Stocks
Gachihata makes Tk 140cr profit but isn’t paying a penny to the investors
One of the listed firms on DSE, Gachihata Aquaculture, is making big profits from previous losses, the previous year, 2021, the company made a profit of Tk 140cr. But the company never gives anything to its investors. Earlier, the company deceived its investors by showing previous losses, This information is known from DSE sources.
From the sources, The firm, Gachihata Aquaculture is listed in the over-the-counter (OTC) market and announced the resumption of business, a few months back. On August 10, the company’s board of directors had a meeting with the regulatory body Bangladesh Securities and Exchange Commission (BSEC). Despite a loss of Tk 17 crore in 2020, the company’s financial report for 2021 shows a profit of around Tk 140 crore.
According to the financial report of Gachihata Aquaculture for the year 2021, the company’s EPS for the year 2021, was 672 taka 67 paisa. The total income of the company is 139 crore 24 lakh 20 thousand 437 taka.
The loss per share of the company in 2020 was 84 taka 77 paisa. That year, the company made a total loss of 17 crore 54 lakh 68 thousand 527 taka. There have also been accused that the company has been deceiving investors by showing losses for several years.
It is also known that Gachihata Aquaculture Farms is an agricultural company listed on the DSE. Despite owning 109 acres of land, the company has been in a bad shape for the past two decades due to lack of working capital. Gachihata Aquaculture was listed on DSE in 1998. Since 2002, it has been shifted to the OTC market due to failure to operate and pay any dividends.
On September 16 last year (2021), BSEC announced the abolition of the OTC market. As a result, BSEC has decided to transfer the companies covered by the OTC market to the SME platform and Alternative Trading Board (ATB) based on their financial records and future prospects. In line with this, the regulatory body shifted Gachihata Aquaculture from the OTC market to the SME platform in 2021.
From the data given on DSE website, 56.02pc shares of Gachihata Aquaculture are held by ordinary investors. Entrepreneur directors hold 25.86pc shares. The remaining 18.12pc shares are held by institutional investors.
In 2021, Gachihata Aquaculture has not paid any dividend to the ordinary shareholders who have invested in the company despite earning 672 taka 67 paisa per share. Even investors are not informed about the EPS.
When asked about the income in 2021, the Managing Director of Gachihata Aquaculture Farms Major (Retd.) Akhtaruzzaman did not stated anything. However, he said that the board meeting of the company is being held regularly. In response to a question, he said, there is nothing to inform the investors about the board meeting.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
