Ahsan Habib

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Advent Pharma illegally appointed Ahmed Zaker and Co to audit the company’s financial report, the Financial Reporting Council (FRC) found in an investigation.

The auditors did not even explain properly how Advent Pharma utilised the proceeds of the initial public offering (IPO) in the 2018-19 annual report of the pharmaceuticals company.

After identifying the irregularities in the appointment of the auditor, the FRC called senior officials of the recently listed drug-maker. It found evidences of violation of laws.

The FRC was established by the government in 2016 under the Financial Reporting Act with the aim to ensure transparency in financial reports submitted by both listed and non-listed companies.

Last week, the FRC sent a letter to the Bangladesh Securities and Exchange Commission (BSEC), asking it take action against Advent Pharma and the auditor.

“We have the power to take action against such activities. However, the FRC is yet to appoint the high official of our enforcement division, so we sent it to the stock market regulator,” said Md Sayeed Ahmed, executive director of the FRC, adding that a high official would soon be appointed.