Independent Auditor's Repoft and Financial Statements
of
TOA CORPORATION : Bangladesh Office
For the year ended 31 March 2021
@ ACNABIN
Cb artere il Accountants
BDBL Bhaban (Level-13 & 15)
12 Kawran Bazar Commercial Area
Dhaka- 7 27 5, Bangladesh.
Telephone: (+88-02) 41,0 20030 to 35 (Level-13)
(+88-02) 8189428 to 2g (Level-15)
Facsimile: (+88-02) 4t0 20036
E-mail: (acnabin@bangla.neo, I[eb: www.acnabin.com
Branch Officc Jahan Building No.7 (lst Floor, North Side), 59 Agrabad Commercial Area, Chattogram-4l00, Bangladesh.
Tel: (+33-631; 2517352, Fax: (+43-631; 2517353, E-mail: (acnabin.ctg@acnabin-bd.com>, Web: www.acnabin.com
TN DEPENDENT AUDITOR'S REPORT
To the General Manager of
TOA CORPORATION : Bangladesh Office
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of 'TOA CORPORAION : Bangladesh Office' (the
Branch), which comprise the statement of financial position as at 31 March 2021, and the
statement of profit or loss and other comprehensive income and statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the financial position of 'TOA CORPORATION : Bangladesh Office' as at 31 March 202L, and
its financial performance and its cash flows for the year then ended in accordance with
International Financial Repofting Standards (IFRSS) as explained in note # 2to the financial
statements.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are fufther described in the Auditors'Responsibilities
for the Audit of the Financial Statements sedion of our report. We are independent of the
Branch in accordance with the International Ethics Standards Board for Accountants'Code of
Ethics for Professional Accountants (IESBA Code) together 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 ethical requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matters
Without modifying our opinion, we draw attention to-
1. Note # 2.02 to the financial statements, where the Branch disclosed the basis of
reporting and preparation of the financial statements;
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2. Note # 2.L2 to the financial statements, where the Branch disclosed the accounting
policy of recognizing Propefi, plant and equipment which is not in line with 145-16:
Property, plant and equipmenf,,
3. Note # 2.24to the financial statements, where the Branch disclosed the status of work
permits/visas of the foreigners as on 31 March 202L;
4. Note # 77.L.L and t7.1.2 to the financial statements, where the Branch disclosed the
basis for computation of the contract revenue; and
5. Note # 22.Lto the financial statements, where the Branch disclosed the issues related
to non-submission of income tax return.
Other Information
Management is responsible for the other information. The other information comprises the
information included in the Annual Repoft, but does not include the financial statements and
our auditor's report thereon. The Branch Office is not required to publish a separate Annual
Report and does not publish any Annual Report. As such, our opinion on the financial
statements does not cover the other information, and we do not express any form of
assurance conclusion thereon since we have not been provided with any such information.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with IFRSs and other applicable laws and regulations, 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 statements, management is responsible for assessing the Branch'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 Branch or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Branch's financial repofting
process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or 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
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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 paft of an audit in accordance with ISAs, we exercise professionaljudgement and maintain
professional skepticism throughout the audit. We also:
. Identify 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 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;
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management;
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 unceftainty
exists related to events or conditions that may cast significant doubt on the Branch's ability
to continue as a going concern. If we conclude that a material unceftainty exists, we are
required to draw attention in our auditor's repoft 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 repoft. However,
future events or conditions may cause the Branch to cease to continue as a going concern;
and
Evaluate the overall presentation, structure and content of the Branch' financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
a
a
a
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
We also report that:
We have obtained all the 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;
a
a
a In our opinion, proper books of accounts as required by law have been kept by the Branch
in its office in Dhaka; and
)
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Chartered Accountdnts
Dated, Dhaka
2B JU}l 202
a The Branchb Statement of Financial Position, Statement of Profit or Loss and Other
Comprehensive Income and Statement of Cash Flows dealt with by the report are in
agreement with the books of accounts.
ACNABIN, Cha ftered Accounta nts
Abu Sayed Mohammed Nayeem FCA
Paftner
ICAB Enrolment Number: 0353
DVC : 2206280353AS 524L7 9
4
G *o*lfsl,.jltv
ACNABIN
Chartered Accountants
TOA CORPORATION : Bangladesh Office
Statement of Financial Position
As at 31 March 2021
Notes Amount in BDT
31 March 2021 31 March 2020
ASSETS
Non-current ass€ts
Property, plant and equipment
Right-of-use assets
Current assets
Contract asset
Advances, deposits and prepayments
Other receivables
Construction-in-prog ress
Cash and cash equivalents
Tota! assets
EQUITY AND LIABILMES
Equity
Non-current liabilities
Non-current lease liability
Current Liabilities
Current lease liability
Head office current account
Advance amount received from BEZA
Accounts payable
Sub-contractor and suppliers retention
Provision for income tax
Other payables
Total equity and liabilities
3
4
106,479,723
9,700,464
7,385,951
t4,991,626
116,180,187 22,377,577
5
6
7
I
9
L,642,422,464
1,336,530
28,L54
10,315,150
L46,676,957
48,692,845
L,158,270
28,154
3,581,104
1,8oo,779,255 53,460,373
L,916,959,442
-A'g1,eso-
4,843,525 10,t97,690
4,8,43,525 10,197,690
10.1.2
10.1.1
11
L2
13
t4
15
16
5,354,L64
204,894,265
L,634,673,434
5,480,936
32,576,6L1
6,600,668
22,595,839
L,9t2,115,917
4,589,181
58,553,399
2,054,933
442,747
65,640,260
-!,919,2!9,442-
.950
The accompanying notes and annexures to the financial statements are an integral part of these financial statements.
'\'t 4vE-
Administration Manager
Dated: Dhaka
2 2 JUl\l 2022
ACNABIN, Chartered Accounta nts
Partner
ICAB Enrolment Number: 0353
DVC : 2206280353A55241.7 9
5
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Contract revenue
Cost of contract
Gross profit
General and administrative expenses
Operating profit / (loss)
Finance expense
Foreign exchange loss
Profit / (loss) before tax
Income tax expenses
Net profit / (!oss) after tax
TOA CORPORATION : Bangladesh Office
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 March 2021
Notes
Amount in BDT
01 April 2O2O
to 31 March 2021 to 31 March 2020
17
1B
19
20
27
22
t,593,729,619
(1,43s,890,794)
48,692,84s
(44,082,05t)
138,341,603 4,O81,6L7
(4,s4s,73s) (2,054,933)
133,795,868 --------J'925,684
The accompanying notes and annexures to the financial statements are an integral paft ofthese linancial statements.
157,838,825 4,6L0,793
(16,s03,663) (105,884)
L4L,335,L62 4,SO4,gOg
(1,114,619)
(1,878,940)
(220,784)
(202,s08)
I
Manager
ACNABIN, Chartered Accountants
Abu Sayed Nayeem
Partner
ICAB Enrolment Number: 0353
DVC : 220628035 3A5524L79
fi"f 4+T-
Administration Manager
Dated: Dhaka
22 JUN 2022
6
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Chartered Accountants
TOA CORPORATION : Bangladesh Office
Statement of Cash Flows
For the year ended 31 March 2021
Note
Amount in BDT
0l April 2020
to 31 March 2021
14 November 2019
to 3l March 2O2O
Cash flows from operating activities
Net profit / (loss) after tax
Depreciation expense (added back)
Cost incurred by head office during the year (added back)
Interest not paid in cash (added back)
(Increase)/decrease in Accounts receivables
(Increase)/decrease in Advances, deposits and prepayments
(Increase)/decrease in Contract asset
Increase/(decrease) in Other payables
Increase/(decrease) in Accounts payable
Increase/(decrease) in Sub-contractor and suppliers retention
Increase/(decrease) in provision for income tax
Net cash used by operating activities (A)
Cash flows from investing activities
Purchase of non-current assets
Construction -in-progress
Net cash used in anvesting activities (8)
Cash flows from financing activities
Advance amount received from BEZA by Branch Office
Operational fund borrowed from head office
Lease liability payment
Net cash used in financing activities (C)
Net increase in cash and cash equivalents D=(A+B+C)
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
(L,231,299,982) (12,206,881)
7t.2
133,79s,868
10,722,978
152,218,0s8
1,1 14,619
(178,260)
(1,593,729,619)
22,153,092
5,480,936
32,s76,611
4.545,735
2,026,684
1,015,909
31,91 1,33 1
220,784
(28,1s4)
(1,1s8,270)
(48,692,84s)
442,747
2,054.933
(104,s2s,588)
(10,31s,1s0)
(114,84O,738)
(7,s20,000)
(7,520,000)
L2.l
11.1
L,067,966,029
426,974,345
(s,703,800)
24,6t5,385
(1,307,400)
23,307,985 L,489,236,574
143,095,853
3,581,104
3,581,104
L46,676t956 31581,104
The accompanying notes and annexures to the financial statements are an integral paft of these frnancial statemenB.
,q"t rFT_ h Administration Manager
IV
General Manager
Dated: Dhaka
22 JUl'l 2022
bakertitty
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bakertitLy
TOA CORPORATION : BANGTADESH OFFICE
Notes to the Financial Statements
For the year ended 31 March 2021
l.o0
1.01
Legal status and nature ofthe Branch
Background of the Branch
TOA CORPORATION is a company incorporated in Japan and engaged in the business of contracting, planning,
designing, execution and supervision of civil engineering and architectural works; including consulting services. Head
office of the company is located at 3-7-t, Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1031, Japan.
It started its business in Bangladesh by opening a Branch office namely TOA CORPORATION : Bangladesh Office
(hereinafter mentioned as 'TOA' or 'the Branch'). It obtained permission for opening and operating Branch office in
Bangladesh from the Bangladesh Investment Development Authority (BIDA) vide Ref. No. OPN-03Nov2019-00001
dated 05 January 2020 for a period of three years with effect from 14 November 2019.
1.02 Registered office
The registered office of the Branch is located at Concord Colosseum, 156/E Kemal Ataturk Ave, Dhaka 1213,
Bangladesh.
1.03 Activities of the Branch
The Branch office is currently undertaking the project called 'Procurement of Land Development Work for Bangladesh
Special Economic Zone Development under Foreign Direct Investment Promotion Project'.
The Branch Office was appointed by Bangladesh Economic Zones Authority (BEZA) to develop 650 acres of land in
Narayanganj's Araihazar to set up a dedicated industrial park for Japanese investors. The project is jointly financed by
the Government of Bangladesh and Japan International Cooperation Agency (JICA).
2.00 Basis of preparation & presentation of, and disclosure in, financial statements
2.01 Statement of compliance
The financial statements have been prepared on going concern basis following the accrual basis of accounting (except
for Statement of Cash Flows) in accordance with the International Accounting Standards (IASs) and International
Financial Reporting Standards (IFRSs) except for the International Accounting Standard (IAS) 16: Propefi, Plant &
Equipment which was not followed properly.
2.02 Basis of repofting and preparation of the financial statements
The Branch prepares the financial statements in compliance with the requirements of International Accounting
Standard (IAS) 1: Presentation of Financial Statements, It maintains the ledgers on the cash basis of accounting
instead of the accrual basis of accounting. The accounts are then converted into accrual basis of accounting by
manually passing the adjusting journal entres without ledger posting for the same. The financial statements of the
Branch are then prepared and presented in accordance with IAS 1.
2.03 Components of the financial statements
The financial statements referred to here comprise:
a) The statement of financial position;
b) The statement of profit or loss and other comprehensive income;
c) The statement of cash flows; and
d) The notes to the financial statemenE.
2.04 Reporting period
8
G NETWOR( 14EMBER
The financial statements have been prepared from 01 April 2020 to 31 March 2021 to be in line with the reporting
period ofthe parent company. The accountinq period ends on 31 March each year.
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2.05 Dateof authorization
These financial statements have been authorised for issue by the management of the Branch on 22 June 2022.
2.06 Application of standards
The following IASs and IFRSs are applicable for the preparation and presentation of financial statements:
S!, No. Name of IAS/IFRS IAS / IFRS Status
1 Presentation of Financial Statements IAS 1 Comolied
2 Inventories IAS 2 N/A
3 Statements of Cash Flows IAS 7 Complied
4 Accountinq Policies, Chanqes in Accountinq Estimates and Errors IAS 8 Comolied
5 Events after the Reportinq Period IAS 10 Complied
6 Income Taxes IAS 12 Comolied
7 Property, Plant and Equipment IAS 16 Partiallv Comolied
8 Employee Benefits IAS 19 Complied
9 Accounting for Govt. Grants and disclosures of Govt. Assistances IAS 20 N/A
10 The Effects of Changes in Foreiqn Exchanqe Rates IAS 21 Complied
11 Borrowinq Costs IAS 23 N/A
L2 Related Party Disclosures IAS 24 Complied
13 Accountinq and Reportinq by Retirement Benefit Plan IAS 26 N/A
t4 Consolidated and Separate Financial Statements IAS 27 N/A
15 Investments in Associates IAS 28 N/A
16 Financial Instruments: Presentation IAS 32 N/A
L7 Earninqs Per Share IAS 33 N/A
1B Interim Financial Reportinq IAS 34 N/A
19 Impairment of Assets IAS 36 Complied
20 Provisions, Continqent Liabilities and Continqent Assets IAS 37 Complied
2L Intanqible Assets IAS 38 N/A
22 Financial Instrument: Recoqnition and Measurement IAS 39 N/A
23 Investment ProperW IAS 40 N/A
24 Aqriculture IAS 41 N/A
25 First-time Adoption of International Financial Reporting Standards IFRS 1 N/A
26 Share-based Payment IFRS 2 N/A
27 Business Combinations IFRS 3 N/A
28 Insurance Contracts IFRS 4 N/A
29 Non-current Assets Held for Sale and Discontinued Operations IFRS 5 N/A
30 Exploration for and Evaluation of Mineral Resources IFRS 5 N/A
31 Financial Instruments: Disclosures IFRS 7 N/A
32 Operating Segments IFRS 8 Comolied
33 Financial Instruments IFRS 9 N/A
34 Consolidated Fina ncial Statements IFRS 10 N/A
35 Joint Arrangements IFRS 11 N/A
36 Disclosure of Interests in Other Entities IFRS 12 N/A
37 Fair Value Measurement IFRS 13 Complied
38 Requlatory Deferral Accounts IFRS 14 N/A
39 Revenue from Contracts with Customers IFRS 15 Complied
40 Leases IFRS 16 Comolied
2.07 Regulatory compliances
The Branch Office is required to comply with the following major laws and regulations along with others as applicable:
i. The Companies Act, 1994;
ii. The Bangladesh Investment Development Authority (BIDA) regulations and guidelines;
iii. The Income Tax Ordinance, 1984 and the Income Tax Rules, 1984; and
iv. The VAT and Supplementary Dufy Act, 2012 and the VAT and Supplementary Duty Rules, 2016.
2.O8 Functional and reporting currency
These financial statements are presented in Bangladeshi Taka (BDT). All financial information presented has been
rounded off to the nearest integer.
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2.09 Foreign currency transation
The balance sheet items of the Branch are Uanslated into BDT at the rates of exchange in effect at the balance sheet
date. The income statement items for each current month are translated and accumulated into BDT using the rates of
exchange in effect at the preceding month end date.
2.10 Use of estimates and judgments
The preparation of financial statements require management to make judgment, estimates and assumptions that affect
the application of accounting policies and the reported amounts of its assets, liabilities, income, expenses and
disclosure of the contingent assets and liabilities at the date of the financial statements. Actual results may differ from
those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.
2.11 Cash and cash equivalents
Cash and cash equivalents include notes and coins in hand and cash at bank.
2.12 Propefi, plant and equipment
Items of prop€@, plant and equipment are stated at cost less accumulated depreciation, and accumulated impairment
losses, if any. The cost of an item of property, plant and equipment comprises its purchase price, import duties and
non-refundable taxes, after deducting trade discount and rebates, and any costs direcUy attributable to bringing the
asset to the location and condition necessary for it to be capable of operating in the intended manner,
Depreciation is charged on all the assets in straight line method when the assets are available for use. The rates of
depreciation are as follows:
However, the Branch does not follow International Accounting Standard (IA5)-16 for recognition of Property, Plant &
Equipment properly. The Branch follows the policy of recognizing assets as non-current assets whose value exceeds
Japanese Yen 20O,OO0 (equivalent to BDT 140,000 approx.). Assets which cost below the stated threshold have
been charged as expense, The Branch also follows the same threshhold as above in order to recognize the amount to
be shown as non-current assets, thus ensuring consistency with the head office accounting policy.
2.13 Risht-of-use assets
TOA CORPORATION : Bangladesh Office assesses whether a contract is or contains a lease based on the definition of a
leaseaccordingto IFRS 76i Leases. Duringtheperiod, TOACORPORATION:BangladeshOfficeevaluatedall typesof
contracts to assess whether a contract is or contains a lease at the date of initial application.
According to IFRS 16, TOA CORPORATION : Bangladesh Office recognizes right-of-use assets and lease liabilities for
all leases. At recognition, right-of-use assets were measured at the present value of the lease payments and advance
deposits, discounted at the Branch's incremental borrowing rate (i.e. 9olo) from the commencement dates of respective
agreements. Lease liabilities were measured at an amount equal to the right-of-use assets, adjusted by the amount of
any prepaid or accrued lease payments (if any).
Name of Assets Rate of Depreciation (per annum)
Buildings and Temporary structure 40.000/o
Motor Vehicle 20.00o/o
urvev Equioment 20.00o/o
Electric Eouioment 2O-00o/o
)ffice Eouioment 20.00o/o
Software 33.33o/o
G NETWOR( MEI.4BER
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At inception of a contract, TOA CORPORATION : Bangladesh Office assesses whether a contract is, or contains, a
lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. The contract involves the use of an identified asset; the Branch has the
right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and
the Branch has the right to direct the use of the asset, if either the Branch has the right to operate the asset or the
Branch designed the asset in a way that predetermines how and for what purpose it will be used.
TOA CORPORATION : Bangladesh Office being a Lessee
TOA CORPORAION : Bangladesh Office recognizes a right-of-use asset and a lease liability from the beginning of the
Branch. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and
an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received and present value of lease payments and advance deposits,
discounted at TOA CORPORATION : Bangladesh Office's incremental borrowing rate (i.e. 9olo).
The right-of-use asset is depreciated using the straight line methods from the commencement dates of respective
agreements to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In
addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement dates of respective agreements, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Branch's incremental borrowing rate. The lease liability is measured at amortized
cost using the effective interest method. It is remeasured when there is a change in future lease payments arising
from a change in an index or rate, if there is a change in the Branch's estimate of the amount expected to be payable
under a residual value guarantee, or if the Branch changes its assessment of whether it will exercise purchase,
extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is
made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
2.14 Contract revenue
Contract value is the amount specified in the contract, subject to variations in the contract work, incentive payments
and claims. The contract revenue is measured at the fair value of the consideration receivable.
The percentage of completion method is an application of the accruals assumption, Contract revenue is matched to the
contract cost incurred in reaching the stage of completion. Revenue is attributed to the proportion of work completed,
which is calculated in the following manner:
Percentage of work completion = Contract cost to date
Total estimated cost to complete the contract
2.15 Contract cost
Contract costs consist of:
i. Cost relates directly to the contract
ii. Cost attributable to general contract activity which can be allocated to the contract
iii. Any other cost which can be charged to the customer under the contract
The contract cost is recognized as expense in the reporting period in which the work to which they relate is pefformed.
2.16 Contract asset
Contract asset represents the right to receive the payment in exchange for performance obligation that has been
transferred to the customer and that right is conditioned on something other than the passage of time. The Branch is
entitled to raise the invoice for payment when the specified criteria as mentioned in the Contract Agreement are met.
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2.17 Contract receivable/amount due from customer
Contract receivable is the right to payment from the customer that is unconditional except for the passage of time
Contracts receivable represent the uncollected amounts on construction contract in progress.
Advances are initially measured at cost. After initial recognition, advances are carried at cost less adjustments or
charges to other account heads.
Deposits are measured at payment value.
Prepayments are initially measured at cost. After initial recognition, prepayments are carried at cost less charges to
profit or loss and other comprehensive income,
2.19 Provisions
Provisions are recognized when the Branch has a present obligation as a result of a past event and it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If a transfer of economic benefit is no longer probable the provision is reversed.
Where the effect of the time value of money is material, the amount of a provision is the present value of the
expenditure required to settle the obligation.
2.20 Events after the repoftins period
Events after the reporting date that provide additional information about TOA CORPORATION: Bangladesh Office's
financial position at the reporting date are reflected in the financial statements. Events after the reporting period that
are non-adjusting events are disclosed in the notes when material.
2.21 Correction of errorc
If any error is identified to have taken place in previous years, management corrects the same as per IAS 8:
Accounting Policies, Changes in Accounting Estimates and Enorc.
2.22 Related pafi disclosure
The entity has entered into transactions with other entities in normal course of business that fall within the definition
of related party as per Interntaional Accounting Standard 24i Related Pafty Disclosures.
2.23 Statement of cash flows
Statement of Cash Flows is prepared principally in accordance with IAS 7i Statement of Gsh Flows. The statement
shows the pattern of changes in cash and cash equivalents during the reporting period. Statement of cash flows has
been prepared under indirect method.
2.24 Status of work permits/visa of the foreigners at on 31 March 2021
Foreign employees involved in TOA Corporation had A3 visas as at 31 March 2021. These VISAs were recommended
by Bangladesh Economic Zones Authority (BEZA). In Bangladesh, A3 visa is issued to experts / advisers / officials /
staff members / labors working in any project under the bilateral / multilateral agreement between Bangladesh
Government and development partner agencies.
G NETWORK MEI4BER
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2.18 Advances, deposits and prepayments
ACNABIN
Chartered Accountants
A. Cost
Opening balance
Add: Addition during the year
Less: Disposal during the year
Closing balance
B. Accumulateddepreciation
Opening balance
Add: Charged during the year
Less: Depreciation of disposed assets
Closing balance
C. Written-down value (A-B)
A schedule of propefi, plant and equipment is presented in Annexure - A
4 Right-of-use assets
A. Cost
Opening balance
Add: Addition during the year
Less: Disposal during the year
Closing balance
Amount in BDT
31 March 2021 31 March 2020
7,520,000
7,520,000
,723 7,385,951
881,850
5,291,L62
6,173,023
B. Accumulateddepreciation
Opening balance
Add: Charged during the year
Less: Depreciation of disposed assets
Closing balance
C. Written Down Value (A-B)
A schedule of right-of-use asset is presented an Annexure - B
Contract asset
Opening balance
Contract revenue for the year
Closing balance
5
48,692,845
1,593,729,6t9 48,692,84s
6 Advances, deposits and prepayments
Advance and prepayments
Security deposit
Closing balance
Advance and prepayments
Advance against office rent
Closing balance
Security deposit
Security deposit against office rent
Closing balance
Other receivables
Jamuna site fund
Closing balance
Note
6.1
6.2
_J842,422fi!_ 48,692,845
45,870
____________EE9_
1,336,530 1,t12,400
___!ElgEgg_ ________],tL2,4o9_
6.1
6.2
7
bakertitty
7,520,000
104,525,588
L34,049
5,431,816 t34,049
15,873,487
881,860
45,870
G NETWORK MEI,{BER
13
@
3 Propefi, plant and equipment
ACNABIN
Cbartered Accoilntdnts
8
9.1
9.1.1
10
Amount in BDT
31 March 2021 31 March 2020
Construction- in-prog ress
Opening balance
Add: Addition during the year
Less: Transfer to PPE during the year
Closing balance
Cash and cash equivalents
Cash in hand
Cash at bank
Closing balance
Cash at bank
Standard Chartered Bank
Closing balance
Lease liability
Opening balance
Add: Addition during the year
Add: Interest expense
Less: Payment during the year
Closing balance
Classification of lease liability
Current lease liabilitiy
Non-current lease liabilitiy
Closing balance
Head office current account
Opening balance
Operational fund borrowed from Head Office
Costs incurred by Head Office
Advance amount received from BEZA by Head Office
Profit / (Loss) for the year
Closing balance
444,664
3,t36,440
3,591,104
t45,777,L70 3,L36,440
____J8,7 71,n9_ ________j89,44O_
9 Note
9.1
9.1.1
Note
10.1
Note
Cash at bank (Standard Chartered Bank) comprises the account maintained by the Branch in Bangladesh. JPY poriton
of the advance / payment was deposited to the Head Office's own bank account in Japan as no separate bank account
was maintained for the Branch in Japan (please see note # 11.3).
10.1
10.1.1
10.1.2
11
11.1
LL.2
11.3
11.1
tt.2
11.3
58,553,399
426,974,345
152,218,058
(566,647,405)
133.795.868
24,615,385
31,91 1,331
2,026,684
2O4$94,265 ___I9E9lE9_
Operational fund borrowed from Head Office represents the non-interest bearning funds borrowed by TOA
Corporation: Branch from iG Head Office for operational purpose.
Costs incurred by Head Office comprise the cosG in connection with the pdects and the Branch.
TOA CORPORATION received an advance amounting to )PY 72L,342,146 and BDT 1,067,966,029 respectively from
BEZA according to the Contract (please see note # 12). JPY portion of the advnace amounts was received by the Head
Office in Japan which were deposited to the Head Office's own bank account as no separate bank account was
maintained for the Branch in Japan (please see note # 9.1.1).
bakertitl.y
10,315,150
899,787
170
t,lt4,6L9
1,5,873,487
220,784
5,354,764
4
4,589,181
1
G NETWORK 14EMBER
t4
ACNABIN
Chartued Accountdnts
Advance amount received from BEZA
Received in Bangladesh by the Branch
Received in Japan by the Head Office
Closing balance
Accounts payable
Payable to sub-contractors, suppliers and service
providers
Closing balance
13.1
Provision for income tax
Opening balance
Add: Provision for the year
Less: Payment during the year
Closing balance
15.1
16
bakertitty
Amount in BDT
31 March 2021 31 March 2020
L2
L2.t
12.2
13
TOA CORPORATION claimed )PY 721,394,@6 and BDT L,069,229,652 from BEZA as advance vide invoice BSEZ-TOA-
BSEZ-IV-002 dated 05 March 2020 and BSEZ-TOA-BSEZ-LT-017 dated 03 July 2020 respectively in accordance with
the provisions of the Contract. However, TOA Corporation received )PY 721,342,L46 and BDT 1,067,966,029
respectively from BEZA against the above-mentioned invoices. Due to the ambiguity that whether the rest of the
advances will be adjusted through the invoices to be raised or through separate advance claim, the amounts that was
received actually have been shown as "Advance amount received from BEZA",
Note
13.1
Note
15.1
Payable to sub-contractors, supplierc and senrice providerc
3D Consultants
ACNABIN Chartered Accountants
Allied Trade Link
Digi Net
Dusk Technoloqies
M/S Fabricators & Partners
M/S. Shahjalal Gas & Filling Station
Mushasi Bangladesh Japan Ltd.
Narayanganj Palli Bidyut
Prosoil Foundation Consultant
Shah Cement Industries Ltd.
Tokyo Consulting Firm
US-Bangla Medical College Hospital
Vision Stationary and Computer
Closing balance
Sub-contractorc and suppliers retention
Next Spaces Limited
UQ-DB-DD JV
Closing balance
L4
15
The tax provision was kept in accordance with the provisions of Income Tax Ordinance, 1984 as the management of
the Branch is yet to receive the income tax exemption, However, the management of the Branch is confident that the
Branch will be able to avail the exemption of income tax on this project, and thus reversing the provision kept for
income tax by then.
Other payables
Withholding VAT payable
Withholdinq tax payable
Welfare expense payable
Power, fuel and utilities payable
Salary payable
Closing balance
5,490,936
232,7t0
1,673,435
200,056
61,183
234,t50
51,430
590,000
2L,400
4t5,234
438,555
929,965
92,700
374,500
4,545,735 2,054,933
50,139
t,834,542
20,625,456
786,249
163,850
15,919
34,820
Dhaka
*
G NETw0RK t'4EMBER
15
ACNABIN
Cbartered Accountants
L7 Contract nevenue
Contract revenue
Note
17.L
Amount in BDT
0l April 2O2O
to 31 March 2021
14 November 2019
to 31 March 2020
L,593,729,619 48,692,a45
L7.1
L7,L.L
L7.L.2
18
bakertitty
Computation of contract revenue
Total project contract revenue (excluding VAT)
Less: AIT Ll.L.t
Less: Contingent consideration L7.t.2
Net project contract revenue
Total budgeted contract cost
Actual project expenditure incurred up to the reporting year
Stage of work completion
Total revenue (Total contract revenue X stage of work completion)
Revenue for the previous year
Revenue for the current year
Cost of contract
Bank charge
Consultancy fee
Design cost
Duties and taxes
Entertainment expenses
Freight
House rent and maintenance expense
Insurance
Material
Miscellaneous
Office supplies
Performance guarantee fee
Postage and telecommunication
Power, fuel and utilities
Safety and securify
Salary and wages
Subcontract
Subscription fee
Tools, hardware and fixtures
Travelling expenses
Vehicle rent and maintenance expense
Welfare expenses
Depreciation expense
10,L45,L94,320
(705,295,055)
(2,885,752,677)
L,642,422,463
(48,692,84s)
t0,145,194,320
(70s,29s,0ss)
Q,885,752,677)
5,977,495,453
44,408,7L9
O.74o/o
48,692,845
--!,99311 39, 6 ts-
-lqq9?,91I-
Bangladesh Economic Zones Authority (the Employer) notified the acceptance of the Bid vide letter #
03.07.0000.053.11.016.2019-115 dated 31 December 2019 amounting to equivalent BDT 10,814,524,321 (BDf
7,L28,197 ,682 and JPY 4,809,297 ,638) inclusive of AIT and VAT (equivalent BDT 10,145,194,320 excluding VAT).
The individual prices and rates quoted in the Bid by the Branch were excluding of local income tax and VAT, and the
appropriate allowance for the same were added in the Grand Summary page of the Bills of Quantities which then will be
deducted by the Employer according to paragraph 4.25.3 of the Contract Agreement. However, at the time of
determining the base for AIT and VAT, the Employer calculated the AIT and VAT on the Bid price without grossing up
the base value and eventually finalized the Contract value.
Since the AIT (and VAT as well) will be borne by the Employer ultimately and the management of the Branch is
confident that the Branch will be able to avail the exemption of income tax on this project, the AIT amounting to BDT
705,295,055 is excluded in determining the Net project contract revenue.
The contingent consideration amounting to BDT 2,885,752,677 comprises the Price contingenry, Physical contingency,
Total Daywork and Specified Provisional Sum amounting to BDT 983,121,988, BDT 858,172,659, BDT 127,066,757 and
BDf gfi,39L,273 respectively as stated in the Grand Summary page of the Bills of Quantities. It has been subtracted in
determining the Net project contract revenue for being the contingent consideration amounts.
545,357
314,390
1,636,715
7,10L,635
44,878
4t6,466
t,r27,108
55,430,603
6,L70,709
1,670,@7
3,999,579
4,937,7y1
656,927
2,022,194
6,780,307
84,455,603
L,209,064,268
844,811
L7,204,630
5,598,012
15,795,43t
5,295,9t4
4,887,816
5,977,495,453
1,497,917,79s
25.060/o
t7,2L2,330
4,140,000
2,000
L,563,144
4,508,398
284,288
1,467,458
6t0,246
209,125
248,938
74,829
371,281
736
1,977,575
440,tt6
9,924,891
57,822
28,1 10
G NETWORK MEMBER
16
---!,!3lP9Ee4
ACNABIN
Cbartered Accountants
19
Amount in BDT
0l April 2020
to 31 March 2O2l
14 November 2019
to 31 March 2020
General and administrative expenses
Audit fee
Bank charge
Consultancy fee
Entertainment expenses
Freight
House rent and maintenance expense
Miscellaneous
Office supplies
Postage and telecommunication
Power, fuel and utilities
Safety and security
Salary and wages
Subscription fee
Tools, hardware and fixtures
Travelling expenses
Vehicle rent and maintenance expense
Welfare expenses
Depreciation expense
The general and administrative expenses include inter alia indirect costs of contract attributable to the construction of
civil work for soil improvement, land development and retaining wall etc. as well as Branch expenses.
20
2L
22
Finance Expense
Interest expense on lease liability
Foreign exchange (gain)/loss
Foreign currency exchange Loss
Income tax expenses
Income tax expenses
1,114,619 220,784
_____lrEE _ ____________22W3!_
t,878,940 202,508
-!r9l3'P40- -202,so9-
Note
22.1 4,545,735 2,054,933
---!,s4s,7
35-
---?r9E3
P33-
National Board of Revenue (NBR) served the notice on 06 March 2022 under section 93 of the Income-tax Ordinance,
1984 for the assessment year 2021-22 as the income tax return was not submitted on time for income year 2020-21,
and under section 130 of the Income-tax Ordinance, 1984 for hearing, showing the causes that why the penalty under
section 124 of the Income-tax Ordinance, 1984 shall not be imposed. However, under the existing circumstances, the
outcome/consequence of the above-mentioned issue is remote. As such, the Branch did not recognize any provision on
the same.
23 Related pafitransactions (Amount in BDT)
bakertil,l,y
22.L
L,204
2,356,999
47,6t5
25,946
L,0t6,240
117,375
575,933
118,683
793,758
711,833
1,803,116
462,9t6
L,077,032
355,609
66,710
751,532
t62
34,820
15,919
145
Name of the related
parties
Relationship
with the entity
Nature of
transaction
Transaction during
the year
Balance as at
31 March 2021
TOA CORPORATION Head Office
Operational fund
borrowed from Head
Office
426,974,345 426,974,345
TOA CORPORANON Head Office Operating expenses 152,218,058
G NETWORK MEMEER
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