According to the audit report, nine-sixths of the announced dividends have been paid out by the stock exchange-listed Shepherd Industries’ management. Furthermore, fraud has been committed by failing to distribute the Workers’ Profit Participation Fund (WPPF), despite the fact that it was established for the workers.

According to the auditors, these problems arose during the audit of Shepherd Industries’ fiscal year 2023–2024 financial accounts. According to the auditors, the BSEC regulation states that the dividend must be paid out within 30 days of the shareholders’ approval and that the corresponding cash dividend must be placed in a different bank within 10 days of the declaration.

But the Shepherd Industries authorities did not deposit the cash dividend of 3 crore 73 lakh 71 thousand taka declared for the fiscal year 2022-23 in a separate bank within 10 days and did not distribute it within 30 days of approval. The auditors further said that the company authorities have distributed dividends of Tk 95 lakh 50 thousand out of Tk 3 crore 73 lakh 71 thousand, but Tk 2 crore 78 lakh 21 thousand has not been distributed yet.

In addition, a Workers’ Profit Participation Fund (WPPF) of Tk 46 lakh 23 thousand was formed for the fiscal year 2022-23, but the company did not distribute it on time, which is a violation of Section 232 of the Labor Act.

Shepherd Industries has Tk 154 crore 5 lakh in paid-up capital as of right now, having gone public on the stock exchange in 2017. 48.52 percent of the stock market is owned by different investment types. Shepherd Industries’ share price is at Tk 16.70.

Such anomalies may lead to a crisis of confidence in the company in the stock market and discontent among its shareholders.