B Mirror Report : The auditor of Indo-Bangla Pharmaceuticals Limited, a listed company, has raised several serious irregularities and objections in the company’s audited financial statements for the financial year ended June 30, 2025. Alongside questioning the company’s financial transparency, the auditor has also expressed deep concern over its future operations, or “going concern” status.

According to the auditor, no reliable evidence or supporting documents were provided to substantiate more than Tk 33.2 million shown as “capital work in progress.” In addition, significant irregularities were found in inventories valued at over Tk 103.5 million. Notably, 37,050 units of a product named “Calfresh – M Tablet” were not included in the stock register, despite having an estimated market value of around Tk 7.78 million. Even more concerning is that records of work-in-process were maintained only in Excel sheets instead of proper registers, and the auditor was not provided with adequate information to determine the correct cost of raw materials and finished goods.

The auditor also identified major discrepancies in financial transactions. While the company reported total sales of Tk 211.8 million during the year, only Tk 151.1 million was deposited into bank accounts. The company failed to provide any reasonable explanation for this gap of more than Tk 60 million. Moreover, no bank book or register was submitted for verification against reported “cash and cash equivalents” exceeding Tk 4.3 million.

The report further highlights serious concerns regarding the company’s corporate governance and financial stability. Indo-Bangla Pharma incurred losses of approximately Tk 41.0 million in FY 2023–24 and Tk 36.8 million in FY 2024–25. In addition, despite the lapse of more than three years, the company has not transferred unpaid or unclaimed dividends to the designated fund, in violation of Bangladesh Securities and Exchange Commission (BSEC) regulations.

Auditor Dr. Ashraful Haque, FCA, clearly stated in his report that due to weak internal control systems, insufficient information, and inadequate liquidity, there is significant doubt about the company’s ability to continue as a going concern. Essentially, a lack of professionalism in record-keeping and failure to properly comply with central bank directives and IAS-2 have rendered Indo-Bangla Pharma’s financial statements questionable.