Observations on the Financial Statement

Of
Amulet Pharmaceuticals Ltd.
For the period ended December 31, 2015

1. Auditor’s Report is not in the correct format as per BSA-700. Correct format of auditor’s
Report are shown in annexure-A.
2. Statement of Comprehensive Income should be renamed as Statement of Profit or Loss and
other Comprehensive Income as per update format of BAS-1: “Presentation of Financial
Statements”.
3. It is appropriate rename the note Cash and Bank Balances as Cash and Cash Equivalents
(note no: 8.00).
4. It is appropriate to attach a schedule showing the Classification of Shareholder by holding
with the note Share Capital (Note no: 9.00).
5. It is appropriate to mention the number of note with the clause “The accounting policies
and other notes form an integral part of the financial statements” (ref. page no. 2, 3 and
5).
6. Though there is no note reference in The Statement of Changes in Equity the clause “The
accounting policies and other notes form an integral part of the financial statements”
should be omitted from The Statement of Changes in Equity (ref. page no. 4)
7. Though this is a periodical report (6 months report) year should be renamed as period (ref.
page no. 4).
8. Though the company (Amulet Pharmaceuticals Ltd.) recognize Deferred Tax for this reason
while calculating Provision for Tax (Current Tax) the Deferred Tax amount should be
adjusted from Current Tax which is overstated by taka 1,085,093 for the period ended
December 31, 2015. Same impact should be considered while calculating Provision for Tax
(Current Tax) for the period ended December 31, 2014 which is overstated by taka 1,396,692
(ref. note no. 24.00).
9. Due to change in Provision for Tax (Current Tax) for the period ended December 31, 2015
Net profit after Tax will be re-stated and Earnings per share will be increased by taka .04.
10.Due to change in Provision for Tax (Current Tax) for the period ended December 31, 2014
Net profit after Tax will be re-stated and Earnings per share will be increased by taka .1397.
11.Adjusted Earnings per share should be considered for the period ended December 31, 2014
under note 25.00.
12.Deferred Tax Calculation can’t be confirmed due to shortage of information which should be
re-checked.
13.List and aging of Sundry Creditors should be mentioned under note 15.00.
14.It is appropriate to attach a sub note with mentioning details flow of Workers' Profit
Participation Fund (WPPF) under note Liabilities for Expenses (ref. note no. 16.00).
15.It is appropriate to attach a sub note with mentioning details of Provision for Tax under note
Liabilities for Expenses (ref. note no. 16.00). Provision for Tax will be re-stated due to change
in Current Tax.
16.VAT Calculation can’t be confirmed due to shortage of information which should be re-
checked (ref. note no. 17.00).
17.No expense is considered for Audit fee and Electricity Bill for the period ended December 31,
2014. Explanation needed for not considering as expenses.
18.As per note named Related Party Transactions (note no. 33.00) Total MD and CEO
remuneration is taka 955,000 which should be mentioned separately under note named
Administrative Expenses (ref. note no. 19.00).
19.Disclosures mentioning payment/perquisites to Directors and Officers should be attached
under the note Administrative Expenses as per requirement of Bangladesh Securities and
Exchange Rules 1987.
20.Following name of BASs should be renamed as per update BFRS under note Application of
Standards (note no. 2.11).
 BAS- 7: Statements of Cash Flows
 BAS- 10: Events after the Reporting Period
 BAS- 18: Revenues
 BAS- 23: Borrowing Cost
 Annexure-A
Auditors’ Report
To The Shareholders of
Amulet Pharmaceuticals Ltd.
We have audited the accompanying financial statements of Amulet Pharmaceuticals Ltd., which comprise the
Statement of Financial Position as at 31 December, 2015, along with the Statement of Profit or Loss and other
Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the period then ended,
and a summary of significant accounting policies and other explanatory notes.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with Bangladesh Financial Reporting Standards (BFRS), the Companies Act 1994, Bangladesh Securities &
Exchange Rules 1987 and other applicable laws and regulations. This responsibility includes: designing,
implementing and maintaining internal control relevant to the preparation and fair presentation of financial
statements that are free of material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purposes of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements prepared in accordance with Bangladesh Financial Reporting Standards
(BFRS), give a true and fair view of the state of the Company’s affairs as at 31 December, 2015 and of the results of
its operations and its cash flows for the period then ended and comply with the Companies Act 1994, Bangladesh
Securities & Exchange Rules 1987 and other applicable laws and regulations.
Further to our opinion in the above paragraph, we state that:
a) 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;
b) In our opinion, the Company has kept proper books of account as required by law so far as it appeared
from our examination of those books;
c) The Company’s Statement of Financial Position, Statement of Profit or Loss and other Comprehensive
Income, Statement of Cash Flows and its Statement in Changes in Equity dealt with by the report are in
agreement with the books of account and returns; and
d) The expenditure incurred was for the purposes of the Company’s business.

ZOHA ZAMAN KABIR RASHID & CO.

Chartered Accountants