Home Lifestyle Clean image of Uttara Finance thousands of crores of irregularities!

Clean image of Uttara Finance thousands of crores of irregularities!

Clean image of Uttara

Two-thirds of the country’s non-banking financial institutions are in danger of varied irregularities and loan fraud. That information has been found in several reports of Bangladesh Bank and research done on financial sector at different times. However, Uttara Finance has been seen within the list of excellent institutions with a positive image. this point the horrible information of monetary irregularities of that institution has come up within the special inspection of Bangladesh Bank. In terms of this irregularity, Uttara Finance has surpassed People’s Leasing, the foremost criticized financial organization within the PK Haldar story, which is quite Rs 5,000 crore.

The irregularities that Bangladesh Bank has received in Uttara Finance’s 2019 financial report include Tk 598 crore of margin banking and share market margin loans. Of which Tk 350 crore has been deposited as bank of varied directors of Uttara Finance. Where with none quite application, proposal or approval, the cash has been released on to the varied organizations of the administrators .

This has harmed the interests of the depositors. The report further said that another Tk 1,201 crore has been deposited within the bank by the varied directors of the corporate . However, only Rs 311 crore has been mentioned within the financial report. there’s no information about the remainder of the cash .

At the top of 2019, the loan balance was Tk 699 crore as advance and prepayment. However, the financial institution has raised questions on who has been paid beforehand .

Besides, Uttara Finance chairman Rashedul Hasan has taken huge amount of cash out of debt, the report said.

Apart from these, the officials of Bangladesh Bank also found within the inspection of Uttara Finance that the MD of the organization SM Shamsul Arefin withdrew Tk 24 crore under the heading of management expenses with none approval. Of which, on behalf of MD, it’s given Tk 6 crore 24 lakh to South Bridge Housing, Tk 1 crore to Bay Development, Tk 50 lakh to DHS to shop for a personal car and Tk 48 lakh 50 thousand to Uttara Motors. the administrators of the corporate didn’t have any approval to withdraw this money from the MD. aside from this, Tk 335 crore has been given to varied companies of Uttara Motors and Uttara Group, but no approval has been taken. In other words, thousands of crores of rupees are misused within the financial report in an irregular manner.

And the explanation that Uttara Finance has sent to Bangladesh Bank to hide up these irregularities is that it had to borrow some money from Uttara Group to satisfy the credit crunch thanks to the financial crisis. that cash was later refunded. Besides, it’s learned that the MD took the cash without informing the clinic of his sick son.

The financial institution report further said that Uttara Finance Director Mujibur Rahman is that the head of Blue Chips Securities. The deposit of Tk 238 crore has been deposited in Uttara. However, no valid documents are saved. The deposit isn’t guaranteed. during this case, if any bank gives a loan against this sediment , the whole responsibility will fall on Uttara Finance.

According to the Central Bank’s report on the Uttara Finance inspection, Uttara Finance has been involved in illegal financial activities for an extended time by preparing financial reports by concealing the particular details of the transaction. This has put the organization in danger .

SM Shamsul Arefin, MD, Uttara Finance, told the media that thanks to the overtime of our CFO, we couldn’t find any documents and reconcile the long-standing old accounts immediately. Now we’ve found most of the documents. I even have also deposited them in Bangladesh Bank. However, no major irregularities have taken place in our organization.

Uttara Finance’s 2019 financial report was audited by SF Ahmed & Co. Asked how normal it might be for them to not raise any objections, Sabbir Ahmed, former vice-president of The Institute of Chartered Accountants of Bangladesh (ICAB), an association of certified accountants or auditors, told Samay Sangbad that auditors could also be misguided here in Uttara Finance. the corporate may have created two accounts, one for Bangladesh Bank and therefore the other for themselves. If masked during this way, it’s difficult to catch irregularities during a short period of your time . Because the auditors need to believe the concerned organization. In these cases, forensic examination is required just in case of suspicion. Where the whole organization’s database of data , computer systems are often taken control.

Uttara Finance started its operations in 1995 as a non-bank financial organization . at the present the corporate has 3 branches in Dhaka, 1 in Bogra and 1 in Chittagong.

Meanwhile, after the news of the irregularities spread within the media, the share price of the corporate fell by Tk 2.80 to Tk 48 within the capital market on Tuesday (January 12) morning. Later, at around 1 pm, the worth stood at Tk 48.60. On Monday, the last price was 49 rupees 60 paise.

In 2019, Uttara Finance has made a profit of 9 rupees 45 paise per share. In contrast, the corporate has declared 15 per cent cash and 5 per cent bonus dividend on each share with a face value of Rs 10. Which is 21 percent considering the earnings per share.

From now of view, the corporate has deprived its shareholders. Last year, Uttara Finance paid a 20 percent dividend even with a lower profit. the corporate features a total net income of Tk 118.33 crore in 2019 at Tk 9.45 per share. Out of this, 15 per cent cash dividend is being distributed among the shareholders at a complete cost of Tk 16 crore 7 or 15.8 per cent at Tk 1.50 per share. a complete of 8 crore 26 lakh taka or 5.29 percent bonus shares are being distributed at the speed of 5 percent or 50 paise per share. it’ll add 93 crore 29 lakh taka or 7.84 percent to the reserve.

According to the approved allow the financial year 2019-20, a corporation listed on the stock market are going to be ready to transfer a maximum of 60 per cent of its net income after tax to the reserve in any fiscal year . meaning a minimum of 30 percent dividend must be paid. If a corporation fails to try to to so, some of the reserve are going to be taxed at 10 per cent once a year . which can be effective from next year.