B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has initiated a thorough review of the pre-IPO financial statements of Copertech Industries Limited following concerns over the transparency of its financial disclosures prior to listing.

According to sources, a three-member investigation committee has been formed to examine the matter. The order was recently issued by BSEC’s Market Intelligence and Investigation Department. The committee members are Deputy Director Md. Rafiqunnabi, Assistant Director Md. Shakil Ahmed, and Bibhas Ghosh.

The decision to conduct a deeper scrutiny of the company’s audited financial statements from the pre-IPO period was taken at a commission meeting, leading to the formal formation of the probe body. The committee will review the audited financial reports for the three years prior to the company’s IPO and submit its findings within a stipulated timeframe.

BSEC believes the investigation is necessary to protect the interests of the capital market and investors. The probe will be conducted under Section 21 of the Securities and Exchange Ordinance, 1969, along with relevant laws. Notably, the decision to form the investigation committee was made at the commission’s 985th meeting held on November 25, 2025.

As part of the investigation, the committee will examine whether the company’s financial statements accurately reflect assets, liabilities, equity, profits, and cash flows. It will also assess compliance with International Accounting Standards (IAS), International Financial Reporting Standards (IFRS), and International Standards on Auditing (ISA).

Additionally, the authenticity of data related to sales, cost of goods sold, accounts receivable, inventory, and raw material purchases will be verified. The probe will also look into the physical existence of the company’s assets, including factories, machinery, equipment, buildings, land, and land development.

The investigation will further check whether the company’s reported net profit both before and after tax matches the information submitted to the National Board of Revenue (NBR).

According to the audited financial report for the year ended June 30, 2025, the company declared a 2.15 percent cash dividend for shareholders. During the same period, earnings per share (EPS) stood at Tk 0.71, down from Tk 0.90 in the previous year. The net asset value (NAV) per share was reported at Tk 14.32.

The engineering sector company was listed on the stock market in 2019 and is currently categorized under ‘B’. Its paid-up capital stands at Tk 113.82 crore, with a total of 113.82 million shares. As of February 28, 2026, sponsors held 27.57 percent of shares, institutional investors 19.97 percent, and general investors 52.46 percent.

The company raised Tk 20 crore by issuing 20 million shares through its IPO. However, since its listing, it has faced controversies over alleged irregularities in financial reporting, cancellation of the audit firm’s license, and a decline in share prices raising concerns among regulators.

Market insiders believe the investigation will provide a clearer picture of Copertech Industries’ financial transparency and reliability, which will be crucial for investors.