Auditors see incomplete information in Central Pharmaceuticals

The auditor has issued 'qualified' status on Central Pharmaceuticals for incomplete information found in the company's audit report for the year ended on June 30, 2018.

According to basis of qualified opinion, the company's gross assets and gross liabilities are overstated as advance tax and liabilities for tax remain 'unadjusted' in the accounts.

"Provision for interest on short term loan was not made in the accounts of the Central Pharmaceuticals," said the basis of qualified opinion posted on DSE website.

It also said provision for bad debt was not made in the accounts.

The company's long term loan has not been properly segregated into current portion and long term portion.

"As a result, current liabilities and non-current liabilities were not properly reflected in the financial statements," said the basis of the auditor's qualified opinion.

The auditor also said the bank accounts of the company have been frozen by the tax authority demanding tax liability worth above Tk 93.08 million.

"Advance tax above Tk 253.02 million and liabilities for tax above Tk 263.21 million remain unadjusted in the accounts. As a result, gross assets and gross liabilities are overstated," the auditor said.

Central Pharmaceuticals, presently an 'A' category, was listed with the stock exchanges in 2013.

The board of directors has recommended 5.0 per cent stock dividend for the year ended on June 30, 2018.

The company's sponsor-directors hold 25.89 per cent shares, institutes 13.42 per cent, and general public 60.69 per cent as of October 31, 2018.

The company's share price closed at Tk 15.20 each on Thursday with a marginal loss of 5.56 per cent or Tk 0.90 on the Dhaka Stock Exchange (DSE).

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