BSEC to appoint special auditor for Alif Industries

The stock market regulator has recently decided to appoint a special auditor for Alif Industries Ltd to protect public interest.

The special auditor will review the company's financial statements for the year of 2019 and 2020.

Asked about it, Professor Md Mizanur Rahman, commissioner of the Bangladesh Securities and Exchange Commission (BSEC), declined to comment in this regard.

The special auditor will review non-current assets and liabilities and also the equity of the company. It will identify the sponsors and shareholders' directors and make a full disclosure of party transactions between Alif and related parties for the last two years.

The auditor will also investigate accounting recognition and measurement of the property plant and equipment, inventories, revenue, cost of sales as per the International Financial Reporting Standard.

Besides, the advance, receivable, payable, loan and financial liabilities of the company, their accounting recognition, measurement and reporting in the financial statements over the last two years will also come under audit.

The auditor will further investigate income and its impact on earnings per share and net asset value of the company.

The role of the board of directors, audit committee and top management including managing director and chief executive officer, company secretary, chief financial officer, head of internal audit in the overall governance of the company will also be probed.

In December 2017, the company returned to the main market after fulfilling almost all legal requirements.

Alif Industries' previous name was Sajib Knitwear. In 2010, Alif Group bought the shares of the company and took its ownership.

In October 2009, the Dhaka Stock Exchange launched its over-the-counter market with 51 companies including Sajib Knitwear.

In 2018, the company started trading in the mainboard with Tk143 per share, which reached Tk157 a share that week.

The company created hope for investors to invest in the company, but the investors suffered a huge loss due to the continuous price fall of its share price.

The company has failed to complete its final disclosure of 2020.

In July to March of FY20, the net profit of the company was Tk6.11 crore while its earnings per share was Tk1.38.

The sponsors and directors are jointly holding 33.35% share, institute 9.79% share and general investors 56.86% share of the company respectively.