Pricing decisions and margin resilience
Board agendas at consumer companies have shifted towards the mechanics of pricing. With import costs exposed to exchange rate movements and changes in duty, directors want to understand the full landed cost of key products, how quickly price changes reach distributors and shelves, and how volume responds when they do. Increasingly, boards are asking management for a range of scenarios rather than a single forecast, together with the assumptions behind each one.
Directors are also looking at how pricing interacts with the distributor network. A price increase that is not matched by changes to trade margins and schemes can shift profit from the company to the channel, or encourage distributors to buy heavily just before the change. Boards want management to show the full effect across the channel, not only on the company's own invoices.
Confidence in reported sales and stock
Revenue and inventory are the two figures in a consumer business most exposed to error and manipulation. Typical concerns include sales pushed into the distributor channel near the period end, incentive schemes that reward invoiced rather than collected sales, and stock held at third-party locations without clear records of ownership.
Audit committees are therefore asking whether cut-off procedures are tested, whether credit notes issued after the year end are analysed, and whether physical stock counts extend to distributor and warehouse sites. These are areas where an independent view carries weight with shareholders and lenders.
A clear view of tax exposure
VAT and income tax disputes in Bangladesh can move through assessment, appeal and tribunal stages over several years. Boards want a consolidated schedule of open tax matters, the amounts at stake, the basis for provisioning and disclosure, and an assessment of whether current processes are creating new exposure. Gaps in VAT invoicing or withholding that is not deducted on supplier payments are frequent sources of future assessments. A useful practice is to review this schedule at each audit committee meeting, with movements since the previous review explained.
Readiness for growth, investment and listing
Where a company is considering an acquisition, a foreign partner or a listing on the stock exchange, directors are asking how ready the business really is. That includes the quality of financial records, the treatment of related-party transactions, and the governance standards that BSEC's corporate governance code sets for listed companies. Independent due diligence before a major decision helps the board test management's case.
RRH supports boards and audit committees through Risk Consulting, which provides risk-based internal audit with direct reporting to the audit committee, Deal Advisory for financial and tax due diligence, and Tax Advisory for an independent assessment of tax positions and exposures.
Related RRH services: Risk Consulting, Deal Advisory and Tax Advisory.