Beach Hatchery is another manipulative stock company in the stock market. The company which came into production after a long time in the financial year 2022-23 started to cheat the common investors by showing fake income and profit. It was also maintained during the fiscal year 2023-24. The company authorities have provided false information in terms of expenses along with showing false income. Consequently, the auditor was unable to provide an explanation or evidence of income and expenditure.
This information has come out in the company’s 2023-24 financial year audit.
The buildings and hatchery equipment of the Beach Hatchery located in Cox’s Bazar were demolished by the government for the construction of Marine Drive Road. In addition, some land was also acquired for the construction of the hatchery plant. So that the entire commercial activities of the company were stopped from January 24, 2016. However, information has been released that this shrimp trading company has returned to business from the 2022-23 fiscal year. Where there is a refuge for fraud.
The financials of Beach Hatchery show a product sale of Tk. 22 crores and 1 lakhs. But only 30.8 million taka was found in the bank account. In this case, the Beach Hatchery authorities showed the difference of 189.4 million taka in cash sales. The auditor objected to this.
Because showing cash transactions is one of the tools for companies to manipulate. By doing this, they can hide the correct information about income and expenses. For manipulation, they show more net profit by showing exaggerated income and expenses less. Which is what the auditor believes happened at Beach Hatchery.
In this regard, Minhaj Mannan Emon, Director of Dhaka Stock Exchange (DSE), told to media, showing artificial financial accounts is nothing new. The main reason behind this is not coming under punishment. We may see the same in the case of Beach Hatchery.
He said, auditors generally help companies to show artificial financial accounts. The information that the auditor has presented about Beach Hatchery there, then how much more terrible the real situation of the company is is unimaginable. But no effort will be required to bring such a company under punishment. The auditor’s information is enough to punish.
The company authorities have shown a financial liability of Tk. 95 lakhs. But they did not do the accounts properly and could not show any evidence in support of that liability. As a result, the authenticity of that liability could not be verified.
The auditor said that Beach Hatchery has an undistributed dividend of 20 lakh taka. Which has been shown in the accounts for a long time. But the company authorities do not maintain proper accounts in this regard.
The income tax authorities have sent a letter to this company demanding 1 crore 93 lakh taka for the financial year 2012-13. But the company authorities have not made adequate provision to pay that claim.
Meanwhile, Beach Hatchery Authority has not calculated deferred tax as per IAS-12 58. Besides, the related party has not given disclosures as per IAS-24 17.
Regarding these matters, Mohammad Rezaul Karim, Executive Director and Spokesperson of Bangladesh Securities and Exchange Commission (BSEC), the regulatory body of Sharebazar, told Orth Banijya that the annual report of the listed companies along with the auditor’s opinion comes to the commission at the end of the financial year. Which are scrutinized and sorted out by the relevant departments of the commission. If any irregularities or inconsistencies are found in it, the commission takes action according to the law.
It is worth noting that the paid-up capital of Beach Hatchery, which was listed on the stock market in 2002, is 414 million taka. Of this, 65.03 percent is owned by investors of various classes of the stock market (excluding entrepreneurs/directors). The company’s share price stood at 92.80 taka on Saturday (December 11).
