The Bangladesh Securities and Exchange Commission (BSEC) has imposed a Tk1 crore fine on each director of Kattali Textile, excluding independent ones, for non-cooperation with the special auditor appointed by the commission.
In 2020, the managing director was fined Tk1 crore, and other directors, excluding independent and nominated ones, were fined Tk50 lakh each for providing false updates and submitting fake bank statements. The special auditor, appointed in March 2023, aims to review the company’s financial statements for fiscal years 2019–20, 2020–21, and 2021–22, as well as assess the utilization of the IPO fund raised six years ago.
Kattali Textile faces challenges in fund utilization and a declining business, with investors expressing concern over the lack of financial updates. The company’s last trading price was Tk23.7 on the DSE.