The Bangladesh Securities and Exchange Commission (BSEC) has decided to appoint a special auditor to review recent financial statements of the poorly performing IT firm Intech Limited after the Intech chairman brought allegations of fund embezzlement against the former chairman.
Sources at BSEC said Barrister Khandaker Reza-E-Raquib, current chairman of the company, complained to the commission against former chairman ATM Mahbubul Alam that he used the company's assets for his family interest. The amount of money embezzled can be determined after the audit is complete.
A member of the board of directors of the company, seeking anonymity, said he also observed some irregularities in the finances of the company.
The stock market regulator has already issued letters to panel auditors for quotations in this regard.
BSEC Commissioner Dr Sheikh Shamsuddin Ahmed said the commission wants to review the last three years' financial statement of the company for the interest of investors, and take legal actions if the allegations are proved true.
The IT company, which got listed on the stock market in 2002, mainly provides internet connectivity services to corporate entities and individual clients. It is also involved in the software business.
It started a fish farming business in 2014 after not being successful in the IT business. It has a fish farming project on 40 acres of land in Tarakanda of Mymensingh. It also invested in building resorts but the business did not take off.
In June 2020, the securities regulator fined the company for violating securities rules by investing in fisheries and resorts.
In November last year, the company restructured its board by electing a new chairman and a vice-chairman to revive its business.
People related to Chattogram-based conglomerate S Alam Group and KDS Group joined the Intech board as part of complying with the regulatory provision of jointly holding 30% of the company's shares by the shareholder directors.
In the fiscal 2019-20, the revenue of the company was Tk9.13 crore, which was 23% less than that in the previous year.
After paying taxes, the company posted a net profit of Tk46.28 lakh for the current financial year, which is 62% less than that in the previous year.
In the 2018-19 financial year, its net profit was Tk1.23 crore.
Besides, in the third quarter of the fiscal 2020-21, its earnings per share (EPS) fell by 75% to Tk0.01. At the end of the first nine months of the last fiscal year, its EPS stood at Tk0.19.
On Sunday, its share price fell by 2.06% to Tk28.50 each at the Dhaka Stock Exchange.
Currently, the new board holds 30.14% of shares of the company while institutional investors have 10.56%, foreign investors 0.07%, and general investors 59.23%.