CSE to inspect 3 non-productive companies

FT ONLINE

The Chittagong Stock Exchange (CSE) is set to inspect both the factories and head offices of three non-productive companies. The companies to be inspected are Emerald Oil Industries Limited, C & A Textiles Limited, and Beach Hatchery Limited.

The Bangladesh Securities and Exchange Commission (BSEC) approved the CSE’s proposal to inspect the companies on Tuesday.

CSE Chief Regulatory Officer (CRO) Mohammad Shamsur Rahman requested permission from BSEC to inspect the companies in a letter sent on July 19. The companies had failed to submit various reports and some did not hold an Annual General Meeting (AGM) last year.

If any of the companies fails to satisfy the conditions of CSE’s inspection, they may be delisted from the stock exchange. Recently, the factory of Rahima Food Corporation Ltd was delisted after they failed an inspection by the CSE.

The Dhaka Stock Exchange (DSE) authorities also delisted Rahima Food Corporation Ltd, as well as Modern Dyeing & Screen Printing Ltd, as both companies had been incurring constant losses and had not been in production for over five years.

Emerald Oil Industries Limited was relegated to the Z category in the CSE on January 1 this year, as the company failed to hold an AGM in 2017. In addition, the company did not submit audited accounts for the year ended June 30, 2017, or the last three quarterly financial statements.

Emerald Oil Industries has been facing problems since an ACC suit over loans from Bank Asia, and the company has been operating on a small scale due to a shortage of working capital.

C & A Textiles Limited was listed on the CSE on January 21, 2015, and Beach Hatchery on January 7, 2002. Shares of both these companies have also been trading in the Z category.

Shares of the Emerald Oil Industries closed at Tk9.80 yesterday, while those of C & A Textiles closed at Tk5, and those of Beach Hatchery at Tk9.20.