Listed insurer Eastern Insurance PLC has failed to deposit Tk 5.23 million in its Workers’ Profit Participation Fund (WPPF) from its 2024 net profit, according to its audit report.

Under the Bangladesh Labour Act, 2006, companies are required to contribute 5% of their net profit to the WPPF. Eastern Insurance reported a net profit of Tk 104.58 million in 2024, requiring a contribution of Tk 5.23 million to the fund.

The auditor also identified several other irregularities in the company’s financial statements, including failure to transfer declared cash dividends to the designated bank accounts and inadequate provision for gratuity liabilities.

The auditor noted that the company had not conducted the required actuarial valuation for gratuity benefits, resulting in profits being overstated and liabilities understated.

Meanwhile, Eastern Insurance invested Tk 401.80 million in various listed companies and funds, but the market value of those investments fell to Tk 302.85 million during the year. As a result, the company incurred an unrealised loss of Tk 98.94 million.

Eastern Insurance told its auditor that it was reviewing the WPPF issue in line with the Bangladesh Labour Act, 2006, and would make the necessary provision in its next financial statements.

The company also said it would take necessary measures to ensure compliance with the relevant rules in the future. However, no effective action has so far been taken by the Bangladesh Securities and Exchange Commission (BSEC) over the irregularities identified by the auditor.