JMI Syringes & Medical Devices Ltd reported a net profit of Tk 4.49 crore for the 2024-25 fiscal year, but tax expenses accounted for more than 65 per cent of its pre-tax earnings, while operating cash flow declined and directors’ remuneration and bonuses increased.

According to the listed medical equipment manufacturer’s audited financial statements, pre-tax profit stood at Tk 12.91 crore, while net profit after tax reached Tk 4.49 crore. Earnings per share (EPS) rose to Tk 1.49 from Tk 1.29 in the previous fiscal year.

The company reported total tax expenses of Tk 8.42 crore, including Tk 7.43 crore in current tax and Tk 99.22 lakh in deferred tax. The amount represented 65.21 per cent of its pre-tax profit.

Operating cash flow weakened during the year. Net operating cash flow per share fell 12.07 per cent to Tk 3.57 from Tk 4.06 a year earlier. Total operating cash flow declined to Tk 10.72 crore from Tk 12.22 crore.

Meanwhile, directors’ remuneration and bonuses increased across factory overhead and administrative expense categories. Combined expenditure under these two heads rose to Tk 1.29 crore from Tk 1.24 crore, an increase of Tk 4.35 lakh.

The financial statements also showed that four directors received a combined Tk 1.83 crore in remuneration and festival bonuses during the fiscal year. Managing Director Md Abdur Razzaq received Tk 62.37 lakh, including Tk 57.14 lakh in basic remuneration and Tk 5.22 lakh in bonuses.

Short-term benefits for key management personnel, including directors, increased to Tk 3.35 crore from Tk 3.19 crore in the previous year.

The company also reported Tk 24.37 crore in advance income tax claims pending with the National Board of Revenue (NBR). The entire amount was recognised as a current asset in its financial statements, although the recovery of some claims remains uncertain.

A refund application for Tk 2.31 crore relating to the 2022 tax year remains unresolved, while a dispute over a tax claim of Tk 23.51 lakh for the 2023 tax year is pending before a tribunal.

Receivables from customers totalled Tk 63.63 crore, of which Tk 17.83 crore, or 28.02 per cent, was due from affiliated companies.

Nipro JMI Medical Ltd, a group affiliate, owed Tk 17.08 crore, up from Tk 12.57 crore a year earlier. JMI Syringes reported sales of Tk 51.33 crore to the company during the fiscal year.

The report further showed that Tk 20.88 crore in receivables had remained outstanding for more than 90 days, representing around 33 per cent of total receivables. Another Tk 10.02 crore was overdue by 60 to 90 days.

Against these outstanding receivables, the company maintained a provision of only Tk 6 lakh, equivalent to around 0.09 per cent of total receivables.

The figures raise questions about the company’s cash flow, tax recovery and collection of overdue payments, despite the increase in earnings per share during the fiscal year.