BSEC to appoint a special auditor for Khulna Printing

The Bangladesh Securities and Exchange Commission (BSEC) has recently decided to appoint a special auditor to review the financial statement of Khulna Printing and Packaging Limited, a concern of the Lockpur Group, as it found anomalies in the company.

The turnover of Khulna Printing sharply fell in fiscal 2020-21, but its costs increased suspiciously. Moreover, its financial statement did not represent the truth, observed the stock market regulator.

The packaging material producer had a Tk4.70 crore loss in the fiscal which means a Tk6.12 loss per share. Besides, its net asset value per share stood at Tk1.23, according to the financial statement.

It also says the company's net sales stood at Tk52.08 crore in FY2020-21, down by 52% from Tk108.06 crore a year earlier. 

The company also showed its raw materials worth Tk18.47 crore were damaged and it, additionally, invested Tk3.35 crore in another concern of the Lockpur Group. However, the investment did not generate any income during this period.

The BSEC now wants to look into the facts through a special audit to protect the interest of investors. However, it is yet to finalise the auditor. 

As of 28 February 2022, sponsors and directors jointly held 39.76% of the company's shares, while institutions held 2.07% and public investors 58.17% share.

Earlier in October last year, the company decided to shut down its factory, following the freezing of the bank accounts of the company's chairman and managing director as per a court order. 

The court made the order in a money laundering case filed by the Anti-Corruption Commission.

Earlier in 2015, Khulna Printing was compelled to close the factory as the National Board of Revenue locked its business identification number over allegations of tax evasion.

The last trading price of the company on the Dhaka Stock Exchange was Tk9.7 per share on Sunday.