(STRICTLY CONFIDENTIAL)

RANKS PETROLEUM LIMITED

Internal Audit (IA) Review Outcome
For the month of November 2019 and December 2019

As part of regular Audit work, Internal Audit (IA) has reviewed the transactions (Payment) of RKPL for
the month of November2019 – December 2019. We have thoroughly reviewed the payment voucher and
try to confirm the accuracy, authenticity, justification, compliance, processed and other controls of RkPL
daily transactions, and noted following irregularities for management consideration. During the review,
Audit team has noted the following point for management attention and reduce the gap in future;

Utility bill paid but no proven documents found of the payment:

We observed that Utility bill paid for the month of Oct’19 through cash cheque but receiver’s signature
was not availableanywhereeven paid seal was not available on the electricity bill which was not proven
that bill has been paid. Moreover, receiver’s signature was not available on the voucher. Following gaps
are observed from this bill: (Ref: Vr # PAY -002030, dated: 12/11/2019 tk. 12,694/- & 002057-63,321,
dated 26/11/2019, Amount )

 Cash cheque used instead of bearer cheque/Account payee cheque;

 No advance treatment when cash cheque issued;
 Directly treated as expenses without proof of payment;
 No receiving onchequephotocopy & voucher, even any documents;

Management Comments:

Astra product taken through EMI facility only by RkPL employees’ of the “Super Cool offer”

RkPL employees taken Astra products through EMI facility but this facility was only for RkPL employees,
other SBU’s taken products through cash. Moreover in an official communication they informed to all
employees’ of RkPL that only RkPL employees may enjoy months installment on only 1 pcs of each type
of product but we have seen that one employees taken three (3) Micro oven through EMI. (Ref: Vr.
002194, dared 31/12/2019)

Management Comments:

Operating expense increased 23% and some expenses increased abnormally high:
The HR & Personnel Expenses and other selling, marketing distribution has increased by 12% and 40%
respectively and administration expense has increased by 2% and in comparison, to the 5% increasein
sales revenue. Huge increase in delivery Expenses (3506%) Business Dev. Expenses (876%), monthly
sales meeting (212%), internet bill (129%), Legal expenses (97%) WASA, Gas and Electricity Bills (92%)
insurances (80%), and Travelling Conveyance-Selling (22%) expense was maincontributor for the
increase.

Other Income has decreased by 283%

Non-operating income has decreased by 283% in the year 2019.

Finance cost increased 51% in the year 2019

Finance cost has increased 51% this year in line with increase in interest on Bank loan

Management Comments:

Port Demurrages paid against various L/c

We have reviewed November and December 2019 payment voucher and observed that Tk. 51,456/- paid
for port demurrages against various L/C in case of lubricant import. Details are given in annexure –“A”

Management Comments:

Review of Bank Reconciliation:

During our verification some long pending issues are observed in the bank reconciliation. Details are
given below:

Bank: Bank Asia, A/c # 00733002737, and Branch: Scotia Branch

Credited by Bank but not yet debited by RkPL:

Date: Particulars Amount (Tk.)

29/08/2019 TA/DA advance for the month of July 2019 4,375
Total Tk. 4,375

Credited by RkPL but not debited by Bank

Date: Vr. # Particulars Amount (Tk.)

21/11/2016 BV # 427 Security Money/3825868 22,886
21/11/2016 Pay # 941 Cheque no. 6367421 1,816
Total Tk. 24,702

Bank: Premier Bank, A/c # 1077600002066, and Branch: Kwaran Bazar Branch

Debited by RkPL but not credited by Bank:

Date: Vr. # Particulars Amount (Tk.)

30/9/2018 JV -003510 Deposited in transit (Details not 1,334,780
mentioned)
Total Tk. 1,334,780

Management Comments:

Employee Advance:

We have reviewed employees advance as on 29 Feb 2020 and observed that total balance was near
about Tk 12 Lac. Some significant dues are found which are of left employees. We asked the respective
HR personnel he couldn’t answer specific man to man. Details significant long outstanding are given
below:

Date Employees Name Amount Ageing days Remarks

12-Jun-18 Abul Bashar Mossaddeque Ahmed 7,000 632 Yet to be final settlement
14-May-18 Abul Bashar Mossaddeque Ahmed 7,000 661 Yet to be final settlement
21-May-15 Abul Bashar Mossaddeque Ahmed 10,000 1750 Yet to be final settlement
2-Oct-19 Md.Hafizur Rahman Milky 4,000 155 Yet to be final settlement
30-Jun-19 Md. Mustafizur Rahman 7,115 249 Yet to be final settlement
14-May-18 Md. Shakhawat Hossain 7,000 661 Yet to be final settlement
4-Apr-19 Md. Shariful Islam 1,000 336 Yet to be final settlement
1-Mar-17 Akbar Ahmed Khan 19,800 1100 Yet to be final settlement
7-Dec-15 Ershadul Hasan 5,000 1550 Yet to be final settlement
15-Nov-15 Humayun Kabir Assist. Manager 20,000 1572 Yet to be final settlement
6-Jan-16 Md. MokhlesurRAhman 20,000 1520 Yet to be final settlement
17-Nov-15 Navil For Expenses 15,000 1570 Yet to be final settlement
15-Jun-17 ShakwatCtg 20,000 994 Yet to be final settlement
12-Jan-20 Shahed Mohammad Yousuf 112,500 53
2-Oct-18 Ahmed Noman 8,000 520 Yet to be final settlement
14-Jan-20 Mostofa Kamal 49,500 51
22-Jan-20 Abdullah Al Mamun 200,000 43
26-Jan-20 Abdullah Al Mamun 200,000 39
712,915

Management Comments:

Other Observations:

 Company name & address and amount in words is not mentioned in the supporting
bills. Paid seal is notput on the voucher (Ref: Vr # PAY -002196, Date-Dec 31, 2019, Vr.
Amount Tk. 17,035/-)
 Details information is not mentioned in the bill:
Lunch bill paid but for whom these lunch bill is paid, not mentioned on the bill. (Ref: Vr # PAY
-002028, Date-Nov 12, 2019, Amount Tk. 29,565/-)

Management Comments:

Annexure- A given in the next page

Anexure:

Vr: Pay-002183 , 29 DEC 2019, Vr Amount:4,80,557

Port rent by Ctg port
Total Demurrage
SL # L/ C # L/C Date B/L Number B/E # C/L Date Total Amount
From To
days rent
1 141819010361 22/9/19 SGSIN0000112860 1732935 8-Nov-19 12-Nov-19 13-Nov-19 2 1,171

2 141819010372 1/10/2019 THBKK0000044139 1732776 8-Nov-19 12-Nov-19 13-Nov-19 2 1,171

3 141819010372 1/10/2019 THBKK0000043805 1685802 29-Oct-19 2-Nov-19 6-Nov-19 5 2,927
4 141819010368 29/09/2019 SGSIN0000112445 1674750 29-Oct-19 2-Nov-19 2-Nov-19 1 585
5 141819010348 17/09/2019 THBKK0000043802 1674652 29-Oct-19 2-Nov-19 2-Nov-19 1 585
6 141819010341 11/9/2019 THBKK0000043445 1623735 20-Oct-19 24-Oct-19 26-Oct-19 3 1,754
7 141819010341 11/9/2019 THBKK0000042660 1586146 11-Oct-19 15-Oct-19 20-Oct-19 5 3,509
8 215319010234 8/8/2019 INBOM0000039684 1591977 11-Oct-19 15-Oct-19 16-Oct-19 2 1,170
9 141819010320 29/08/2019 SGSIN0000111238 1586123 9-Oct-19 13-Oct-19 16-Oct-19 4 2339
10 215319010198 9/7/2019 INBOM0000040029 1586179 10-Oct-19 15-Oct-19 16-Oct-19 2 1,170
11 215319010221 6/7/2019 THBKK0000042047 1530614 5-Oct-19 9-Oct-19 11-Oct-19 3 1754
12 215319010221 6/8/2019 THBKK0000042347 1530480 4-Oct-19 8-Oct-19 11-Oct-19 4 2,339
Total Tk 20,474

Pay-002025 ,Dated 12 Nov 2019, Vr amount 4,67,664/-

Port rent by Ctg port
Total Demurrage
SL # L/ C # L/C Date B/L Number B/E # C/L Date Total Amount
From To
days rent
1 215319010200 10-Jul-19 THBKK0000039595 1331652 15-Aug-19 19-Aug-19 27-Aug-19 9 17,567
2 215319010193 4-Jul-19 SGSIN0000108397 1326408 20-Aug-19 24-Aug-19 27-Aug-19 4 2,332
3 215319010193 4-Jul-19 SGSIN0000108386 1326569 20-Aug-19 24-Aug-19 27-Aug-19 4 2,332
4 215319010214 28-Jul-19 SHSIN0000109008 1402734 4-Sep-19 8-Sep-19 8-Sep-19 1 583
Total Tk. 22,814

Pay-002093 , dated :3 DEC 2019, Vr # 494, 721/-

Port rent by Ctg port
Total Demurrage
SL # L/ C # L/C Date B/L Number B/E # C/L Date Total
From To Amount
days rent
1 215319010228 4-Jul-19 THBKK0000040281 1334142 28-Aug-19 1-Sep-19 3-Sep-19 3 1,749
2 215319010200 10-Jul-19 THBKK0000040019 1335841 28-Aug-19 1-Sep-19 3-Sep-19 3 1,749
3 215319010222 6-Aug-19 SGSIN0000109600 1477785 19-Sep-19 23-Sep-19 23-Sep-19 1 583
4 215319010214 28-Jul-19 SGSIN0000109599 1479237 28-Jul-19 23-Sep-19 19-Sep-19 -3 2,332
5 215319010221 6-Aug-19 THBKK0000042051 1539454 5-Oct-19 9-Oct-19 9-Oct-19 1 585
6 215319010221 6-Aug-19 THBKK0000042053 1530447 5-Oct-19 9-Oct-19 9-Oct-19 1 585
7 215319010221 6-Aug-19 THBKK0000042049 1530424 5-Oct-19 9-Oct-19 9-Oct-19 1 585
Total Tk. 8,168