Many 'Z' category cos non-existent
Saturday, 13 September 2008
Kayes M Sohel
Some 17 Z-category companies out of 28 surveyed by the Dhaka Stock Exchange (DSE) have been found inoperative for years, putting investments worth millions of Taka at risk.
The 17 listed companies raised a total of Tk 540.49 million from the primary market between 1983 and 2002. Of the remaining 10, only two are fully operational and nine partially.
Gross irregularities have been found by a DSE probe team that has visited the 28 out of around 100 listed Z-category companies.
"So far, the team visited 28 companies and found no existence of some of them. Their owners have either sold or rented out the lands and factories to other companies," a member of the DSE investigation team said.
The errant companies now do not own factories or employ workers, he said.
The companies have failed to declare any dividends to their shareholders ever since their listing on the stock markets showing accumulated losses in their balance sheets.
"The findings have already been sent to the Securities and Exchange Commission. The SEC will take action as per the rules," chief executive officer of the DSE Salahuddin Ahmed Khan said.
The DSE will continue to investigate the rest of the errant companies, he added.
The closed 17 companies are Ashraf Textile Mills Limited, CHIC Textile Limited, Petro Synthetics Process Limited, M Hossain Garments, German Bangla JV Food, Mona Food Industry Limited, Raspit Data Management and Telecommunications Limited, Raspit Inc (BD) Limited, Quasem Silk Mills Limited, Dynamic Textiles Ind. Ltd, Modern Cement Ltd, Sreepur Textile Mills Limited, Maq Paper Industries Limited, Maq Enterprises Limited, Tulip Dairy and Food Products Limited, Bangladesh Zipper Industries Limited and Pharmaco International Limited.
Listed in 1995, Salah Carpet has not prepared any financial report since 2003. The company's 95 per cent machineries are obsolete and the company is producing small volume of products for the local market with the help of five per cent machineries.
Managing Director of the company informed (over telephone) to the investigation team that the company has outstanding loan of Tk 3.0 billion, Tk. 960 million and Tk. 760 million to BSRS, Sonali Bank and ICB respectively as of Thursday. All the assets of the company are mortgaged with BSRS, ICB and Sonali Bank Ltd.
Listed in 1983, Ashraf Textile Mills Limited had sold its 42 bighas of land to another company Karnaphuli Industries Limited.
Listed in 1996, CHIC Textile was sold by IFIC bank to the owner of Eurotex for loan adjustment.
M Hossain Garments was listed in 1995. The company rented out its office to Al-Deen Garments without informing the DSE.
Petro Synthetics, listed in 1985, the company sold its assents and lands to SMAH Ltd.
German Bangla JV Food was listed in 2001. Bangladesh Krishi Bank partially acquired the company's assets and lands.
Mona Food listed in 1997. The company rented its office space to Tonni Food Industry with a monthly rent of Tk 50,000.
Raspit Data Management listed in 2001. Pool World, its subsidiary company, was running business.
Raspit Inc was listed in 1995. Khatib Abdul Zahid Mukul, chairman of Givency Group had purchased the land, building and machineries of Raspit participating through a tender called by Janata Bank to adjust the classified loan of Tk 2,013,177.
Listed in 1988, Quasem Silk Mills Limited had sold its three plots out of its four to Bengal Group, Onika Apparels Ltd and Dishari Washing Plant.
Dynamic Textile Mills Limited got listed in 1994. Land and assets are under partial possession of the company.
Modern Cement Ltd was listed in 2002. The factory of the company was rented to Shah cement Industries Ltd.
Sreepur Textile was listed in 1996, Maq Paper in 1995, Maq Enterprise Ltd in 1997, Tulip Dairy listed in 1990, Bangladesh Zipper listed in 1995, Pharmaco International listed in 1987.
Land and assets are under partial possession of the above five companies.
The nine partially operated companies are Saleh Carpet, Bangladesh Thai Aluminum Limited, Savar Refractories, Excelsior Shoes Limited, Quasem Textile Mills Limited, Paper Processing and Packaging Ltd, Bangladesh Monospool Paper Manufacturing Co and Bangladesh Luggage Industries Limited and Bangladesh Dyeing and Finishing Industries Limited.
The two operational companies are Wonderland Toys Ltd and Anlima Yarn Dyeing Ltd.
Some 17 Z-category companies out of 28 surveyed by the Dhaka Stock Exchange (DSE) have been found inoperative for years, putting investments worth millions of Taka at risk.
The 17 listed companies raised a total of Tk 540.49 million from the primary market between 1983 and 2002. Of the remaining 10, only two are fully operational and nine partially.
Gross irregularities have been found by a DSE probe team that has visited the 28 out of around 100 listed Z-category companies.
"So far, the team visited 28 companies and found no existence of some of them. Their owners have either sold or rented out the lands and factories to other companies," a member of the DSE investigation team said.
The errant companies now do not own factories or employ workers, he said.
The companies have failed to declare any dividends to their shareholders ever since their listing on the stock markets showing accumulated losses in their balance sheets.
"The findings have already been sent to the Securities and Exchange Commission. The SEC will take action as per the rules," chief executive officer of the DSE Salahuddin Ahmed Khan said.
The DSE will continue to investigate the rest of the errant companies, he added.
The closed 17 companies are Ashraf Textile Mills Limited, CHIC Textile Limited, Petro Synthetics Process Limited, M Hossain Garments, German Bangla JV Food, Mona Food Industry Limited, Raspit Data Management and Telecommunications Limited, Raspit Inc (BD) Limited, Quasem Silk Mills Limited, Dynamic Textiles Ind. Ltd, Modern Cement Ltd, Sreepur Textile Mills Limited, Maq Paper Industries Limited, Maq Enterprises Limited, Tulip Dairy and Food Products Limited, Bangladesh Zipper Industries Limited and Pharmaco International Limited.
Listed in 1995, Salah Carpet has not prepared any financial report since 2003. The company's 95 per cent machineries are obsolete and the company is producing small volume of products for the local market with the help of five per cent machineries.
Managing Director of the company informed (over telephone) to the investigation team that the company has outstanding loan of Tk 3.0 billion, Tk. 960 million and Tk. 760 million to BSRS, Sonali Bank and ICB respectively as of Thursday. All the assets of the company are mortgaged with BSRS, ICB and Sonali Bank Ltd.
Listed in 1983, Ashraf Textile Mills Limited had sold its 42 bighas of land to another company Karnaphuli Industries Limited.
Listed in 1996, CHIC Textile was sold by IFIC bank to the owner of Eurotex for loan adjustment.
M Hossain Garments was listed in 1995. The company rented out its office to Al-Deen Garments without informing the DSE.
Petro Synthetics, listed in 1985, the company sold its assents and lands to SMAH Ltd.
German Bangla JV Food was listed in 2001. Bangladesh Krishi Bank partially acquired the company's assets and lands.
Mona Food listed in 1997. The company rented its office space to Tonni Food Industry with a monthly rent of Tk 50,000.
Raspit Data Management listed in 2001. Pool World, its subsidiary company, was running business.
Raspit Inc was listed in 1995. Khatib Abdul Zahid Mukul, chairman of Givency Group had purchased the land, building and machineries of Raspit participating through a tender called by Janata Bank to adjust the classified loan of Tk 2,013,177.
Listed in 1988, Quasem Silk Mills Limited had sold its three plots out of its four to Bengal Group, Onika Apparels Ltd and Dishari Washing Plant.
Dynamic Textile Mills Limited got listed in 1994. Land and assets are under partial possession of the company.
Modern Cement Ltd was listed in 2002. The factory of the company was rented to Shah cement Industries Ltd.
Sreepur Textile was listed in 1996, Maq Paper in 1995, Maq Enterprise Ltd in 1997, Tulip Dairy listed in 1990, Bangladesh Zipper listed in 1995, Pharmaco International listed in 1987.
Land and assets are under partial possession of the above five companies.
The nine partially operated companies are Saleh Carpet, Bangladesh Thai Aluminum Limited, Savar Refractories, Excelsior Shoes Limited, Quasem Textile Mills Limited, Paper Processing and Packaging Ltd, Bangladesh Monospool Paper Manufacturing Co and Bangladesh Luggage Industries Limited and Bangladesh Dyeing and Finishing Industries Limited.
The two operational companies are Wonderland Toys Ltd and Anlima Yarn Dyeing Ltd.