Sonali Life runs operations at unregistered office

Sonali Life Insurance, a listed insurer, has been continuing commercial operations in an unregistered office, the company’s auditor after reviewing its financials for the year 2022 said.

As per an auditor’s ‘emphasis of matter’ posted on the DSE website Wednesday, the listed company has purchased office spaces in different floors in the building its office is currently located, but no floors is yet to be registered in the company name through transferred deed.

An emphasis of matter is generally outlined in a company’s financial report, when an auditor intends to seek attention over a serious issue which should be known to the regulator as well as the company’s investors.

Rafe-uz-Zaman, company secretary of Sonali Life, did not respond to a phone call for a comment over the issue.

In the first quarter (January-March) of 2023, the company’s fixed assets value was shown at Tk 53.02 crore, which was Tk 16.13 crore in the same quarter last year.

Sonali Life Insurance posted a 52.92 per cent year-on-year life fund growth in the first quarter (January to March) of the calendar year 2023.

The insurer’s life insurance fund stood at Tk 62.17 crore in January-June 2023, which was Tk 43.93 crore in the same period one year ago.  

With a paid-up capital of Tk 47.5 crore, the company has an authorised capital of Tk 100 crore, with total number of securities at 4.75 crore.

Sponsors and directors jointly owned a 54.85 per cent stake in the company, while institutional investors held 6.26 per cent and the general public 38.89 per cent as on June 30 this year.

Sonali Life is the first listed company whose shares were allotted through a pro-rata basis. The life insurer raised Tk 19 crore from the capital market by issuing 1.9 crore ordinary shares under the fixed price method in 2021.

The company’s IPO shares were 36.45 times oversubscribed by general investors who had submitted applications through the electronic subscription system.

The company used the IPO fund by investing in government treasury bonds, fixed deposit receipt (FDR) and in the stock market.

Sonali Life shares closed at Tk 88.60 per share on the DSE on Wednesday.