Audit firm raises red flag for Jute Spinners 

The audit firm of Jute Spinners has raised a red flag for the continuation of business by the company.

Despite the warnings, shares of Jute Spinners edged up 0.74 per cent to Tk 123. 

The auditor said the Jute Spinners, a listed company at the Dhaka Stock Exchange, suffered a net loss of Tk 7.57 core in the year ended on June 30 of 2021.

With the losses, accumulated loss of the company stood at Tk 68.6 crore which is higher than its asset of Tk 28.9 crore, said the auditor in a filing at the Dhaka Stock Exchange (DSE).

The auditor also showed cited Jute Spinners' inability to pay creditors on due dates, adverse financial ratios, discontinuance of dividends and inability to obtain finance for new product development.

The production of the company has been discontinued since 2016-2017 and no revenue was generated from 2016-2017, it said.

Therefore, no current tax was charged from 2017-2018 in the financial statements, it added.

The audit firm also mentioned the inefficiency of key management and negative net asset value and operating cash flows of Jute Spinners.

"These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern and that the financial statements do not adequately disclose this matter," the auditor said in its posting at the DSE.