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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.
Weekly Dhaka Stock Exchange, DSE, Dhaka Bourse has seen a negative performance in Indices, Turnover & Market Capitalization throughout the whole week, This information was disclosed in the weekly market review from the DSE.
According to sources, (5 working days) the turnover of DSE lost by Tk 3 thousand 289 crore 7 lakh (August 18 – August 22). At the same time, the market capitalization has decreased by 16 thousand 132 crore 59 lakh taka.
The benchmark index ‘DSEX’ lost by 203.92 points or 3.45 percent, in the outgoing week. At the end of the week, the index stands at 5,699 points. The Shariah-based index ‘DSES’ dropped 45.64 points or 3.61 percent and therefore the index stands at 1,264 points. The blue-chip index ‘DS30’ decreased by 88.76 points or 4.07 percent, hence the index stands at 2,090 points.
Shares and units worth 3 thousand 122 crore 5 lakh taka were traded in Dhaka Stock Exchange. At the end of the week, the market capitalization stood at 6 lakh 92 thousand 831 crore 80 lakh taka.
Shares and units of 394 companies were traded on Bourse during the week. Of these, 5 shares were unchanged, 357 companies declined, and 32 companies advanced.
Grameenphone Limited has ranked at the top of weekly trading on DSE. The Company records an average turnover of 57 crore 69 lakh taka.
Midland Bank PLC ranked at the top of weekly gainers on DSE. The share has risen 12.09 percent to its highest price.
SEML FBLSL Growth Fund has ranked at the top of weekly losers on DSE. The unit has dropped 14.52 percent lowest in the last week.
Prime Minister Sheikh Hasina today offered solace to the families of those killed during the chaos instigated by BNP-Jamaat terrorists, who exploited the recent quota reform movement. The grieving families met her at her official residence, Ganabhaban.
Among the bereaved were the family members of Abu Sayeed, a student from the English Department at Begum Rokeya University, Rangpur (BRUR), along with 33 other families. Sheikh Hasina presented them with saving certificates and cash as a gesture of assistance.
The sight of the prime minister brought the grieving families to tears. As each family member approached Sheikh Hasina, their emotions overflowed, and they broke down crying.
The prime minister, visibly moved, also struggled to contain her emotions. Tears streamed down her face as she listened to their stories, and she appeared deeply distressed.
In her attempt to console the families, Sheikh Hasina shared her own pain, saying, “Look at me, I am living with so much pain.” She reassured them of her support, expressing that she, too, understands the agony of losing loved ones. “It’s my misery that I have to see your tears,” she continued.
The atmosphere at Ganabhaban was heart-wrenching, filled with grief and shared sorrow.
Present at the event were Speaker Shirin Sharmin Chaudhury and Home Minister Asaduzzaman Khan, with Prime Minister’s Office Secretary Mohammad Salahuddin moderating the proceedings.
Abu Sayeed’s father Makbul Hossain, mother Monwara Begum, and other relatives traveled from Rangpur to Dhaka and attended the gathering at Ganabhaban.
Abu Sayeed, a 12th batch student in the English Department at BRUR, died on July 16 during the quota reform movement in Rangpur. Earlier, on July 26, the BRUR administration provided financial support to Sayeed’s family, delivering a cheque of Taka 750,000 to his parents in Pirganj, Rangpur.
Dhaka Stock Market DSE, Bourse on the first working day of the week, 28th July, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
488 crore 38 lakh taka shares were traded on this day. 8 crore 96 lakh less tradings were done in DSE today compared to the previous workday, July 25th, Shares worth Tk 497 crores 34 lakh shares were traded last time, Thursday.
The benchmark DSEX decreased 29.92 points or 5,383 The Shariah-based index DSES lost 5.65 points or 1,177 and the blue-chip index DS30 dropped by 11.51 points or 1,951.
Of the issues traded, 88 advanced, 261 declined and 43 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 4.20 paisa or 9.93 percent. On this day, the share was last traded at Tk 46.50 paisa.
Shurwid Industries Limited ranked top loser on the DSE, the share price dropped by Tk 0.30 paisa or 3.00 percent. On this day, the share was last traded at Tk 9.70 paisa.
DSE topped on trade is Agni Systems Limited 28 crore 71 lakh takas of company shares have been traded.
A total of 33 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 31 lakh 74 thousand 737 shares of the companies were traded. The financial value of which is 30 crore 93 lakh taka
