The paid-up capital of Yusuf Flower Mills, listed in the SME market in the share market, is Tk 60 lakh 68 thousand. On the contrary, the auditor did not find the existence of assets of 81 times the paid-up capital.
Meanwhile, the small-cap company’s shares have been subject to constant manipulation ever since it was listed in the SME from the over-the-counter market (OTC). As a result, after 2 years, shares of Tk 26 were traded at Tk 6,200.
The data analysis shows that the total number of shares of Yusuf Flower, a small capital company, is 6 lakh 6 thousand 800. Out of this, more than half, or 53.88 percent shares are held by entrepreneur-directors. The remaining free float or tradable shares are less than 280 thousand.
Taking advantage of the small number of shares, the price of each share of the company is over 6000 rupees. Through this, the company’s market capitalization with a paid-up capital of less than Tk 61 lakh is now Tk 376 crore 22 lakh.
The auditor said that at the end of the financial year 2022-23, the company authorities showed a stock of Tk 472.7 million as financials. However, due to the late appointment, the auditor could not personally verify the authenticity of the same. Although the company authorities have assured the auditor that the quantity of stock goods mentioned as financial at that time was there.
Meanwhile, for the same reason, the auditor could not verify the authenticity of the cash in hand of 2 crore 29 lakh mentioned as financial. Besides, the auditor did not obtain sufficient and correct audit evidence regarding the said cash. Therefore, the amount of cash stated as financial may actually be lower or higher.
Despite the skyrocketing share price, Yusuf Flower’s dividend is dynamic. The company has paid a 12 percent dividend in the last 3 financial years.
The company has paid a 12 percent cash dividend for the last financial year 2022-23. The company’s dividend was 12 percent cash in FY 2020-21 and 10 percent cash in FY 2021-22.
The auditor said that a ‘tax holiday reserve’ of Tk 2 lakh has been formed in the company. Which is required to be distributed as per Section 46A of the Income Tax Ordinance 1984. However, the company authorities did not distribute it.
