BSEC to investigate Indo-Bangla Pharma’s financial activities
Muhammad Ayub Ali:
The Bangladesh Securities and Exchange Commission (BSEC) has formed a three-member committee to investigate activities of Indo-Bangla Pharmaceuticals Limited including earning from IPO, financial statements and overall business operations.
A member investigation committee has already formed headed by BSEC Additional Director Md. Iqbal Hossain. The other members of the committee are BSEC Assistant Director Mohammad Ruman Hossain and Dhaka Stock Exchange Senior Manager Snehashish Chakraborty.
The BSEC has issued a formal letter to the investigation committee for this investigation and has asked the committee to submit a report within 60 days.
Abul Kalam director of BSEC and Spokesperson ,told reporters that if any irregularities are found against the company after receiving the investigation report, the commission will take legal action as per the law.
According to commission officials, the company’s performance has gradually declined since its listing on the stock market, which has failed to provide the desired returns to investors.
The investigation will examine how the company used the funds collected through the IPO. The investigation committee will also analyze the company’s paid-up capital, capital raised through bonus share issues, fixed assets, and financial statements.
In addition, the company’s overall business condition and ongoing operations will be assessed and unclaimed dividends will also be investigated.
An Indo-Bangla Pharma official said the company is facing problems in importing raw materials due to the dollar crisis and has been able to open letters of credit (LC) only twice in the last year. As a result, the company is partially operating by procuring raw materials from local suppliers.
He noted that the company’s revenue has declined due to limited operations and shortage of imported raw materials. However, banks have expressed hope that the dollar crisis will be resolved soon. The company is now also considering changing banks to open LCs more easily and ensure stable supply of raw materials.
Incidentally, Indo-Bangla Pharma was listed on the stock market in 2018. In 2019, the company paid 2 percent cash and a 9 percent bonus dividend to shareholders.
Then in 2020, it paid 4.50 percent cash and a 2 percent bonus, in 2021, 4 percent cash and a 3 percent bonus, and a 1 percent cash dividend in 2022.
The company was unable to pay any dividends to shareholders in 2023. It last paid a 1 percent cash dividend in 2024.