B Mirror Report: Sonargaon Textile, a publicly listed company, has been performing poorly over the past several years. Between the 2019-20 fiscal year and the next six years, the company reported losses in four years, with only marginal profits in the remaining two. Auditors have questioned the authenticity of BDT 55 crore in inventory and BDT 68 crore in fixed assets reported in the company’s 2024-25 financial statements.
According to the 2024-25 financial statements, the company reported BDT 54.99 crore in inventory and BDT 68.45 crore in fixed assets. Auditors were unable to verify these figures on-site or through any alternative means.
The company reported purchasing BDT 14.07 crore worth of raw materials during the 2024-25 fiscal year, but a significant portion of these purchases was made in cash outside banking channels. Auditors noted that, due to lack of supporting evidence, it is unclear whether the raw materials were actually purchased.
Under the directives of the Bangladesh Securities and Exchange Commission (BSEC), companies must transfer unpaid dividends to the Capital Market Stabilization Fund. However, Sonargaon Textile has neither transferred these unpaid dividends nor deposited them in a separate account. Auditors noted unpaid dividends of BDT 14 lakh from 2019 and BDT 1 lakh from 2022, which have remained unsettled for over three years, despite BSEC instructions. Furthermore, the company does not have sufficient funds in its bank account to pay these dividends.
According to Section 232 of the 2006 Labor Act, companies are required to form a Workers’ Profit Participation Fund (WPPF) and distribute it among employees. Sonargaon Textile has a WPPF of BDT 10 lakh, but the company has not distributed it, denying workers their rightful benefits.
Auditors also raised concerns over the company’s reporting of deferred tax liability. As of 30 June 2025, the financial statements showed a deferred tax liability of BDT 5.78 crore. However, the company did not consider revaluation surplus in calculating deferred tax, which may result in inaccurate reporting.
Sonargaon Textile was listed on the stock exchange in 1995, with a paid-up capital of BDT 26.47 crore. Of this, 55.55 percent is owned by various categories of investors (excluding promoters and directors). As of Sunday, 1 February, the company’s share price stood at BDT 31.40.
