BSEC appoints a special auditor for Intech
The company’s former chairman allegedly embezzled funds and used company assets for his family’s gain
The Bangladesh Securities and Exchange Commission (BSEC) appointed G Kibria & CO Chartered Accountant as a special auditor for Intech Limited - a poorly performing IT firm - for reviewing its financial statements for the last three years.
The regulator issued letters to both parties in this regard.
Earlier, Intech's existing Chairman Barrister Khandaker Reza-E-Raquib alleged to the BSEC that the company's former Chairman ATM Mahbubul Alam embezzled funds and used company assets for his family's gain.
Therefore, based on the allegation, the BSEC appointed the special auditor for the company.
Intech Limited mainly provides internet connectivity services to corporate entities and individual clients. It is also engaged in the software business.
But since the company was not doing well in the IT business, it started a fish farming business in 2014 on a 40-acre land in Tarakanda of Mymensingh. It also invested in building resorts but that business did not take off either.
In June 2020, the BSEC fined the company for violating securities rules by investing in fisheries and resorts.
In November last year, the company restructured its board by electing a new chairman and a vice-chairman to revive its business.
The Chattogram-based conglomerate S Alam Group's nominee and KDS Group's Chairman Khalilur Rahman joined the board of Intech as part of complying with the 30% shareholding rule.
The old board failed to focus on the company's IT business.
Intech got listed on the stock market in 2002.
In fiscal 2019-20, the company's revenue was Tk9.13 crore, which was 23% less than the previous year.
After paying taxes, its net profit stood at Tk46.28 lakh for the current fiscal year, which is 62% less than the previous year.
In fiscal 2018-19, its net profit was Tk1.23 crore.
