No machinery found in Gulf Foods factory

Gulf Foods Limited, currently traded on the OTC market, has not produced any foods since 2016, according to regulatory findings.

Even no machinery was found on the factory premises of Gulf Foods located at Mongla Port in Khulna, said the report released by the Chittagong Stock Exchange (CSE).

The company was using another company’s office premises to settle the general shareholders’ investment at face value, said the report.

As per the record of the CSE, the last annual general meeting of Gulf Foods was held on December 28, 2015.

The findings were reported to the Bangladesh Securities and Exchange Commission (BSEC) recently.

In response, the stock market regulator on Monday instructed Gulf Foods to explain the company’s position along with some documents and any other relevant papers within seven working days.

The BSEC warned that failure to do so will result in the commission taking all necessary and relevant legal actions to protect the interests of the company’s investors.

The CSE inspection team visited the registered address of the company’s Dhaka office, but the team didn’t find the company’s office there.

However, Gulf Foods said the company was using another company’s office premises to settle the general shareholders’ investment at face value.

The inspection team found that the company passed a resolution for the voluntary winding up of their business on an EGM, dated June 29, 2016, and subsequently applied to the commission for their exit from the capital market.

Until February 2021, the company had settled only 419,500 out of total 2,584,000 shares held by its shareholders.

As per the latest shareholding report, sponsors and directors are holding 32 per cent, financial institutions 4.88 per cent, and general shareholders 63.12 per cent of the total company’s shares.

The company’s shareholders did not receive any dividends for a long period.

The BSEC also asked the company to submit details of its current land status, including a land mutation copy, current production status, and price-sensitive information published after the cessation of the production activities.

It also sought a statement regarding why the company didn’t complete the exit process from the OTC market; a revaluation report of the property, plant, and equipment (PPE), including the land area of the company.

The company was also directed to file the last five years’ financial statements and details of disposing of any fixed assets after placing them in the OTC market.

In 1997, Gulf Foods raised Tk 1.90 crore through the initial public offering.