Kay & Que (Bangladesh) Limited has received a qualified opinion along with an emphasis of matter paragraph in its auditor’s report for the year ended 30 June 2025, raising concerns over unverifiable assets, documentation gaps, unpaid statutory liabilities and non-compliance with capital market rules.
The observations were made by Pinaki Das FCA Senior Partner Pinaki and Company Chartered Accountants, according to the auditor’s report.
In the basis for qualified opinion, the auditor said the company reported Tk54.61 crore as Property, Plant and Equipment, but the figure could not be verified due to the absence of an appropriate fixed asset management system, which constitutes non-compliance with International Accounting Standard 16 Property, Plant and Equipment.
The report also cited inadequate documentation for Tk46.68 lakh shown as deposit against value added tax, Tk1.91 crore recorded as creditors for expenses, and Tk75.58 lakh recognised as liabilities for the Workers’ Profit Participation Fund, which includes Tk40.5 lakh relating to prior years that has not been paid to the fund.
The auditor noted that under the Labour Act 2006, the participation fund amount must be distributed equally among workers and that companies are required to pay interest on any portion of the fund used for business purposes at a rate of two and a half per cent above the bank rate or 75 per cent of the dividend rate declared on ordinary shares, whichever is higher.
Under the emphasis of matter paragraph, the auditor drew attention to the merger of Kay & Que (Bangladesh) Limited with Multi Sourcing Ltd under a scheme of arrangement for demerger and merger approved by the High Court Division of the Supreme Court of Bangladesh on 4 December 2022.
The appointed date of the merger was 1 January 2018, but its effects were reflected in the financial statements as of 31 July 2023 with restatement of the previous year’s figures, while administrative processes to transfer certain assets, liabilities and business licences with regulatory bodies remain ongoing.
Dividend-related issues were also highlighted in the report.
As of 30 June 2025, the company disclosed Tk32 lakh as unclaimed dividend, while the designated dividend bank account showed a balance of Tk1,000, leaving a shortfall of Tk32 lakh, which the auditor said is a non-compliance with the Dhaka Stock Exchange Listing Regulations 2015.
The auditor further noted that the company has not transferred Tk24.78 lakh of unclaimed dividend that has remained unpaid for more than three years to the Capital Market Stabilisation Fund, as required under a regulatory directive issued in January 2021.
Despite these observations, the auditor said the audit opinion was not modified in respect of the matters highlighted under the emphasis of matter paragraph.
