The stock market regulator has asked state-owned National Tubes Ltd to explain why it did not clear the status of a Tk24.43 crore refundable advance tax in its financial statements.
The company will have to clarify this and provide supporting documentation within seven working days.
The Bangladesh Securities and Exchange Commission (BSEC) 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.
Further, the company reported that the PF contribution and PF loan amounting to Tk1.64 crore and Tk0.78 crore, respectively, has not been transferred to the PF trustee account.
When contacted on his phone, Company Secretary Md Abul Kalam Azad declined to comment in this regard.
Despite the Covid-19 pandemic, the company said its profits rose in FY20 because of a 30% increase in API pipe prices.
However, in the first six months of FY21, when the situation was getting back to normal and businesses began to resume, it posted losses as sales decreased by 19%.
Established in 1964, National Tubes is the first and the largest pipe manufacturing company in Bangladesh. It is also the only government-owned steel pipe producer.
In 1972, it was nationalised and is now running under the Bangladesh Steel and Engineering Corporation.
Its installed capacity is around 39,000 tonnes of API/MS and GI pipes, per year, while its galvanising capacity is a maximum of eight tonnes per hour.
In the July-December period of FY21, the revenue of the company was Tk14.98 crore, and its net loss was Tk19 lakh.