BSEC to inspect operational status of Fu-Wang Foods

Illustration: TBS

The securities regulator is set to inspect the operational status and bookkeeping of Fu-Wang Foods Ltd — a publicly listed manufacturer of bread and confectionery food. 

The Bangladesh Securities and Exchange Commission (BSEC), on 25 October, formed a three-member inspection team in this regard. 

As per the terms and references, the appointed officials, two from the BSEC and one from the Dhaka Stock Exchange (DSE), will physically visit the factory premises and head office of Fu-Wang Foods. 

The team will oversee the company's current status of production and operations, and any other related issues pertinent to the inspection.

Also, they will review all the accounts and records including the different price sensitive information disclosed in the last two years. 

According to BSEC, the team has 15 working days from the date of order issuance to complete its inspection and submit the findings to the commission. 

Md Sharif Al Mahmood, company secretary at Fu-Wang Foods told The Business Standard, "We received the BSEC's inspection order, which falls under one of the regular activities of the regulator. Earlier, it had carried out an investigation at our company."

Commenting on the company's financials, he said, "Although we incurred a loss last year, our business is now gradually picking up momentum. We hope our sales will increase in the coming days and the firm will return to profits."

Back in May 2021, the BSEC had investigated the company's sales and acquisitions of fixed assets, operational status since its stock market listing, and financial statements for the past three years. 

Owing to soaring prices of raw materials, Fu-Wang Foods incurred losses for the last two fiscal years. In the fiscal 2022-23, its net loss stood at Tk6.31 crore, which was Tk24 crore in the 2021-22 fiscal year. 

Because of losses, the company did not declare any final dividend for FY23, but it did pay a 0.5% interim cash dividend based on its July to December financials. 

Founded in 1997, Fu-Wang Foods got listed on the capital market in 2000. It manufactures breads, biscuits, noodles, snacks, mini-snacks, chocolates, energy drinks, and other food items.

Minori Bangladesh, a subsidiary of the Japanese farming company Minori Co Ltd, took over Fu-Wang Foods by acquiring 7.61% of the sponsor-directors' shares last year. Since then, the company has been running under the new management.