The Bangladesh Securities and Exchange Commission (BSEC) has appointed independent directors at Bangladesh Welding and decided to run a special audit on the company to protect the interests of general investors holding 65 per cent of its stakes.
The stock market regulator has nominated and appointed two distinguished persons as independent directors of the company, said the Dhaka Stock Exchange yesterday in a disclosure.
The BSEC sent a letter to the company on January 26 stating that the company went under the z category on May 4, 2016 and the shares of the company have been trading under that category for a period of more than four years.
"But the company and its board of directors failed to improve the performance of the company during the period," it read.
On the other hand, the company declared 1 per cent stock dividend for shareholders without earning any profit in the period of 2019, which is contrary to what the securities laws stipulate, it said.
The company received Tk 23.80 crore against agreed value but its cash received against disposal of fixed assets is Tk 8.70 lakh. So, it is clear that there is a mismatch in the cash received amount, the BSEC's letter read.
"At the same time, the property still exists in the balance sheet which is misleading," it said.
The company did not shown its documents on assets and debts to the auditor so its net asset value and earnings per shares is likely to be fabricated, the BSEC said.
So, the BSEC has taken the step to protect the interest of the investors of the company, the BSEC said.
The company's stocks rose 3.07 per cent to Tk 16.80 yesterday.