Rahman Rahman Huq

Chartered Accountants

The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). The Council of ICAB is the Supreme Authority responsible for the administration and management of the Institute. The Council is composed of 20 (twenty) members elected by the members of the Institute from its two regional constituencies in Bangladesh every three years. The Council is headed by an elected President who is the Chief Executive of the Institute. The President and the Vice-Presidents of the Institute are elected by the Council every year to manage the affairs of the Institute. The Council is assisted by various Standing and Other (non-standing) Committees. For the purpose of assisting the Council in matters concerning its functions, the Council is empowered to constitute Regional Committees. At the moment there are two Regional Committees in Dhaka and Chittagong and two Chapters - UK Chapter and North American Chapter. As on 01 July 2009, the Institute had 969 members (including 26 females) of whom 824 were resident in Bangladesh and 145 were resident abroad. Associate and Fellow memberships are offered by the Institute. Persons passing the qualifying Final Examination of the Institute are offered Associateship (ACA) while fellowship (FCA) is offered to members having at least five years post-associateship experience and fulfilling relevant other requirements. Out of 969 members, 305 are practicing as public accountants and the rest 664 are serving in various key positions in public and private organizations-both at home and abroad. As on the same date, there were 2719 articled students (including 115 females).

RRH is one of the most prominent firms in this sector. RRH, besides establishing an extensive accounting, auditing and tax practice, has extensive experience in multidisciplinary consulting assignments carried out solely, or in a consortium with international firms like KPMG, Arthur D. Little, Price Waterhouse, Deloittes etc. many of which were in the areas of banking, chemicals, food and agriculture, hydrocarbon, transportation and
“Cutting 1|Page through complexity”

Rahman Rahman Huq
Chartered Accountants

communication. A distinguishing feature of RRH has been its catalytic role in bringing under one umbrella the qualifications and experiences of top grade professionals available in the country.

Table of content
SI. No.
Chapter-One: Introduction 1 2 4 5 1.1 Origin of the Report Scope of the report 1.4 Limitations 1.5 Definition Chapter Two: Overview of Rahman Rahman Huq KPMG 6 7 8 9 10 11 12 13 14 15 2.1 Introduction about RRH KPMG 2.2 Recent information 2.3 Corporate Profile of the firm 2.4. Corporate Vision & Mission: 10 11 11 12 12 13 14 15 15 17 06 07 07 08 09


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2.5 Objective
2.6 Organization structure: 2.7 Core value of the organization 2.8 Clients of the RRH KPMG 2.8.1 Manufacturing Company 2.8.2 Bank and Financial institution

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2 Tax and Advisory 2.4.3 Energy and Power 2.9.1 Introduction 3.3 Checking application with the source documents.9.8.4 Procedure of auditing of cash incentive (viyellatex ltd) 3.9 Service provided to their clients 2.3 Financial Advisory 2.4. 3.3 Clients of RRH for cash incentives 3.5 Preparation of Certificates 3.4.2 Collection of PRC 3.1 Collection of application 3.9.4 Risk and advisory Service Chapter 3 auditing of cash incentive 18 19 19 19 19 19 22 23 24 25 26 27 28 29 30 31 3.Rahman Rahman Huq Chartered Accountants 16 17 18 19 20 21 2.4.6 Preparation of Detail of Audit Case 20 20 20 21 21 22 23 24 26 27 Chapter 4 Conclusion and Reference 34 Conclusion 28 Chapter l 1 l Introduction “Cutting 3|Page through complexity” .2 Sectors of Auditing of Cash Incentives 3.1 Audit Calculating the total claim amount 3.9.

including software engineers. RRH has a large number of clients. is one of the leading accounting firms in Bangladesh and the only such firm in the country where all partners are members of The Institute of Chartered Accountants in England and Wales. Create the environment of mutual cooperation . The partners are supported by nearly 200 trained and experienced professionals including chartered accountants.Rahman Rahman Huq Chartered Accountants Rahman Rahman Huq. Meet the growing demand for qualified Chartered Accountants in Bangladesh. with six active partners.Carry out continuous research and make in-depth study of related subjects and apply . Origin of the Report “Cutting 4|Page through complexity” .findings of research and study in the fields of accountancy profession. MBAs. The firm operates from two offices in Bangladesh: Dhaka and Chittagong. business law and related matters .Maintain superiority in respect of professional competence. It has served a large number of local and multinational clients in Bangladesh. economists and MIS specialists. Beside this it has also full fill foreign assignment in different countries throughout the world considering kpmg permission its main objective is to Uphold professional integrity and honesty of its members Advise government on taxation.

This report consists of my observations and on the job experiences during the internship period in the cash incentive section of the HSBC bank operated by the RRH. After completing the practical work I prepare the report.Rahman Rahman Huq Chartered Accountants University of Dhaka is the most popular and well known university in Bangladesh. “Cutting 5|Page through complexity” . This internship program for BBA student is for 45 official days. Dhaka to complete the program. It acquires and holds the first position of the university brand in Bangladesh according to brand zeal consultancy firm. It provides many courses both in graduate and post graduate program. Scope of the Report: This report covers the details of cash incentive audit workflows in multinational bank. I have prepared this report on this topic by counseling with my honorable course supervisor and the staff of the RRH. Rahman Rahman Huq is one of the leading auditing firms in Bangladesh which is also the member firm of KPMG. Pantho Path. recruits me and assigned to the cash incentive sector. Under the supervision of two senior audit supervisor the report is made. The cash incentive sector is the most crucial audit engagement of RRH. However I was assigned at HSBC cash incentive audit segment. During this period I worked at HSBC head office (Anchor Tower). This report emphasizes on the sequential activities involved and used by RRH for auditing of cash incentive. Bachelor of Business Administration (BBA) is one of them. In the BBA program internship activities is compulsory for the students of Faculty of Business Administration. because on behalf of Bangladesh Bank RRH is auditing total acquired by the bank as well as exporting organization(here Viyellatex in RMG sector and Pran foods ltd in food and agro sector).

not the group audit. All the concerned personnel of the firm are not been communicate. The report covers the audit activities of HSBC bank (head office) Dhaka only. Bangladesh Bank circulars. The duration of the internee at the audit firm was in dull season. file of Viyellatex and Pran foods ltd. PRC. Some information was withheld to retain the confidentiality of the bank as well as RRH. interim audit. The report covers only the cash incentive audit of the bank.Rahman Rahman Huq Chartered Accountants Limitation of the Study: • • • • • • • All the audit activities are not observed. Application.these documents are failed to enclose with this report due to the terms and condition of the RRH. “Cutting 6|Page through complexity” .

Definitions PRC BB BBC L/C BTMA BGMEA Association NOC : No Objection Certificate.2010 to 07.11.09. : Proceed Realization Certificate. : Bangladesh Textile Mills Association : Bangladesh Garments Manufacturing and Exporters “Cutting 7|Page through complexity” . : Letter of Credit.2010. : Back to Back L/C.Rahman Rahman Huq Chartered Accountants Duration of internship program I have been employed as a junior auditor in Rahman Rahman Huq CA firm in order to complete my internship program held by “University of Dhaka” (BBA. : Bangladesh Bank. Management Studies) from 29.

hydrocarbon. chemicals.1. food and agriculture. MBAs. Over the years. Arthur D. Price Waterhouse. and other business solutions to national and multinational businesses. Deloittes etc. with six active partners. many of which were in the areas of banking. economists and MIS specialists. left Pakistan. The partners are supported by nearly 200 trained and experienced professionals including chartered accountants. has extensive experience in multidisciplinary consulting assignments carried out solely. transportation and “Cutting 8|Page through complexity” . besides establishing an extensive accounting. including software engineers. Rahman Rahman Huq. when Price Waterhouse Peat & Co. Introduction In 1962. RRH. tax. is one of the leading accounting firms in Bangladesh and the only such firm in the country where all partners are members of The Institute of Chartered Accountants in England and Wales. public sector corporations and development organizations in Bangladesh (and both wings of Pakistan until the emergence of Bangladesh in 1971). The firm operates from two offices in Bangladesh: Dhaka and Chittagong.Rahman Rahman Huq Chartered Accountants Chapter l 2 l overview of Rahman Rahman Huq 2. advisory. or in a consortium with international firms like KPMG. Little. one of its former partners joined forces with two other chartered accountants to form Rahman Rahman Huq. this firm has built a formidable reputation for providing audit. auditing and tax practice.

3. They are the only member firm in Bangladesh of any of the four major global audit firms. Recent Information: At present RRH is the member firm in Bangladesh of KPMG International Cooperative.2.N. Bangladesh. ICAB ) 3. Keshab Gupta FCA (ICAB). 2. Abu H. Senior Manager 1. (England & Wales. 2. Sheikh Abdul Hafiz FCA. Siddiqui. (England & Wales. one of the four largest international accounting firms in the world. Altaf H. ICAB ) 2. ICAB). Corporate profile of RRH: Partners 1. Muhammad Mehedi Hasan. Mosleh Uddin. 5. ICAB ) 5. (England & Wales. A distinguishing feature of RRH has been its catalytic role in bringing under one umbrella the qualifications and experiences of top grade professionals available in the country. 2.M. Khan.Rahman Rahman Huq Chartered Accountants communication. Ali Ashfaq. Snehasish Barua ACA (ICAB). +880-2-9886449. ICAB ) 4. Kibria ACCA (Uk). Mohammed Saif Uddin ACA (ICAB). (England & Wales. Adeeb H. 4. 3. (England & Wales . (England & Wales. M. Dhaka – 1212. Utpal Datta FCA (ICAI). Post Fax “Cutting 9|Page 9 Mohakhali C/A (11th floor). A. ICAB) 6. ICAA. through complexity” .

Rahman-rahman-huq. enhancement and coordination of the Accountancy Profession in Bangladesh in order to enable the profession to provide services of consistently high quality in the public interest. business law and related matters Maintain superiority in respect of professional competence Meet the growing demand for qualified Chartered Accountants in Create the environment of mutual cooperation Carry out continuous research and make in-depth study of related subjects findings of research and study in the fields of accountancy profession Bangladesh and apply The mission: The mission of is to provide leadership in the development. 2.5. Objective of the RRH: “Cutting 10 | P a g e through complexity” .Rahman Rahman Huq Chartered Accountants Telephone Website +880-2-9886450-2.4. Corporate mission and vision of RRH: The vision: Uphold professional integrity and honesty of its members Advise government on taxation.com 2. www.

Management Consultancy. IRM (Information & risk management) specialist. RRH kpmg is one of them and it strictly follows the straight line system. Auditing. Information technology. At the top most partners hold the ultimate powers. Audit methodology. Taxation. Management consultancy and related fields 2. important and crucial decisions are held with the consent of all partners. Qualified (serving article). Information Technology and related subjects • Foster acceptance and observance of International Accounting Standards (IAS) and International Standards on Auditing (ISA) and adopt the same as Bangladesh Accounting Standards (BAS) and Bangladesh Standards on Auditing (BSA) respectively. Tax specialist. • Keep abreast of latest developments in Accounting techniques. Senior Auditor. But senior partner has the power to influence in the decision making process. Partner Senior Manager “Cutting 11 | P a g e Manager through complexity” . junior auditor. assistant manager. As it is the partnership organization. Senior manager hold the second position followed by manager.Rahman Rahman Huq Chartered Accountants • • Ensure sound professional ethics and code of conduct by its members Provide specialized training and professional expertise in Accounting. Corporate Laws. Organizational Structure of the RRH kpmg : Audit firm generally follows the line organization system.6. Semi Senior Auditor.

We work together—bringing out the best in each other and creating strong and successful working relationships. and strengthening our reputation as trusted and objective business advisers. “Cutting 12 | P a g e through complexity” . skills. We respect the individual—respecting people for who they are and for their knowledge. And they bring us closer as a global organization. We seek the facts and provide insight—challenging assumptions.7. which is a network of member firms in 148 countries. They define what we stand for and how we do things. They help us to work together in the most effective and fulfilling way. and experience as individuals and team members. We lead by example—at all levels acting in a way that exemplifies what we expect of each other and our member firms’ clients. pursuing facts.Rahman Rahman Huq Chartered Accountants Assistant Manager Qualified (Serving Article) Tax Specialist IRM specialist Senior auditor Junior auditor 2. Core values of the RRH kpmg Bangladesh: Our values create a sense of shared identity within the KPMG organization.

8. provide sound advice. • • “Cutting 13 | P a g e through complexity” . and perspectives through work in our communities. Ltd. • • Advanced Chemical Industries Ltd. and rigorously maintain our independence. insight. and advice frequently and constructively and managing tough situations with courage and candor. The Chandpore Tea Co. Clients of the RRH kpmg Bangladesh: RRH has a large number of clients. We are committed to our communities—acting as responsible corporate citizens and broadening our skills. Ltd.8.Rahman Rahman Huq Chartered Accountants We are open and honest in our communication—sharing information. It has served a large number of local and multinational clients in Bangladesh. Manufacturing company. Beside this it has also full fill foreign assignment in different countries throughout the world considering kpmg permission. Ltd. we act with integrity—constantly striving to uphold the highest professional standards. 2. Above all.1. The Allynugger Tea Co. Amo Tea Co. List of Clients of the RRH are given below: 2. experience.

Lenny Fashions Ltd.Rahman Rahman Huq Chartered Accountants • Bayer CropScience Bangladesh Ltd. Dhaka Match Industries Co. (formerly Aventis CropScience Bangladesh Ltd.) Bangladesh Lamps Ltd. (Part of Akzo-Noble group) Premier LP Gas Ltd. (Subsidiary of Total Fina) complexity” • • • • • • • • • • • • • • • • • Proctor & Gamble Bangladesh Ltd.) New Zealand Milk Products Bangladesh Ltd. Coats Bangladesh Ltd.(Maker of Philips bulbs. (Bangladesh) Ltd.K. (Multinational Company engaged in retail marketing of milk producer and allied products.) • • TATA (A Member of TATA Group of India) Bangladesh Edible Oil Ltd.) BASF Bangladesh Ltd. Ltd. (formerly Rhône Poulenc Rorer Bangladesh Ltd. manufacturers and markets edible oil. (A member company of British Oxygen Group of U.) Nestle Bangladesh Ltd. “Cutting through 14 | P a g e . Integrated Beverage Services Bangladesh Ltd. (Manufacturing and import of food and allied products. (Member of Pepsico group of USA. (A subsidiary company of Swedish Match AB.) Karnavphuli Fertilizer Company Ltd.(Subsidiary of Leverian Holdings of Singapore.) Aventis Ltd. (Part of a major Hong Kong based garments producer. Bata Shoe Co. Group auditors: KPMG. Cemex Cement Bangladesh Ltd.) Holcim Bangladesh Ltd.) Organon (Bangladesh) Ltd. Subsidiary of Nestle SA of Switzerland. Sweden. BOC Bangladesh Ltd.) British American Tobacco Bangladesh Company Ltd.

(Member of the Norwegian cement group.(These are Sterling Tea Companies. Bangladesh Shilpa Bank (industrial bank). producing and selling tea in Bangladesh being fully owned subsidiaries of UK companies. Ltd. The Noyapara Tea Co. (Bottler of Pepsi products in Bangladesh) 2. Ltd. through complexity” “Cutting 15 | P a g e . Saudi Bangla Fish Feed Ltd. Bangladesh Shilpa Rin Sangstha (industrial credit finance institution). (Subsidiary of Hoffmann La Roche of Switzerland manufacturing medicine. (A company owned by SABINCO producing poultry and fish feed.2 Bank and financial institution • • • Arab Bangladesh Bank Ltd. this is a producer of high quality cement) Teesta High Fashion Ltd. The Consolidate Tea & Lands (Bangladesh) Ltd. (A listed public limited company engaged in manufacturing and marketing pharmaceutical products. The New Sylhet Tea Co.) Roche Bangladesh Ltd. (Garment manufacturing company based in Germany. Ltd.Rahman Rahman Huq Chartered Accountants • Renata Ltd. (Member of Kukdong Group of Companies of South Korea engaged in production of garments for export.) The Baraoora Sylhet Tea Co. Ltd.) Saiham Cement Ltd. Scancement International Ltd.) Scancem Bangladesh Ltd. Ltd. The Deundi Tea Co.) • Transcom Beverage Bangladesh Ltd. The Surma Vally Tea Co.8.) • • • • • • • • • • • • • Triumph International Bangladesh Ltd.

Saudi Bangladesh Industrial and Agricultural Investment Co. Southeast Bank Ltd. (Liaison office of BP of UK. Prime Finance Ltd. International Leasing and Financial Services Ltd. involved in marketing of petroleum products. United Insurance Co. Industrial Promotion and Development Company of Bangladesh Ltd.) AES Haripur Private Ltd. Standard Chartered Bank The Hongkong and Shanghai Banking Corporation Ltd. Dutch Bangla Bank Ltd. Industrial Development Leasing Company of Bangladesh Ltd.) • BP Middle East Ltd. United Leasing Company Ltd.3. Delta Brac Housing Finance Corporation Ltd.8. Energy and power: • ABB SAE SADELMI SpA (Branch operation. First Security Bank Ltd. Ltd. Ltd. • • AES Meghnaghat Ltd.Rahman Rahman Huq Chartered Accountants • • • Citibank NA.(Bangladesh’s largest private sector land based power producers. Ltd. engaged in Civil Engineering connected with Karnafuli Hydro Power Plant Rehabilitation Project.) through complexity” “Cutting 16 | P a g e . Federal Insurance Co.(HSBC) • • • • • • • • • • • • • 2. Sonali Bank. Janata Bank. Agrani Bank.

this company markets power generating units in Bangladesh. (Subsidiary of Heidelberg group of Germany. (Gas exploration and development in Bangladesh.) • Wartsila Bangladesh Ltd. Engaged as sub-contractor to oil companies. It is because all multinationals need to conduct their global audit report. (Branch operation of BJ Services of UK.) • Unocal Bangladesh Ltd.Rahman Rahman Huq Chartered Accountants • BJ Services Company Middle East Ltd. Private sector captive power producer in Bangladesh.) • Cairn Energy PLC (Contractor for exploration and development of natural gas in joint venture with Shell group of companies. so that in Bangladesh RRH is the only member firm of KPMG international global audit “Cutting 17 | P a g e through complexity” .) • Brown and Root Bangladesh Ltd.) RRH has full fill all kinds of auditing. Most of the clients are multinational organizations. (Subcontractor for exploration and development of oil and natural gas. advising.) • Khulna Power Company Ltd.) • Meghna Energy Ltd. consulting type of activities for all of its clients. Subsidiary of El Paso Power of USA. (First private sector barge mounted power plant in Bangladesh. (Subsidiary of the Wartsila group of Finland.

9. Taxation of individuals. International contract structuring. International taxation. Special reports/agreedupon.1.Rahman Rahman Huq Chartered Accountants firm.9.9. Audit Audit/attestation . complete tax compliance review. Mergers and acquisition.2. company law. governance. on Accounting services internal . Regulatory compliance attestation.Forensic and control investigative Information risk management.Review and reporting outsourcing.Due diligence reviews. procedures stock exchange offerings –attestation services . Reviews and compilation of financial statements. Tax. Payroll management.9. Corporate 2. VAT.Internal audit accounting/litigation support . Computer security reviews . Valuations.3. 2. Interim reports. 2. For this reason most of the multinationals prepare their audit activities and report with the help of RRH. legal and advisory services Corporate taxation. Expatriate tax services. Financial Advisory Service “Cutting 18 | P a g e through complexity” . Service provided to the clients: 2.

export oriented organization). Regulatory Assistance Services (incl. IT Audit Co/Outsourcing.9. Bangladesh bank will provide the cash incentive facilities. non financial. valuation. only. Process Improvement Service. Corporate Regulatory Compliance. Other Forms of Attestation Reporting. US GAAP Reporting. 2. Introduction: Auditing of cash incentives involved the activities of checking relevant documents and calculating the amount whether it is satisfying the circulated amount of Central Bank (Bangladesh Bank) or not. “Cutting 19 | P a g e through complexity” . Rahman Rahman Huq recently audited the cash incentives activities of HSBC (bd) bank.1. Accounting Support.4. Alliances and Joint Ventures.Rahman Rahman Huq Chartered Accountants Country Specific Statutory Reporting. IAS Attest Reporting. Chapter l 3 l Auditing of cash incentive at HSBC bank 3. Prospective Reporting.S-O)New Business / New Products. Risk advisory service Internal Audit Co/Outsourcing. On behalf of Bangladesh bank. At that time. If the documents are relevant and the amount are fulfilling the central banks circulated markup then the audit firm will provide the certificate to their clients (relevant financial. Capital Adequacy & Regulatory Reporting.

• Base documents: Base documents are the Application and Proceed Realization Certificates (PRC). 3. So here the overall audit program of the cash incentive of the RMG sector is highlighted. Here the application format will provided “Cutting 20 | P a g e through complexity” .Rahman Rahman Huq Chartered Accountants 3. In this procedure two kinds of documents is essential. Clients of RRH for cash incentive: Rahman Rahman Huq generally audited cash incentive activates of HSBC bank.2.3.4. Procedure of auditing of cash incentives: Viyellatex ltd During the period of internship I have involved only in the sector of RMG sector for cash incentive activities. one is base documents and other is source documents. Sectors of auditing of cash incentives: According to Bangladesh banks circular cash incentives is provided in to two sectors for export oriented activities. So it becomes the major responsibility of the RRH to audit all the exporting documents of both the viyellatex ltd and Pran foods ltd at the head office of HSBC bank. Right now HSBC is dealing with Viyellatex limited and Pran foods ltd for their exporting activities. 3. They are: In Agriculture and food sector: 14 percent cash incentives will provide. In Ready Made garments (RMG) sector: in RMG sector 5 percent cash incentives will provide on exported amount but considering that 20 percent domestic value addition is compulsory in preparing goods.

• • • Master L/C no. • Value. foreign back to back L/C. invoice. c) In table 2(column 3): Foreign back to back L/C • L/C number through complexity” “Cutting 21 | P a g e . • Weight. • Source documents: Source documents are the Master L/C (letter of credit). The application will contain the information of: a) In table 1: The following information will be provided.Rahman Rahman Huq Chartered Accountants by the audit firm (RRH) according to the guide line of Bangladesh bank to the exported organization. the PRC will prepared and provided by the inclined bank (HSBC) and it is also the source document. local back to back L/C. Master L/C value. BTMA (Bangladesh Textile Mills Association) certificates of yarn. b) In table 2(column2): local back to back L/C of yarns’ following information will be given below. bill of leading. Step-1 Collection of application: Application is the base documents with which the procedure will start. Master L/C date. Procedures are given below: 3. All of these source documents are compiled in one master file. Export number/claim no. So using these documents cash incentive activities will be started.1.4. • Date.

compare the Master L/C number. (Column 5): Export number. Step-3 checking application with the source documents: • At first compare the Master L/C number.Rahman Rahman Huq Chartered Accountants • • Date Value d) In table 3 (column 2): Total quantity exported. PRC generally contains the total information about the master L/C . date and value with the PRC document prepared by the inclined bank (HSBC). (Column 7): Repatriated date. local back to back L/C. 3. “Cutting 22 | P a g e through complexity” . • • • • • (Column 3): Total invoice value. 3. foreign back to back L/C .4. date and value which is given in the application. e) In table 4: The claim amount of the exported organization will appear.4.3. Step-2 Collection of Proceed Realization Certificate (PRC): Proceed realization certificate is the document provided by the bank. After that. it contain the information about total exported value and total repatriated amount of the exported goods. with the Master files’ documents where main copy of master L/C is stored.2. because bank provides a certificate with the PRC. (Column 4): Bill of lading date. In PRC all important documents information will be gathered systematically. (Column 6): Repatriated value. It is also known as bank certificate.

Then compare the information of piece/quantity exported and invoice value from the Master files’ invoice documents. value and it will be compare with the PRC – bank certificate.4. date.Rahman Rahman Huq Chartered Accountants • Then the local Back to Back L/C of the yarns’ weight. Step-4: Calculating the total claim amount (cash incentive). Here in the case of Viyellatex cost statement is approved by the BGMEA. Date of the bill of lading which is given in the application will compare with the Master files’ draft copy of the bill of lading. Then again compare it with the master files documents – foreign Back to Back L/C document (which is in draft form). • Foreign Back to Back L/C includes L/C number. Again compare the repatriated value. At last compare the fabric value which is given in the application with the documents of cost statement. date and value will be properly appearing. and value will be compare with the BTMA certificate. “Cutting 23 | P a g e through complexity” . • • • • • The export number given in the application will be compare with the PRC documents where the bank will provide an unique number of the export.4. date. repatriated date from the PRC documents. In this certificate total weight. This cost statement will be prepared by the exporting organization and will be approved by the responsible authorities. 3.

its export number. “Cutting 24 | P a g e through complexity” . Now in order to calculate the exchange rate: a) Take the exchange rates of the first exports. d) If any exchange rates is not found then a requisition will send to the inclined bank (here the bank is HSBC).Rahman Rahman Huq Chartered Accountants In this stage. bill of leading date from the six exp no. In each claim or file. In excel sheet 2 the client (here viyellatex) will provide the net weight of output of total exported goods. After that. • In excel sheet 3 (ud-13 workings(n)(m)): (Appendix 3) This format of calculation is given by the BB. Then make a summation of invoice value of all claims. • In excel sheet 2 (ud-13(n)(m)): (Appendix: 2) “n” is denoted here as the number of claim or file and “m” is the sub file of “n” . of each claim. calculate the proportion of all claims. that means six individual exported lots make one claim. On the other hand the exchange rate of those individual file or claim will also be given. b) Then take the exchange rates of the last exports bill of leading date. six export numbers is included. At last applicable value of foreign back to back l/c amount will be execute. So the process of calculation is given below: • In excel sheet 1(ud-13): (Appendix: 1) At first allocate foreign back to back L/C value to all claim amounts. c) Now calculate the average of the two exchange rates. RRH follow its own format for calculating the total claim amount along with the guide line of the central bank format. So make a summation of foreign back to back l/c value.

b) In calculation process type input weight from cost statement given by the viyellatex in cell G29.Rahman Rahman Huq Chartered Accountants In calculation process: a) Sheet 3 is comprised of two parts. These two parts have also linked with the sheet 1 and 2. f) Then write down the total repatriated export value of the actual shipped weight cell particular claim at the column numbering 3 in cell “E7”. actual value will be executed after deducting 16 % wastage from the total repatriated exports. h) In Column 7 (c&f value) link with the “applicable foreign back to back L/C” amount from sheet 1. d) Calculate the required shipped net weight by multiplying . So the average exchange rate of sheet 2 and proportional amount of sheet 1 brings the change in total calculation process. Now in the table format: e) Calculate the applicable rate of the repatriated value by dividing required shipment net weight (input) cell no. So in column 3 cell 10. G 33 (comes from= G29*0. But it is not the actual value. g) Calculate the net FOB value after deducting freight charge and commission. 11 show the amount after deducting the wastage value. Here 16% is the given markup by BB regarding the minimum wastage level. c) Now make a link with the output weight from “sheet 2 cell D9” to “sheet 3 cell G30.84) by the G 30. “Cutting 25 | P a g e through complexity” .16 with the input weight.

related claim file.4. certificate of cash incentive will be prepared by the audit firm.Rahman Rahman Huq Chartered Accountants i) In column 8. Cost of fabrics collected from other local producers. m) In column 12. for export earnings mentioned in col 9.5. 3. In the result check process p) Applicable rate is 5% and the amount which one is lower in column 12 and 13 will be multiply by the applicable rate. n) In column 13. put the amount of 125% of column 7. maximum cost of local yarn used 80% of col 9. of 12 and 13 whichever is lower. Maximum acceptable cost (mentioned in para Uma of application) of own produced fabrics used. l) In column 11. This certificate will be prepared by the statutory format of the RRH. Step-5: Preparation of the certificate of cash incentive. Applicant submitted cost (mentioned in para Uma of application) own produced fabrics used. from the net FOB exported value the Required export earnings for proper utilization of imported materials 125% of col 7 will be deducted. k) In column 10. multiply OD sight rate applicable on export proceed realization date. (Appendix 4) After the preparation of the calculation. j) In column 9. o) In column 14. q) After that the amount will be exchange from taka to USD by using the average exchange rate from sheet 2. Certificate will be provided for each number. Repayable taka amount of cash incentive 5%. Certificate will contain the following information: “Cutting 26 | P a g e through complexity” .

The audit fee generally claimed on the basis of clients claimed amount of cash incentives rather than the repayable cash incentive amount. i) if claimed amount is taka less than 500. Actual payable cash incentive in taka from sheet 3 according to Bangladesh bank calculation process. date. Step-6: Preparation of detail of audit case: (Appendix 5).Rahman Rahman Huq Chartered Accountants • • • • • • Master L/C no.4. In the cash incentive audit. value from application Invoice value form application. date. date. “Cutting 27 | P a g e through complexity” . Repayable (actual calculated amount) cash incentive in taka. Total realize value. Clients Claimed amount in taka.000(<500. At last type financial year from bill of lading date. So the calculation is.6.000) than audit fee is 4000. value taken from application. • • • • • • • Address of the clients Master L/C no. Detail of audit case is the tools by which an audit firm claims their audit fee from their client. Applicant claim amount in taka which will collect from sheet 3. Realized value from application. realized value. detail of audit case is contained the following things. 3. Export number. At last the calculations of audit fee.

00.000 than audit fee is 5000. “Cutting 28 | P a g e through complexity” .00.000 than the audit fee will be 7000.Rahman Rahman Huq Chartered Accountants ii) if the claim amount is equal or more than 500.000 but less than 10. iii) And if the claim amount is more than 10.