Atlas Bangladesh financial analysis: ten loss years and a qualified FY2025 audit (Oct 2026)

Investment considerations: no bank debt at 30-Jun-2025 and two years of rising sales; ten loss years, a qualified audit and a going-concern paragraph

Atlas Bangladesh Limited (ABL) is an enterprise of the Bangladesh Steel and Engineering Corporation (BSEC) under the Ministry of Industries. It was incorporated as a private limited company in 1966, became a public limited company, and assembles motorcycles and imports spare parts at Tongi, Gazipur [1 p.43]. The company describes itself as the former sole distributor in Bangladesh of Honda Motor Company (Japan), Hero Honda Motors (India), HMSI (India) and Atlas Honda (Pakistan), and as a former partner of Chongqing Zongshen and TVS Auto Bangladesh [1 p.43]. BSEC holds 51.00% of the shares; the DSE lists the stock in the Z category [1 p.50] [11].

In FY2025 (the year to 30-Jun-2025) ABL reported sales of BDT 180.3m, a gross loss of BDT 6.2m, an operating loss of BDT 47.2m, non-operating income of BDT 15.0m and a net loss of BDT 40.9m, or BDT (1.23) a share [1 p.40]. Its auditor, Syful Shamsul Alam & Co., gave a qualified opinion and drew attention to a material uncertainty about going concern [1 p.33] [1 p.34]. The balance sheet at 30-Jun-2025 showed total assets of BDT 4,775.2m, of which property, plant and equipment at revalued amounts was BDT 3,812.5m, and equity of BDT 4,010.8m, of which the revaluation reserve was BDT 3,670.8m [1 p.39].

Business: a BSEC enterprise assembling motorcycles, with a Honda government-sales agreement from April 2025

ABL assembles motorcycles from completely knocked-down (CKD) kits and sells them through a dealer network and to government buyers. The FY2025 accounts list the dealers by district and show that local goods purchases were 'TVS & Honda Brand Raw Materials (CKD Motorcycle)' bought from TVS Auto Bangladesh Limited and Bangladesh Honda Limited [1 p.52] [1 p.70]. The FY2025 directors' report (Bengali, translation ours) states that 1,422 TVS, Zongshen and Honda motorcycles were sold in FY2025 against a target of 2,000 (71.10%), and 1,070 TVS and Zongshen motorcycles in FY2024 against a target of 4,600 (23.26%) [1 p.12].

Two agreements were announced on DSE in 2025. On 4-May-2025 the company announced a business agreement signed with Bangladesh Honda Private Limited on 30-Apr-2025, under which ABL will sell Honda motorcycles to government, semi-government and government-funded bodies through the Direct Procurement Method, and through the Open Tender Method with BHL's written consent; the same post states that ABL will terminate its Business & Technical Assistant Agreement with TVS Auto Bangladesh Limited from 31-Jul-2025 [10]. On 24-May-2025 the company announced a memorandum of understanding signed on 22-May-2025 with Zhejiang Luyuan Electric Vehicle Company Limited, under which ABL will assemble and sell electric scooters and bikes under its own brand 'ATLAS EV'; the post says sales through ABL's dealer network 'would be possible' from August 2025 [10]. The FY2025 notes state that 'Now ABL is engage in assembling and marketing Honda brand Motorcycle to the Government sector' and that ABL is marketing the assembled electric scooters and bikes under the brand 'ATLAS -EV' [1 p.43].

A third announcement, on 25-Nov-2024, reported a memorandum of understanding between ABL and Runner Trade Park Limited to set up a helmet plant named 'Atlas-Runner Helmet Plant' [10]. No later DSE post in the 24-month sweep reports a board approval, budget or start date for that plant [10], and the FY2025 notes state that at the balance-sheet date 'there was no commitment for capital expenditure' [1 p.58].

The company links its sales level to a government order. In the FY2025 notes it states that 'The government of Bangladesh, in response to world economic crisis, suspended (ref: Ministry of finance Order no- 07.101.020.00.00.009.2022-05, date: 04.07.2024 purchases of vehicles by the governmental, semi-governmental, autonomous and other organization' [1 p.54]. It continues: 'For this reason, sales were not increase as our expectation but increase for the financial year 2024-2025 in comparison with previous year' [1 p.54]. The going-concern note cites the same order number and date [1 p.43], and the company's Q1 FY2025 results post on DSE of 11-Nov-2024 refers to the suspension [10]. The Q3 FY2026 notes cite a different order, 'Ministry of finance Order no- 07.101.020.00.00.009.2022 - 07, date: 08.07.2025' [2 p.2].

Ten-year record: losses in every year FY2016-FY2025, ranging from BDT 32.6m to BDT 102.2m

The five-year schedules in the FY2020 and FY2025 annual reports give ten years of history. Total income (net sales plus miscellaneous income) ranged from BDT 28.3m in FY2023 to BDT 400.4m in FY2019 across FY2016-FY2025; the net loss after tax ranged from BDT 32.6m in FY2016 to BDT 102.2m in FY2021 [8 p.68] [1 p.68]. The FY2020 schedule is headed 'Amount in crore Taka'; the FY2025 schedule is headed 'Amount in BDT (Lac)' but its FY2025 total assets of 477.52 equal BDT 4,775.2m only on the crore scale; the balance sheet prints BDT 4,775,213,699 [8 p.68] [1 p.68] [1 p.39]. This note reads both schedules in crore and converts them to BDT million.

The FY2024 column of the FY2025 schedule shows the loss before the restatement: net loss 6.66 crore and income per share (2.01), against the restated BDT 72.0m and (2.17) on the face of the FY2025 statements [1 p.68] [1 p.40]. Summing the schedules' ten after-tax losses gives BDT 574.1m using the pre-restatement FY2024 loss of BDT 66.6m; using the restated BDT 72.0m the sum is BDT 579.5m (derived). The auditor states 'ten consecutive years of losses totaling Tk. 579,605,038 since the financial year 2015-2016' [1 p.34] [19].

Line items: FY2025 sales BDT 180.3m on 1,422 units, gross loss BDT 6.2m, FDR interest BDT 14.6m

Sales. Net sales are gross motorcycle and spare-parts sales less VAT. In FY2025 gross motorcycle sales were BDT 206.1m and spare parts BDT 0.69m, against BDT 131.7m and BDT 3.44m in FY2024; VAT was BDT 26.5m and BDT 18.8m [1 p.54]. Units sold were 1,422 in FY2025 and 1,055 (quantity table) or 1,070 (sales-target table) in FY2024 [1 p.58]. Gross motorcycle sales per unit sold, a derived figure, were BDT 145.0 thousand in FY2025 and BDT 124.9 thousand in FY2024 on the quantity-table units [19]. Sales by year: BDT 366.3m (FY2019), 343.5m (FY2020), 99.0m (FY2021), 338.7m (FY2022), 15.5m (FY2023), 116.3m (FY2024) and 180.3m (FY2025) [9 p.37] [8 p.39] [6 p.40] [5 p.39] [1 p.40]. FY2023 sales of BDT 15.5m were the lowest of these seven years.

Cost of sales. FY2025 cost of sales was BDT 186.5m: raw materials consumed BDT 158.7m, stores and spares BDT 1.5m and production overhead BDT 27.4m, with finished goods stock rising from BDT 31.6m to BDT 32.6m [1 p.54]. Production overhead included salary and wages of BDT 23.4m (FY2024: 36.2m) and depreciation of BDT 2.0m [1 p.54]. The company states in note 25 that 'due to fixed salary & wages of production department employee; cost of sales increased and negative gross profit margin has occurred' [1 p.54]. Raw materials consumed per unit produced, derived, were BDT 113.9 thousand in FY2025 and BDT 110.5 thousand in FY2024 [19].

Operating expenses. Operating expenses fell from BDT 64.4m in FY2020 to BDT 41.0m in FY2025 [8 p.39] [1 p.40]. In FY2025 they were managing director's remuneration BDT 1.47m, auditor's fees BDT 0.16m, administrative expenses BDT 33.0m and selling expenses BDT 6.4m [1 p.55]. Administrative salaries for officers and staff were BDT 24.0m (FY2024: 25.8m); other items included BSEC head-office management expenses of BDT 1.3m and directors' fees of BDT 0.99m [1 p.55]. The note states that 'During the year the company paid to the directors Tk. 985,554 as honorarium for board & committee meeting attendance fee' [1 p.55].

Non-operating income. Non-operating income was BDT 15.0m in FY2025, of which interest on FDR was BDT 14.6m [1 p.56]. It was BDT 34.0m in FY2019 and BDT 29.1m in FY2020 [8 p.39]. Non-operating income equalled 32% of the FY2025 operating loss, against 53% in FY2019 [19].

Tax. ABL recorded a tax charge in each loss year FY2019-FY2025 [19]. The FY2025 current tax of BDT 8.43m equals advance income tax deducted under section 163 of the Income Tax Act 2023, the highest of 20% of profit (nil), 1% of gross receipts (BDT 1.95m) and that advance tax [1 p.56]. The FY2024 tax charge was corrected from BDT 776,872 to BDT 6,223,887 under IAS 8, which raised the FY2024 loss by BDT 5,447,015 and changed FY2024 EPS from (2.01) to (2.17) [1 p.56].

FY2026 to date: nine-month sales up 46% to BDT 156.8m, gross profit BDT 2.6m, net loss BDT 22.4m

The un-audited nine months to 31-Mar-2026 show net sales of BDT 156.8m against BDT 107.3m a year earlier, cost of sales of BDT 154.2m, gross profit of BDT 2.6m (9M FY2025: gross loss BDT 8.8m), administrative, selling, distribution and financial expenses of BDT 29.6m, non-operating income of BDT 6.2m and a net loss of BDT 22.4m, EPS (0.68) [2 p.1]. The third quarter alone (January-March 2026) had sales of BDT 43.2m, gross profit of BDT 0.94m and a net loss of BDT 7.0m, EPS (0.21) [2 p.1]. Gross motorcycle sales for the nine months were BDT 179.7m [2 p.3].

Operating cash flow for the nine months was BDT (38.6)m and cash and cash equivalents fell from BDT 126.4m (30-Jun-2025) to BDT 87.5m (31-Mar-2026) [2 p.1]. The company's note on deviations states 'Due to Increase in sales and decrease in receivables positive significant deviation has occurred in NOCFPS' [2 p.2].

Quarterly EPS as posted on DSE, figure by figure: Q1 FY2026 (Jul-Sep 2025) (0.18) against (0.25); Q2 FY2026 (Oct-Dec 2025) (0.28) against (0.30); H1 FY2026 (0.46) against (0.55); Q3 FY2026 (Jan-Mar 2026) (0.21) against (0.27); 9M FY2026 (0.68) against (0.82) [10]. NOCFPS: Q1 FY2026 (0.09) against (0.99); H1 (0.68) against (0.81); 9M (1.17) against (1.38) [10]. NAV per share: 121 at 30-Sep-2025, 121 at 31-Dec-2025 and 120.00 at 31-Mar-2026, each against 121 at 30-Jun-2025 [10]. Every FY2026 quarter was a loss; the DSE posts carry the minus signs as brackets [10].

Ratios: negative gross margin in six of seven years FY2019-FY2025; revaluation reserve 92% of equity at 31-Mar-2026

Margins. Gross margin was negative in six of the seven years FY2019-FY2025 and +0.05% in FY2022; it was -3.4% in FY2025 and 1.7% in 9M FY2026 [19]. The company's own ratio statement prints the FY2025 gross profit ratio as (3.44%) and 'profit on sales' as (18.03%) [1 p.68]. Operating expenses were 22.7% of sales in FY2025 and 18.9% in 9M FY2026 [19].

Returns. With losses in every year, returns on equity are negative; the company prints 'return on investment' of (1.02%) for FY2025 [1 p.68]. The revaluation reserve was 83.5% of equity at 30-Jun-2020, 91.5% at 30-Jun-2025 and 92.0% at 31-Mar-2026 [19].

Working capital. Trade and other receivables were BDT 106.9m at 30-Jun-2025, 216 days of FY2025 sales on a derived basis; the figure includes BDT 46.9m of other receivables, mostly sundry debtors of BDT 45.2m [1 p.47] [19]. Inventories were BDT 36.3m at 30-Jun-2025, 71 days of cost of sales [1 p.39] [19]. The company prints a current ratio of 1.73:1 and a quick ratio of 1.67:1 for FY2025 [1 p.68].

Cash conversion. Operating cash flow was positive in FY2022 (BDT 25.8m) and FY2024 (BDT 23.6m) and negative in FY2019, FY2020, FY2021, FY2023 and FY2025 [19]. The FY2025 reconciliation shows cash used by operations of BDT 75.1m after a BDT 19.9m rise in receivables, a BDT 10.0m rise in advances and a BDT 16.3m fall in payables and provisions [1 p.57]. The company states: 'Due to decrease in liabilities and increase in payment of leave pay & Gratuity negative significant deviation has occurred in NOCFPS' [1 p.57].

Payout. The DSE company page lists cash dividends of 10% for 2015 and 2016, 2% for 2017, 5% for 2019 and 5% for 2020, and no later dividend [11]. The board recommended no dividend for FY2024 and FY2025 [10].

Balance sheet at 30-Jun-2025: no bank debt, BDT 126.4m cash and FDRs, and a BDT 265.2m deferred-tax release to the revaluation reserve

Revaluation and deferred tax. Land, buildings and machinery were revalued at 30-Jun-2011 by A Matin & Co., with a surplus of BDT 3,848,786,703 [1 p.51]. At 30-Jun-2025 the deferred tax liability fell to BDT 114.0m from BDT 379.3m and the revaluation reserve rose by a net BDT 265.0m to BDT 3,670.8m: a BDT 265.2m deferred-tax adjustment less a BDT 0.18m depreciation transfer to retained earnings [1 p.39] [1 p.51]. The company's note states: 'Due to change in income tax rate as per section 125 (2)(c) by the Income Tax Act.-2023 & S.R.O No. 269-Law/Income tax-14/2025; deferred tax liabilities is substantially decrease' [1 p.52]; the tax rate on land in the calculation changed from 10% to 3% [1 p.52]. The adjustment went to the revaluation reserve, not to profit or loss, and NAV per share rose from 114.30 (restated) to 121.07 [1 p.54].

Tax balances. Advance income tax was BDT 671.5m and the provision for taxation BDT 335.3m at 30-Jun-2025 [1 p.39]. The auditor notes that they 'have not been adjusted from the Assessment Year 2015-16 to 2024-25, as they are under appeal at the Taxes Appellate Tribunal' [1 p.34].

Cash. Of the BDT 126.4m of cash and cash equivalents at 30-Jun-2025, BDT 15.0m was in current and short-term deposit accounts, BDT 67.5m in FDRs held for the 'ABL Employees Leave pay & Gratuity Fund Trust' and BDT 43.9m in 'ABL Own Fund' FDRs [1 p.49]. The gratuity liability was BDT 92.2m at 30-Jun-2025 [1 p.51].

Receivables. Trade receivables of BDT 58.9m at 30-Jun-2025 comprised ABL employees BDT 0.93m, government sector BDT 56.9m and NGOs/individuals BDT 1.01m; no provision for bad and doubtful debts is shown [1 p.47]. The company's ageing shows BDT 43.4m within 30 days, BDT 33.8m within 31-60 days and BDT 29.6m over 60 days [1 p.48]. The auditor's first basis for qualification covers BDT 31,268,434 of these balances [1 p.33].

Other liabilities. Unpaid dividend was BDT 57.8m at 30-Jun-2025; the BSEC current account (the parent corporation) was a liability of BDT 45.3m; the workers' profit participation fund balance of BDT 11.3m was unchanged from the previous year [1 p.39] [1 p.53] [1 p.54]. In FY2023 ABL received a BDT 8.0m loan from BSEC [5 p.41].

Audit opinion: qualified on four bases, six emphasis-of-matter items including going concern, three key audit matters

The independent auditor's report on the FY2025 accounts is signed by Md. Emran Hoshen, ACA, partner of Syful Shamsul Alam & Co., dated 05 November 2025 [1 p.38]. The opinion, every basis for the qualification, every emphasis-of-matter item and every key audit matter are quoted below word for word from the page images, with the report's own numbering and spelling [1 p.33] [1 p.34] [1 p.35] [1 p.36]. The report contains no 'Other Matter' paragraph; the DSE post of 24-Nov-2025 describes the report as containing a 'Qualified Opinion' and an 'Emphasis of Matter' paragraph [10]. For FY2024 the DSE post of 21-Nov-2024 listed 'Qualified Opinion', 'Emphasis of Matter' and 'Other Matter' paragraphs [10].

Qualified Opinion [1 p.33]

“In our opinion, except for the effects of the matters described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 30 June 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).”

Basis for Qualified Opinion [1 p.33] [1 p.34]

“1. As disclosed in Note 6: Trade and Other Receivables total amount of Tk. 106,851,201 in the Financial Statements which include receivables from Customs duty amount of Tk. 1,579,025, NGOs/Individuals amount of Tk. 1,012,420 and the Government amount of Tk. 28,676,989, totaling amount of Tk. 31,268,434 have remained outstanding for several years. Despite our efforts, we were unable to verify the extent of their recoverability due to non-confirmation from the respective parties, against this doubtful receivable no provision has been maintained.”

“2. As disclosed in Note 8: Advances, Deposits and Prepayments to the financial statements, it has been observed that the Company has reported an amount of Tk. 4,391,740 as Advance against VAT. However, as per the VAT return, the corresponding balance stands at Tk. 115,330, resulting in an unreconciled difference of Tk. 4,276,410. This advance has remained outstanding for a long period without proper reconciliation or sufficient supporting documentation to substantiate its recoverability, but no provision has been maintained against this doubtful advance.”

“3. As disclosed in Note 18: Trade and Other Payables to the Financial Statements, Advance Against Shares amount of Tk. 184,050, Liability for Imported Goods amount of Tk. 11,985,256, Liability for Feasibility Study amount of Tk. 417,000, Creditors amount of Tk. 3,333,905 and Sale Proceeds of Fraction Shares amount of Tk. 2,806,519, totaling amount of Tk. 18,726,730 have remained outstanding for several years. The extended nature of these outstanding payables raises concerns about the Company's financial health and settlement of these liabilities.”

“4. As disclosed in Note 22: Unpaid Dividend to the Financial Statements, a dividend payable amount of Tk. 57,827,570 has remained unpaid for more than three years. Moreover, this amount has not been transferred to the Capital Market Stabilization Fund (CMSF) as directed by the Bangladesh Securities and Exchange Commission (BSEC) in Directive No. BSEC/CMRRCD/2021-386/03, dated 14 January 2021. Additionally, the full amount has not been transferred to a separate bank account as stipulated by the aforementioned directive. However, the company has requested an extension for the transfer of the amount through letter No. ABL/Share-08/2025/444, dated 18 September 2025, to the commission.”

“We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (BSEC) and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye-Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.”

Emphasis of Matter [1 p.34] [1 p.35]

“We draw attention to:”

“1. Note 7 where the management of the company has explained that an amount of Tk. 1,075,884 in Inter-Project Current Accounts of disinvested project has remained outstanding for several years and is currently under settlement.”

“2. Note 15.02 where the management of the company has explained that interest-free government loan an amount of Tk. 2,184,241 has remained outstanding for several years which will be settled upon receipt of a government requisition for repayment.”

“3. Note 21: Provision for Income Tax to the Financial Statements, the provision for income tax amounts to Tk. 335,311,516 as of 30 June 2025. Additionally, in Note 09: "Advance Income Tax," the financial statements report an amount of Tk. 671,535,765. The advance and provision for income tax have not been adjusted from the Assessment Year 2015-16 to 2024-25, as they are under appeal at the Taxes Appellate Tribunal. Furthermore, the tax assessments remain incomplete from the Assessment Year 2019-20 to 2024-25.”

“4. Note 42(b) where the management of the company has explained the status of revaluation of Property, Plant and Equipment although as per paragraph 34 of IAS 16 (Property, Plant, and Equipment), the frequency of revaluation should not exceed three to five years. However, the company's last fixed asset valuation was conducted on 30 September 2011, as disclosed in Note 14: "Revaluation Reserve" to the Financial Statements..”

“5. Note 2(C) regarding Retrospective adjustment in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors due to an arithmetical error of tax calculation resulting understatement of tax expense of previous year.”

“6. Note 2(a) ii and following indicators that a material uncertainty exists, which may cast significant doubt on the Company's ability to continue as a going concern. The company's accumulated loss as of 30 June 2025, stands at Tk. 172,637,395 and it has experienced ten consecutive years of losses totaling Tk. 579,605,038 since the financial year 2015-2016, Additionally, cash flow from operating activities for the year is a negative amount of tk. 84,255,327. The net loss has increased year after year since the financial year 2015-2016, accompanied by adverse key financial ratios and poor business performance.”

“These events and conditions indicate a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern, as adequately disclosed in Note 02(a)(ii) of the financial statements. However, as the company is an enterprise of the Bangladesh Steel and Engineering Corporation under the Ministry of Industries, necessary support will be provided to ensure the company's continued operation if the government so decides. Therefore, the company has considered itself as a going concern.”

“Our opinion is not modified with respect to these matters.”

Key Audit Matters [1 p.35] [1 p.36]

“Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.”

“Revenue Recognition. Description of key audit matters: The Company recognizes revenue when control of the goods is transferred to the customer at an amount that reflects the net consideration expected to be received. In determining the sales price, the Company considers the impact of rebates and discounts (variable consideration). For the year ended 30 June 2025, the Company reported revenues of Tk. 180,345,903. The complexities involved in revenue recognition arise from the terms of sales agreements, including the timing of control transfer based on contract terms and the nature of discount and rebate arrangements. These factors require significant management judgment in determining the accurate amount of revenue. Given these complexities and the associated risks with revenue recognition, we have identified it as a key audit matter. Our response to key audit matters: We have tested the design and operating effectiveness of key controls focusing on the following: Reviewed the Company's revenue recognition policy and assessed its compliance with IFRS 15 'Revenue from Contracts with Customers'; Performed sample tests of individual sales transactions and traced them to sales invoices, sales orders, and other related documents. For the selected samples, we tested the recognition of revenue based on the underlying sales invoices, sales orders, and other related documents; Selected a sample of invoices on which rebates and discounts were given and obtained the corresponding rebate and discount schemes approved by management. We noted the accounting treatment of rebates and discounts by the Company for the selected samples; Selected samples of sales transactions made both pre- and post-year-end, and verified the date of transfer of control for the selected samples by testing underlying documents, including customer confirmations; and Assessed the relevant disclosures made within the financial statements. See Note 24: "Sales" to the Financial Statements.”

“Existence and Valuation of Inventories. Description of key audit matters: As of 30 June 2025, the Company held inventories valued at Tk. 36,274,530 in stores. Inventory is measured at the lower of cost and net realizable value, requiring management judgment to determine appropriate values, particularly for spare parts and finished goods. The provision for finished goods has remained outstanding for an extended period, increasing the risk of management override or error in the valuation process. Given these complexities and the associated risks, we have identified the existence and valuation of inventories as a key audit matter. Our response to key audit matters: We assessed the appropriateness of management's assumptions applied in calculating the value of the inventory provisions by: Evaluating the design and implementation of key inventory controls operating across the company. This involved assessing the effectiveness of these controls to ensure they mitigate risks related to inventory management and valuation; Comparing the net realizable value, obtained through a thorough review of sales subsequent to the year-end, to the cost price of a sample of inventories. We also compared this to the associated provision to ensure that inventory provisions are comprehensive and complete; and Evaluating the completeness of inventory provisions by reviewing actual and forecast sales of inventory lines to determine whether provisions for slow-moving or obsolete stock are valid and sufficient. See Note 5: "Inventories" to the Financial Statements.”

“Measurement of Deferred Tax Liabilities (DTL). Description of key audit matters: As of 30 June 2025, the Company reported net deferred tax liabilities totaling Tk. 114,000,430. The adjustment of deferred tax liabilities requires significant management judgment, as it relies on projections of future taxable income and assessments over multiple years. This introduces uncertainty and complexity in accurately estimating deferred tax balances. Given the complexities and risks associated with these estimates, we have identified the estimation and adjustment of deferred tax liabilities as a key audit matter. Our response to key audit matters: We obtained an understanding of, evaluated the design, and tested the operational effectiveness of the Company's key controls over the recognition and measurement of deferred tax liabilities (DTLs) and the assumptions used in estimating the Company's future taxable income. We also assessed the completeness and accuracy of the data used for the estimations of future taxable income. Additionally, we involved tax specialists to evaluate the key assumptions, controls, recognition, and measurement of deferred tax liabilities (DTLs). Finally, we assessed the appropriateness and presentation of disclosures in accordance with IAS 12 - Income Taxes. See Note 17: "Deferred Tax Liability" to the Financial Statements.”

Two dates in the filings differ: emphasis-of-matter item 4 gives the last valuation as 30 September 2011, while note 14 states the revaluation 'was made on 30 June 2011' [1 p.34] [1 p.51]. Both are reported as printed. The company's going-concern note states that 'The directors of the company expect better performance in the foreseeable future' and that 'they believe that the company has adequate resources and govt. support to continue the operation' [1 p.43].

Governance: BSEC holds 51%, a government-nominated board, and printed conflicts in names and committee roles

Ownership. At 30-Jun-2025 BSEC held 16,894,825 Group-A shares (51.00%); Group-B holders were Investment Corporation of Bangladesh 3,608,732 (10.89%), Bangladesh Fund 2,006,859 (6.06%), institutions 1,264,246 (3.82%), officers and employees of ABL 48,987 (0.15%) and the general public 9,303,459 (28.08%) [1 p.50]. The CG annexure on another page prints ICB's holding as 3,608,582 shares (10.89%) [1 p.30]; the two share counts differ by 150. The DSE classification at 30-Sep-2026 is government 51.00%, institute 16.96% and public 32.04%, unchanged from 31-Aug-2026 [11]. The shareholder register had 6,155 holders at 30-Jun-2025 [1 p.50].

Board. The corporate directory lists the chairman Md. Anwarul Alam; directors Md. Abdul Wahed, Md. Osman Gony and Biswas Rasel Hossain; independent director Mohammad Ridhwanul Haq, Ph.D; managing director Md. Ajibor Rahman; company secretary S.M Alauddin; chief financial officer Md. Nazrul Islam; and head of internal audit Md. Javed [1 p.7]. The shareholding annexure lists the same directors plus a second independent director, Dr. Sayed Saikh Imtiaz, and spells one director 'Md. Osman Goni' and the head of internal audit 'Mohammad Javed' [1 p.30]. The CG compliance checklist states that 'There are 07' board members and 2 independent directors [1 p.21]. The directors other than the independent directors are 'Nominated by Govt.' [1 p.30].

Committees. The audit committee met four times in FY2025: Mohammad Ridhwanul Haq Ph.D (chairman), Md. Abdul Wahed, Biswas Rasel Hossain and S.M Alauddin (member secretary), each attending 4 of 4 [1 p.29]. The nomination and remuneration committee met once: Dr. Sayed Saikh Imtiaz (chairman), Mr. Md. Abdul Wahed, Md. Azibur Rahman (managing director) and Mr. S.M Alauddin (member secretary), each attending 1 of 1 [1 p.29]. Three conflicts are printed: the board page describes Mohammad Ridhwanul Haq as 'Chairman of the Audit Committee & NRC Committee', while the attendance table shows Dr. Sayed Saikh Imtiaz as NRC chairman [1 p.5] [1 p.29]; the board page names Biswas Rasel Hossain as a member of the 'Audit Committee & NRC Committee', but he does not appear in the NRC attendance table [1 p.4] [1 p.29]; and the managing director appears as 'Md. Ajibor Rahman' on pages 5, 7 and 30 and as 'Md. Azibur Rahman' on page 29 [1 p.29].

Pay. Managing director's remuneration was BDT 1,469,712 in FY2025 (FY2024: 1,355,404) [1 p.55]. The Q3 FY2026 notes state that compensation follows the National Pay Scale and that 'no amount was spent by the company for compensating any member of the Board of Directors except Managing Director' [2 p.2]; the FY2025 notes separately record BDT 985,554 paid to directors as honorarium for board and committee meeting attendance [1 p.55].

Restatement and corrections. DSE posted FY2024 EPS of (2.01) and NAV of 114 on 11-Nov-2024; the FY2025 post of 6-Nov-2025 gives FY2024 EPS as (2.17) [10]. The FY2025 accounts restate FY2024 EPS from (2.01) to (2.17), NAV per share from 114.47 to 114.30 and retained earnings to BDT (131,938,140) [1 p.51] [1 p.54] [1 p.56]. Note 13 describes the previously reported retained earnings as 'Tk. (161,659,463)', while the FY2024 accounts as first issued show BDT (126,491,125) [1 p.51] [3 p.9]; both are reported as printed. The 24-month DSE sweep contains no post titled 'Correction' [10]. Year-end NAV per share as printed: 131 (30-Jun-2020) and 128 (30-Jun-2021) [7 p.40]; 126 (30-Jun-2022) [5 p.38]; 116 (30-Jun-2023) and 114 (30-Jun-2024) in the DSE post of 11-Nov-2024 [10]; 114.47 as first reported and 114.30 restated (30-Jun-2024) and 121.07 (30-Jun-2025) [1 p.54]; 120 (31-Mar-2026) [2 p.1]. Year EPS as printed: (0.99) FY2019 [9 p.37]; (1.35) FY2020 [8 p.39]; (3.09) FY2021 and (1.47) FY2022 [1 p.68]; (2.93) FY2023 [5 p.39]; (2.01) FY2024 as first reported and (2.17) restated; (1.23) FY2025 [1 p.40] [1 p.56].

Peers: Runner and IFAD Autos are listed vehicle companies, not like-for-like; both had unmodified FY2025 opinions

The DSE peers with published AnalystBro notes are Runner Automobiles [14] and IFAD Autos [15]. Neither is like-for-like with ABL. Runner's consolidated FY2025 revenue came from three-wheelers (BDT 5,098.0m gross), two-wheelers (BDT 516.6m), electric vehicles (BDT 189.9m) and trucks sold by Runner Motors PLC (BDT 4,848.6m net) [12 p.39]. IFAD Autos 'sales different types of Truck, Bus and Farm Tractor with warranty service obligation', and its sales revenue is split into imported vehicles (CBU), manufacturing and assembling vehicles (CKD) and a body building unit [13 p.139] [13 p.167]. ABL sold 1,422 motorcycles in FY2025 [1 p.58]. Because the product sets and scales differ, this note does not rank the three companies' margins.

Audit opinions, read from each filing. Runner's auditor, A. Qasem & Co., wrote: 'In our opinion, the accompanying consolidated financial statements give true and fair view of the consolidated financial position of the Group as at 30 June 2025, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).' [12 p.2] The same report has an 'Other Matters' paragraph: 'Without modifying the auditor's opinion on the financial statements of Freedom Motors Limited, the auditor's drawn attention to the users of the financial statements that since 2013-2014, no revenue has been generated from the core business operation of the Company. However, as per management assessment, the Freedom Motors Limited has adequate resources to continue its operation and no material uncertainty exists related to events or conditions which may cast significant doubt upon the Company's (Freedom Motors Limited) ability to continue as a going concern.' [12 p.6] IFAD's auditor, M. Z. Islam & Co., wrote: 'In our opinion, the accompanying financial statements presents fairly, in all material respects, the financial position of the Company as at June 30, 2025, and of its financial performance and its cash flows for the year then ended in accordance with International Accounting Standards (IASs), International Financial Reporting Standards (IFRSs) and other applicable laws and regulations.' [13 p.138] ABL's opinion is qualified [1 p.33].

Market data: BDT 80.50 on 29-Oct-2026, 0.67x the 31-Mar-2026 NAV, 52-week closes BDT 48.1-98.3

ATLASBANG closed at BDT 80.50 on 29-Oct-2026, the last DSE trading day on or before the note date; the DSE page shows this as the previous close on 1-Nov-2026 [11] [18]. On DSE trading-day closes from the chart feed, the 52-week range from 30-Oct-2025 to 29-Oct-2026 was BDT 48.1 (13-Nov-2025) to BDT 98.3 (13-Jul-2026) [18]. The DSE page's '52 Weeks' Moving Range' of BDT 44.20-102.00 is a different basis (intraday prices, as printed) [11]. The close of 29-Oct-2026 was 49.1% above the close of 54.0 on 30-Oct-2025 [18].

Multiples, stated as facts. Market capitalisation at BDT 80.50 is BDT 2,667m. Price to book is 0.67x the 31-Mar-2026 NAV of BDT 120 and 8.4x NAV excluding the revaluation reserve (BDT 9.59) [2 p.1] [19]. With losses in FY2025 and 9M FY2026 there is no P/E. The FY2025 accounts give the 30-Jun-2025 price as Tk. 55.90 and the 30-Jun-2024 price as Tk. 72.90 [1 p.51]. On 14-Jul-2026 the company replied to a DSE query of 12-Jul-2026 that there was 'no undisclosed price sensitive information of the company for recent unusual price hike and increase in volume of shares' [10].

What's next: FY2026 accounts (3-19 Nov-2026, inferred), AGM 23-28 Dec-2026 (inferred)

FY2026 audited accounts. The year ended on 30-Jun-2026. The 24-month DSE sweep contains no LR 19(1) board-meeting notice for the FY2026 audited accounts as of 31-Oct-2026 [10]. The board approved the audited accounts on 03-Nov-2019 (FY2019), 05-Nov-2020 (FY2020), 10-Nov-2021 (FY2021), 19-Nov-2022 (FY2022), 09-Nov-2023 (FY2023), 10-Nov-2024 (FY2024) and 05-Nov-2025 (FY2025), the dates printed with the audited statements and, for FY2024 and FY2025, in the DSE board-meeting notices [9 p.36] [8 p.39] [7 p.40] [6 p.39] [5 p.39] [3 p.9] [1 p.40] [10]. The seven precedents span 3 to 19 November; the FY2026 approval date is inferred as 3-Nov-2026 to 19-Nov-2026. At 31-Oct-2026 the accounts are not overdue against that precedent range.

Record date and AGM. Record dates were 24-Nov-2019, 26-Nov-2020, 01-Dec-2021, 29-Nov-2022, 30-Nov-2023, 01-Dec-2024 and 26-Nov-2025 [9 p.7] [8 p.8] [7 p.8] [6 p.10] [5 p.9] [4 p.9] [1 p.9]; AGMs were held or called for 28-Dec-2019, 26-Dec-2020, 23-Dec-2021, 27-Dec-2022, 28-Dec-2023, 24-Dec-2024 and 24-Dec-2025 [9 p.7] [8 p.8] [7 p.8] [6 p.10] [5 p.9] [4 p.9] [1 p.9]. The FY2021 AGM date conflicts: the FY2021 notice calls it for 23 December 2021, while the FY2022 notice refers to 'the 37th Annual General Meeting held on 26 December 2021' [7 p.8] [6 p.10]. On seven years the record date falls between 24-Nov and 1-Dec-2026 and the AGM between 23-Dec and 28-Dec-2026 (both inferred; 26-Dec instead of 23-Dec for 2021 does not change the range).

Quarterly accounts. Q1 accounts were approved together with the annual accounts on 10-Nov-2024 and 5-Nov-2025; Q2 accounts on 28-Jan-2025 and 27-Jan-2026; Q3 accounts on 29-Apr-2025 and 8-Apr-2026 [10]. These ranges rest on two years each. LDC graduation date: 24-Nov-2029 [16] [17].

Passed items with no outcome in the filings: the Business & Technical Assistant Agreement with TVS Auto Bangladesh Limited was to end on 31-Jul-2025 and electric-scooter sales under the ATLAS EV brand were described as possible from August 2025 (passed, outcome unknown) [10]. The helmet-plant MoU with Runner Trade Park Limited of 25-Nov-2024 has no later DSE post (passed, outcome unknown) [10]. The company's request to BSEC dated 18-Sep-2025 for an extension to transfer BDT 57.8m of unpaid dividend to the CMSF is described in the audit report (passed, outcome unknown) [1 p.33].

Risks: going concern, government purchasing, unprovided receivables and tax advances under appeal

Each item below is a fact from the filings with the line it relates to. For scale, FY2025 sales were BDT 180.3m and the net loss BDT 40.9m [1 p.40].

Key questions: the FY2026 audit opinion, Honda government sales and the unpaid dividend

ABL's equity at 31-Mar-2026 was BDT 3,988.5m, of which BDT 3,670.7m was revaluation reserve and BDT (194.9)m retained earnings [2 p.1]. Its cash and cash equivalents were BDT 87.5m [2 p.1]. The balance sheet at 30-Jun-2025 shows no bank loans [1 p.39] [1 p.51].

FAQ

What does Atlas Bangladesh do?

It assembles motorcycles and imports spare parts at Tongi, Gazipur; it is an enterprise of the Bangladesh Steel and Engineering Corporation [1 p.43].

Who controls Atlas Bangladesh?

The Bangladesh Steel and Engineering Corporation holds 51.00% [1 p.50] [11].

What was the FY2025 result?

Sales BDT 180.3m, net loss BDT 40.9m, EPS (1.23), NAV per share 121.07 [1 p.40] [1 p.54].

What did the auditor say about FY2025?

A qualified opinion on four bases and six emphasis-of-matter items, including a material uncertainty about going concern [1 p.33] [1 p.34].

Does Atlas Bangladesh have bank debt?

No bank loans are shown; long-term loans were BDT 2.18m of government loans at 30-Jun-2025 [1 p.51].

When did Atlas last pay a dividend?

The DSE page lists a 5% cash dividend for 2020; the board recommended no dividend for FY2024 and FY2025 [11] [10].

When are the FY2026 accounts due?

No board date was notified at 31-Oct-2026; seven years of precedent give 3-19 Nov-2026 (inferred) [10].

Sources

1. Atlas Bangladesh Limited Annual Report 2024-2025 (audited, year to 30-Jun-2025) · link · accessed 2026-11-01
2. Atlas Bangladesh Limited un-audited financial statements, nine months to 31-Mar-2026 (Q3 FY2026) · link · accessed 2026-11-01
3. Atlas Bangladesh Limited audited financial statements, year to 30-Jun-2024 (as first issued) · link · accessed 2026-11-01
4. Atlas Bangladesh Limited Annual Report 2023-2024 · link · accessed 2026-11-01
5. Atlas Bangladesh Limited Annual Report 2022-2023 · link · accessed 2026-11-01
6. Atlas Bangladesh Limited Annual Report 2021-2022 · link · accessed 2026-11-01
7. Atlas Bangladesh Limited Annual Report 2020-2021 · link · accessed 2026-11-01
8. Atlas Bangladesh Limited Annual Report 2019-2020 (five-year data FY2015-FY2020) · link · accessed 2026-11-01
9. Atlas Bangladesh Limited Annual Report 2018-2019 · link · accessed 2026-11-01
10. DSE news archive, ATLASBANG, all news 1-Nov-2024 to 31-Oct-2026 (posts dated 3-Nov-2024 to 14-Jul-2026 cited) · link · accessed 2026-11-01
11. DSE company page, ATLASBANG (shareholding to 30-Sep-2026, dividend history, closing prices; read 1-Nov-2026) · link · accessed 2026-11-01
12. Runner Automobiles PLC audited consolidated financial statements, year to 30-Jun-2025 · link · accessed 2026-11-01
13. IFAD Autos PLC Annual Report 2025 (audited, year to 30-Jun-2025) · link · accessed 2026-11-01
14. AnalystBro, Runner Automobiles financial analysis (published note, 2026) · link · accessed 2026-11-01
15. AnalystBro, IFAD Autos financial analysis (published note, 2026) · link · accessed 2026-11-01
16. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
17. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
18. AnalystBro price data (TradingView DSE daily feed): DSE:ATLASBANG daily bars 3-Aug-2025 to 1-Nov-2026 · link · accessed 2026-11-01
19. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01