Regulator to look into records of 5 decade old Alpha Tobacco
The inquiry committee consisting of three members, two deputy directors of BSEC, and a nominated officer of the Dhaka Stock Exchange (DSE), will prepare a report on the local tobacco manufacturer analysing its book of accounts, liabilities and allied issues from 2002 to 2023.
With a plan to revive one of the oldest listed firms in the country, the Bangladesh Securities and Exchange Commission (BSEC) has launched an inquiry to look into the whole affairs of Alpha Tobacco Manufacturing Company.
The inquiry committee consisting of three members, two deputy directors of BSEC, and a nominated officer of the Dhaka Stock Exchange (DSE), will prepare a report on the local tobacco manufacturer analysing its book of accounts, liabilities and allied issues from 2002 to 2023.
After getting the inquiry report from the committee, the stock market regulator will take necessary steps to revive the company to protect the interest of the investors, says an official at BSEC.
According to the BSEC letter, the inquiry committee will verify the advances, deposits, and payments, trade receivable, liabilities for other finance of the company.
Keep updated, follow The Business Standard's Google news channel
Also, the committee will inquire about the current possession and valuation status of property, plant, and equipment, and scrutinise the purpose of the project loan and short-term loan, utilisation of the loan and repayment status of the loan, and compliance with laws, regulations and policies.
Alpha Tobacco is one of the oldest firms among the listed companies, which got listed on the DSE 48 years back, in 1976. The company's factory is located in Jashore.
The regulator had transferred Alpha Tobacco to the over-the-counter market (OTC) of the stock exchanges from the main board in 2009 as it turned into a non-functional firm as well as failed to pay dividends to its shareholders for years.
According to the data available on the DSE website, in the last five fiscal years till FY23, the company has been incurring losses and did not pay any dividends to its shareholders.
It also failed to repay its loan owed to Sonali Bank after which the bank circulated an auction notice in newspapers to sell off the mortgage assets of Alpha Tobacco in a bid to recover the defaulted loan amounting to Tk196 crore.
Company Secretary Nasima Khatun said the company has been out of production for a long time. The owner of the company is trying to revive it by either selling their stake or through fresh fund injection.
According to sources at the company, at one time Alpha Tobacco was positioned after British American Tobacco and it was the first to export cigarettes from Bangladesh.
Even in 1990, the company paid a 100% cash dividend to its shareholders. But after the death of its main entrepreneur AM Aga Yousuf, the company began to suffer. And since 2004, it has not been able to pay dividends.
