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The company’s prospectus shows its turnover rose to Tk 5,177.3 crore in the 2018-19 financial year, which was Tk 2,732.9 crore in the previous year. So, its turnover rose about Tk 2,444.35 crore in a space of 12 months.

Md. Abu Kaiser, a partner at Mahfel & Co. that audited Walton Hi-Tech’s financial reports, said the company’s aggressive marketing policy influenced its sales in the 2018-19 financial year.

“There was no bad intention -- it was just the marketing strategy. Walton wants to grab both local and foreign market share.”

When he was informed that Walton Hi-Tech’s peer company Singer Bangladesh, which is listed, did not witness such a pickup in fortunes in the last financial year, he said: “Walton’s mindset is to reach the global arena. Singer’s plan might be different.”

Singer Bangladesh’s profits grew just 12.5 per cent in 2019, down from 22 per cent recorded the previous year.

Asked about the high sums of receivables, Kaiser said: “It sold to its dealers so the receivables rose. Now, if it can handle the receivables properly it will not pose a problem.”

An official of the Bangladesh Securities and Exchange Commission upon condition of anonymity said if the company sold its products to its distributors the stock market regulator cannot do anything about it.

“But it is true that there is a sudden rise in its sales and that too just before going public. This is concerning.”

The company has huge potential but the investors should assess whether the high sales would be achievable in the coming years, he added.

The Daily Star contacted Walton Hi-Tech Industries enquiring about the dramatic rise in profit and turnover in the last financial year. Partha Protim Das, company secretary of Walton Hi-Tech Industries, gave roundabout answers.

“The high turnover and profits were because of our aggressive marketing policy,” he said, adding that the company has introduced many schemes like equal monthly instalments and higher purchase scheme that drew in customers.

Plus, Walton’s after-sales services also attracted consumers after sells services attracted consumers.

When probed that EMI and higher purchase schemes were not introduced during the course of the last financial year but before that, he said: “People got attracted to them now because of our aggressive marketing.”

The marketing push was in preparation for Walton Hi-Tech’s foray into the export market.

“But before that, we need to consolidate our local market share. There is no opportunity to sell forcefully to increase our turnover. It was just our marketing,” he said, adding that the total number of Walton Plaza increased to 340 from 302 in the 2018-19 financial year.

Also in the last financial year, Tk 398 crore came from sales of televisions and home and electrical appliances. All three were lumped under Walton Hi-Tech Industries in the 2018-19 financial year, when they were separate entities previously.

The three heads were booked under Walton Hi-Tech in order to ensure long-term sustainability of the company, Das said.

“As we are going to be listed we thought we should have many products so that if one product does not perform the others can pick up the slump. The company’s overall performance will not be hampered.”

The financial report shows in 2018-19 refrigerator sales alone shot up 72.52 per cent year-on-year to Tk 1,914 crore.

The higher sales lifted the company’s profits to Tk 1,376.1 crore for the 2018-19 financial year from Tk 352.32 crore the previous year.

At present, Walton Hi-Tech’s short-term and long-term loans stand at Tk 2,256.51 crore.