C & A Textiles shows expenses as assets: Auditor
2021 merger between it and Alif Industries is yet to be executed. Investors have to wait to see the outcome
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The auditor of C & A Textiles Limited expressed concern as the company showed expenses amounting to Tk 32.22 million as non-current assets in its balance sheet.
That violated the standards of accounting.
C & A Textiles should have been abolished by now as there was a merger between it and Alif Industries in 2021.
However, Mohammad Hanif, chief financial officer (CFO) of Alif Industries, the company that acquired C & A Textiles, said they were yet to submit an amalgamation scheme to the High Court.
The amalgamation will be complete only after the court approves the scheme.
Then all assets and liabilities of C & A Textiles will be taken over by Alif Industries.
Asked if the merger will add any value to Alif Industries, the CFO avoided giving any direct answer.
He said Alif Industries would undergo a series of amalgamation, which would create a positive outcome for stock investors.
Last month, Alif Industries declared two other takeover deals.
C & A Textiles has been out of production for long. Its liabilities are more than its assets.
The stock traded at Tk 7.7 per share on Sunday, 2.53 per cent lower than the previous day.