Auditor casts doubts on Beach Hatchery’s asset disclosure

| Updated: November 28, 2022 09:03:26

Auditor casts doubts on Beach Hatchery’s asset disclosure

The auditor of Beach Hatchery has casted doubts on the fair value of the factory building and hatchery equipment as these were dismantled by the government to construct marine drive.

The auditor laid out skepticism in the qualified opinion about the written-down value of the factory's total assets of more than Tk 225.74 million.

In his opinion posed on the DSE website, the auditor also said the company had not recognised deferred tax expense/income in the profit or loss statement and in other comprehensive income.

Moreover, the company had not disclosed compensation packages of the key management personnel, another matter of non-compliance, the auditor said.

The company's trade receivables amounting to Tk 269.94 million were cited in the financial statement.

"There is a probability that recoverability of these long-outstanding balances involves a high degree of uncertainty, against which no provision for doubtful debts has been recognised and expected credit loss as per IFRS-9 "Financial Instruments" by the Company which would overstate total assets."

The official concerned of the Beach Hatchery could not be reached for comment.

Beach Hatchery, presently a 'B' category company, was listed with the bourses in 2002.

The company's sponsor-directors held 34.97 per cent stakes, institutes 15.13 per cent and general investors 49.90 per cent by the end of October.

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