The business of Padma Islami Life Insurance listed on the stock market has not been going well for many years. Meanwhile, the company’s life insurance fund has turned negative. Besides, the auditor has found various discrepancies in the company’s finances. There are concerns about the company’s future ability to continue or operate as a going concern.
The auditor said that the life insurance fund of the insurance company is negative Tk 254 crore 41 lakh. The operating cash flow of this company in 2023 is negative Tk 13 crore 46 lakh. These two negative accounts put the company’s ability to conduct business in the future in jeopardy.
Meanwhile, the insurance claim in the company stands at Tk 225 crore 66 lakh. Which Padma Islami Life Insurance Authority has not paid within 90 days as per Section 72 of Insurance Act 2010. Besides, the auditor said that no interest accrual has been formed against the said insurance claim.
The auditor could not be sure due to lack of evidence regarding the sadaka fund (Padma Welfare Fund) of Tk 4 crore 34 lakh shown as financial of the company. Besides, the auditor could not confirm the cash account of Tk 5 crore 52 lakh shown in the bank due to lack of bank statement.
Meanwhile, the auditor could not be sure about the rental income of Tk 3 crore 4 lakh and rent due Tk 9 lakh shown in the financial statement of the company due to lack of agreement on rent.
According to the auditor, as per International Accounting Standards (EAS)-12, deferred tax is not accounted for in Padma Islami Life Insurance.
The auditor gave this information in the company’s latest 2023 financial audit.
