Some cos hide info in financial reports, misleading investors: DSE chair

Dr Hafiz Muhammad Hasan Babu, chairman of the Dhaka Stock Exchange (DSE), has expressed concern that some listed companies are omitting essential information from their financial reports, potentially misleading investors.

Even some auditors often conceal vital information in their audit reports, he said while addressing a seminar titled "Financial Reporting and Disclosures: Regulatory Requirements" organised by the DSE in the capital on Thursday.

Bangladesh Securities and Exchange Commission (BSEC) Commissioner Md Abdul Halim spoke as the chief guest at the seminar attended by chairmen, managing directors, chief financial officers and company secretaries of 48 listed companies spanning six sectors.

DSE Chairman Babu said, "At present, the capital market grapples with numerous challenges stemming from a lack of transparency in various financial matters. We urge all participants to ensure that only authentic information is included in their financial reports."

Stating that financial reporting rules are not being adhered to properly, he said, "Company secretaries and chief financial officers [CFOs] should read the regulations and follow them properly."

"We are not trying to establish frameworks that restrict or impede the standing of listed companies. Our aim is to cultivate an atmosphere where everyone can prosper in this competitive market," Hasan Babu said. 

"We aspire to serve as a model for companies within the capital market, showcasing to non-listed entities the myriad opportunities accessible through listing. Apart from tax incentives, there are numerous other benefits," the DSE chairman added.

ATM Tariquzzaman, the managing director of DSE, said, "Timely disclosure of information is a crucial requirement for a well-functioning capital market. To foster efficiency in the capital market, it is imperative to prioritise transparency and prompt delivery of financial reports."

A company's financial position is revealed through its financial statements, and an accurate financial report can precisely depict the company's status because financial reporting encompasses various aspects such as compliance, governance, the accuracy of financial position, and investor interests, he added.