DSE, CSE to inspect 7 firms allegedly hit by irregularities
BI Report || BusinessInsider
DSE and CSE logo
The bourses will inspect seven companies allegedly plagued with several irregularities such as profit transfer to other associate organisations.
The seven companies are Nurani Dyeing and Sweater, Khan Brothers PP Oven Bag Industries, Mozaffar Hossain Spinning Mills, Indo-Bangla Pharmaceuticals, Western Marine Shipyard, Kattali Textile, and Aman Feed.
“We’ve received several allegations against the companies that they were not properly maintaining financial accounts and diverting profits to other associate organizations,” said an official at the Dhaka Stock Exchange.
After receiving the complaints, the DSE and Chittagong Stock Exchanges (CSE) wrote to the Bangladesh Securities and Exchange Commission (BSEC) for approval to verify the allegations.
Recently, the bourses got approval from the regulator to conduct investigations into the allegations.
"Following the application of the bourses, they were allowed to inspect the factories and offices of seven companies," BSEC spokesperson Mohammad Rezaul Karim told the Business Insider Bangladesh.
After lockdown, the seven companies will be inspected and the bourses have been asked to report back within 15 working days after the inspection, sources said.
Out of the seven companies, the share prices of four companies were traded below the face value.
On Thursday, the share price of Nurani Dyeing and Sweater closed at Tk 5.60, Khan Brothers PP Oven Bag Industries at Tk 7.40, Western Marine Shipyard at Tk 8.60, Kattali Textile at Tk 8.90, Aman Feed at Tk 29.80, Mozaffar Hossain Spinning Mills at Tk 14.30, and Indo-Bangla Pharmaceuticals at Tk 15.
The financial conditions of seven companies have been deteriorating since 2016, according to their financial statements.
Mozaffar Hossain Spinning Mills’s earnings per share or EPS in 2020 was Tk 1.19, down over 30% from Tk 1.72 in 2016.
Nurani Dyeing and Sweater's EPS was Tk 0.4, the sharpest decline of more than 77% from Tk 1.79 during the period.
Khan Brothers PP Woven Bag Industries Limited’s EPS declined 93% to Tk 0.09 in 2020 from Tk 1.29 in 2016.
Earnings per share of Western Marine Shipyard, Indo-Bangla Pharmaceuticals, Kattali Textile, and Aman Feed have also declined steadily since 2016.
