B Mirror Report : Indo-Bangla Pharmaceuticals raised Tk 200 million from stock market investors in 2018 with the aim of expanding its business. However, instead of expanding, the company’s operations have contracted. The board of directors allegedly siphoned off crores of taka in the name of purchasing fake assets, putting the very existence of the company at risk.

Ayesha Siddika serves as the company’s chairperson. The managing director is A.F.M. Anwarul Haque, while the directors include Aziza Yasmin, Md. Sharikul Anam, Hafiza Yasmin, A.K.M. Harunur Rashid, Israt Jahan Rimi, and Md. Nazrul Islam.

An official of the company, speaking on condition of anonymity, told Artha Banijya that the Indo-Bangla management has engaged in massive fraud. “Everyone took what they could from the company. There is hardly anything left now. They have virtually looted it dry. Money was embezzled in the name of purchasing fake assets. There is no form of fraud that has not taken place in this company,” the official said.

In 2018, Indo-Bangla Pharma raised Tk 200 million from the stock market. Of this, it stated that Tk 58.6 million would be used for building construction and Tk 124.7 million for purchasing machinery. The funds were raised specifically for business expansion.

However, the company’s business has instead shrunk further. At the time of its IPO, with paid-up capital of Tk 730 million, the company earned a profit of Tk 59 million, equivalent to earnings of Tk 2.62 per share. Through its IPO and bonus shares, the company later increased its paid-up capital to Tk 1,162.1 million—an increase of Tk 432.1 million or 59 percent. Despite this significant rise in capital, the company is now at rock bottom. It has incurred losses for the past two consecutive financial years. In the 2024–25 financial year alone, the company posted a loss of Tk 36.8 million, or Tk 0.32 per share.

The company’s management allegedly embezzled several crores of taka by showing fake purchases under “Capital Work-in-Progress (CWIP),” which refers to fixed assets that are not yet ready for use.

According to the financial statements, as of June 30, 2025, Indo-Bangla reported Tk 33.2 million as CWIP. This included Tk 23.1 million for machinery intended to be made operational and Tk 10.1 million for construction-in-progress. Additionally, Tk 6.1 million worth of infrastructure was reportedly completed during the year and transferred from CWIP to fixed assets. However, the company failed to provide any evidence of the existence of these assets to the auditor. In this way, several crores of taka were misappropriated by showing fictitious project expenditures.

The management also allegedly embezzled funds secretly while stating in the financial statements that cash was held both in hand and in bank accounts. However, they could not produce bank books or registers to substantiate the reported Tk 4.3 million in cash balances.

Indo-Bangla management is also accused of fraud related to pharmaceutical sales. Although the company claimed drug sales of Tk 211.8 million (including VAT) in its financial statements, the auditor found bank deposits of only Tk 151.1 million, leaving an unexplained discrepancy of Tk 60.7 million. The company failed to provide a satisfactory explanation to the auditor.

Furthermore, Indo-Bangla could not provide proof of depositing Tk 27.6 million in VAT related to those drug sales.

In its financial statements, the company reported fixed assets worth Tk 1,264.6 million but failed to provide details of land development costs. Additionally, the company understated its inventory by 37,050 units of “Calfresh-M Tablets,” valued at Tk 7.8 million.

The auditor stated that the company incurred total losses of Tk 77.8 million over the past two financial years. Moreover, the company’s financial stability and liquidity are inadequate to cope with unexpected crises. The auditor also noted that the company’s internal control system has collapsed. Under such circumstances, the auditor warned that the company’s ability to continue as a going concern is under serious threat.

Regarding these issues, Company Secretary Mahi Uddin told Artha Banijya that some problems have occurred and efforts are underway to resolve them.

Commenting on the irregularities, Md. Abul Kalam, Director and Spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), told Artha Banijya that annual reports of listed companies, along with auditors’ opinions, are submitted to the commission at the end of each financial year. These reports are reviewed by the relevant departments, and if any irregularities or inconsistencies are found, the commission takes action in accordance with the law. He said Indo-Bangla would be no exception.

It is worth noting that Indo-Bangla, which was listed on the stock market in 2018, has a paid-up capital of Tk 1.1621 billion. Of this, 75.57 percent is held by investors from various categories of the stock market, excluding sponsors and directors. On Tuesday (January 20), the company’s share price stood at Tk 12.20.