AUDITOR'S REPORT
OF
Kodama Corporation CO. LTD.
(BANGLADESH LIAISON OFFICE)
FOR THE YEAR ENDED 30 JUNE 2023
ahamed shamimn &co.
Chartered Accountants
Opinion
Independent Auditor's Report
To the Managementof
Report on the Audit of the Financial Statements
KODAMA CORPORATION CO. LTD.
(Bangladesh Liaison Office)
We have audited the financial statements of KODAMA CORPORATION co. LTD; (Bangladesh Liaison Office)
which comprise the Statement of Financial Position as at 30 June 2023, Statement of Operational expenses,
Statement of Receipts & Payments, and notes to the Financial Statements, including a summary of significant
accounting policies and other explanatory information disclosed in notes 1 to 10.
Basis for Opinion
Inour opinion, the accompanying financial statements give a true and fair view of the financial position of the
Liaison Office as at 30 June 2023, and of its Statement of Operational expenses &Statement of Receipts and
Payments for the year then ended in accordance with International Financial Reporting Standards (|FRSS) except
IFRS 16 Leases.
We conducted our audit in accordance with International Standards on Auditing (SAs). Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Liaison Office in accordance with the ethical requirements 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 believe 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 for the Financial Staterments
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with IFRSS, and for such internal control as management determines is necessarY to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statement's, management is responsible for assessing the liaison Office's ablity 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 liquidte the Liaison Office or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Liaison Office's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
Our objectives are to obrain reasonable assurance about whether the 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 financial statements.
As part of an audit in accordance with ISAs, we exercise professional jvdgment and maintain professional
skepticism throughout the audit. We also:
ldentify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resuting from fraud is higher than for one resulting from error, as fraud may involve colusion, forgery.
intentional omissions, misrepresentations, or the override of internal control.
House 1/B, Flat - 1A, Road -8, Block - I, Banani, Dhaka-1213
Phone: +88 02 222270289, Cell: +88 01974007447, E-mail : mail@asccabd.com, ahamedshamimnco@gmail.com
www.asSCcabd.com
ahamed shamimn &co.
Chartered Accountants
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 effectivenes
of the Liaison Office's internal control.
Evaluate the approprlateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriatenessof 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 Lliaison Office'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 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. However, future
events or conditions may cause the Liaison Office to cease to continue asa going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial 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 control that we
identify during our audit.
We also report that:
a) We have obtained allthe information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
b) In our opinion, proper books of accounts, records etc. have not been kept by the Liaison Office so far as it
appeared from our examinations;
c) The Statement of Financial Position and Statement f Operational expenses, Statement of Receipts &
Payments dealt with by the report are in agreemet with the books of accounts they maintained; and
d) The expenditure incurred and payments made were for the purpose of the Liaison Office's business year.
Dated: Dhaka
28 December 2023 Ahamed Shamim & Co.
Chartered Accountants
Registraion Number: 702
Signature of Auditor
Md. Shamim Ahamed FCA
Principal
ICAB Enrolment #947
DVC 2401t4AS152835
HoUse 1/B, Flat 1A, Road - 8, Bleck - I, Banani, Dhaka-1213
Phone: +88 02 222270289, Cel: +88 01974007447, E-mail : mail@asccabd.com, ahamedshamimnco@gmail.com
www.asCcabd.com
ASSETS
Non-Current Assets
Current Assets
Cash and cash equivalents
Advance, deposit and prepayments
Total Assets
EQUITY & LIABILITY
Current Liabilites
Current account with head office
Liabilites for expenses
Total Fund and Liability
Director
Kodama Corporation CO. LTD.
Dated : Dhaka
Particulars
28 December 2023
(Bangladesh Liaison Office)
Statement of Financial Position
As at 30 June 2023
5.00
3
Notes||30 June 2023 || 30 June 2022
6.00
7.00
8.00
ahamed shamim &co. chartered accountants
Signed as per our separate report on same date.
493,945
70,000
423,945
493,94S
398,945
The annexed notes from 01 to 08 form an integral part of these financial statements.
95,000
Amount in Taka
493,945
783,640
Signatúre of Auditor
783,640
783,640
695,390
88,250
783,64O
Ahamed Shamim & Co.
Chartered Accountants
Registration Number: 702
Md. Shamim Ahamed FCA
Principal
ICAB Enrolment # 947
DVe24011q094AS182395
Operationalexpenses
Audit fee
Bank charge
Car rent
Fuel & lubricants
Internet expense
Office expenses
Office rent
Office supplies
Professional fees
Repair & maintenances
Salary & allowances
Telephone & mobile expenses
Uilies
Kodama Corporation CO. LTD.
Travelling &conveyance expenses
Director
Dated : Dhaka
(Bangladesh Liaison Office)
Statement of Oparational expenses
For the year ended 30 June 2023
Particuars
28 December 2023
Notes
4
ahamed shamim &co. chartered accountants
30 June 2023|| 30 June 2022
86,250
5,875
360,914
31,458
17,000
116,597
Amount in Taka
454,580
7,446
261,750
58,389
Signed as per our separate report on same date.
2,525,487
53,000
271,264
85,935
4,335,945
86,250
Signature of Auditor
426,184
8,990
102,041
16,600
118,964
455,687
The annexed notes from 01 to 08 form an integral part of these financial statements.
518,650
3,050
2,381,526
34296
ICAB Enrolment # 947
74,076
230,174
79,735
4,536,223
Ahamed Shamim & Co.
Chartered Accountants
Regisiration Number: 702
Md. Shamim Ahamed FCA
Principal
DVC 2A0117047AS152895
Receipts
Opening balance:
Cash hand
Cash at bank
Total receipts (A)
Payments
Return from office rent advance
Remittance from head office
Bank charges
Car rent
Fuel & lubricant
Internet expenses
Office expenses
Office rent
Office supplies
Professional fees
Audit fees
Salary & allowances
Repairs & maintenance expenses
Telephone & mobile expenses
Utilities
Advance office rent
Travelling & conveyance expemses
Total payments (B)
Kodama Corporation CO. LTD.
Particulars
Closing balance (A-B):
Cash at bank
(Bangladesh Liaison Office)
Statement of Receipts and Payments
For the year ended 30 June 2023
Cash in hand
Director
5
7.01
Notes 30 June 2023
ahamed shamim &co.
ame
chartered accountants
ere
240,944
542,696
783,640
27,000
4,010,500
4,821,140
5,875
360,914
31,458
17,000
116,597
454,580
7,446
261,750
86,250
58,389
2,525,487
53,000
271,264
85,935
70,000
4,405,945
415,195
376,415
47,530
423,945
Amount in Taka
30 June 2022
491,428
1,042
492,470
4,741,143
5,233,613
8,990
521,608
72,910
16,600
133,095
455,687
3,050
432,400
86,250
54,372
2,381,526
54,000
149,750
The annexed notes from 01 to 08 form an integral part of these financial statements.
79,735
4,449,973
783,640
542,696
240,944
783,640
1.00 Corporote information
1.01 Legal status
1.02 Nature of activities
Kodama Corporation CO. LTD.
1.03 Registered Office
Bangladesh Liaison Office
Notes to the Financial Stalements
As at and for the year ended 30 June 2023
Kodama Corporation CO. LTD. (Bangladesh liaison Office) have permission from Bangladesh Investment
Development Authority (BIDA), Prime Minister's office vide Ref No OPE-28 June 2022-00001 dated 07
July 2022 effective from 01 July 2022 and valid up to 30 June 2024. 18B lntimation from Bangladesh
Bank under Foreign Exchange Regulation Act, 1947 Amended up to 2015 vide Ref. No.
FEID/Branch/729/B-1687/2019-4021 dated. 25 November 2019 valid up to 30 June, 2024.
The activities of the Liaison Office shallremain confined to maintaining the liaison for manufacturing and
selling clothing textiles, miscellaneoUs goods, warehousing business paking and shipping, import &
export of clothes, advertising etc.
concern assumption.
The Liaison Office is situated at House #20 (2F), Road #18, Sector #03, Uttara Model Town, Utar,
Dhaka- 1230.
2.00 Summary of significant accounting principles and basis of preparation of the financial statements.
2.01 Basis of preparation of the financial statements
The elemets of financial statements have been measured on "Historical Cost" convention. These
statements have been prepared and the disclosures of information made in accordance with the
requirements of the terms of BIDA and International Accounting Standards (IAS) adopted by the Institute
of Chartered Accountants of Bangladesh (ICAB) and where relevant with presentational requirements of
the law. Al octivities included in these financial stotements are based on accrual basis and going
2.02 Functional and presentation currency
3.00 Components of financial statements
These financial statements are presented in Taka, which is the Liaison Office's functional currency.
The financial statement comprise the following:
The Financial Staterment have been prepared with due consideration of International Accounting
Stondards (AS) and International Financial Reporting standards (IFRS). The financial statements comprise
of the following as complied with InternationalAccounting Standards l:
) Statement of Financial Position;
ahamed shamim &co.
I) Statement of operationalexpense;
chartered accountants
I)Statement of receipts & payments;
3.01 Statement on Compliance with locol laws
IV)Notes to financial statements of significant accounting policies and explanatory information.
6
The Financial Statement have prepared in accordance with International Accounting Standards (|AS) and
International Financial Reporting Standards (IFRS), terms of BIDA and other applicable laws regulations.
a
arte
un
3.02 Use of estimates and Judgment
The preparation of financial statements in conformity with IFRS requires management to make judgement
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses and disclosure requirements for contingent assets and liabilities
during and at the date of the financial statements.
Actual results may differ from these estimates.Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions of accounting estimates are recognized the period in which the estimate is
revised and in any future period affected as required by IAS 8. Accounting policies, Changes in
Accounting Estimates and Errors.
Estimates nd underlying assumptions are reviewed on an ongoing basis. Revision of accounting estimates
are recognized in the period in which estimate is revised and in any future periods affected.
3.03 Going concern basis
The Lidison Office has adequate resources to continue in the operation for the foreseeable future and
hence, the financial statements have been prepared on going concern basis. As per management
assessment there are no materials uncertainties related to events or conditions which may cast significant
doubt upon the liaison office's ability to continue as going concern.
3.04 Accrual basis of accounting
The Liaison Office prepares its financial statements using the accrual basis of accounting. When the
acerual basis of accounting is used, an entity recognizes items as assets, liabilities, equity, income and
expenses (the elements of financial statements) when satisfy the definitions and recognition criteria for
those elements in the framework.
3.05 Materiality and aggregation
ahamed shamim &co. chartered accountants
The Liaison Office presents separately each material class of similar items and items of a dissimilar nature
of function unless they are immaterial. Financial statements result from processing large number of
transaction or other event that are aggregated into classes according to their nature or function.
3.06 Offsetting
Liaison Office does not offset assets and liabilities or income and expenses, unless required or by lFRS.
3.07 Reporting period
The financial statements of Kodama Corporation CO. LTD. cover from 01 July 2022 to 30 June 2023.
4.00 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of entity and a financial liability
or equity instrument of another entity.
Financial asset carried in the statement of financial position includes cash and equivalents, fixed deposits,
advances, deposits and prepayments.
4.01 Financialassets
Allother financial assets are recognized initially on the date at which the Liaison Office becomes a party
to the contractual provisions of the transaction.
7
er
Uno
4.02 Cash and cash equivalents
4.03 Advances, deposits and prepayments
Cash and cash equivalents comprise of cash in hand and cash bank which are available for use without
any restriction,
4.04 Financial income and expenses
Advances are recognized and stated at original invoiced amounts and carried at anticipated realizable
values.
4.05 Provision, contingent liabilities and contingent assets
Financial income and expenses are reported in income and expenses on a net basis as either fincance
income or finance expense depending on whether finance income and expenses are in a net income or
expense position. Interest shall be recognized using the effective interest method. Finance expense
comprises of bank commission, excise duty and charges.
a) Provisions
ahamed shamim & co.
b) Contingent liabilities
chartered accountants
Provisions are recognized when the Liaison Office has a present obligation as a result of a past event
and it is probable that an resources embodying economic benefits will be required to settle the
obligation, and a re liable estimate can be made of the amount of the obligation. Provisions are reviewed
at each bolance sheet date and adjusted to reflect the current best estimate. If a transfer of economic
benefit is no longer probable the provisions should be reversed. Where the effect of money is material,
the amount of a provision is the present value of the expenditure required to settle the obligation.
c) Contingent asset
A contingent liabilities arises where a past event may lead to entity having a liability in the future but the
financial impact of the event will only be confirmed by outcome of some future event not wholly within the
control. Acontingent liability should be disclosed in the financial statement unless the possible outflow of
thought be remote.
4.06 Events after the reporting period
A contingent asset is a potential asset that arises from past event but whose existence can only be
confirmed by outcome of future events not wholly within an entity's control. Acontingent asset should be
disclosed in the financial statements only when the expected inflow of economic benefits is probable.
8
In accordance with AS -10 Events after the reporting period, amounts recognized in the financial
statements are adjusted for events after the reporting period that provides additional evidence of
conditions that existed at the end of the reporting period. No adjustment is given in the financial
statement for events after the reporting period indicative of conditions that arose after the reporting
period. Materialnon-adjusting events are disclosed in the financial statement.
Notes
5.00 Advance, deposit and prepayments
Security deposit- office rent
6.00 Cash and cash equivaent
Cash in hand
9.00
Cash at bank
7.00 Current account with head office
Opening balance
Add: Remittance received from head office
Cosh Operating Expenses
8.00 Liabilites for Expenses
Adjustments made during the year
Closing balance
Particulars
Audit fee payable
Professional fee
Other lIiabilities
Remittance received from head office
Name of the bank
Prime Bank Limited, Utarg Bronch
June 30,2023
June 30,2022
10.00 Operational expenses
Cash operational expenses
Non-cash operational expenses
Less:Liability for expense
9.00
10.01
Foreign
cUrrency Rate
USD
10,000 94.05
10,000 100.00
10,000 102.00
55,000 86.20
10.01
ahamed shamim &co. chartered accountants
10.02
30 June 2023| 30 June 2022
70,000
70,000
47,530
376,415
423,945
Amount in Taka
695,390
4,010,500
(4,335,945)
29,000
398,945
86,250
8,750
Remitance is received from head office from time to time to meet the expenditures of the liaison office
as required under the terms and conditions imposed by the Bangladesh Investment Development
Authority (BIDA) Currently known as BIDA of Bangladesh. During the period Beaumanoir Asia Holding
Singapore Pte Ltd. Bangladesh Liaison Office recelved remittance through HSBC Bank A/C No. - 007
009665-011 in following installments:
95,000
Local
cUrrency Taka
940,500
1,000,000
4,741,143
542,696
240,944
4,335,945
4,335,945
783,640
404,220
4,741,143
(4,449,973)
695,390
86,250
2,000
88,250
1,020,000 31/1/2023
Date of
Encashment
1,050,000 ||10/4/2023
4,010,500
17/8/2022
23/11/2022
4,449,973
86,250
4,536,223
10,000 105.00
40,000 100.26
10.01 Cash operational expenses
Bank Charges
Car Rent
Fuel & Lubricants
Internet Expenses
Office Expenses
Office rent
Office supplies
Professional fee
Audit fee
Repgir & maintenances
Salary & allowances
Telephone & mobile expenses
Travelling & conveyance expenses
Uilites
10.02 Non-cash operating expenses
Professional fee
Other liabilities
oer
ahamed shamim& co.
chartered accountants
5,875
360,914
31,458
17,000
116,597
454,580
7,446
261,750
86,250
58,389
2,525,487
53,000
271,264
85,935
4,335,945
8,990
426,184
102,041
16,600
118,964
455,687
3,050
432,400
86,250
34,296
2,381,526
74,076
230,174
79,735
4,449,973
86,250
86,250