The Dhaka Stock Exchange on Thursday decided to seek opinion from the Bangladesh Securities and Exchange Commission on listing approval of Coppertech Industries following criticisms over the bourse’s hurry to make a decision before the investigation into the company’s financial data flaws ends.
The decision to seek the stock market regulator’s opinion came from a DSE board meeting held at the bourse’s office premises in the capital, Dhaka.
A DSE senior official told New Age that the bourse at the meeting backtracked on making any decision on listing of Coppertech following media reports highlighting the bourse’s hurry in this connection amid pressure and hectic lobbying by powerful quarters.
The media on Thursday reported that the DSE was in a hurry to make a decision on listing of the company though the investigation being conducted by the Institute of Chartered Accountants of Bangladesh into the alleged data fabrication by the company was yet to be completed.
The DSE management in its report submitted before the board on Thursday also said that the DSE’s investigation in this regard also found a number of anomalies and inconsistencies in the financial statements of Coppertech.
The report of DSE committee for reviewing initial public offering application of Coppertech Industries was submitted before the board.
The DSE board also got no time to assess the investigation report properly as it was submitted on the same day when the bourse held its meeting to make a decision on Coppertech listing.
The Financial Reporting Council on May 14 asked the ICAB to re-audit financial statements of Coppertech after allegations of fabricating financial data was raised against the company.
But, the ICAB on Monday informed the FRC that it was unable to re-audit financial statements of Coppertech as the company’s auditor Ahmad and Akhtar refused to co-operate with it.
The auditor showed various ‘illogical and contradictory’ reasons when it was asked to provide supporting documents relating to the re-audit, said ICAB officials.
DSE managing director KAM Majedur Rahman after the meeting told reporters that they came to know from the media reports that the ICAB had informed the FRC that the auditor of Coppertech was not cooperating with it regarding re-audit of the financial accounts of the company.
The bourse took it seriously and felt the importance of knowing why the auditor was not cooperating with its own regulator, he said.
Majedur also said that the bourse would also consider what the FRC decided on the issue.
Considering all the issues surrounding the IPO, DSE felt it necessary to seek opinion from the BSEC before making any final decision on the company’s listing.
Majedur said that the bourse at the meeting also decided to seek opinion from the BSEC regarding ACI Limited as it found that the board of the company ‘immorally’ favoured ACI Logistics (brand name Shwapno), one of its loss-making subsidiaries, by providing huge amount of loans constantly.
A DSE senior official said that the sponsor-directors holding 46 per cent shares of ACI were continuously favouring Shwapno, ignoring the interest of the other shareholders.
He said that the bourse decided to request the commission to formulate guidelines on subsidiary company of a listed entity with the provision of limiting support from the parent company.
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