Jute Spinners’ annual loss almost doubled year-on-year to Tk 142.43 million in FY23, while accumulated losses of the last 11 years reached around Tk 900 million.
It has been producing nothing since 2016.
The company suffered a net loss of Tk 76.23 million in FY22. Liabilities shot up exceeding twice the value of assets of Tk 296.97 million as of FY22.
It started a trial run last year six years after it had been shut down, but failed to continue due to working capital shortage.
Jute Spinners was in profit in FY12 and declared 20 per cent cash dividend for the year. Since then, it declared no dividend for shareholders.
Despite the grim picture, the stock closed at Tk 344.60 on Tuesday, rising 0.18 per cent from the day before on the Dhaka Stock Exchange.
Its floor price is Tk 158.20 per share set by the stock market regulator.
The company has a history of hiding its financial information and rarely explains the reason for losses over the years.
Jute Spinners does not even have a website, although it is mandatory for a listed company to make financial data public on a regular basis.
In FY23, its net asset value per share was Tk 522.19 in the negative and net cash flow per share Tk 68.73 in the negative.
The company will be unable to pay off debts and liabilities even if it sells all assets.
A money suit case is going on against the company from state-owned Janata Bank. According to the auditor, the company has overstated assets and inventories.
Source: the financialexpress