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The market watchdog decided to investigate the financial strength of Silva Pharmaceuticals as it has been incurring losses for one and a half years.
The investigators will inspect the financial condition, assets, and business operations of the pharmaceutical company.
The Bangladesh Securities and Exchange Commission (BSEC) has formed a three-member enquiry committee and outlined 15 specific terms of reference (TOR) for the investigation. The committee has been instructed to submit its report within 60 days from the date of issuance of the order.
Last year, the BSEC opened an investigation against the company to look into the IPO fund usage. It has not yet disclosed the probe findings.
Now, it looks to dig further into the company.
The managing director of Silva Pharmaceuticals Limited has already been notified about the investigation.
The probe committee will review financial statements of Silva Pharmaceuticals Limited over the five years through June 2024.
It will also perform verification and confirmation of asset balances, including land, buildings and decorations, plants and machinery, capital work-in-progress, trade and other receivables, inventory and bank balances, cash, and cash equivalents.
The committee will also perform verification of lease liabilities (current and non-current), short-term finance, trade and other payables, and provisions for expenses.
Accounting policies, estimations, and disclosures will also be evaluated to see if the company complied with the International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA)
Silva Pharmaceuticals listed on the DSE in FY18. It declared a dividend of 11 per cent (6 per cent cash and 5 per cent bonus shares) for FY19.
Then its dividend payment declined gradually after FY19.
In FY24, it showed a loss of Tk 64.48 million and declared a 1 per cent cash dividend. The company continued to be in the red in the first six months of FY25 with a loss of Tk 59 million.
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