BSEC to probe overall operations of five listed firms, three belongs to Beximco
Of these, Beximco Pharma, Beximco, and Shinepukur Ceramics are part of the Beximco Group
The Bangladesh Securities and Exchange Commission (BSEC) has decided to investigate the overall operations of five listed companies, including three belonging to the Beximco Group.
The decision comes in response to concerns over business irregularities and mounting debt burdens faced by the companies.
BSEC spokesperson and Director Abul Kalam confirmed that a four-member committee has been formed in the first week of this month. The team has been instructed to complete the probe and submit a report within 15 working days.
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The companies under investigation are Beximco Pharmaceuticals, Beximco, Shinepukur Ceramics, Ratanpur Steel Re-Rolling Mills (RSRM), and New Line Clothings.
Of these, Beximco Pharma, Beximco, and Shinepukur Ceramics are part of the Beximco Group.
The investigation committee comprises Additional Director Muhammad Ziaur Rahman, Deputy Director Sirajul Islam, and Assistant Directors Md Mehedi Hasan Rony and Md Abu Hena Mostafa.
According to sources, the investigation will assess the companies' factories, offices, financial records, bank transactions, shareholdings of sponsors and directors, annual general meetings (AGMs), internal transactions, and other business activities.
The team will also examine whether income and expenses have been accurately recorded in compliance with BSEC regulations.
Beximco Group's total bank loans have reportedly crossed Tk50,000 crore, a large portion of which has turned into non-performing loans (NPLs).
As of June 2024, Beximco Pharmaceuticals had Tk426.74 crore in short-term loans and Tk175.79 crore in long-term loans, totalling Tk602.54 crore. Beximco itself had Tk3,109.17 crore in short-term loans and Tk3,340.51 crore in long-term loans, totalling Tk6,449.68 crore.
Shinepukur Ceramics owed Tk97.59 crore in short-term and Tk0.95 crore in long-term loans.
RSRM, which last published a financial statement in June 2021, had Tk94.99 crore in short-term loans and Tk98.67 crore in long-term borrowings, totalling Tk193.66 crore.
Earlier, BSEC appointed four independent directors to help revive the RSRM, but there has been no significant improvement. The firm continues to suffer losses and is unable to provide any returns to shareholders.
New Line Clothings had Tk21.82 crore in short-term loans and Tk69.91 crore in long-term loans, totalling Tk91.74 crore. Like RSRM, it has not published any financial report since 2021.
A Dhaka Stock Exchange (DSE) inspection team found that New Line Clothings' head office and factory in Gazipur are completely shut down. However, the company has not yet made any official disclosure regarding the closure, despite being listed on the stock exchange since 2019.
As per the latest data, sponsor-directors hold 30.13% of shares in Beximco Pharma, 33.13% in Beximco, 50% in Shinepukur Ceramics, 30.61% in New Line Clothings, and 29.93% in RSRM.
The shareholding in RSRM is below the minimum regulatory requirement of 30%.
