Sonali Aansh Industries financial analysis: export subsidy equals 69% of pre-tax profit (Oct 2026)

Investment considerations: BDT 1.73bn of FY2025 sales, BDT 86m of subsidy and five qualified audits

Sonali Aansh Industries Limited was incorporated in Bangladesh on 29-Jul-1981 and its shares are listed on the Dhaka Stock Exchange; the DSE page gives 1985 as the listing year [1 p.13] [7]. The company owns a jute mill at Shahidnagar, Daudkandi, Cumilla, with three units: Unit-1 and Unit-2 make jute yarn and linen-type jute cloth, and Unit-3 makes diversified products such as shoe sole braid and complete shoes [1 p.13]. The notes describe it as a 100% export-oriented industry, and all FY2025 sales are booked as foreign sales: BDT 1,729.5m, or USD 14.33m [1 p.13] [1 p.31].

Four facts in the filings frame the company. First, scale changed in FY2025: sales were BDT 454m to BDT 600m a year in FY2020-FY2023, BDT 790m in FY2024 and BDT 1,730m in FY2025 [6 p.11] [4 p.10] [1 p.10]. Second, the subsidy line is large relative to profit: the 'Other Income- Non operating' line was BDT 86.2m in FY2025, all of it 'Yarn & Loom, Shoes & Fabrics (Subsidy)', against profit before tax of BDT 125.7m [1 p.33] [1 p.10]. In each of FY2020-FY2023 the subsidy line was larger than profit before tax [16]. Third, the auditor's opinion was qualified in each of the five years FY2021-FY2025, under two firms [6 p.4] [5 p.2] [4 p.2] [3 p.66] [1 p.2]. Fourth, in FY2025 the statement of changes in equity reduced the revaluation reserve by BDT 398.3m under 'Adjustment for Depreciation Charged on Revaluated Assets' [1 p.11]. Separately, NAV per share was BDT 234.34 at 31-Mar-2026 on the consolidated Q3 balance sheet [2 p.1], and BDT 202.00 at 30-Jun-2026 as announced on the DSE [8]. The company attributes the rise from BDT 32.81 over FY2026 primarily to a revaluation of property, plant and equipment as at 30 December 2025 [8]. No source read for this note explains the fall from BDT 234.34 at 31-Mar-2026 to BDT 202.00 at 30-Jun-2026.

Business: jute yarn and loom products, 97.6% of FY2025 sales, all booked as export sales

What the company sells. Note 26 splits FY2025 sales into 'Yarn & Loom' (BDT 1,688.9m; 14,975.40 M.Ton at an average rate of BDT 112,777 a ton) and 'Jute Fabrics, Shoes, Bag' (BDT 40.6m; 97.18 M.Ton at BDT 418,040 a ton) [1 p.31]. Tonnes multiplied by the printed rate give BDT 1,688.9m for Yarn & Loom, within 0.1% of the printed amount [16]. In FY2024 the split was BDT 693.0m and BDT 96.6m; the FY2024 tonnage is not printed in the FY2025 note [1 p.31]. The diversified line therefore fell from 12.2% to 2.3% of sales between the two years [16]. Note 1.03 says the products are mainly exported through letters of credit, with some hessian and sacking quality yarn/loom production [1 p.13]. The filings read for this note do not give export destinations or customer names.

Capacity. The notes carry two capacity statements for FY2025. Note 1.03 says: 'The total installed production capacity per annum is 10,500 metric tons (M.T.) in three (3) shifts in 3 industrial units while during the year achieved 8,452. 84 metric tons of production', and adds 'The short fall in capacity utilization is due to production of lightweight yarn fabrics to meet market demand' [1 p.13]. Note 40 gives Yarn & Loom rated capacity of 27,720 M.Tons with actual production of 14,475.63 (52.22%), and Jute Fabrics, Shoes & Bag rated capacity of 2,500 M.Tons with 93.93 produced (3.76%), stating 'Available production capacity could not be utilized due to shortage of skilled workers and also want of expected orders' [1 p.36]. Yarn & Loom sold in FY2025 (14,975.40 M.Ton) is closer to the note 40 production figure than to the note 1.03 figure [1 p.31]. The raw-jute quantity table in note 27.01 prints a consumption of 254.80 M. Ton for FY2025 and 1,376.21 for FY2024 [1 p.31]; those tonnages are far below the yarn tonnage sold, so this note does not use them to compute a yield.

People. Note 41 lists 133 officers and 1,444 staff and workers/technicians on the payroll, 1,577 in total, who drew BDT 195.1m of salary and allowances in FY2025, 'apart from many casual/ contract technicians /workers' [1 p.36]. The auditors' provident-fund paragraphs give the permanent headcount in earlier years as 2,071 (FY2021), 2,064 (FY2022), 1,013 (FY2023) and 1,496 (FY2024) [6 p.5] [5 p.2] [4 p.2] [3 p.66]. Direct wages in cost of goods sold were BDT 81.8m in FY2024 and BDT 162.2m in FY2025 [1 p.31].

Six years of results. Sales were BDT 454.0m in FY2020, BDT 506.4m in FY2021, BDT 599.8m in FY2022 and BDT 463.3m in FY2023, then BDT 789.6m and BDT 1,729.5m [6 p.11] [4 p.10] [1 p.10]. Profit after tax went from BDT 1.7m and BDT 3.1m in FY2020-FY2021 to BDT 10.6m, BDT 20.9m, BDT 35.1m and BDT 95.4m [16]. Printed EPS is on different share counts across the period: the share count went from 2.712m to 5.424m and then 10.848m through 100% stock dividends for FY2022 and FY2023 [1 p.26]. On today's 10.848m shares the FY2020 profit is BDT 0.15 a share and FY2025 is BDT 8.79 (derived) [16].

Line items: raw materials 84% of FY2025 manufacturing cost; subsidy equal to 69% of profit before tax

Revenue. FY2025 sales of BDT 1,729.5m were USD 14.33m, against USD 7.16m in FY2024 [1 p.31]. Dividing taka sales by dollar sales gives BDT 110.2 per USD in FY2024 and BDT 120.7 in FY2025 (derived) [16]. Dollar sales doubled (+100%), and the taka per dollar rose 9.5% [16]. The FY2024 tonnage and rate are not in the FY2025 note, so the split of the dollar increase between tonnes and price per ton is not available from the pages read. The FY2025 auditor named revenue recognition as a key audit matter, and the FY2021-FY2024 auditors' reports qualified on month-end recognition of invoices [1 p.4] [3 p.66] [6 p.5].

Cost of goods sold. FY2025 manufacturing cost before stock changes was BDT 1,525.0m: raw materials consumed BDT 1,283.9m (84.2%), direct wages and worker gratuity BDT 162.5m (10.7%), power and fuel BDT 35.3m (2.3%), other factory overhead BDT 22.8m and depreciation BDT 20.5m [1 p.31] [16]. In FY2024 raw materials were 78.6% of the BDT 650.5m total [16]. Raw jute/yarn purchases were BDT 1,178.9m in FY2025 and BDT 574.3m in FY2024; the FY2025 purchase figure is one of the items the auditor could not verify [1 p.31] [1 p.3]. Power and fuel split into 'Power Electricity' BDT 11.5m, gas BDT 8.2m and diesel BDT 15.5m in FY2025 [1 p.32].

A per-ton view for FY2025 only. The Yarn & Loom average rate was BDT 112,777 a ton [1 p.31]. Raw jute/yarn consumed (BDT 1,247.9m) divided by note 40 Yarn & Loom production (14,475.63 tons) is about BDT 86,206 a ton, which leaves a derived gap of about BDT 26,571 a ton [16]. This is a derivation from two notes, it mixes yarn with loom output, and the denominator uses the note 40 production figure rather than the note 1.03 figure; with 8,452.84 tons the raw material per ton would be higher. No second year is available on the same basis.

Gross margin. Gross margin was 8.4% in FY2020, 6.7% in FY2021, 6.0% in FY2022 (the lowest of the six years) and 7.5% in FY2023, then 14.9% in FY2024 (the highest) and 11.4% in FY2025 [16]. In the nine months to March 2026 it was 10.6%, against 11.3% a year earlier [2 p.2] [16].

Operating expenses. Administrative expenses rose from BDT 16.6m to BDT 54.3m in FY2025 [1 p.10]. The largest new item was a 'Provision for Doubtful Debt' of BDT 36.9m, which matches the provision against foreign trade receivables in note 9; the auditor wrote that the company 'has recognized a bad debts provision of only Taka 36,869,047 against the outstanding balance during the year' [1 p.32] [1 p.24] [1 p.2]. Directors' remuneration was BDT 5.3m in both years [1 p.32]. Marketing and selling expenses rose from BDT 10.8m to BDT 23.7m, including bank charges and commission of BDT 5.4m, export promotion of BDT 4.0m and freight, forwarding and C&F lines [1 p.33]. In the nine months to March 2026 administrative expenses were BDT 65.8m and marketing BDT 39.7m, against BDT 33.6m and BDT 14.9m a year earlier [2 p.2].

Subsidy and other income. Note 2.20 says a cash subsidy receivable from the government is recognised as other income in the period in which it becomes receivable [1 p.16]. The FY2025 line of BDT 86.2m was entirely 'Yarn & Loom, Shoes & Fabrics (Subsidy)'; in FY2024 the BDT 30.5m line was subsidy BDT 14.9m, other income BDT 10.9m and a fluctuation gain of BDT 4.7m [1 p.33]. Subsidy and other income were 14.5% of sales in FY2020, 17.6% in FY2023, 3.9% in FY2024 and 5.0% in FY2025 [16]. As a share of profit before tax the line was 19x in FY2020, 21x in FY2021, 6.8x in FY2022, 2.6x in FY2023, 59% in FY2024 and 69% in FY2025 [16]. In the nine months to March 2026 'Other Income- Non operating' was BDT 114.7m against profit before tax of BDT 100.6m [2 p.2]. The FY2022 auditor noted BDT 53.6m receivable against export subsidy on a provision basis [5 p.2].

Financial expenses. The line was BDT 51m to BDT 74m a year over FY2020-FY2025 and BDT 74.0m in FY2025 [16]. FY2025 interest was BDT 69.7m, of which BDT 37.2m on the Sonali Bank block loan; the line also includes bank charges of BDT 0.5m, interest on lease liabilities of BDT 0.1m and a fluctuation loss of BDT 3.7m [1 p.33]. As a share of sales it went from 12.5% in FY2020 to 4.3% in FY2025 [16]. Gross profit less operating expenses covered financial expenses 1.36x in FY2024 and 1.62x in FY2025, and less than once in FY2020-FY2023; with subsidy and other income added, cover was 2.78x in FY2025 [16].

Tax and WPPF. Note 2.15 says the company provides income tax at 10% on profit [1 p.15]. The FY2025 current tax of BDT 25.9m was the higher of three measures in note 32.01, which is the advance income tax deducted at source; the 10% charge on profit would have been BDT 12.6m [1 p.34]. Total tax was 24.1% of profit before tax in FY2025 [16]. The contribution to WPP & WF was BDT 6.3m [1 p.10].

FY2026: nine-month sales of BDT 1,486m and announced EPS of BDT 8.87

Nine months to March 2026. Sales were BDT 1,486.1m against BDT 1,104.6m, and the January-March quarter alone was BDT 821.3m against BDT 448.7m [2 p.2]. Gross profit was BDT 157.8m against BDT 124.6m, operating profit BDT 52.2m against BDT 76.1m, other income BDT 114.7m against BDT 43.7m and profit after tax BDT 61.0m against BDT 56.8m (EPS BDT 5.62 against BDT 5.23) [2 p.2]. Tax was BDT 39.6m against BDT 6.3m [2 p.2]. The statement is a scanned page; figures were read from the page image and the gross-profit subtotals tie.

FY2026 results as announced. The board met on 29-Oct-2026 under LR 19(1) to consider the audited statements for the year to 30-Jun-2026 [8]. The DSE posted the outcome on 01-Nov-2026: a 10% cash dividend 'from its accumulated profit and current year profit', EPS of BDT 8.87, NAV per share of BDT 202.00 and NOCFPS of BDT (4.41), against BDT 8.79, BDT 32.81 and BDT 9.11 for FY2025; record date 06-Dec-2026 and a virtual AGM on 30-Dec-2026 [8]. The company's statement adds: 'The increase in Net Asset Value (NAV) per share during the year was primarily attributable to the revaluation of the Company's Property, Plant and Equipment (PPE) as at 30 December 2025' [8]. The FY2026 annual report is not yet in the AnalystBro corpus, so FY2026 sales, costs and cash flows are not available here.

Quarterly EPS. FY2026 quarters were BDT 1.78, 1.87 and 1.97, and the fourth quarter derived from the annual figure is BDT 3.25; in FY2025 the quarters were BDT 1.51, 1.92 and 1.81, with a derived fourth quarter of BDT 3.55 [8] [16]. NOCFPS for the nine months to March 2026 was BDT 4.42 and for the full year BDT (4.41) [8].

Ratios: FY2025 cash conversion 1.04x; debt 2.30x equity after the reserve cut

Reported equity changed twice in the period: it was carried with a BDT 504.3m revaluation reserve until FY2024, cut to BDT 355.9m in FY2025 and raised to BDT 2,542.1m at March 2026 [16]. Excluding the revaluation reserve, equity was BDT 107.3m at June 2020, BDT 166.1m at June 2024 and BDT 257.4m at June 2025, or BDT 23.73 a share on 10.848m shares (derived) [16]. FY2025 profit after tax of BDT 95.4m was 37% of that June 2025 figure [16].

Cash conversion. Operating cash flow was BDT 12.7m in FY2020, BDT (34.9)m in FY2021, BDT 25.7m in FY2022, BDT 91.8m in FY2023, BDT 83.6m in FY2024 and BDT 98.9m in FY2025 [6 p.13] [4 p.12] [1 p.12]. Against profit after tax that is 4.4x in FY2023, 2.4x in FY2024 and 1.04x in FY2025 [16]. The presentation changed in FY2024: interest paid sat inside operating activities until FY2023, and the FY2024-FY2025 statements show 'Financial Expenses Paid' under financing, BDT 66.4m in FY2024 [4 p.12] [1 p.12]. Capital spending was BDT 88.4m in FY2023, BDT 1.9m in FY2024 and BDT 0.08m in FY2025 [16].

Working capital. Inventories were BDT 711.0m at June 2020, 40.3% of total assets, and BDT 237.6m at June 2025, 17.4% [16]. At June 2025 the raw jute stock was BDT 26.5m, against BDT 95.5m a year earlier, while advances to jute suppliers were BDT 252.5m against BDT 95.5m [1 p.23] [1 p.24]. Trade receivables (foreign) were BDT 244.8m gross and BDT 207.9m after the provision; on FY2025 sales that is about 44 days of sales (derived) [1 p.24] [16].

Balance sheet: BDT 820m of borrowings at June 2025, a BDT 398m reserve cut and BDT 317m of disputed tax demands

Borrowings. All bank borrowing in the notes is with Sonali Bank PLC [1 p.28] [1 p.29]. At June 2025 the non-current 'Bank Loan' was a block loan of BDT 475.1m (BDT 465.8m after a current portion of BDT 9.3m); note 16 says Sonali Bank converted CC (Hypo) loans of BDT 40.37 crore into the block loan by a sanction letter dated 08.07.2020, at a present rate of 7.5%, with repayment from 01.07.2022 and an EMI of BDT 19,597,000 [1 p.28]. The same note shows instalments paid of BDT 261,191 in FY2025 and BDT 2,179,296 in FY2024 [1 p.28]. Bank overdraft of BDT 322.4m carries interest at 11% [1 p.29]. Short-term loans of BDT 31.4m comprise NIP International BDT 20.5m, Mr. Nurul Islam Patwari BDT 1.0m, Veloxo Trading Ltd. BDT 0.5m and the BDT 9.3m current portion [1 p.29]. Liabilities for expenses include 'Interest Expenses' of BDT 45.0m, nil a year earlier [1 p.29].

At March 2026 the unaudited balance sheet, titled 'Consolidated Statement of Financial Position' (the annual statements are company-only), shows bank loan of BDT 775.7m and bank overdraft of BDT 12.6m, against BDT 465.8m and BDT 322.4m at June 2025 [2 p.1]. Total borrowings were BDT 801.8m against BDT 819.6m [16]. The nine-month statement does not carry notes explaining the change between the two lines.

Revaluation. The FY2024 auditor wrote that the revaluation of BDT 504,310,971 'was carried out in the financial year 2006-07' and that the company had 'not charged any depreciation on the additional value resulting from revaluation' [3 p.67]. In the FY2025 statement of changes in equity, the opening reserve of BDT 504,310,971 is reduced by a line 'Less: Adjustment for Depreciation Charged on Revaluated Assets' of BDT 398,292,576 to an 'Adjusted Opening Balance' of BDT 106,018,395; a further BDT 7,514,716 of 'Depreciation on Revuation' moved to retained earnings, leaving BDT 98,503,679 at June 2025 [1 p.11]. Property, plant and equipment fell from BDT 669.1m to BDT 248.1m [1 p.9]. At March 2026 the revaluation reserve was BDT 2,218.9m and property, plant and equipment BDT 2,358.4m [2 p.1]; the Q3 announcement said 'NAVPS has increase due to asset revaluation carried out up to December 31, 2025' [8].

Intangible addition. A BDT 55,975,624 asset called 'Intangible Addition (Equivalent Cash)' has been carried since 2000-01; note 5 says it represents additions made by the Deputy Commissioner of Taxes in assessments and export cash subsidy claims, and the company states that 'in the eyes of the auditors' the treatment 'deviates the principles of accounting practice' [1 p.22]. The FY2024 auditor wrote that 'The above concept of intangible addition does not comply with the recognition requirement of such as per IAS 38 Intangible Assets' [3 p.66]. The FY2025 basis for qualified opinion does not include this item [1 p.2] [1 p.3].

Tax disputes. Note 37 lists tax demanded by the income tax authority of BDT 2.2m (2018-19, Tribunal), BDT 118.6m (2019-20, ADR), BDT 127.9m (2020-21, Appeal), BDT 34.6m (2021-22, Appeal) and BDT 33.8m (2022-23, Appeal), a total of BDT 317.1m, against provision for income tax in the same table of BDT 22.7m and tax deducted at source of BDT 58.0m [1 p.35]. Advance income tax on the balance sheet was BDT 151.4m and the provision for income tax BDT 48.7m at June 2025 [1 p.9].

Related parties. Note 39 lists balances with nine related parties; none had transactions in FY2025 except NIP Chemical & Pharmaceuticals Ltd. and The Bag and Bag Compant Limited (name as printed) [1 p.35]. Alijan Jute Mills Ltd. (Common Director, 'Loan paid') owed BDT 39,317,649 at both dates. Sonali Aansh Trading (Pvt.) Ltd. - Grameen (Common Director, 'Loan paid') owed BDT 2,409,854. Sonali Aansh Trading (Pvt.) Ltd. (Common Director, 'Business nature') showed BDT (7,895,361). NIP Chemical & Pharmaceuticals Ltd. (Common Director, 'Loan received') moved from BDT (5,663,073) to BDT 23,271,627 after a debit of BDT 28,934,700. NIP International (Director Concern, 'Loan received') showed BDT (20,544,332), Mr. Nurul Islam Patwari (Director (deceased), 'Loan received') BDT (1,032,451), A J World Inc., USA (Son of Director, 'Business nature') BDT 392,248, The Bag and Bag Compant Limited ('Business nature') BDT 786,500 after a credit of BDT 17,500, and Veloxo Trading Ltd. (Common Director, 'Loan received') BDT (454,478) [1 p.35]. Note 11 shows inter-company receivables of BDT 65,785,630: Alijan Jute Mills Ltd. BDT 39,317,649, NIP Chemical & Pharmaceuticals Limited BDT 23,271,627, Sonali Aansh Trading (Pvt) Ltd. BDT 2,409,854 and The Bag & Bag Company Ltd. BDT 786,500 [1 p.24].

Audit: qualified opinions FY2021-FY2025 and ten FY2025 basis items

FY2025 opinion. MABS & J Partners (partner S H Talukder, FCA) signed the FY2025 report on 18 November 2025 [1 p.8]. The opinion paragraph reads: '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 June 30, 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).' [1 p.2]. The report has no emphasis-of-matter paragraph [1 p.2] [1 p.4]. The DSE posted a 'Qualified Opinion' notice on 22-Dec-2025 [8].

Earlier years. The FY2024 report, also by MABS & J Partners (S H Talukder, FCA; dated 18 NOV 2024), carried the heading 'Qualified Opinion' and the same opinion wording for June 30, 2024 [3 p.66] [3 p.74]. Its basis included the revaluation paragraph quoted above, the intangible addition, foreign-currency translation, month-end revenue recognition and, among others, 'In Note #07 to the financial statements, the Company Report's Inventories Taka 282,687,898 as on 30 June 2024. The amount has remained unverified due lack of Inventory Register and Inventory Report (Item wise).' [3 p.66] [3 p.67] [3 p.68]. The FY2023 and FY2022 reports were by FAMES & R, each headed 'Qualified Opinion'; the FY2023 basis includes 'the Company reports an amount of Taka. 282,098,533 (Foreign-BDT. 276,492,244/-& Local-BDT. 5,606,289/-), which remains uncollectible over more than five years' [4 p.2] [5 p.2]. The FY2021 report by MABS & J Partners was headed 'Qualified Opinion' [6 p.4]. The DSE posted qualified-opinion notices for FY2024 (09-Dec-2024) and FY2025 (22-Dec-2025) [8].

Employee funds. The provident fund balance fell from BDT 4.1m to BDT 2.5m in FY2025 with no members' or company contributions shown for either year, and the gratuity fund from BDT 8.5m to BDT 7.9m [1 p.30]. The WPPF balance was BDT 10.9m [1 p.30]. These three funds appear in the auditor's basis items 7-9 above [1 p.3].

Governance: sponsors and directors 31.02%; category moved A to Z and back to A in 2026

Board and sponsors. Note 14.03 lists holdings as at June 2025: Mrs. Shamsun Naher (Chairman, Sponsor) 684,224 shares; Mr. Mohammed Mahbubur Rahman Patwari (Managing Director) 384,512; Mrs. Mohsina Patwari (Director) 680,256; Mr. Jafar Ahmed Patwari (Director) 765,712; Mrs. Nabiha Patwari (Director) 740,256; sponsor shareholders Mr. Mohammad Faizullah 12,000 and Mr. Mohammad Abul Basher Patwari 98,400; and Sonali Aansh Trading (Pvt.) Ltd. (Placement Shareholder) 152,640; the Managing Director's full name is printed in note 38 [1 p.26] [1 p.35]. Note 38 names Mr. Mohammed Mohidul Islam Mahmud as Independent Director and shows remuneration of BDT 2,666,666 each to the Managing Director and to Mr. Jafar Ahmed Patwari (Director) [1 p.35]. The board held 12 meetings in FY2025 [1 p.36]. The DSE lists sponsors and directors at 31.02%, institutions at 10.74% and the public at 58.24% at 30-Sep-2026; the DSE page gives institutions at 8.32% at June 2025 [7], while note 14.01 of the FY2025 statements prints 'Institute' at 1.41% (152,640 shares) [1 p.26]; the two figures differ and neither source explains the difference. Mr. Md. Shifat Hossain Khan was appointed company secretary from 01-Nov-2025 [8].

Dividends and category. The DSE lists cash dividends of 10% for most years since 2011, 15% for FY2025, and stock dividends of 100% for FY2022 and 100% for FY2023 [7]. Note 43 records that, under a BSEC letter dated 28 December 2023, the company 'shall not declare any stock dividend /bonus share(s) in the next 02 (two) financial years without prior consent of the Commission' [1 p.36]. The FY2023 dividend was disbursed and the company moved from 'Z' to 'A' category from 18-Nov-2024 [8]. On 16-Feb-2026 the DSE moved it to 'Z' 'regarding non-disbursement of the approved dividend within the stipulated time frame', and margin lending on the share was stopped from the same date [8]. After the company reported disbursing the FY2025 15% cash dividend, it returned to 'A' from 12-Jul-2026 [8]. The FY2024 auditor wrote that 'the company has not yet paid the dividends declared for 2022-2023 to the shareholders' [3 p.67].

Other DSE notices in the 24 months to 01-Nov-2026. National Credit Ratings Limited assigned A+ long term and ST-3 short term with a stable outlook on 18-Dec-2024 (on June 2024 accounts) and again on 14-Dec-2025 (surveillance, on June 2025 accounts) [8]. On 20-Aug-2025 the company answered a DSE query that there was 'no undisclosed price sensitive information of the company for recent unusual price hike and increase in volume of shares' [8]. The FY2025 board meeting was rescheduled twice, from 15-Nov-2025 to 13-Nov-2025 and then to 18-Nov-2025 [8]. The sweep of the archive (old_news.php, criteria=3) found no board approval of a capacity expansion, machinery import or new project in the period [8].

Peers: two cotton spinners' FY2025 filings against Sonali Aansh

The comparison uses two export-oriented cotton yarn spinners with the same June year end, from their own FY2025 filings: Matin Spinning Mills PLC and Saiham Cotton Mills Limited [9 p.152] [10 p.69]. They differ in raw material (cotton, not jute) and scale. All three are company-only (standalone) statements. Finance cost is quoted under each company's own label; Sonali Aansh's 'Financial Expenses' include bank charges and a fluctuation loss, Matin's 'Finance cost' is interest only, and Saiham's 'Financial expenses' is printed above its operating profit [1 p.33] [9 p.189] [10 p.69].

Within these three companies, Sonali Aansh had the highest net margin (5.5%) and the highest share of profit before tax from other income (68.5%, against 2.5% and 14.2%); Matin had the highest gross margin (15.0%) [16]. Finance cost was 4.3%, 4.4% and 4.9% of revenue [16].

Peers' audit opinions. Matin Spinning's auditor, A. Qasem & Co., wrote: 'In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at June 30, 2025' [9 p.146] [9 p.151]; its key audit matters include the valuation of property, plant and equipment after a BDT 1,318,723,001 revaluation surplus [9 p.146]. The DSE archive for MATINSPINN from 01-Oct-2024 to 01-Nov-2026 contains no auditor-opinion notice [11]. Saiham Cotton's FY2025 report is headed 'Opinion' and reads 'In our opinion, except for the effects of the matter described in the 'Basis for Opinion' section of our report, the accompanying financial statements present fairly', and it carries an emphasis of matter: 'We draw attention to the fact that the Trust Deed of the Gratuity Fund was formalized and the trust was initiated on [1st February, 2025], which occurred subsequent to the period under audit. Our opinion is not modified in respect of this matter.' [10 p.63]. The page's stored text is in a font-encoded cipher and was decoded for this note. The DSE posted 'Emphasis of Matters' notices for SAIHAMCOT on 24-Nov-2024 (FY2024) and 18-Jun-2026 (FY2025) [12].

What's next: record date 06-Dec-2026, AGM 30-Dec-2026, LDC graduation 24-Nov-2029

The FY2026 annual report is due before the AGM on 30-Dec-2026 [8]. The FY2025 qualification items (advances to raw jute suppliers, inventories, purchases, inter-company receivables and employee funds) are listed in the FY2025 auditor's report; the revaluation method for FY2026 and the reason for the change in bank loan and overdraft at March 2026 are not disclosed in the filings in the corpus [1 p.2] [2 p.1]. The FY2026 board meeting on 29-Oct-2026 was earlier than the FY2025 and FY2024 meetings on 18-Nov-2025 and 18-Nov-2024 [8]. LDC graduation: 24-Nov-2029 [13] [14].

Risks: subsidy, BDT 252m of jute advances, receivables and BDT 317m of tax demands

Sensitivities from FY2025 history only. Each 1% of FY2025 raw materials consumed was BDT 12.8m, or 10.2% of profit before tax [16]. Each 1 percentage point of subsidy on FY2025 sales was BDT 17.3m [16]. Each 1 percentage point of interest on the BDT 820m of June 2025 borrowings was BDT 8.2m [16].

Key questions: audit items, subsidy share, capacity and the revaluation

FAQ

What does Sonali Aansh Industries make?

Jute yarn and loom products, linen-type jute cloth, shoe sole braid and complete shoes, at a mill in Daudkandi, Cumilla; Yarn & Loom was 97.6% of FY2025 sales [1 p.13] [1 p.31].

When does Sonali Aansh's financial year end?

On 30 June. The latest audited year in the corpus ended 30-Jun-2025 [1 p.9].

What was Sonali Aansh's EPS for FY2026?

BDT 8.87, as posted on the DSE on 01-Nov-2026, against BDT 8.79 in FY2025 [8]. The FY2026 annual report is not yet in the corpus.

What dividend did Sonali Aansh propose for FY2026?

10% cash (BDT 1.00 a share); record date 06-Dec-2026 and AGM 30-Dec-2026 [8].

Was Sonali Aansh's audit opinion qualified?

Yes. The FY2025 opinion by MABS & J Partners was qualified, with ten basis items, and the FY2021-FY2024 opinions were also qualified [1 p.2] [3 p.66] [4 p.2] [5 p.2] [6 p.4].

How much of Sonali Aansh's profit came from subsidy?

The FY2025 subsidy of BDT 86.2m equalled 68.5% of profit before tax of BDT 125.7m [1 p.33] [1 p.10].

Why did Sonali Aansh's NAV per share change so much?

In FY2025 the revaluation reserve was cut by BDT 398.3m, and NAV per share went from BDT 61.80 to 32.81 [1 p.11] [1 p.9]; NAV per share was BDT 234.34 at 31-Mar-2026 [2 p.1] and BDT 202.00 at 30-Jun-2026 [8]. The company attributes the rise from BDT 32.81 over FY2026 primarily to a revaluation of property, plant and equipment as at 30 December 2025 [8]. No source read for this note explains the fall from BDT 234.34 at 31-Mar-2026 to BDT 202.00 at 30-Jun-2026.

When is Bangladesh's LDC graduation?

24-Nov-2029 [13] [14].

Sources

1. Sonali Aansh Industries Limited audited financial statements, year to 30-Jun-2025 (auditor's report, statements and notes; printed pages 61-95 of the 2024-2025 annual report) · link · accessed 2026-10-31
2. Sonali Aansh Industries Limited unaudited statements, nine months to 31-Mar-2026 · link · accessed 2026-10-31
3. Sonali Aansh Industries Limited Annual Report 2023-2024 (year to 30-Jun-2024) · link · accessed 2026-10-31
4. Sonali Aansh Industries Limited audited financial statements, year to 30-Jun-2023 · link · accessed 2026-10-31
5. Sonali Aansh Industries Limited audited financial statements, year to 30-Jun-2022 · link · accessed 2026-10-31
6. Sonali Aansh Industries Limited audited financial statements, year to 30-Jun-2021 (with FY2020 comparatives) · link · accessed 2026-10-31
7. Dhaka Stock Exchange, Sonali Aansh Industries Limited company page (shareholding, dividend history, listing year), accessed 31-Oct-2026 · link · accessed 2026-10-31
8. Dhaka Stock Exchange news archive for SONALIANSH, 01-Oct-2024 to 01-Nov-2026 (results, dividends, board meetings, category, rating and auditor-opinion notices), accessed 01-Nov-2026 · link · accessed 2026-10-31
9. Matin Spinning Mills PLC Annual Report 2024-25 (year to 30-Jun-2025) · link · accessed 2026-10-31
10. Saiham Cotton Mills Limited Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-10-31
11. Dhaka Stock Exchange news archive for MATINSPINN, 01-Oct-2024 to 01-Nov-2026, accessed 01-Nov-2026 · link · accessed 2026-10-31
12. Dhaka Stock Exchange news archive for SAIHAMCOT, 01-Oct-2024 to 01-Nov-2026, accessed 01-Nov-2026 · link · accessed 2026-10-31
13. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
14. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
15. AnalystBro price data (TradingView feed): DSE:SONALIANSH daily and monthly bars, DSE:MATINSPINN and DSE:SAIHAMCOT daily bars, to 29-Oct-2026 · link · accessed 2026-10-31
16. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31