DSE finds Pacific Denims factory shut amid ongoing compliance issues
With this inclusion, the number of listed non-performing companies now stands at 31
The Dhaka Stock Exchange (DSE) has found that the factory of Pacific Denims Limited, a listed textile manufacturer, remains closed, raising further concerns over the company's compliance and financial health.
A DSE inspection team visited Pacific Denims, a 100% export-oriented apparel manufacturer, on 22 October to assess its operational status and discovered it was not in operation.
The stock exchange later disclosed the findings on its website.
Keep updated, follow The Business Standard's Google news channel
With Pacific Denims' inclusion, the number of listed non-performing companies now stands at 31, according to DSE, the premier bourse and primary regulator of listed companies.
Earlier, the bourse had published a list of 30 non-functional firms on its website to alert investors, many of whom were unaware of which companies had ceased operations.
The move followed incidents of share price manipulation through the spread of false information about listed firms' activities.
Financial trouble, non-compliance
Pacific Denims, which raised Tk75 crore from the stock market during its 2016 listing, has been struggling financially in recent years, according to company officials.
As a result, the company failed to disburse the declared 1% cash dividend to its shareholders for FY24, which prompted the DSE to downgrade its category to 'Z' in September last year.
Shares of the company continue to trade under that category.
The firm has also become non-compliant regarding its financial disclosures, leaving investors uncertain about its current financial position. It has not published any financial statements since March 2024, when it released its third-quarter results for FY24.
No financials for FY25 have been uploaded to the exchange's website, despite the conclusion of both FY24 and FY25.
In June last year, Pacific Denims temporarily halted production after Titas Gas Transmission and Distribution Company Limited disconnected its gas supply line.
The factory later resumed operations on 22 June, following a shutdown that began on 9 June.
