Auditor of two companies listed with the Dhaka Stock Exchange — Meghna Condensed Milk and Meghna Pet Industries — has expressed doubt about the future of the companies as their current liabilities exceeded current assets. Ahmed Zaker & Company, the auditor of Meghna Condensed Milk, in its opinion on the Meghna Condensed Milk’s audited financial statements for the year ended on June 30 this year said that Meghna Condensed Milk had provided Tk 1.50 crore in loans to relatives of directors of the company violating Companies Act 1994.
As per the clause 120 & 121 of the Companies Act 1994, any company shall not make any loan or guarantees to a person or company.
‘But, the management of Meghna has given unsecured loan to the relative/s of the directors an amount of Tk 1,50,70,000 without following the rules of the companies act,’ the auditor said.
‘We draw attention to the fact that the company has incurred a considerable amount of business losses in the previous year including the year of reporting,’ auditor said.
‘The company’s accumulated losses stood at Tk 103.66 crore as on June 30, 2014, which includes Tk 2.85 crore for the year 2013-14,’ it said.
‘The company’s current liabilities exceeded its current assets by Tk 21.26 crore,’ it said.
The auditor of the company expressing its doubt over the company’s ability to continue as a going concern in the foreseeable future said, ‘Unless a continuous inflow of liquidity support is evolved and operational efficiency and aggressive marketing of the product is significantly enhanced to greater extent.’
Ahmed Zaker & Company expressing its doubt over Meghn Pet Industries ability to continue as a going concern in the foreseeable future in its opinion on the financial statements of the company for the year ended on June 30 2014, said, ‘We draw attention to the fact that the company has been incurring a significant amount of net loss over the years.’
‘The company’s accumulated losses stood at Tk 16.33 crore on the audited financial report ended June 30 this year and the company’s current liabilities exceeded its current assets by Tk 64.04 lakh,’ the auditor of Meghna Pet said.
‘As a result, the company’s financial liabilities also increased to a great extent,’ said the auditor.
As per the DSE report, Meghna Pet Industries and Meghna Condensed Milk got enlisted with the stock exchanges in 2000 and 2001 respectively.
The companies since their enlistment with the stock exchanges have been suffering from losses, except insignificant profits by Meghna Condensed Milk in the year 2009 and 2010.
The share prices of Meghna Pet Industries and Meghna Condensed Milk on Thursday closed at Tk 5.60 and Tk 7.30 respectively.
-With New Age input
