Kay & Que (Bangladesh) Ltd, a publicly traded company, has questioned the net asset value (NAV) in its latest financial report for the period 2022-23, published by an auditor.
The company claims that the NAV approved in its board meeting does not match the auditor-published financial report.
This issue came to light through the auditor’s qualified opinion, published on the Dhaka Stock Exchange (DSE) website on Thursday following a review of Kay & Que (Bangladesh) Ltd’s financial report for the year ending on June 30, 2023.
As a result, it has been mentioned that the net asset value per share (NAVPS) data has also averaged.
A qualified opinion is a statement issued after an audit, completed by a professional auditor. This suggests that the information provided is limited in scope, or the company being audited has not maintained generally accepted accounting principles.
The board meeting of the Kay & Que (Bangladesh) – held on 30 October, 2023 – has approved the financial statements of the company, and issued price sensitive information on the same day.
According to the auditor, after a board meeting, the company approved Net Asset Value (NAV) of Tk 39.18 crore and Net Asset Value per Share (NAVPS) Tk 76.13. But as per the Audited Financial Statement, the company’s NAV is Tk 39.34 crore and Net Asset Value per Share (NAVPS) is Tk 76.43.
The auditor added that the company has reported Tk 48.79 crore as property, plant, and equipment. But the disclosed amount could not be verified due to the absence of an appropriate fixed asset management system. This is a violation of the financial statement rule.
They questioned Kay & Que’s (Bangladesh) investment in shares of Central Depository Bangladesh Ltd (CDBL). The auditor says the company has shown an investment of Tk 2.23 crore in 571,182 ordinary shares of CDBL valued at Tk 39.14 per share.
As per the previous audited financial statement, the value of the shares was Tk 1.06 crore. As of June 30, 2023, investment in CDBL shares had increased by Tk 1.17 crore, which is shown as a fair value reserve.
CDBL shares are non-tradable. So the auditor was unable to verify the figure because valuation performance was not performed except net asset value (NAV) per share of CDBL in its statement of financial position as of June 30, 2022.
After paying tax, in the July-September period of FY24, Kay & Que net profits stood at Tk 4.11 lakh, and the earnings per share (EPS) stood at Tk 0.06, which is lower than Tk 0.14 in the same period of the previous year.
The company’s net asset value (NAV) per share was Tk 76.19 as of September 30, 2023, and Tk 73.96 as of September 30, 2022.
When Kay & Que was founded in 1984, it had just one functioning unit that made carbon rods. According to its 2021-22 annual report, the factory underwent extensive maintenance in 2012 as a result of a decline in production.
The carbon rod factory’s original supplier closed, making it impossible for the unit to obtain spare parts from them or from other suppliers. The management was forced to close it because the carbon rod was becoming worse in quality.
Kay & Que opened a coal tar unit in 2002. But due to the drastic fall of demand in the local market, its operation was terminated, said the financial report. It later began producing pesticides, but the business was also discontinued later.
In 2009, a CNG unit was opened. It was operational up to 2015. The company’s CNG filling and re-fueling station, however, has been operational, said the annual report. On Thursday, the company’s shares traded at Tk 200.60 per share on the Dhaka Stock Exchange.
Source: businesspostbd
KAY & QUE kay&que
