The Bangladesh Securities and Exchange Commission (BSEC) recently decided to form an inquiry committee to investigate the financial position of Aman Feed Limited.
That committee will verify all the information in Aman Feed's audited financial statements from 2015 to 2020 as per International Accounting Standards and International Financial Reporting Standards.
Sources at the regulator said the commission has decided to form a committee very soon to examine if there are any irregularities in the company's financial statements.
The committee will also examine the issue of AB Bank's loan to the company.
In September, the AB Bank arranged an auction for the sale of the company's land and factory.
After that, Aman Feed secured a stay order from the High Court, which ordered the company to pay Tk60 crore to AB Bank by December 2020.
Previously, on 8 August, 2020 the AB Bank Limited issued a notice through a newspaper regarding the auction of Aman Feed's land.
According to the notification, Aman Feed owed around Tk268 crore, including loans and interest, to AB Bank till 31 July this year.
However, the value of the company's factory and land in Sirajganj is Tk70 crore.
Aman Feed Limited raised Tk72 crore from the capital market in 2015 through an initial public offering (IPO) of the book building method.
In the IPO, Aman Feed sold its shares to investors at Tk26 with a premium of Tk16.
The investors alleged that the company overstated its net profit to sell shares.
They also complained that Aman Feed has not kept its commitment regarding the use of the funds collected through IPO, for which the regulator fined the directors, except the independent ones, of the company crores of taka last year.
On 30 June, 2014, the company's earnings per share (EPS) was Tk4.97 and net asset value per share was Tk30.77. However, on 20 June, 2019, the company's earnings per share was Tk3.75 and net asset value per share was Tk32.54.
The net profit of the company was Tk47.87 crore on 30 June, 2019.
From July to December of 2019, the company's earnings per share was Tk1.60, which was Tk2.28 in the same period of the previous year.
Meanwhile, its net asset value was Tk33.68 in that period of 2019.
In 2019, the company recommended a 13% cash dividend for its shareholders.
The company's short term loan was Tk152.88 crore and its long term loan was Tk156.34 crore till 30 June, 2019.
The company is engaged in the manufacturing and distribution of quality: poultry feed, fish feed, shrimp feed, and cattle feed.
It was incorporated on 07 February, 2005, and started commercial production on 12 July, 2006.
The sponsors and directors jointly hold 63.26% of the company shares, while institutions hold 12.49%, foreign investors 0.01% and general investors hold 24.24% shares.
The last trading price of Aman Feed's share was Tk26.80 on the Dhaka Stock Exchange.