DSE inspection team finds Northern Jute deserted, locked

An inspection team of the Dhaka Stock Exchange (DSE) found Northern Jute Manufacturing Company's factory shut in a recent visit.
They went to the BSCIC Industrial Estate in Kushtia, where the company is located, to examine its operational status. But they could not enter the factory premises and perform any inspection, according to a stock exchange filing on Tuesday.
It is suspected that the organisation has remained closed for more than three years since it has disclosed no financial data for the period.
The DSE last month separated out 42 companies, including Northern Jute, for inspection of physical entities for their failure to meet one or more regulatory obligations - holding annual general meetings, giving out dividends as declared, or paying listing fees.
In the first phase, the DSE is inspecting 14 companies, aiming to expose the real scenario of the companies to investors.
Thirteen other companies are National Feed Mills, Fortune Shoes, Central Pharmaceuticals, CVO Petrochemical Refinery, Dulamia Cotton Spinning Mills, Familytex (BD), Keya Cosmetics, Khan Brother PP Woven Bag Industries, Regent Textile Mills, The Dacca Dyeing, Usmania Glass Sheet Factory, Zaheen Spinning, and Zahintex Industries.
Some companies have not been in operation for years and failed to declare dividends but they refrained from making any disclosure to inform their shareholders.
The DSE also downgraded some companies to Z category owing to non-compliance.
M Shaifur Rahman Mazumdar, acting managing director of the DSE, said the inspection team had already inspected six companies out of 14.
However, he could not give the names.
After completing the inspection, the DSE will submit reports to the Bangladesh Securities and Exchange Commission, which will then take actions as per the securities laws, said Mr Mazumdar.
Having operations suspended, Northern Jute saw losses piling up for three years with no sign of recovery in the foreseeable future.
The company incurred a net loss of Tk 13.35 million in July-September 2020 as against profit of Tk 15.33 million in the same quarter a year earlier.
The company also failed to declare dividend since 2020.
The sponsor-directors jointly hold 15.09 per cent shares in the company as of January 30, 2022, which fell far short of the 30 per cent requirement.
Despite the grim performance, the company's share price rose 0.19 per cent further to close at Tk 212.80 on Tuesday, leaving many blue-chip stocks behind.
Company secretary Shahadat Hossain Patwary could not be reached for comments despite repeated attempts.

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