B Mirror Report : The stock market-listed company MB Pharma allegedly withheld its investment information for seven and a half years, according to significant information disclosed by auditors. The business did not get a dividend from the investment throughout this extended time. Even whether the money invested will be recouped is now questionable.
The auditors disclosed this information in the company’s financial statements for the 2024–25 fiscal year.
According to the auditors, MB Pharma invested Tk 4.61 crore in Bengal Meat Processing Industries over a period of seven and a half years from 12 January 2017 to 30 June 2024. However, the company did not record or disclose this investment in its financial statements during that entire period.
In the last fiscal year (2024–25), the company invested an additional Tk 65 lakh, bringing the total investment to Tk 5.26 crore. Only after this did the company disclose the investment information in the financial statements for 2024–25. The auditors stated that such delayed disclosure constitutes a deviation from the International Financial Reporting Standards (IFRS).
The auditors also noted that the company management failed to provide a satisfactory explanation for not disclosing the investment information in previous years.
Meanwhile, auditors reported that although MB Pharma paid Tk 65 lakh in the 2024–25 fiscal year for 650,000 rights shares, it did not receive the corresponding shares.
In addition, apart from photocopies of certificates issued by Bengal Meat Processing against the total investment including rights shares, the auditors said MB Pharma could not present any supporting documents or evidence.
MB Pharma has not received any dividend from this investment to date. Given the prolonged period without dividends, the auditors expressed concern about the recoverability of the investment.
When contacted for comment, MB Pharma Secretary Mohammad Amir Hossain said that the company’s Annual General Meeting (AGM) has not yet been held. He added that shareholders would be able to ask questions on the matter at the AGM. He also stated that the issue has been mentioned in the directors’ report in the annual report.
It is worth noting that MB Pharma, which was listed on the stock market in 1986, has a paid-up capital of Tk 2.40 crore. Of this, 22.75 percent is owned by investors other than sponsors and directors. The company’s share price stood at Tk 705.40 on Thursday (24 December).
