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BSEC has launched a special audit to investigate the financial irregularities of Intech Limited.
Intech Limited has projected the progress of the company year by year by showing additional assets and income but in reality most of them do not exist.
Due to a lack of accurate information on assets and income, this IT Company listed in the capital markets is yet to pay its dividend for 2021.
Among the 11 companies listed in the IT sector, Intech Limited is the only one which is yet to disclose any of its FY22 quarters financial statement.
Company Secretary Emran Hossain Niloy told the Business Post that since 2021 the company has basically made no progress.
After the new chairman took charge in June last year, discrepancies were found in the financial reports. As a result, no dividend was declared for 2021.
In this situation, many assets of the company have to be write-off in the new financial report.
The company’s total asset value has increased by nearly 47 per cent over the past five years. The asset value of the company in FY16 was Tk26.70 crores. In FY20, it increased to Tk39.17 crore.
Since the first quarter of the FY21, the company has not released any additional quarters. Between July-September, 20 companies had a total asset value of Tk39.46 crore. During this time, the company’s net profit decreased while its debt increased.
In the fiscal year FY20, the company had an annual turnover of Tk9.13 crore. In the first quarter of the FY21, the turnover fell to Tk2.48 crore.
The company secretary said after the resignation of the previous chairman ATM Mahbubul Alam he was not providing any information about the company. After informing the regulatory body, BSEC appointed a special auditor on 22 March this year.
According to BSEC Executive Director and spokesperson Rezaul Karim, some financial irregularities in the company have been unearthed. “I will be able to provide more information once the report from the special audit is submitted.”
In the meantime, due to the delay in BSEC’s special audit, Intech Limited is considering appointing its own auditor and announcing the dividend in the final report for the FY21.
Although the company belongs to the IT sector, the financial report for the period of the FY20 said the total income from fish feed and other sectors was Tk2.11 crore and Tk3.13 crore for the previous year.
Although the financial reports indicated a good income from the solar business, that too is now closed. Providing software and IT services is now the company’s main source of income.
The company last paid a 1 percent cash dividend to shareholders in the FY20. Besides, the company has short-term debt of Tk43 lakh and long-term debt of Tk3.84 crore.
The company has a total of Tk13.32 crore paid-up capital - 30.14 percent shares are held by sponsor-director directors, 10.53 percent by institutional investors and 59.23 percent by general investors.
Foreigners hold 0.10 percent stake as of 31 Jul 2022. This B category company was listed in the capital market in 2002.
