Special auditor to look into Khulna Printing’s financials

A special auditor will review the financial statements of Khulna Printing and Packaging Limited, a concern of Lockpur Group, for the last three years to find out the reasons why the firm had not declared dividends for its shareholders.

Islam Jahid & Co, Chartered Accountants will also investigate any involvement in money laundering activities by the company's board of directors and the top management.

On Monday, the Bangladesh Securities and Exchange Commission (BSEC) appointed the audit firm in the interest of investors, asking it to complete the audit work within 30 working days and submit the report to the regulator.

The auditor will review the balance sheets and other parts of financial statements to present a true and fair view of the assets, liabilities, and equity of the company as per international accounting standards.

It will also look into the revaluation process of the company's fixed assets, the procurement of raw materials, the cost of goods sold, and imports.

The commission had earlier observed that 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, the stock market regulator observed.

The packaging material producer had a Tk4.70 crore loss in that fiscal year 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 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.

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.

As of 30 June 2022, sponsors and directors jointly held 39.76%, institutions 2.81% and public investors 57.43% shares in the company.

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

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 Tk9.10 per share on Monday.