ICAB to be suggested for taking action against auditor
Bangladesh Securities and Exchange Commission fined four directors of GQ Ball Pen Industries Tk 2.50 lakh each for different anomalies in the company’s audited financial statements. The four directors of the company are : Kazi Shalemul Haque, Salma Huq, Qazi M. Salman Sarwar and Sara Haque. The BSEC also decided to suggest the Institute of Chartered Accountants Bangladesh to take necessary action against the auditor of GQ, Ata Khan & Co, due to its failure in qualifying the glitches.
The capital market watchdog took the decision in a commission meeting held on Tuesday, a BSEC release said.
As per the BSEC finding, GQ Ball Pen overstated Tk 1.08 crore as cash inflow against the company’s stock dividend issued for the year ended on 31 December 2012.
The company in the financial statement for 2011 showed Tk 40 lakh as cash outflow to its subsidiary company Maladesh International against stock dividend, while in the next year showed Tk 24 lakh as cash inflow to the subsidiary on the same ground, resulting in a decreased net cash flow and bank balance of Tk 16 lakh in 2012, the BSEC release said.
The company did not provide any discloser about not calculating depreciation on the immoveable property revaluation amount of Tk 22.57 crore in 2012.
The company violated Bangladesh Accounting Standards -7 by providing incorrect cash flow statement, BAS – 1 by not providing true and fair view of the company, BAS- 12 by not calculating deferred tax liabilities properly and BAS – 16 by not charging of depreciation on revalued assets, the BSEC said.
The company also violated rules 12(2) of Securities and Exchange Rules – 1987 and section 18 of Securities and Exchange Ordinance – 1969 by providing fabricated financial statements, it said.
The commission in the meeting also decided to warn GMG Industrial Corporation Limited for its failure to submit annual report of the company for the year ended on 31 December, 2011.
-With New Age input
