Home ›› 06 Nov 2021 ›› Stock
An independent audit has found huge inconsistencies in the Meghna Pet Industries’ annual financial statements for the year 2020-21.
The auditors even feared that the company, which has long been out of production, would not be able to return to production soon.
“The previous years’ losses indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern,” the auditors said in their qualified opinion.
The Meghna Pet showed a loan of Tk 14.85 crore in its annual statement, but the auditors failed to avail the updated bank statements to confirm the amount as those loan accounts were classified.
Besides, the company management did not present any disclosures on reconciliation of the statement of cash flows. They also did not recognize deferred tax expense or income in the statement of profit or loss and other comprehensive income, added the qualified opinion.
The auditors could not confirm the quantity and quality of stock and stores and value thereof and whether any adjustment is necessary which may have material effect on the financial statements.
Apart from that, the auditors did not find any reliable document to verify the amount – Tk 1.85 crore -- which the company claimed to have paid as advance against Soybean oil purchase.
Meghna Pet Industries Limited provides mineral water and markets edible oil as well as mineral water in Bangladesh.
The company has been out of production since 2000-01 due to ‘some adversities’ but is expecting to return to production as soon as possible.
It got listed with the capital market in 2001 and is now carrying out share trading under ‘Z’ category.
Despite the poor condition, the company’s share price has been in upward trend at the Dhaka Stock Exchange throughout the last three months.
Meghna Pet reported negative earnings per share of Tk 0.33 for the FY21.
