B Mirror Report : The audit report has revealed that the authorities of Shepherd Industries, listed on the stock market, have manipulated the declared dividends.
Additionally, although a Workers’ Profit Participation Fund (WPPF) was established for employees, it was not distributed, constituting fraud.
The auditor provided this information during the audit of the company’s financial statements for the 2024–25 fiscal year.
According to the auditor, as per BSEC (Bangladesh Securities and Exchange Commission) regulations, dividends must be distributed to shareholders within 30 days of shareholder approval. Furthermore, the corresponding cash dividend must be deposited in a separate bank account within 10 days of the board’s declaration.
However, for the 2024–25 fiscal year, the authorities of Shepherd Industries did not deposit the cash dividend of BDT 7,474,000 in a separate bank account within 10 days of declaring a 1% dividend for ordinary shareholders. Nor did they distribute it within 30 days of approval.
During the audit period, the company reportedly distributed BDT 6,193,000 out of the total BDT 7,474,000 dividend, leaving BDT 1,281,000 undistributed, according to the auditor.
The auditor also stated that Shepherd Industries had established a Workers’ Profit Participation Fund (WPPF) of BDT 4,623,000 for the 2022–23 fiscal year. However, the company did not distribute the fund within the stipulated time.
Under Section 232 of the 2006 Labor Act, such funds must be distributed within nine months of the fiscal year’s end. By failing to do so, the authorities of Shepherd Industries are depriving employees of their rightful benefits.
Regarding this issue, the company’s Chief Financial Officer (CFO), Ataur Rahman, told Media that the dividends were recently distributed.
It is worth noting that Shepherd Industries, listed on the stock market in 2017, has a paid-up capital of BDT 15.45 crore. Of this, investors from various stock market categories (excluding promoters/directors) hold 48.52%. The company’s share price stood at BDT 12.50 on Wednesday (January 21).
