Altex Industries unable to arrange funds to repay loans: Auditors
The company has been unable to arrange funds to settle these loans, raising significant uncertainty over its ability to continue as a going concern. The share price of the company closed at Tk13.50 on the Dhaka Stock Exchange (DSE) yesterday.
Auditors have expressed serious concern over the financial position of Altex Industries Limited, a company listed on the stock exchange, for the fiscal year 2024-25, citing massive debt discrepancies and an inability to meet loan obligations.
As of 30 June 2025, the company's retained earnings were negative, amounting to Tk86.24 crore.
The company failed to repay scheduled loan instalments, and Tk3.07 crore of loans have been classified as "bad and loss," remaining unpaid for a prolonged period.
The company has been unable to arrange funds to settle these loans, raising significant uncertainty over its ability to continue as a going concern.
The share price of the company closed at Tk13.50 on the Dhaka Stock Exchange (DSE) yesterday.
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In the case of Prime Bank, bank confirmation indicates that the company's actual loan liability was Tk94.56 crore, while the company's books reported only Tk17.20 crore.
No provision of Tk68.27 lakh for interest was made, resulting in an overstatement of profit before tax and an understatement of bank loan liability.
For Sonali Bank, the company's loan stood at Tk227.52 crore, but interest of approximately Tk22.75 crore was not charged, causing loan liabilities to be understated and profit before tax to be overstated.
Similarly, for ONE Bank, the absence of interest provisions led to an understatement of loan liability by Tk1.56 crore.
Auditors also noted that although the company collected Tk32.51 crore from accounts receivable during the fiscal year, approximately 64% of collections were made in cash, posing a significant operational risk.
Additionally, the company paid Tk5.25 crore in advance to Cube Development Limited for factory construction, and a contingent liability of Tk6.93 crore with Titas Gas remains unsettled. Interest income of Tk1,034,674 from fixed deposits has been recorded as financial expenses, which is inconsistent with accounting standards.
The company's primary raw material is grey fabric, yet its usage rate relative to total sales is only 21%, which appears unusual. During the fiscal year, the company made no export sales, with all sales restricted to the domestic market. Furthermore, approximately 69% of the company's total funds are debt-dependent, increasing financial expenses and raising concerns about its financial stability.
According to the auditors, these circumstances create significant uncertainty regarding the company's ability to continue as a going concern. They emphasised the urgent need for proper loan management, interest provisioning, cash transaction control, and resolution of contingent liabilities.
In December 2024, Sonali Bank decided to sell the mortgaged assets of Alltex Industries through an auction to recover the outstanding loans of the listed textile manufacturer.
To recover the funds, the bank plans to auction 14.7 acres of Alltex's land, its manufacturing facilities and offices, raw materials, and spare parts, all of which were mortgaged for the loan.
