Bangladesh Autocars Limited reported an 11.1 per cent decline in annual earnings, while its auditors raised concerns over asset recoverability, unsettled liabilities and non-compliance with dividend regulations.
The company’s earnings per share (EPS) fell to Tk0.16 in FY2025–26 from Tk0.18 a year earlier, according to audited financial statements approved by its board on Tuesday.
The company attributed the decline to lower sales caused by uncertain gas supplies from Titas Gas Transmission and Distribution.
Despite weaker earnings, the board recommended a 2 per cent cash dividend for general shareholders, excluding sponsors and directors.
The proposed payout totals Tk6.05 lakh, equivalent to 88.98 per cent of annual net profit. Of the company’s 43,26,013 shares, 30,25,766 held by general shareholders qualify for the dividend, while 13,00,247 sponsor and director shares are excluded.
The financial statements received a qualified audit opinion, indicating that auditors identified specific matters affecting their assessment of the accounts.
Auditors said Tk10.71 lakh in VAT advances and Tk1.84 lakh in capital expenditure advances should be written off. They also could not obtain reasonable confirmation for Tk8.30 lakh in raw material and purchase advances.
Another Tk6.37 lakh in liabilities had remained unsettled or unadjusted for more than three years.
The auditors also questioned the recoverability of Tk52.86 lakh in assets classified for disposal. The assets had remained unsold for more than a year without an impairment assessment or recognised loss.
Without a comprehensive fair-value study, the auditors said they could not determine the potential impairment.
Separately, they flagged breaches of securities regulations governing unclaimed dividends.
Bangladesh Autocars held just Tk57,345 in its designated dividend bank account against an unclaimed dividend liability of Tk16.96 lakh. It had also failed to transfer dividends unclaimed for more than three years to the Capital Market Stabilization Fund, as required.
Auditors further reported missing direct bank confirmations for five accounts holding a combined Tk1.34 lakh.
Despite the earnings decline, net operating cash flow per share improved to Tk0.68 from negative Tk0.62 a year earlier.
The company attributed the improvement largely to the absence of a Tk56.90 lakh security deposit and demand charge paid to Titas Gas in the previous year.
Net asset value per share edged up to Tk7.48 from Tk7.47, reflecting annual profit and the previous year’s dividend payment.
The board also recommended reappointing independent directors Pius Costa and Kazi Khairul Alam for one year.
It proposed appointing Suraya Jabeen as an independent director for the same period, subject to shareholder and regulatory approval.
Bangladesh Autocars will hold its 47th annual general meeting on 13 December through a hybrid physical and digital arrangement. The record date is 17 November.
