Tamijuddin Textile posts 2.33% profit growth in July- Sep
Tamijuddin Textile Mills – a cotton and polyester yarn maker – posted 2.33% year-on-year profit growth in the July to September quarter of the current fiscal year compared to the previous fiscal year.
In the July to September quarter, the company made a net profit of Tk2.65 crore, which was Tk2.59 crore in the same period of the previous year.
In this period, the textile firm's earnings per share stood at Tk0.88, which is higher than Tk0.86 compared to one year ago. Its net asset value per share stood at Tk97.70 at the end of September 2024.
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The share price of the company closed at Tk114.10 in the Dhaka Stock Exchange on Tuesday.
In their qualified opinion, auditors reported significant issues with the company's financial statements for the year ending 30 June 2024.
The company disclosed inventories valued at Tk335 crore, but auditors found that evidence to verify "Raw Materials & Work in Process" worth Tk217.92 crore was missing. This raises doubts about the accuracy of the reported inventory figures and suggests a potential misstatement of the Cost of Goods Sold (COGS) by the same amount.
The auditors also expressed concerns about a Sundry Advance of Tk15.41 crore, as disclosed in the company's financials. Insufficient documentation makes it impossible to verify the reported balance.
Additionally, the company has not established a Gratuity Fund or Provident Fund, as required by the Bangladesh Labour Act 2006.
This legal violation shows failure to meet required employee benefits and raises serious governance issues.
In FY24, the company recommended a 21% cash dividend only for General Shareholders, excluding sponsors and directors. During the year, its earnings per share stood at Tk6.70.
As of 30 November 2024, the sponsors and directors jointly hold 61.23% of the company's shares, while institutes 1.15%, and general investors hold 37.62%.
