Summit Alliance Port Limited’s Tk18.74 crore provision for employee gratuity has come under audit observation because the company did not conduct an actuarial valuation to establish its actual retirement benefit obligations.
In its audit report for the year ended on 30 June 2026, S F Ahmed & Co raised the issue in an Emphasis of Matter paragraph, warning that the absence of a valuation could lead to misstatement of liabilities and employee benefit expenses.
Under International Accounting Standard (IAS) 19, companies must use actuarial valuations to determine the present value of defined benefit obligations, taking into account employee demographics, salary growth and discount rates.
The auditor also flagged the write-off of Tk71 lakh due from subsidiary Summit Alliance Port Pte. Ltd., which ceased operations and was struck off on March 23, 2026.
Another concern involves the company’s appeal against a decision by the Customs, Excise and VAT Appellate Tribunal.
Although it has obtained a stay order, the auditor called for regular assessment of the appeal’s outcome and potential financial implications under IAS 37.
