B Mirror Desk : Currently, the company’s management has reported a capital reserve of 4.7 million taka in their financial statements. However, the auditor was unable to verify the existence of these assets, noting a lack of detailed information.

Furthermore, the company has improperly offset an additional tax liability of 7.046 million taka against retained earnings rather than reflecting it in the income statement, which contravenes Section 36 of International Accounting Standards (IAS)-8. This adjustment has inflated the earnings per share (EPS) for the fiscal year 2023-24 to over 2.68 taka, while the reported EPS stands at 3.42 taka for that period.

Additionally, Himadri’s management is not adhering to labor laws, as the auditor highlighted that despite having 8.3 million taka in the Workers’ Profit Participation Fund (WPPF), the company has failed to distribute these funds.

According to Section 232 of the Labor Act of 2006, it is required to establish a WPPF and distribute it among employees within nine months. By neglecting this obligation, Himadri has denied its employees their rightful benefits for the fiscal year 2023-24.

It is important to mention that Himadri, which transitioned from OTC to the SME Market in 2021, has a paid-up capital of 26.3 million taka, with 34.28 percent of ownership held by various stock market investors (excluding entrepreneurs and directors). The company’s share price was recorded at 1,159.10 taka on Monday, April 21.