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IT Company Intech Ltd has reported Tk 16.91 million losses in nine months till March 2022 as against a profit of Tk 5.95 million in the same period of the year before as per the special audit report.
The company published financial statements of three-quarters on Thursday - July-September 2021, October-December 2021 and January-March 2022. All three quarters suffered losses.
Despite losses, the company's share price rose 0.73 per cent to close at Tk 27.70 on Thursday. Its stock price also jumped 32 per cent in a week.
There was an allegation against the former chairman of the company ATM Mahbubul Alam that he embezzled the company's funds and used company assets for his family's gain.
Based on the allegation, the Bangladesh Securities and Exchange Commission last year appointed a special auditor for the company for reviewing its financial statements for the last three years.
The company said on Thursday that the special auditor G Kibria & Co., Chartered Accountants conduct a special audit of the company regarding significant irregularities and discrepancies in respect of the company's assets and financial transactions.
Most of the assets of the company disclosed were fictitious, which was adjusted with the retained earnings of the fiscal year (FY) 2020-21 and it has a cumulative effect on these quarters, the company said in a disclosure on Thursday.
Last month the company also decided to lease out its idle 30 acres of land in Mymensingh in order to mitigate the liquidity crisis the company has been going through for a long time.
To expand its business, the company had earlier sought bank loans, but to no avail.
The land is set to lease out to Biswas Agro Fisheries till February 2028, as Intech has no plan to restart its fish farming business for at least another five years.
This lease agreement will bring Intech Tk 2.10 million annually - Tk 70,000 from each acre.
Earlier Company Secretary Md Emran Hossain Niloy said that Intech once used the land in Mymensingh to run a fish farm there and cultivate a variety of fishes.
Emran Hossain said the company is in need of fresh funds so that it can expand its existing ISP business and also develop its software business.
Intech was listed in 2002 and turned into a poorly performing company in early 2020. In FY21, it incurred heavy losses.
A group of people involved in S Alam Group and KDS Group, and entrepreneurs from the IT sector joined the Intech board by buying shares from the secondary market. Later, the board was reconstructed under the new management in 2021.
The company's Founder Chairman ATM Mahbubul Alam, and Directors Shadika Mahbub and Anisuzzaman resigned from their respective posts.
According to sources, the company is now running under the new management that holds around 27 per cent shares of the company, and its old owner holds around 2 per cent shares.
When the new management took charge of the company, it was already dipped under a pile of debts including listing fees, rents, and other expenditures.
The previous management did not focus properly on the IT business. Now, the new management has decided to focus on the IT business properly as there are huge opportunities.
The company made a profit of Tk 4.60 million in FY20. But in FY21, the company incurred a loss of Tk 86 million, whereas other firms in the IT sector were prospering.