A number of listed companies are being traded on the main floor of both the bourses despite counting operating losses for more than a decade, market insiders have said.
The shareholders of these companies are being deprived of their due benefit amid the situation that arose over their non-productivity, internal dispute and working capital shortage.
The companies which have been counting operating loss for many years are: Meghna Condensed Milk, Shyampur Sugar Mills, Northern Jute, Zeal Bangla Sugar, Altex Industries, Gemini Sea Food, Dulamia Cotton, Imam Button, Meghna Pet Industries and BD Autocars.
Among the companies, Northern Jute continuously counted losses during the period from 2000 to 2013. Shyampur Sugar Mills incurred loss during 2001 to 2013. Both Meghna Pet and Meghna Condensed Milk counted losses during 2002 to 2013.
But as per the Section 31 of the DSE listing regulation, a listed company may be de-listed or its trading may be suspended, if it fails to declare dividend for five years from the date of declaration of last dividend.
"The Dhaka Stock Exchange (DSE) can de-list a company as per the listing regulation. But the Bangladesh Securities and Exchange Commission (BSEC) can either de-list a company or shift it to the OTC market," said a DSE official.
When asked, DSE managing director Dr. Swapan Kumar Bala said the shareholders could urge for liquidation of the companies, failing to serve their interest year after year. However, "the bourse will discuss the issue with BSEC," he also said.
In this connection, no comment was available from the securities regulator.
The companies having negative NAV (net asset value) are: Meghna Condensed Milk, Meghna Pet, Shyampur Sugar Mills, Zeal Bangla Sugar Mills and Dulamia Cotton.
"We are not in a position to do anything to make the company functional again, unless the ministry and the sugar corporation come forward," said Shyampur Sugar Mills company secretary Fatema Akthar.
An official of Northern Jute said their company was in dire straits due to working capital shortage.
Officials of some other companies refused to make comment in this regard.
Among the companies, the operating loss of Shyampur Sugar Mills was Tk 73.08 million, whereas its loss per share was Tk 14.62 in 2001. The company saw no profit from 2002 to 2013. Its operational loss varied from Tk 41.21 million to Tk 228.88 million during the period, whereas loss per share varied from Tk 8.24 to Tk 45.78. Â
Zeal Bangla Sugar incurred loss during the period from 2000 to 2004. The company incurred meagre operating profits in 2005 and 2006. Afterwards, its operating loss varied from Tk 52.38 million to Tk 173.63 million during 2007 to 2013.
Loss per share of Meghna Condensed Milk varied from Tk 0.41 to Tk 14.46 during 2002 to 2013, except making very nominal profit in 2009 and 2010. During the 2002-2013 period, the company's operating loss varied from Tk 6.64 million to 231.34 million. Â
Altex Industries incurred loss worth Tk 58.58 million in 2009, Tk 85.21 million in 2010, Tk 5.42 million in 2012 and Tk 60.68 million in 2013.
The operating loss incurred by Northern Jute varied from Tk 0.24 million to Tk 23.45 million from 2000 to 2013. Its loss per share varied from Tk 0.14 to Tk 13.80.
Loss of Dulamia Cotton varied from Tk 6.29 million to Tk 63.91 million from 2008 to 2013. Â
Imam Button counted operating loss during 2010 to 2013, and during this period the company's loss varied from Tk 8.08 million to Tk 13.39 million.
The operating loss incurred by Meghna Pet varied from Tk 0.34 million to Tk 42.53 million from 2002 to 2013. During the period its loss per share varied from Tk 0.03 to Tk 3.54.
BD Autocars made profit from 2003 to 2012. But the company incurred operating loss worth Tk 1.57 million in 2007.
Cos traded on bourses despite prolonged loss
Mohammad Mufazzal | Published: May 21, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
Share if you like