Audit finds multiple financial irregularities at Bongoj Ltd: no fixed-asset register, workers' fund money not distributed

An audit of the financial statements of stock-market-listed Bongoj Limited has revealed various irregularities. The auditor said the company did not properly maintain accounts of its fixed assets in a register.

Because the fixed-asset accounts were not kept in a register, the auditor could not identify the existence of the assets, verify their location and depreciation value, or confirm how much land, assets or machinery the company owns.

Bongoj authorities told the auditor that the company's fixed assets were revalued in 2013. But the management could not provide that revaluation report and supporting documents. As a result, the auditor could not verify the revaluation amount in the financial statements for the year ended June 30, 2026 following accounting methods.

According to the financial report, as of June 30, 2026, Bongoj Limited's receivables from customers and other parties stood at Tk 8 crore 39 lakh 74 thousand; at the same time the previous year receivables were Tk 7 crore 92 lakh 53 thousand 57. However, the auditor did not receive sufficient documents to confirm the existence and recoverability of these receivables. Similarly, the company failed to provide management agreements, invoices, payment records and other necessary documents for the Tk 1 crore 78 lakh 87 thousand shown as advance deposits and prepayments in the finished financial year, so this account could not be verified either.

The audit report also noted that the company could not show the auditor, in a ledger or memo, accounts of how much product it sells in the market each day.

Under section 234 of the Labour Act 2006, a profitable company must deposit 5 percent of its annual net profit into the Workers Profit Participation Fund (WPPF) and distribute it among workers. According to the audit, Bongoj Limited mentioned the fund on paper but in reality distributed no money to workers.

The auditor also found discrepancies in tax payment. The company claimed it paid more than Tk 41 lakh 60 thousand in income tax in the finished financial year. But when challans or receipts were requested, the company presented proof of only Tk 30 lakh 80 thousand; the auditor said there was no proof of where or how the remaining nearly Tk 10 lakh 79 thousand was paid. In addition, although salaries of officials and employees are supposed to be paid through banks under income tax law, Bongoj pays salaries in cash.

The audit report also cited failure to follow government and capital-market rules in running the company. Although a 2020 amendment to the Companies Act 1994 made it mandatory for all public limited companies to write 'PLC' at the end of their name, Bongoj Limited has still not done so. The auditor also raised the failure to submit annual reports to the office of the Registrar of Joint Stock Companies and Firms (RJSC), failure to obtain credit ratings at the scheduled time, and failure to publish reports in newspapers in accordance with capital-market rules.

Another important finding of the audit report is that the company had claimed it had no financial transactions with any sister concern, but the audit found that Bongoj Limited had financial transactions with a company of the Tallu Group. Attempts were made several times by phone to contact company secretary Zinnat Ali Mridha for comment on these matters.