Dhaka bourse to inspect 10 more worrisome companies

The Dhaka Stock Exchange (DSE) has received permission from the Bangladesh Securities and Exchange Commission (BSEC) to conduct on-site inspections of 10 listed companies.

The companies' headquarters, factory premises, and other relevant operational areas will be visited to assess their actual business and financial conditions.

The DSE took the decision to further look into weak-performing businesses after it had found irregularities in several companies during inspections. The BSEC will provide necessary support for the inspections.

The companies that will come under scrutiny this time are Associated Oxygen Limited, FAR Chemical Industries Limited, Krishibid Seed Limited, Nahee Aluminum Composite Panel, Ring Shine Textiles Limited, Khan Brothers PP Woven Bag Industries Limited, Beach Hatchery Limited, Global Heavy Chemicals Limited, Indo-Bangla Pharmaceuticals Limited and Fu-Wang Ceramic Industries Limited.

Many of these companies have shown signs of perpetually poor financial health.

Associated Oxygen has not published any financial statement after FY22 and not paid any dividend.

Ring Shine Textiles has been showing losses since FY21. The last time it paid any dividend to shareholders was in FY19.

Global Heavy Chemicals did not publish any financial result for FY24 and did not pay any dividend for FY23.

FAR Chemical Industries and Krishibid Seed declared a 1 per cent cash dividend each for FY24.

Nahee Aluminum Composite Panel declared a 4 per cent cash dividend for FY24

Khan Brothers PP Woven Bag Industries declared a 1 per cent cash dividend for FY24. Beach Hatchery announced a 10 per cent cash dividend for FY24.

Indo-Bangla Pharmaceuticals showed a loss and declared a 0.10 per cent cash dividend for FY24 while Fu-Wang Ceramic pledged to give a 2 per cent cash dividend for FY24.

Several of these companies have violated securities laws. Some have failed to declare or distribute dividends within the stipulated time, while others have kept production halted for extended periods.

There are also cases where companies have not held Annual General Meetings (AGMs) regularly or disclosed important information to investors on time.

Beach Hatchery is an 'A' stock while FAR Chemical Industries, Nahee Aluminum, Khan Brothers, Indo-Bangla Pharmaceuticals, and Fu-Wang Ceramic belong to 'B' category stocks on the Dhaka bourse.

Associated Oxygen, Ring Shine Textiles, and Global Heavy Chemicals have been labeled as junk stocks.

Krishibid Seed is listed on the SME platform of the prime bourse, which does not segregate companies into different categories.

The BSEC gave its go ahead with the investigation plan of the DSE as earlier inspections had dug up irregularities.

On March 4 this year, DSE officials found that the factory of Khulna Printing and Packaging Limited was closed.

On February 3, an inspection team discovered that the production of Safko Spinning Mills Limited, a textile company, had remained suspended.

Another inspection in October last year revealed that Tung Hai Knitting & Dyeing Limited had ceased operations.

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