The Bangladesh Securities and Exchange Commission (BSEC) has found evidence of serious financial irregularities at Golden Harvest Agro Industries Ltd., a company listed on the stock market. A recent inspection of the company’s financial reports revealed the presence of false and fabricated information.

Not only has the company been held accountable, but the auditing firm—MABS & J Partners, Chartered Accountants—has also been implicated. According to the BSEC, the auditors failed to carry out their duties properly, undermining the trust of investors and other stakeholders. In response, the commission has recommended that the Financial Reporting Council (FRC) take punitive action.

Sources indicate that Golden Harvest’s financial statements included transactions that never actually occurred. In many instances, fictitious transactions and misleading asset valuations were presented, creating a false impression of the company’s financial strength. The auditors either failed to detect these irregularities or deliberately ignored them.

During the previous administration, strong action against companies and auditors involved in stock market misconduct was lacking. However, under the leadership of current BSEC Chairman Khondkar Rashid Maksud, the new commission has adopted a firm stance to ensure transparency and curb irregularities. Both companies and auditors are now being held accountable.

According to a BSEC letter, Golden Harvest’s factory and office were physically inspected, and the books of accounts and other relevant documents were examined. This investigation confirmed the presence of false information in the financial reports. As a result, the credibility of the company’s published financial statements has been seriously undermined.

The BSEC has recommended that the FRC also review the audited reports for the financial years 2020, 2021, and 2022. If the auditors are found to be negligent or directly involved, strict legal action will be taken as per the law.

Stock market experts note that any fraudulent or misleading information in a company’s financial report poses significant risks to investors, as these reports are key tools in making investment decisions. Auditor negligence or intentional wrongdoing is unacceptable.

The BSEC has stated that taking strong action against such irregularities is essential to protect investors and restore confidence in the stock market. Therefore, it has urged the FRC to take effective and immediate action on this matter.