The Bangladesh Securities and Exchange Commission (BSEC) has appointed Islam Jahid & Co Chartered Accountants as a special auditor at Alhaj Textile Mills to review its financial statements for the 2018-19 and 2019-20 fiscal years.
According to BSEC sources, the company's share price soared around four times in the last two years, but the commission observed no significant change in the company's business.
Besides, the company is yet to resolve an old issue with the Agrani Bank regarding a fixed deposit receipt (FDR), which is also relevant to the interest of investors, they added.
Alhaj Textile's Company Secretary Md Selim Parvez could not be reached over the phone for comments regarding the matter.
The auditor will review the company's balance sheets, assets, liabilities, and other parts of the financial statements, related party transactions, and investigate its procurement of raw materials and PPE, and costs of goods sold.
Also, the auditor will investigate why the company did not declare dividends for the 2018-19 and 2019-20 fiscal years.
Alhaj Textile manufactures cotton yarn for both the local and foreign markets.
The company was incorporated in 1961. In 1972, the government nationalised it and entrusted its management to Bangladesh Textile Mills Corporation (BTMC).
In 1982, Alhaj Textile was privatised and it was handed over to its previous owners and in 1983, it was listed on the bourses.
In the July to September quarter of 2022, its earnings per share stood at Tk0.16, which was Tk0.03 in the same period of the previous year.
The last share price of the company was Tk132.10 at the Dhaka Stock Exchange on Thursday.