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Intech Limited drowns in losses

Staff Correspondent
31 Mar 2023 00:00:00 | Update: 31 Mar 2023 00:09:59
Intech Limited drowns in losses

Intech Ltd, a publicly traded IT company, reported a net loss of Tk 68.9 lakh for January to March, 2022, while during the same period previous year, the earnings was Tk 31.3 lakh.

The company has engaged chartered accountant firm G Kibria & Co to conduct a special audit. The audit revealed that most of the assets disclosed by the company were fictitious, which had a domino effect on the financials of the first, second, and third quarters of the current fiscal.

The company’s EPS was negative Tk 0.22 for January-March 2022, compared to Tk 0.01 for the same period of the previous year.

Similarly, the company’s EPS was negative Tk 0.54 for July 2021-March 2022, compared to Tk 0.19 for July 2020-March 2021.

The net asset value (NAV) per share also declined from Tk 1.67 as on June 30, 2021 to Tk 1.13 as of March 31, 2022.

Intech had leased out 30 acres of its idle land in Mymensingh to alleviate its liquidity crisis which has been occurring for a long time. The company had earlier sought bank loans to expand its business, but to no avail. It had also borrowed Tk 35 lakh from 10 directors. Despite these efforts, the company has been struggling to stay afloat.

Due to the company’s poor performance, it did not declare any dividends for the fiscal year 2020-21. The company’s founder, ATM Mahbubul Alam, and two directors, Shadika Mahbub and Anisuzzaman, resigned from their respective posts. However, some people involved in S Alam Group and KDS Group along with entrepreneurs from the IT sector, joined the Intech board by buying shares from the secondary market. The board was later restructured under the new management in 2021.

According to DSE data, the company made a profit of Tk 46 lakh in FY20. However, in FY21, it suffered a loss of Tk 8.61 crore while other IT firms in the country were thriving. Even after seven months since the end of the last fiscal, the company has failed to publish its financial reports for FY22.