Friday, May 03, 2024
Sonali Aansh Industries Limited, a publicly listed jute products exporter, has overstated the financial statement for FY23 with Tk 28.20 crore remaining uncollected for the last five years, the auditor said.
The auditor also said that in the financial statement for the same fiscal year, the same revaluation of assets that the company had made in FY2006-07 had been mentioned in FY23. Thus it did not give the accurate information about the company's net assets value.
The auditor has recently provided the information on the DSE website after reviewing the company's financial statement for FY2022-23.
A qualified opinion is a statement issued after an audit is completed by a professional auditor, suggesting that the information provided is limited in scope or that the company being edited has not maintained generally accepted accounting principles.
According to the auditor, the company in the financial statement for FY23 reports that an amount of Tk 28.20 crore--Tk 27.64 crore from foreign company and Tk 56 lakh from local company--has remained uncollected for more than five years.
“In our opinion, the company is very unlikely to recover the amounts in full. Had adequate provisions been made for the above, the Earnings Per Share (EPS) for the year 2022-23 and net asset value (NAV) as of 30 June 2023 would have been adversely affected to that extent.”
The auditor said the company reports revaluation of fixed assets which includes land, building, plant and machinery etc of Tk 50.43 crore. The revaluation was carried out in the fiscal year 2006-07.
However, the company has not charged any depreciation on the additional value resulting from revaluation of fixed assets such as property, plant & equipment.
As a consequence, the net assets value of the company remained overstated to the extent of chargeable depreciation; the net profit after tax also remained overstated by the same figure over the years. Hence, the Earnings Per Share (EPS), and the Net Assets Value (NAV) per share are also overstated to the same extent. Moreover, no revaluation has been undertaken since 2006-07, it added.
In the financial statement, the company reports an amount of Tk 4.82 crore as receivable against export subsidy on the basis provision made during the year after adjusting the amount of Tk 8.15 crore realized during the year.
In financial statement note No-27, the company said export subsidy of Tk 8.16 crore has been shown as non-operating income for the year under audit. The auditor said that the company has yet to receive last year's outstanding amount as well as current year's provision.
The auditor said on the note that the financial statement for FY23, the company reports deferred tax liability of Tk 18 lakh, while calculating the deferred tax liability, the revaluation surplus of property, plant & Equipment (non-depreciable part), which amounts to Tk 3.22 crore has not been accounted for, a non-compliance of IAS 12 income taxes.
As per which, deferred taxes arise from revalues non-depreciable assets as a reflection of the tax consequences of selling asset. As a result, the deferred tax liability is understated, it added.
Sonali Aansh’s stock closed 4.42 per cent lower at Tk 616.60 on Thursday on the Dhaka Stock Exchange (DSE) compared to the previous trading session.
