BSEC opens probe into Active Fine Chemicals’ anomalies

The Bangladesh Securities and Exchange Commission (BSEC) has opened an investigation into the poor performance and investments of Active Fine Chemicals Limited.

A probe panel headed by BSEC Additional Director Mollah Md Miraz-Us-Sunnah has been formed and asked to report back by 15 days.

BSEC Spokesman Mohammad Rezaul Karim confirmed the development on Tuesday. "We want to investigate the company’s recent performance and investment. If there are any irregularities, we’ll take action as per securities rules.”

Meanwhile, the stock market regulator on Monday served a show-cause notice to the company for non-cooperation with the BSEC special auditor appointed in August last year to look into the company’s suspected irregularities.

The board members of Active Fine Chemicals were instructed to appear before the commission on February 10 to explain the non-co-operation complained by the auditor on January 12.

In August last year, BSEC appointed Howladar Yunus & Co, Chartered Accountants as a special auditor to carry out a forensic audit on the financial statements of Active Fine Chemicals.

On Monday, its stocks declined 2 per cent to Tk 24.50 on the Dhaka Stock
Exchange.

Active Fine Chemicals was listed on the stock exchange in 2010. It is a ‘B’ category company, which offers a less than 5 per cent cash dividend.

The company’s sponsors and directors hold only 12.04 per cent shares, although sponsors and directors of any listed company need to jointly hold a minimum of 30 per cent shares as per securities rules.

Active Fine Chemicals has been producing bulk drugs, Active Pharmaceutical Ingredients (API) and different laboratory reagents.

Its turnover for FY21 was Tk 182.12 crore and its net profit after tax was Tk 3.82 crore. During the year, earnings per share (EPS) was Tk 0.16.

The chemical company’s factory is located at West Moktarpur in Munshiganj.

The company’s paid-up capital is Tk 240 crore.