testing did not identify any issues concerning PPE and related depreciation, investments in
subsidiaries, associates, and JVs of the Company, or inter-company receivables at the reporting
date and the loans.
We assessed the processes and controls put in place by the Company over inter-company
transactions. We have obtained an understanding that inter-company balances are operated under
the normal course of business maintaining a common policy of charging interest to ensure
efficient fund management and optimize effective borrowing costs at the group level. We
obtained an understanding, evaluated the design, and tested the operational effectiveness of the
Company’s key controls over the loans.
Report on going concerned
The Board thinks that the Company is indeed a going concern. This is recognized through
appropriate inquiries and analyses, which establish that the resources are adequate to support the
operations and that sufficient business opportunities exist to justify the organization as a going
concern. The Directors analyze the financial statements accordingly to ensure that. Accordingly,
the Financial Statements are prepared on a going concern basis and there is no doubt,
whatsoever, about the Company's ability to continue as a going concern.
In preparing the consolidated and separate financial statements, management is responsible for
assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group and the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Company’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate
financial statements as a whole are free from material misstatement, whether due to fraud or
error 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 ISAs 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 consolidated
and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated and separate
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate 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.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s and the Company’s internal
control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s and
the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated and separate 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 auditor’s report.
Evaluate the overall presentation, structure, and content of the consolidated and separate
financial statements, including the disclosures, and whether the consolidated and
separate financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the consolidated
and separate financial statements. We are responsible for the direction, supervision, and
performance of the Group and the Company audit. We remain solely responsible for our
audit opinion.
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 control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the consolidated and separate financial
statements of the current period and are therefore the key audit matters. We describe these
matters in our auditors’ report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Financial Performance Analysis of (ACI) Ltd.
Current assets
Current Ratio =
Current liabilities
(Current assets−Inventory )
Quick Ratio =
Current liabilities
2 5
0 0
2018-2019 2019-2020 2020-2021 2018-2019 2019-2020 2020-2021
17%
67% 32%
A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses,
opportunities and threats involved in a project or in a business venture. It helps a company to
overcome many challenges and helps to make new decisions for the betterment of a company.
The following SWOT analysis of ACI ltd. is carried out for associated industries of ACI ltd.
STRENGTH:
2. It has a strong customer preference and a long standing identity in the market.
3. Reasonable price.
6. ACI food ltd. themselves produce raw material needed for making food.
WEAKNESS:
2. They don’t produce any beverage items which have a high demand in the food sector.
3. The company has not being able to tackle the challenges present by the new entrants in the
segment and has lost small market share in the niche categories.
5. Investment in Research and Development is below the fastest growing players in the industry.
OPPORTUNITIES:
1. Stable free cash flow provides opportunities to invest in adjacent product segments.
2. Government green drive also opens an opportunity for procurement of ACI Worldwide, Inc.
3. Organization’s core competencies can be a success in similar other products field.
4. New customers from online channel – Over the past few years the company has invested vast
sum of money into the online platform.
Threats:
1. New technologies developed by the competitor or market disruptor could be a serious threat to
the industry in medium to long term future of ACI company ltd.
3. New environment regulations under Paris agreement (2016) could be a threat to certain
existing product categories of ACI.
4. Rising pay level especially movements and increasing prices in the market can lead to serious
pressure on profitability of ACI.
Conclusion
The pharmaceutical sector is not only a highly developed but also so demanding sector which is
contributing to the economies of countries. ACI Group had registered a growth of 16% in
revenue over the previous year. They had a full year long pandemic that challenged the entire
nation to innovate. The people of ACI worked hard throughout the year to ensure that our
products and services reached the customers. Bangladesh economy started rebounding from the
Covid-19 fallout.
Real GDP grew by 5.47% in FY 2020-2021 compared to 3.51% growth in FY 2019-2020. The
recovery of the growth momentum was largely evident in the industrial sector (6.12%) and
service sector (5.61%), while the agricultural sector maintained a robust growth of 3.45% in FY
2020-2021.
The economic environment was gloomy. Lockdown and restrictions made it difficult to carry out
the regular jobs. Many people had reduced or no income, surviving on frugality and savings.
Transportation cost increased significantly. Apprehension, uncertainty, struggle and human
suffering were the primary part of day to day news.
After all, we have mentioned some highlights before which represent the fulfillment in brief.