Anlima Yarn faces survival threat as liabilities soar, auditor cautions

Anlima Yarn Dyeing Ltd. is at risk of going out of business, warned its auditor.

Its liabilities are double the value of its assets that can be converted into cash within a year to clear the obligations due within the same period, according to the latest financial statements for the first quarter of FY26.

The yarn dyeing company is currently unable to continue production fully due to a gas supply shortage and low gas pressure, which in turn is making it impossible to generate enough revenue to recover operating costs.

The company also cannot increase product prices or supply volume, fearing fierce competition in the international market.

Anlima Yarn said international and national political tensions were preventing it from securing enough work orders.

On top of that, the company has failed to recover trade receivables.

It reported hefty losses for the two financial years to FY25. The aggregate loss was Tk 53.42 million, surpassing what it earned in earlier years. Hence, retained earnings went negative - Tk 99 million.

This is the backdrop against which the auditor said the company may go out of business if its financial misery persists.

The auditor also pointed out that the company had been unable to recover Tk 5.76 million in accounts receivable for a long time.

After the disclosure, the share price of the company fell 4.04 per cent to Tk 19 per share on the Dhaka Stock Exchange on Tuesday.

Listed in 1997, Anlima Yarn is a strategic unit of Anlima Group. The group has textile, yarn dyeing, sewing thread, real estate, and power generation businesses.

farhan.fardaus@gmail.com