Fu-Wang director’s are holding less shares than that of minimum requirement under securities rules posing a threat that they will loss their directorship into the company.
According to the rules, the directors of a company listed in the capital market should have at least 30 percent shares. In addition, each director has a rule to hold a minimum of two percent share. But the listed company Fu-Wang Ceramics does not follow either of these two rules. The directors of this company do not have a combined 30 percent share. The shareholders hold the position with only five percent shares.
According to the latest financial report of the company, the total number of shares of this company is 13 crore 82 lakh 89 thousand 93. As per this, 30 percent or four crore eight lakh 80 thousand 728 shares have to be held by the directors. However, the chairman and five directors have a total of 82 lakh 57 thousand 14 shares. Of these, Su Chin Hua holds 36 lakh 12 thousand 216 shares. Sui Hong Wang owns 43,618 shares.
Among the other three directors, Xin Chu Yang has 26,740 shares, Chiang Chiu Chen has 260,119 shares and Chuan Chi Sur has 4,760 shares. And the chairman (Javed Opgenpepen) has 26 lakh 27 thousand 550 shares. Market insiders say the company’s financial position is not good. The situation could get worse if the company suddenly loses its directors, which is why investors are not interested in the company’s shares. Due to this, the financial condition of the company is weakening.
The financial statements of these listed companies show that their profits have increased in the last financial year. But its profit has declined as expenditure has increased by 102 per cent. This year, the company has added Rs 35 crore to the machineries factory. The company has spent seven crore rupees from its own funds. Besides, the company could not maintain its profit by meeting other expenses. The company’s profit margin has come down from 14.6 percent to 13.56 percent in one year.
The company said it had a ban on extracting soil from leased mines. The company later extracted soil from its own mines as per the High Court order after fulfilling the conditions for submission of ‘Environmental Management Plan’ by the Department of Environment, which led to a slight increase in profits. However, it was not possible to make a profit by covering the cost. In the last financial year, the company’s profit was Tk 8 crore 8 thousand. At the same time last year, the amount was eight crore 40 lakh rupees.
Meanwhile, the company’s secretary A. Halim Thakur told ‘I can’t say whether we will be able to hold a certain amount of shares at a given time. We were given a letter in this regard from BSEC. We have responded to that. ”