FE Report
Imam Button Industries has incurred a retained loss of above Tk 33.01 million as of June 30, 2017 due to under-utilisation of production capacity, the company's auditor said.
The qualification paragraph of the auditor said the company has been able to utilise only 26 per cent of its production capacity during the year ended on June 30, 2017, according to Dhaka Stock Exchange (DSE).
"The under-utilisation of production is due to machine break-down, frequent power failure, failure to locate new buyer and so on," the auditor's opinion said.
The under-utilisation of production is primarily responsible for the company's recurring loss.
The company has maintained current assets of Tk 0.45 against Tk 1 of current liabilities.
"The effect of such poor ratio expose that the company may not be able to pay its debt, whether current or non-current liability, if demanded by the debtor," the auditor said.
The accompanying financial statements have been prepared assuming that the company will continue as going concern but considering the above effects described in the basis of qualification paragraph herewith has exposed significant doubt of survival of the company for foreseeable future, the auditor said.
Imam Button Industries, a 'Z' category company, was listed with the stock exchanges in 1996.
The company's sponsor-directors hold 31.53 per cent shares, while institutions own 9.03 per cent and general public hold 59.44 per cent shares as of November 30, 2017.
The company's board of directors has recommended no dividend for the year ended on June 30, 2017. The company issued 10 per cent stock dividend issued in 2010.
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