SEC directive to Quasem Textile

The Securities and Exchange Commission (SEC) has directed the authorities of Quasem Textile Mills Limited to explain/clarify their position in respect of the following auditors' qualified observations on the financial statements of the company: "The company has incurred significant operating losses for last few years. During the year under audit, though the loss has been reduced to some extent, still the net operating loss is Tk 2,675,338 and the accumulated loss of the company as on September 30, 2008 is Tk 196,740,615. Current liabilities (excluding unprovided loan interests) of the company as on September 30, 2008 is about 5.71 times higher than its current assets. We could not be furnished any evidence that the situation may be reversed to cover the huge losses in near future unless the turnover is increased.