5 firms asked to explain financial anomalies | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Monday
June 05, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
MONDAY, JUNE 05, 2023
5 firms asked to explain financial anomalies

Stocks

Salah Uddin Mahmud
25 March, 2021, 09:30 pm
Last modified: 25 March, 2021, 09:56 pm

Related News

  • Bangladesh Chemical Industries Corporation seeks to pull out of joint venture with Saudi Arabia over anomalies
  • Aziz Pipes: Once gold trophy winner now at last gasp
  • Aziz Pipes declares to resume production after shares soar 46% in nine days
  • 4 listed sick firms must submit comeback plans
  • 9 state-owned firms post losses even after economy reopening

5 firms asked to explain financial anomalies

BSEC last week issued letters asking the firms to submit their explanations within seven working days

Salah Uddin Mahmud
25 March, 2021, 09:30 pm
Last modified: 25 March, 2021, 09:56 pm
Bangladesh Security Exchange Commission at Agargaon. File Photo
Bangladesh Security Exchange Commission at Agargaon. File Photo

The stock market regulator has asked five companies to explain anomalies in their financial statements for the year ending on 30 June 2020.

The companies are Bangladesh Building Systems, Eastern Cables, Bangladesh Autocars, National Tubes, and Aziz Pipes.

The Bangladesh Securities and Exchange Commission (BSEC) last week issued letters asking the firms to submit their explanations to the regulator within seven working days.

Bangladesh Building Systems

The BSEC has observed that the company took full contract price as the revenue which is non-compliance as per international financial reporting standards. As a result, the company did not keep any deferred income in the financial statements.

It did not consider obsolete and damaged items during valuation. The receivables Tk26.39 crore was doubtful out of a total of Tk93.56 crore in the financial statement, which is not in line with laws. No provision has been made against the aforesaid doubtful amount.

The commission deems that the company has overstated its revenue and inventories.

Eastern Cables Ltd

The regulator noticed that the company has made a provision of Tk34.74 lakh for tax, but the actual provision will be Tk3.43 crore for the year that ended on 30 June 2020.

As a result, the company's net loss has been understated, as well as earnings per share, was the extent.

The calculation and recognition of deferred tax have not been properly done by the company as per laws.

Bangladesh Autocars

The company said it has refunded the claim of Tk12.64 lakh to the National Board of Authority of 2007-2008, but the taxation authority said it has not responded to the claim. This long outstanding should be written off from the face of the statement of the profit or loss, observed the commission.

National Tubes

The commission has observed that the company, in its financial statements for the last fiscal year, mentioned Tk30.54 crore as advance tax. But, finally, its income tax stood at Tk6.10 crore.

The commission has now raised questions about the rest of the advance tax as there was no mention of the amount in the financial statements. 

The BSEC observed that the company conducted a revaluation of its property, plant, and equipment (PPE) on 17 April 2012 and recognised deferred tax during this year on revaluation gain on land.

However, it did not recognise deferred tax on the revaluation gain of other PPE, which is not in line with the international accounting standard.

Aziz Pipes Limited

The regulator has noticed that the company has not made payment of Workers' Profit Participation Fund (WPPF) as per labour laws. Moreover, interest was not charged against such an unpaid amount of Tk6.13 lakh.

The auditor could not verify the value of inventory amounting to Tk11.43 crore as the stock register was not available.

The company did not reevaluate its non-current assets for the last ten years, which is non-compliance.

Besides, the company's balance of payments for expenses has increased by 1,507.19% for this year, which involves a significant audit risk, believes the regulator.

Economy / Top News

Financial Anomaly / Bangladesh Building Systems / Eastern Cables. / Bangladesh Autocars / National Tubes / Aziz Pipes

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • An anatomy of power crisis
    An anatomy of power crisis
  • Photo: PID
    Fuel deals signed with Qatar and Oman, steps taken to buy coal: PM
  • FILE PHOTO: General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
    Saudi pledges big oil cuts in July as OPEC+ extends deal into 2024

MOST VIEWED

  • General investors allowed to buy Treasury bonds
    General investors allowed to buy Treasury bonds
  • Photo: Collected
    Intraco Refueling leads the turnover chart
  • Photo: TBS
    DSE turnover jumps over 25% on Sunday
  • Representational Photo: TBS
    Dhaka bourse turnover hits 7-month high
  • Which listed firms to benefit or suffer from budget
    Which listed firms to benefit or suffer from budget
  • Representational image. Photo: Mumit M
    HC keeps Tk30 lakh as minimum portfolio size for investing in SME stocks

Related News

  • Bangladesh Chemical Industries Corporation seeks to pull out of joint venture with Saudi Arabia over anomalies
  • Aziz Pipes: Once gold trophy winner now at last gasp
  • Aziz Pipes declares to resume production after shares soar 46% in nine days
  • 4 listed sick firms must submit comeback plans
  • 9 state-owned firms post losses even after economy reopening

Features

GarbageMan, launched in 2017, offers a modern, scientific and efficient approach towards waste management. Photo: Courtesy

Beating plastic pollution: Local startups build businesses around waste

41m | Panorama
New battleground of global powers

New battleground of global powers

15h | Panorama
Understanding the Indo-Pacific: A case of two rivalries

Understanding the Indo-Pacific: A case of two rivalries

15h | Panorama
US and its allies in the Ind-Pacific

US and its allies in the Ind-Pacific

15h | Panorama

More Videos from TBS

The fitness industry of Bangladesh tries to reshape from corona effect

The fitness industry of Bangladesh tries to reshape from corona effect

12h | TBS Stories
Ukraine ready to launch counteroffensive

Ukraine ready to launch counteroffensive

16h | TBS World
Mughal Emperor Shah Jahan's food on the streets of Dhaka

Mughal Emperor Shah Jahan's food on the streets of Dhaka

21h | TBS Food
This time Kawali was organized by open library

This time Kawali was organized by open library

1d | TBS Entertainment

Most Read

1
bKash denied permission to pay $4.10 lakh for Argentina football partnership
Banking

bKash denied permission to pay $4.10 lakh for Argentina football partnership

2
Boeing offers Biman its latest 787-10 Dreamliner
Bangladesh

Boeing offers Biman its latest 787-10 Dreamliner

3
Photo: Noor-A-Alam/TBS
Splash

The Night Dhaka did NOT vibe with Anuv Jain

4
Country's first floating solar power plant connected to national grid
Energy

Country's first floating solar power plant connected to national grid

5
File Photo: Mohammad Minhaj Uddin/TBS
Bangladesh

Low-cost housing planned for 4 lakh Bangabandhu Shilpa Nagar workers

6
Photo: TBS
Environment

Green space in Dhaka North declines 66% in 3 decades: Study

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]