Loading...
The Financial Express

Auditor rebukes Sonali Aansh for overstating income, asset

| Updated: December 03, 2022 09:14:20


Auditor rebukes Sonali Aansh for overstating income, asset

Sonali Aansh Industries committed exaggerations in its citing of income and assets volume for the fiscal 2021-22 ended in June, according to the auditor.

A revaluation of assets was carried out in the FY07, and the company has not estimated any depreciation on the additional value resulting from revaluation of fixed assets, the auditor said in a qualified opinion on the financial statements.

"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, earnings per share and the NAV per share are also overstated to the same extent. Moreover, no revaluation has been undertaken in the last 15 years.

The company reported revaluation of fixed assets in the FY07, which included land and building worth about Tk 504.31 million.

It also recorded an amount of Tk 121.08 million, which the auditor mentioned as uncollectible for more than five years.

"The company is very unlikely to recover the amounts in full."

Had adequate provisions been made for the above, the EPS and NAV for the fiscal 2021-22 would have been adversely affected, said the auditor.

Depreciation must be calculated on the fixed asset value as per the International Accounting Standard 16.

The official concerned of Sonali Aansh Industries refused to make any comment on the auditor's opinion.

Sonali Aansh Industries, presently an 'A' category company, was listed with the stock exchange in 1985.

The company's sponsor-directors hold 50.78 per cent shares, institutes 5.63 per cent and general public 43.59 per cent at the end of October.

The stock closed at Tk 903.6 on November 6 and plunged to Tk 681 on November 22.

Following an appreciation, the share price closed at Tk 785.30 each on Wednesday.

[email protected]


Share if you like