Bangas Limited has received a qualified audit opinion for the year ended 30 June 2026 after auditors said they could not verify the existence and recoverability of Tk8.40 crore in accounts receivable.
The auditors also flagged gaps in supporting documents, fixed-asset records, revenue verification, tax payments and regulatory compliance.
Bangas reported receivables of Tk8.40 crore at the end of June, up from Tk7.93 crore a year earlier.
Management classified the full amount as good and realisable, but auditors said they could not obtain sufficient evidence through external confirmations or alternative procedures to support the balance.
They also could not determine whether any adjustment was required.
The audit raised similar concerns over Tk1.79 crore in advances, deposits and prepayments because management did not provide adequate supporting documents, including agreements, invoices, payment records, schedules and reconciliations.
Auditors also said Bangas did not maintain a proper fixed-asset register, preventing them from adequately verifying the existence, location, acquisition cost, accumulated depreciation and carrying value of assets.
They were also unable to verify the basis of a revaluation carried out in 2013 because the relevant report and supporting documents were not provided.
Revenue was another area of concern.
The auditors said they did not receive sufficient records to verify the accuracy and completeness of revenue. Bangas reported gross sales of Tk15.75 crore for the year, down from Tk18.74 crore a year earlier.
The audit also found a discrepancy in tax payments.
While the financial statements showed tax payments of Tk41.60 lakh, supporting documents were available for only Tk30.81 lakh, leaving Tk10.79 lakh unverified.
Bangas also failed to comply with provisions relating to the Workers’ Profit Participation Fund, according to the auditors.
The fund had an outstanding balance of Tk28.59 lakh at year-end, but no payment or distribution had been made.
Auditors also identified transactions with a sister concern of Bangas Tallu Group despite management representing that there were no related-party transactions during the year.
They said such transactions should be disclosed in the financial statements where applicable.
The report further identified several regulatory shortcomings, including failure to file the annual return with the Registrar of Joint Stock Companies and Firms, failure to change the company’s name to include “PLC”, non-compliance with certain salary tax deduction and banking-channel requirements and failure to obtain the required annual credit rating.
Auditors also advised Bangas to maintain a proper inventory register, warning that weak inventory records could lead to misstatements and directly affect reported profit.
Separately, Bangas has filed a petition with the High Court over pending annual general meetings for 2019 and 2020, another matter highlighted in the audit report.
