Independent auditors said they were unable to verify parts of Sonar Bangla Insurance Limited’s cash balances and fixed assets, while issuing a qualified opinion on the insurer’s financial statements for the year ended 31 December 2025.
The audit report cited weaknesses in accounting records, employee benefit compliance and governance at the insurer, while also highlighting significant reporting deficiencies at two subsidiaries.
As part of the audit, the firm’s accountants physically counted cash at the head office and four of its 32 branches on 1 January 2026. Except for the head office, none of the branches had updated cash books, preventing the auditors from verifying cash balances.
The auditor also said the insurer had not properly maintained its fixed asset register, making it impossible to confirm fixed assets worth Tk5.06 crore.
The report further said the company understated assets by Tk17.79 lakh after failing to recognise accrued interest on fixed deposits pledged as collateral for a Tk4.95 crore loan from Islami Bank Bangladesh PLC.
The auditor also found that Sonar Bangla Insurance had not maintained statutory employee benefit funds, including the Workers’ Profit Participation Fund (WPPF) and welfare fund, as required under the Bangladesh Labour Act, 2006.
It also identified a mismatch between unclaimed dividends of Tk18.74 lakh reported in the financial statements and Tk16.90 lakh held in the designated bank account, leaving an unexplained shortfall of Tk1.84 lakh.
The qualified opinion also reflected separate modified audit opinions issued on the 2025 financial statements of the insurer’s subsidiaries, Sonar Bangla Capital Management Limited and SBI Securities Limited.
At Sonar Bangla Capital Management, auditors questioned asset records, investment valuations, advances, accrued interest, receivables, deferred tax, expenses and regulatory disclosures. They also said the company had not maintained a fixed asset register, could not justify the sale price of a motor vehicle and failed to provide adequate documentation for several accounting balances and expenses.
At SBI Securities, auditors said they could not verify parts of expense liabilities and operating expenses because supporting documents and explanations were not provided.
The audit report also noted that Sonar Bangla Capital Management had not presented documents relating to annual general meetings since 2022 and had not disclosed its capital adequacy ratio as required by Bangladesh Securities and Exchange Commission rules.
