Delta Spinners Ltd - a publicly listed manufacturer of 100% cotton yarn - has left its general shareholders in the dark for five fiscal years as the company failed to publish its annual reports since the 2017-18 fiscal year (FY18).
It also failed to hold any annual general meetings (AGMs) since FY18.
Back in 2014, the company issued rights shares for the third time to repay loans, and expand its yarn manufacturing capacity by two-thirds.
But after that, it witnessed a continuous decline in business till FY17.
An official of the company said on anonymity that the company is in operation but it was hugely affected by the Covid-19 pandemic.
Delta Spinners also applied before the High Court to secure the necessary permission to hold three AGMs at a time. It wants to complete its pending AGMs after getting permission from the Court, he added.
Meanwhile, it failed to comply with the rule of its sponsors and directors holding a minimum of 30% shares of the company. As of 31 July 2022, they jointly hold only 20.57% shares, according to the Dhaka Stock Exchange (DSE) website.
General investors hold 74.22%, while institutions hold 5.21% shares of the company.
Its current paid-up capital is Tk166 crore.
From July to March 2022, the company's consolidated revenue stood at Tk76.75 crore.
During the period, its consolidated net loss stood at Tk70 lakh and loss per share at Tk0.04.
Before the fall
In 1994, Jatiya Party politician Mostafa Jamal Haider led the incorporation of the spinning mill at Kaltapara in Gouripur of Mymensingh and the company was listed on the stock market in 1995.
It was doing well even until the early 2010s as enough yarns were being sold, employees were happy at work, and shareholders were receiving dividends.
The company's latest annual report reveals that from 2012 to 2017, its yarn production hovered around 25 lakh kilograms every year. But its revenue dropped from more than Tk166 crore in fiscal 2012-2013 to Tk107 crore in 2016-2017.
Moreover, the company initiated a venture for ceramic manufacturing by subscribing to 80% shares in Delta Ceramics Ltd, but the project was never realised due to a land dispute with the forest department.
The investment made in land and land development remains a fruitless endeavour for the ceramic subsidiary.
A decade ago, Tk50-100 per share was the popular price range for Delta Spinners' shares, which fell as low as Tk2.7 in early 2020.