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Merchant bankers has sought a central database for companies to store financial reports for authorities as well as regulators concerned to avoid multi-reporting for separate entities.
“Every business entity will deposit its financial reports in the central database and can download whichever is needed,” said Bangladesh Merchant Bankers Association (BMBA) president Md Sayadur Rahman.
He said allegations are there that companies prepare different reports for different authorities. “Say, one for registrar of joint stock companies, one for banks or another for tax authority.”
Mr Rahman was speaking at a seminar ‘The Role of Financial Reporting in the Development of Capital Market’ hosted by the BMBA at a city hotel on Tuesday.
He said the construction of a central database would stop multi-reporting malpractice.
Financial statement not only influences the capital market, but also the entire economy, Mr Rahman observed.
At the event, economic affairs adviser to the PM, Dr Mashiur Rahman said investment comes from savings, so savings should get rewarded.
“We need investments and for that we need savings,” he went on to say.
Bangladesh Securities and Exchange Commission (BSEC) chairman Dr M Khairul Hossain spoke about reasons behind the preparation of so many financials by companies for a single year.
He said a company prepares one report for them to understand progress and prospects.
“Another kind of report they make for the tax authorities so that they can show reduced profit and pay lesser tax,” Mr Hossain asserted.
He also spoke about another report with inflated data listed companies make for the capital market.
“We will sit with company managements so they don’t do this,” he said, urging auditors and accountants not to manipulate financial data.
“You have to learn to say no to company management when they ask for tampering figure,” Mr Hossain said.
The BSEC chief thinks single-digit interest rate will help boost the capital market.
Financial Reporting Council (FRC) chairman CQK Mustaq Ahmed said financial reporting rules and regulations are now tougher.
“Companies who manipulate financial data will have to face the music for their crime,” he added.
Insurance Development and Regulatory Authority member Dr M Mosharraf Hossain said the hub of financial reporting statements could be at the FRC or any other regulator can be create it.
He thinks such depository or data hub will reduce multi-reporting malpractice.
BMBA executive member Mir Mahfuzur Rahman presented a keynote paper at the programme.
He said small and medium enterprises (SMEs), and smaller listed firms under a specific net worth should be allowed a longer transition time.
Market capitalisation has gone up by 2.28 times in the past 10 years, with more than 10 new listings every year, he added.
“Eleven new listings in 2019 had a positive impact on the country’s economy,” he concluded.
(FE)
