BSEC to reconstruct Nurani Dyeing’s board
Nurani Dyeing’s factory and head office have been remaining closed for a long time but its financial report and documents said the company was continuing operation
The Bangladesh Securities and Exchange Commission (BSEC) has decided to reconstruct Nurani Dyeing & Sweater Ltd's board of directors as the stock exchanges found that the company falsely claimed to have kept its factory and corporate office open.
The regulatory body will also take action against the auditor concerned after reviewing the consistency of actual activities with the financial report of the previous years, the BSEC decided in its meeting On Wednesday
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The BSEC press release said a team of officials from the Dhaka and Chittagong Stock Exchanges found that Nurani Dyeing's factory and head office have been remaining closed for a long time but its financial report and submitted documents said the company was continuing operation.
On 9 August, the Dhaka Stock Exchange (DSE) said on its website that their officials had recently visited the factory premise and head office and found both of them closed.
After the DSE disclosed the information, the company's share price decreased from Tk11.2 to Tk9.9 each (11%) on Wednesday.
Nurani Dyeing, a 100% export oriented yarn dyeing and sweater knitting industry, fell into crisis due to the Covid-19 pandemic within three years of getting listed on the stock exchange, and turned into a losing concern in the FY20.
In 2017, the company had raised Tk43 crore capital through an initial public offerings (IPO) for business expansion.
According to its financials, Nurani Dyeing's yearly revenue was more than TK100 crore up to FY19 since 2017.
But in FY20, its revenue declined to below Tk100 crore due to the adverse impact of the Covid-19 pandemic.
According its audited financial statement for FY20, the company could not maintain its impressive growth in production, export and profit due to the increase in fuel and gas cost, and higher raw materials cost.
According to its financial statement, Nurani Dyeing's revenue decreased by 31% to Tk81.65 crore in FY20 from Tk118.66 crore in the previous year. In that year, it incurred a loss of Tk4.6 crore and its loss per share was Tk0.41. After that, the company continued suffering losses in the FY21.
In the first nine months of that fiscal year, it incurred a loss of Tk3.43 crore while its loss per share stood at Tk0.28.
Its factory started commercial operation on 5 February, 2009. The company has already closed its Dhaka office and shifted to Feni.
