The auditor of aamra networks raised a flag over the company’s Tk61.16 crore advances to suppliers and other parties, saying it could not obtain sufficient evidence to verify the nature, terms and other details of the balance.
The amount, disclosed under “Advance to Suppliers & Others” in the company’s financial statements for the year ended 30 June 2025, nearly doubled from Tk31.30 crore a year earlier.
Auditor Hedayet Ullah, a partner of K M Hasan & Co, Chartered Accountants, issued a qualified opinion after being unable to determine whether any adjustment was required to the reported balance or its related disclosures.
According to the auditor’s report, the company did not provide adequate audit evidence regarding the nature, contents, terms and other relevant information of the advances.
The qualification does not necessarily mean the Tk61.16 crore balance is incorrect or unrecoverable. Rather, it indicates that sufficient appropriate evidence was not available for the auditor to independently determine whether any adjustment or additional disclosure was necessary.
The issue is significant as advances to suppliers and other parties accounted for the largest portion of the company’s total current advances, deposits and prepayments of Tk78.95 crore at the end of June 2025.
The category also included Tk16.69 crore in advance income tax, Tk2.61 crore in advance office rent and Tk84.71 lakh in bank guarantee margin and tender security.
The auditor also issued a separate qualification over a data centre that aamra networks plans to reacquire from Aamra Holdings Limited at no cost.
The company said the reacquisition would take place in the following financial year based on a board resolution effective from 1 July 2025. As a result, it did not recognise the data centre as an asset in the financial statements for the year ended 30 June 2025.
However, the auditor said the company did not provide sufficient appropriate evidence regarding the data centre’s condition, fair value and expected future economic benefits. An updated fixed asset register was also not provided.
The auditor said it was therefore unable to determine whether any adjustment was required in relation to the data centre in the current-year financial statements.
aamra networks’ management, however, said it considered all advances, deposits and prepayments disclosed in Note 9.2 to be good and secured.
aamra networks has been delivering reliable ISP, IoT, IT & ITES solutions for over a decade.
It went public in 2017. The company’s 33.04 per cent shares are held by the sponsors and directors while institutional investors hold 21.74 per cent and the general public hold the remaining 45.22 per cent shares.
aamra networks shares closed unchanged at Tk18.70 on the Dhaka Stock Exchange on Monday.
