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Emerald Oil Shows Utter Disregard for the Law!
Emerald Oil Industries Limited, a company listed on the stock market, is not complying with the law. Year after year, the company continues to violate various laws. Furthermore, the company’s financial statements have raised concerns among auditors. Despite receiving investments of nearly 20 crore Bangladeshi Taka, the company has not deposited the funds in its bank account. Additionally, despite selling goods worth more than 155 crores Bangladeshi Taka, Emerald Oil has failed to collect payments from its customers. The company has also neglected to submit income tax returns for several years. The latest inspection report from the auditor of Emerald Oil, as obtained from the Dhaka Stock Exchange (DSE), reveals these alarming details.
The company operating in the Food and Miscellaneous category has been found to be violating various laws, including the Companies Act of 1994, the Labor Act of 2006, and the Income Tax Ordinance of 1984, according to the auditors’ opinion.
According to the report, Minori Bangladesh Limited, in the most recent financial year, invested Tk 23 crore 27 lakh 35 thousand 44 in Emerald Oil as a shareholder’s money deposit. During this period, Minori received 19 crores 98 lahks 64 thousand 944 Taka from the company. However, the company has not deposited this amount into its bank account. The company has informed the auditor that due to the misconduct of the previous management team at Emerald Oil, the bank is not providing any assistance. The company is also unable to access the previously opened bank account, which is now inactive.
The auditing institution has revealed that as per the financial report for the fiscal year ending on June 30, 2022, the company possesses assets, plants, and equipment worth 48 crores 73 lakh 32 thousand Taka. However, the authenticity of these assets could not be verified. Moreover, Emerald Oil has not conducted any revaluation of its assets in accordance with IAS-16 in the latest financial year.
Former Managing Director (MD) of Emerald Oil, Syed Hasibul Gani Galib, has sold products worth 155 crores 66 lahks 53 thousand 675 Taka. Despite such a substantial volume of sales, Emerald Oil has not received the corresponding funds. The company has not provided any information to the auditor regarding the process of recovering these funds. Consequently, this amount of 155 crores 66 lahks Taka has become a loss for the company instead of income.
According to section 81 of the Companies Act 1994, every company is required to hold an Annual General Meeting (AGM) once a year. Failure to comply with the AGM requirement, as per section 82 of the Companies Act, can result in penalties for both the company and its officers. The Registrar of Joint Stock Companies and Firms (RJSC) has legislation in place, within 21 days of the AGM, for companies to submit their annual reports and provide information to shareholders and directors. However, Emerald Oil has failed to conduct the AGM for several years and has not provided this information to the RJSC. As per the auditor’s opinion, Emerald Oil has violated the Companies Act of 1994.
As per the auditor’s opinion, Emerald Oil has not provided the latest tax assessment status. Consequently, the company’s actual tax liability could not be determined. Since the fiscal year 2014-15, the organization has been in violation of Section 75(1) of the Income Tax Ordinance 1984 by not filing tax returns. Furthermore, the company has also failed to comply with provision number 16 of article number 52 of the Income Tax Ordinance 1984, which states the applicable areas for VAT and tax deductions. Despite the existence of this provision, the company has not fulfilled its obligations in this regard. While showing a tax deduction of Tk 3 lakh 58 thousand 600 instead of Tk 10 lakh 856, the auditor has not found evidence to support their claim.
According to the Bangladesh Labor Act 2006, it is mandatory for companies or organizations in Bangladesh to establish a Workers’ Profit Participation Fund (WPPF) for the benefit of their employees. Five percent of the company’s profits are required to be deposited into this fund. Despite the requirement to deposit the funds within the first nine months of each fiscal year, Emerald Oil has failed to contribute any amount to the WPPF since the 2015-16 financial year, as stated by the auditor. Interestingly, the company has mentioned the existence of this fund in its financial statement. Consequently, the auditor has expressed an opinion that the company has violated the Labor Act 2006.
To obtain further information on this matter, the Managing Director and spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), Mohammad Rezaul Karim, informed the financial correspondent that the restructuring of Emerald Oil’s board was carried out in the interest of investors. Their responsibility includes initiating the company’s production. The sales (revenue) that the company had previously generated will be collected in accordance with accounting standards. The BSEC’s Chief Accountants Division will verify this upon receiving the audit report. Compliance with accounting standards will also be assessed. If there is any non-compliance by the company’s management, appropriate measures will be taken. The Commission will also take action for any violation of other laws if the Securities Law allows. The BSEC always works in the best interest of investors, and in the case of Emerald Oil, it will ensure compliance with all relevant laws.
The spot rate for shipping goods in containers to Europe from Asia rose for a ninth straight week, the longest stretch of rising prices since the pandemic disrupted global supply chains in 2021.
The rate for a 40-foot container to Genoa, Italy, from China hit $7,029 over the past week, the highest level since September 2022, according to the Drewry World Container Index released Thursday. The cost to Rotterdam increased to $6,867. Both rates have essentially doubled since April.
For the busy trade route from Shanghai to Los Angeles, the rate rose for a seventh straight week, to $6,441.
While not all freight is moving at such elevated prices, the spot market for containers reflects the supply of available space on ships and the demand from importers. That balance has tightened during the past six months as vessels avoid the Red Sea, where Houthi rebels have attacked commercial traffic, including a bulk commodity carrier that sunk earlier this week.
Most container lines are taking the longer route around southern Africa, creating disruptions similar to those two or three years ago. Ryan Petersen, founder and chief executive officer of Flexport Inc., said “we’re right back almost to where we were during the peak Covid situation.” He’s seeing spot rates even higher than the numbers Drewry just reported.
“Right now, if you want to ship a container from China to here in the UK it will cost you about $10,000 unless you have a contract,” Petersen said during a Bloomberg Television interview in London on Thursday. “And by the way, most of those contracts that were signed at lower prices are not being honoured and they’re adding surcharges to them.”
Petersen said it’s hard to predict how long shipping prices will keep climbing, noting that carriers spent some of their record-high profits made during the pandemic on new vessels that are entering service through 2026, which should help ease the latest capacity crunch.
But he also said uncertainty about delivery reliability later this year is worrying some companies and motivating them to order now rather than wait. Among the threats is a dockworker strike at ports along the US East and Gulf coasts, which Petersen said might send container rates above their pandemic highs if cargo bound for those gateways is significantly disrupted.
Prime Minister Sheikh Hasina has called on United Arab Emirates (UAE) investors to invest in Bangladesh’s special economic zones. The request was made during a meeting with UAE Ambassador Abdulla Ali Abdulla Khaseif Alhmoudi at her official residence, Ganabhaban, this morning.
According to the Prime Minister’s Press Secretary, Md Nayeemul Islam Khan, the UAE ambassador assured the prime minister that his country would issue visas for Bangladeshi workers, ensuring they have jobs waiting for them in the UAE. The envoy emphasized the importance of preventing illegal migration from Bangladesh, a concern both countries agreed to address more diligently.
The UAE ambassador also mentioned that several UAE ministers are planning to visit Bangladesh soon to explore new avenues for strengthening bilateral relations. “We already have a very extensive and deep tie, but we are eager to take it to a new height,” Alhmoudi stated.
Alhmoudi highlighted that approximately 20,000 Bangladeshis travel to the UAE each month, with the UAE embassy issuing around 1,000 visas daily—500 directly and 500 through agents. He extended an invitation to Prime Minister Sheikh Hasina to visit the UAE, noting that UAE President Sheikh Mohamed bin Zayed Al Nahyan and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum are eagerly waiting to welcome her.
In response to Sheikh Hasina’s appeal for UAE investment in Bangladesh’s special economic zones, Alhmoudi said that the visiting UAE ministers would discuss the matter further. The envoy also sought cooperation from the prime minister to expedite UAE investments in Bangladesh, including in the container terminal sector. Sheikh Hasina assured him that her government is accelerating processes across all sectors.
Additionally, Alhmoudi mentioned that a UAE company is in the final stages of negotiating prices to provide an Advance Passenger Information System (APIS) to Bangladesh’s civil aviation sector. The prime minister delegated the task to PMO Secretary Mohammad Salahuddin.
For security reasons, the US, EU member states, and other countries now require detailed passenger information from airlines before travel, known as Advance Passenger Information (API).
One of the listed companies, Bata Shoe Bangladesh Limited discloses its financial reports for the first quarter, (January – March 24).
The company’s earnings per share (EPS) was Tk 13.42 paisa in Q1 of the current financial year (January – March 24). EPS was Tk 9.96 (restated) paisa during the same period last year. As of March 31, 2024, at the end of the first quarter of the fiscal year, the company’s net asset value (NAV) per share stood at Tk 251.35.
