B Mirror Report :  For a number of years, Stylecraft, a low-cap firm that is listed on the stock market, has been losing money. Its net asset value per share (NAVPS) has consequently dropped to an extremely low level. In actuality, though, the business has almost no net assets. By displaying fake assets in its financial statements, it has been able to keep its NAVPS. The presence of assets worth multiple times the company’s paid-up capital has not been discovered by auditors.

According to the auditors, Stylecraft’s financial statements show assets worth Tk 511.6 million under accounts receivable. Of this amount, Tk 479.5 million is shown as receivables from customers against export sales. However, due to a lack of supporting evidence, the auditors could not verify the authenticity of these assets.

The low-cap company has been suffering losses for many years, causing its net asset value per share (NAVPS) to drop to Tk 4.63. In addition, the company has stopped paying dividends since 2024.

As per the audit report, assets worth Tk 479.5 million have been overstated, inflating the net asset value by Tk 34.53 per share. In reality, the company’s net asset value per share is negative Tk 29.90 (34.53 – 4.63).

It is worth noting that Stylecraft was listed on the stock market in 1983 and has a paid-up capital of Tk 138.9 million. Of this, 67.97 percent ownership is held by general investors of various categories (excluding sponsors and directors). The company’s share price stood at Tk 44.90 on Wednesday (January 7).