Dacca Dyeing is dying for political opposition and irregularities by directors

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Dacca Dyeing is dying for political opposition and irregularities by directors

Once a highly technology based dyeing company “Dacca Dyeing & Manufacturing Company Limited (DDMCL)” has now turned into a non-performing dying company due to political opposition and irregularities conducted by its directors, industry people claims.

The company owned by Mr. Sameer Quader Chowdhury, son  and Gias Quader Chowdhury brother of  Salauddin Quader Chowdhury, convicted and sentenced to death for crimes during the 1971 War of Independence has been suffering stiff political opposition.

A Chittagong court has sentenced BNP Vice Chairman Giasuddin Quader Chowdhury who is also Chairman of the company to three years of rigorous imprisonment on charges of threatening Prime Minister Sheikh Hasina with death in October 2019.

Market observations show that the company’s share price was Tk 4.50 on the DSE on August 4, 2020 which raised at to Tk 7.90 on August 31.

Dacca Dyeing could not organize annual general meetings in the last financial year 2019 and witnessed a significant operation loss Tk 22 crore in 2018, sources said.

There is no price sensitive information behind the unusual increase in the share price of Dhaka Dyeing and Manufacturing Limited, a listed company, The company authorities informed the Dhaka Stock Exchange (DSE) about the reason behind the abnormal rise in the price of the company’s shares.

According to DSE sources, the DSE sent a notice on August 26 to find out the reason behind the abnormal rise in the share price of the company. In response, the company said the share price was rising without any undisclosed price sensitive information.

Dhaka Dyeing and Manufacturing has been conducting business through various irregularities, an audit firm said on the basis of evaluation of the company’s financial statements for the year ended 2016 said.

The company has a net working capital negative, according to the valuation report. The company has not repaid the loan and interest in the year ended 2016 and 2017. The company is disconnected from the gas distribution company since 22016 as a result, the company’s dyeing department is not working at present; But the weaving and stitching department is on. Most of the sale of products from Dhaka Dyeing stock has been completed.  But the financial report has been prepared on the basis that the company is still running.

It is learned that the company has not distributed Tk 3 crore 14 lakh 53 thousand 83 of the profit and welfare fund to the workers for a long time. As a result, the company has violated the Labor Act-2006.

It is also known that the company revalued the fixed assets 5 years ago. But according to Bangladesh Account Standards, the assets have to be re-evaluated at the right time. According to the auditing firm, the company needs to re-evaluate its assets.

When established The Dacca Dyeing & Manufacturing Company Limited offered a range of products, such as Bathrobe, Bed Sheet, Terry Towel, Kitchen Towel, Table Cloth and Curtain. The Company’s production units include computer-aided design (CAD) and lab, weaving department, dyeing and finishing, printing department and stitching department.

When established the Company’s CAD department had software for dobby and jacquard designs, which was first of its kind in the country.

The Company operates a Composite Textile Plant at Tongi, Gazipur, which has preparatory, weaving, dyeing, finishing and printing facilities. The Company, through its Composite Textile Plant, produces bed cover, napkin, shirting fabrics, towels, bath linen and kitchen linen, among others. The Company’s plant had a capacity of approximately 100,000 meters per day or approximately 20,000 sets per day. The Company exports its products to various countries, such as Sweden, Germany, Norway, the United Kingdom, Denmark, France and Canada.

Presently, Sameer Quader Chowdhury is Chief Executive Officer, MD & Director at The Dacca Dyeing & Manufacturing Co. Ltd. Mr. Chowdhury is also on the board of The Dacca Yarn Dyeing Ltd. Mr. Chowdhury received an undergraduate degree from American Intercontinental University-London.

Besides, Giasuddin Quader Chowdhury holds the position of Chairman & Chief Executive Officer at The Dacca Yarn Dyeing Ltd., Chairman of The Dacca Dyeing & Manufacturing Co. Ltd. and Managing Director at QC Enterprise Ltd. Mr. Chowdhury is also on the board of 5 other companies.

Bmirrorhttps://bmirror.net/
businessmirror20@gmail.com

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