The financial report of miscellaneous sector company Imam Button Industries Ltd – renamed Hami Industries PLC after March 2024 – shows Tk 10 lakh received as floor space rent advance, but the auditor said the company does not actually have any investment property.
The auditor raised this objection after reviewing the period ending on December 31, 2023.
A qualified opinion, typical after a professional audit, indicates that the information provided may be limited in scope or that the company’s adherence to generally accepted accounting principles may be questionable.
According to the auditor, Tk 10 lakh advance received against floor space rent are stated to Note no 25 “Advance received” of the notes to the financial statements, but the company does not have any investment property as per IAS 40.
IAS 40 applies to the accounting for property (land and/or buildings) held to earn rentals or for capital appreciation (or both).
When Company Secretary Jamil Hossain was called on phone to inquire about this matter, he declined to make any comments on the matter.
The auditor reviewed the company’s financial statement for 2023, and stated that the company reported "Inventories" of the financial statements for relevant details at Tk 1.02 crore until December 31, 2023.
Meanwhile, the Livestock Note of the financial statements for relevant details stood at Tk 6.04 lakh.
The auditor said they get a certificate and details list from the management regarding these inventories, but do not physically verify inventories due to having an appointed postdate of reporting period.
As per the financial statement of 2023, the company has an unclaimed dividend of Tk 23.78 lakh. According to BSEC's 14 January 2021 instructions, this money should be deposited in the specified fund within three years. But it has not been deposited yet.
Auditor says any dividend remains unpaid or unclaimed or unsettled including accrued interest (after adjustment of bank charge, if any) thereon for a period of 3 (three) years from the date of declaration or approval or record date, as the case may be, shall be transferred by the issuer to the Fund as directed or prescribed by the Commission.
But the company reported Unpaid Dividend at Tk 23.78 lakh of the notes to the financial statements; this amount is not maintained in a separate bank account, Auditor said.
“Cash at Bank” to Note no 11.01 of the notes to the financial statements are stated at Tk 7,75,911, which is comprised by 12 bank accounts; out of this balance except Agrani Bank Ltd the balance of 10 accounts carried forward from last audited accounts [30 June 2023]. "
Auditor said they could not verify the balance with bank statements and bank balance confirmation.
A subsidiary of Chattogram-based Imam Group, the company changed its name to Hami Industries PLC with the trade code "HAMI" on 24 March. Its sector was also changed to "Miscellaneous" instead of "Pharmaceuticals and Chemicals".
Imam Button Industries was listed on the bourse in 1996. It is a Z category company.
In January 2020, Imam Group's owner Mohammad Ali and his wife Jebunnesa Akter fled to the United Arab Emirates after arrest warrants in 55 cases, filed by the banks and financial institutions concerned for defaulting on loans.
