Over a dozen listed firms have so far failed to make their annual financial statements public, thereby keeping the shareholders as well as the new investors in the dark.
Besides, the failure to comply with the stock market regulator's directive to timely submit the financials will cause the defaulted firms to pay fine.
More than six months have gone by since the last fiscal year ended in June 2020, but the shareholders of the dozens of firms do not know when the financial information will be disclosed.
The investors are also in the dark about the board of directors' meeting.
As per the data of Dhaka Stock Exchange (DSE), most of the companies disclosed their financial statements that go by the fiscal year from July to June, but only 19 of them, mostly from textile sector and loss-making entities for several years, have failed to do so.
According to the listing regulations 2015, the issuer of listed securities except the life insurance company shall publish and submit to the stock exchanges and commission its financial information within 45 days after the end of the first quarter (Q1) while the second (Q2) and third quarter (Q3) financials within one month after the end of each of the quarters.
Finally, annual financials except the mutual funds shall be audited within 120 days from the date on which the issuer's financial year ends.
In the event of delay in submission of annual audited financial statements, the issuer of listed securities shall pay a financial penalty of Tk5,000 per day to the exchanges.
The Bangladesh Securities and Exchange Commission Chairman Professor Shibli Rubayat-Ul-Islam told The Business Standard, "The listed firms have to abide by the rules to disclose their financial statements. If a company fails to do so, a legal action will be taken against them."
"To invest in the capital market, we stress transparent and timely disclosure of financials as investors will be able to make their investment decisions by looking into them."
The conventional practice being that an investor decides to put money in the shares of a company eyeing its financial accounts and future plans.
The listed firms that failed to comply with the BSEC regulation include Al-Haj Textile Mills, Alif Manufacturing Company, Tallu Spinning Mills, Mithun Knitting and Dyeing, Alif Industries, The Dacca Dyeing, Tung Hai Knitting, C&A Textiles, Aman Cotton Fibrous and Delta Spinners, Appollo Ispat Complex Limited, Shurid industries, Emerald Oil Industries, Bangladesh Welding Electrodes, Ambee Pharmaceuticals, Libra Infusions, Imam Button and Active Fine Chemicals and Intech Ltd.
Appollo Ispat Complex Limited declared only its FY19 financial statement, and failed to announce the similar information about FY20. The enterprise could not make any single quarter fiscal report.
Shurid Industries put its shutters down from March 2020. BD Welding lastly declared its FY19 financial report. After that the company did not publish any such information.
Al-Haj Textile, Alif Industries, Aman Cotton Fibrous, Ambee Pharmaceuticals, Libra Infusions, Imam Button, Active Fine, Intech and Delta Spinners declared only their Q3 financial reports of FY20 but failed to disclose their annual fiscal data.
Alif Manufacturing Company, Tallu Spinning Mills, Mithun Knitting and Libra Infusions revealed their Q3 financial reports of FY19, but are yet to publish their annual fiscal reports of FY20.
Tallu Spinning Mills shut down its factory due to Covid-19 pandemic while Mithun Knitting and Dyeing had suspended operations since 20 September 2019.
A team of the DSE visited Tung Hai Knitting and C&A Textiles factory and head office, but found both the premises closed.