Sonali Aansh bags multi-year high profit in nine months

Infographic: TBS

Sonali Aansh Industries Ltd - a publicly listed jute products exporter - has posted over Tk80 lakh in net profits, the highest in at least the last five years, for the first nine months of the current fiscal year.

Thanks to the increased foreign currency revenue from the company's profitable segments like diversified jute products, which are also enjoying a 10% cash subsidy on exports.

The first ISO certified jute product manufacturer in the country has been suffering from low prices for its products in the international market against high costs.

Increased prices for more value-added diversified jute products - that include jute-made shoes, bags and accessories - have been helping the company offset the low profitability in the jute yarns it produces, according to its latest annual report.

In the July-March period of fiscal 2021-22, Sonali Aansh posted earnings per share (EPS) of Tk3.05, which was only Tk0.75 a year ago.

At the end of March, its net asset value per share stood at Tk228.71.

For the last fiscal year, its shareholders availed of Tk1 as a cash dividend against each general share having a face value of Tk10.

The statutory auditor, however, raised its red flag regarding the correctness of the company's accounts for last year. The auditor's qualified opinion helped the company's shareholders learn that the company has long been overstating its assets, and profits by not charging depreciation on revalued assets, and through inappropriate accounting treatments of claimed cash subsidies which were disputed in court.

The auditor also informed that they could not verify the company's over Tk15 crore advances to other parties.

Sonali Aansh stock closed 2.9% higher at Tk473 on Sunday on the Dhaka Stock Exchange (DSE) compared to the previous trading session.