B Mirror Report: The authorities of Maksons Spinning Mills, a company listed on the stock market, are unable to utilize a significant portion of the company’s production capacity, resulting in substantial losses.

Auditors have noted that production must be increased to overcome this problem. This information was disclosed by auditors during the audit of the company’s financial statements for the 2024-25 fiscal year.

The auditors reported that in 2024-25, Maksons  Spinning Mills was able to achieve only 19.10% of its production capacity, leading to a net loss of Tk 224.48 crore. To overcome this issue and improve its financial position, the company must raise production to the expected level. As of June 30, 2025, the company’s accumulated losses have risen to Tk 349.16 crore. Its total debt has also increased to Tk 751.44 crore, which accounts for 84.71% of the company’s equity and liabilities.

The company has been operating at a loss since the 2022-23 fiscal year. During that year, it incurred a loss of Tk 93.72 crore, or Tk 3.93 per share. In 2023-24, the loss amounted to Tk 87.91 crore, or Tk 3.69 per share. In 2024-25, the loss increased sharply to Tk 224.48 crore, or Tk 9.42 per share. According to the financial statements, Maksons  Spinning has receivables of Tk 32.74 crore from various customers. A portion of this has been overdue for more than a year.

However, the company has not created any provisions for bad debts, which has resulted in underreporting losses and inflating assets. Following instructions from the Bangladesh Securities and Exchange Commission (BSEC), the company has not transferred unclaimed dividends to the Capital Market Stabilization Fund. Up to the 2020-21 fiscal year, Maksons  Spinning had unclaimed dividends totaling Tk 2.62 crore. The company has reported Tk 364.44 crore in inventory assets in its financial statements.

However, auditors were unable to physically verify these assets due to lack of cooperation from the company authorities. It is worth noting that Maksons  Spinning, which was listed on the stock market in 2009, has a paid-up capital of Tk 238.23 crore. Of this, 70% is owned by investors in various classes (excluding promoters/directors). On Saturday, March 28, the company’s share price stood at Tk 6.50.