The company has revalued its land from Tk 1.13 crore to Tk 517.50 crore
The stock market regulator has decided to appoint a special auditor for Sonali Paper and Board Mills, a Younus Group of Industries company, to review its assets which were reassessed in 2016.
The Bangladesh Securities and Exchange Commission (BSEC) has already sent its auditors for quotations.
The company revalued its assets through SH Khan & Co Chartered Accountants in 2016.
The value of 1,150 decimal land from the company was Tk 1.13 crore, purchased in Tarabo area from Rupganj upazila in Narayanganj several years ago.
The company has revalued this land from Tk 1.13 crore to Tk 517.50 crore.
BSEC Commissioner Dr Sheikh Shamsuddin Ahmed said a special auditor would try to look into the fact of the revaluation of the company’s assets.
If any irregularity is found, the commission will take legal action against the company, he added.
Earlier, the company had asked the commission for an exemption from the regulatory ban on issuing the right shares to comply with the 30 crore paid-up capital requirement.
Currently, the paid up capital of the company is Tk 21.96 crore.
The company’s annual share price range was Tk 196 to Tk 960. Over the past seven months, its stock price has risen more than 300%.
The company focused on the capital market rather than the manufacturing sector. Its main activities are the manufacture and marketing of supports, liners, simplex and duplex cardboard and quality papers such as newsprint.
From July to September 2021, its operating profit increased by 23%, compared to the same period of the previous year.
The company has invested Tk 55.55 crore in the capital market, but its stocks are only Tk 22.68 crore.
A large part of the income was generated by investments in the capital markets.
In July 2020, the company was re-listed on the stock exchanges main board with an exemption from the regulator.
In fiscal 2020-21, Sonali Paper and Board Mills reported 235% year-over-year profit growth based on other revenue, while its revenue growth was 0.42%.
During this financial year, the annual revenue of the company stood at Tk 141.46 crore with profit jumping to Tk 8.94 crore. This profit was the highest in eight years.
As profits soared, he had recommended the highest 40% dividend in the past decade for his shareholders; of which 20% in cash and 20% in shares.
Sonali Paper & Board Mills was incorporated in 1977 and listed on Dhaka Stock Exchange in 1985 and Chittagong Stock Exchange in 1996.
Younus Group took over the company after buying all the shares in 2006.
After 17 years of acquisition, new management has requested the company return to the motherboard in 2020.