April 12, 2024 8:15 pm
Home Stock Market Sonargaon Textiles gives false info on product stocks

Sonargaon Textiles gives false info on product stocks

by fstcap

Listed company Sonargaon Textiles has shown product stocks of around Tk 51 crore in its annual report, but the auditor has questioned the authenticity of the information.

The auditor said the company had shown stocks of Tk 50.95 crore as financials, which could not be verified on its site. Even the alternative could not be verified in any way. 

Source: dailymessenger

 

This is due to the late appointment of auditors. Because of this, false information may have been given about product stocks, the auditor said.

The Sonargaon Textiles authorities have not transferred the distributed dividend to the Capital Market Stabilisation Fund as per the instructions of the capital market regulatory body Bangladesh Securities and Exchange Commission (BSEC). Even the dividend was not deposited separately.

The company has an undistributed dividend of Tk 15 lakh, the auditor said. Even after remaining undistributed for more than three years, the company did not transfer it to the Capital Market Stabilisation Fund as per the BSEC instructions.

According to Section 232 of the Bangladesh Labour Act 2006, it is mandatory for all companies to constitute a Workers’ Profit Participation Fund (WPPF) and distribute it among their workers. Even though Sonargaon Textiles’ WPPF has Tk 21 lakh, the company is depriving its workers by not distributing the money.

Meanwhile, the company is unable to repay its loans due to the decline in business. As a result, Bangladesh Development Bank Limited has filed a case in the Artha Rin Adalat against it. Rupali Bank is also in the process of filing a lawsuit. The company is trying to negotiate with the bank.

The business of Sonargaon Textiles has been facing a downturn for several years. It has been incurring losses since the financial year 2019-20, except in 2021-22. 

The paid-up capital of Sonargaon Textiles, which was listed in the stock market back in 1995, is Tk 26.47 crore. 55.55 per cent of the company’s ownership is in the hands of different categories of investors in the capital market.

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