ICAB advised to take action against auditor ACNABIN

Aman Feed directors fined Tk 1cr

Staff Correspondent | Published: 00:00, Jan 29,2020


Stock market regulator Bangladesh Securities and Exchange Commission on Tuesday decided to advise the Institute of Chartered Accountant of Bangladesh to take necessary action against chartered accountant ACNABIN for violation of securities rules and professional misconduct.

The commission made the decision at a commission meeting presided over by its chairman M Khairul Hossain, a BSEC press release said.

It said that ACNABIN made unprofessional conduct when auditing of capital raising of Aman Feed through an initial public offering.

The chartered accountant firm did not mention violation of securities rules regarding IPO proceed utilisation by Aman Feed in its audit reports, violating Securities Ordinance, 1969.

The commission also put a blanket ban on the ACNABIN’s partner Rokonuzzaman from auditing utilisation of capital raising through IPO. Aman Feed raised Tk 72 crore in 2015 and was listed on the stocks exchanges on September 1, 2015.

As per its IPO prospectus, the company was supposed to utilise the fund by September 27, 2016. But the company utilised the full amount in 2018.

As per special auditing by MABS & J Partners, Aman Feed did not comply with the condition mentioned in the IPO approval letter in connection with the utilisation of IPO proceeds.

On top of that, the company also provided false information in this regard to the commission, breaching securities rules.

Therefore, the commission fined Tk 25 lakh each of the directors other than independent directors and nominated directors of Aman Feed.

There are four directors other than independent and nominated ones in the board of Aman Feed.

The commission also fined Tk 2 lakh each of the directors other than independent directors of Regent Textile Mills as the company breached a number of securities rules in connection of financial disclosures.

The company did not prepare annual financial reports ended on June 30, 2016 and June 30, 2017, provided false and wrong information and failed to provide enough information to the commission when it was asked to do so.

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