Karachi: In a significant disclosure to the Pakistan Stock Exchange, Dadabhoy Construction Technology Limited has presented its audited financial statements for the fiscal year ended June 30, 2024, which have been met with a disclaimer of opinion from its auditors, casting substantial doubt on the company’s financial health and continued operation.
The auditors cited numerous reasons for their inability to provide a clear audit opinion, including the company's cessation of operations since 2016, substantial accumulated losses, and a current liability exceeding current assets. These factors may pose a severe liquidity crisis and affect the company’s ability to continue as a going concern. According to information available from the Pakistan Stock Exchange (PSX), the situation highlights significant uncertainties about Dadabhoy Construction Technology Limited’s ability to sustain its operations.
Specific issues noted by the auditors include the inability to verify crucial financial balances such as advance against property, trade debtors, and cash balances due to a lack of provided records. The management’s failure to supply necessary data and documents for verification of various accounts like short term borrowings and accrued mark-up, further complicates the financial transparency of the company.
Additionally, the financial statements have been flagged for not being prepared in accordance with the Companies Act, 2017, or the International Financial Reporting Standards, and there have been significant deviations from required disclosure norms.
This year’s audit also highlighted ongoing issues from prior periods, noting that previous financial statements audited by another firm similarly received a disclaimer of opinion. The auditors emphasized a comprehensive failure in meeting basic audit and accounting standards, suggesting systemic issues within the company's financial management practices.
The revelation of these financial troubles poses serious questions about the future of Dadabhoy Construction Technology Limited, especially regarding its capacity to fulfill financial obligations and operational revival.