B Mirror Report : Jute Spinners, a publicly traded firm, has been generating significant losses for several years that greatly surpass its paid-up capital. This tendency persisted in its most recent business performance for the fiscal year 2024-25, when the loss exceeded three and a half times its paid-up capital.

In addition, the company’s net liabilities are more than 62 times higher. Despite being financially devastated, Jute Spinners’ share price remains ahead of many fundamentally strong companies due to its low paid-up capital.

This information was obtained from sources at the Dhaka Stock Exchange (DSE).

In the 2024–25 fiscal year, Jute Spinners recorded a loss per share (LPS) of Tk 36.32. Based on this, the company having a paid-up capital of Tk 17 million incurred a net loss of Tk 61.7 million in just one year.

Previously, in the 2023–24 fiscal year, the company reported a loss per share of Tk 64.45, resulting in a net loss of Tk 109.6 million. In the preceding two fiscal years, the company posted losses of Tk 83.78 per share (Tk 142.4 million) in 2022–23 and Tk 44.84 per share (Tk 76.2 million) in 2021–22. As a result, the company’s accumulated losses have risen to Tk 1,078.1 million.

As of June 30, the company’s net asset value per share (at a face value of Tk 10) stood at negative Tk 624.19. This means the company’s liabilities exceed its assets by Tk 1,061.1 million.

Furthermore, the company is facing numerous challenges, including labor disputes, inability to pay creditors, lack of funds for new product development, production disruptions, failure to comply with loan covenants, entry of new competitors, inadequacy of core management, and operating cash flow problems. Additionally, Janata Bank and West Zone Power Distribution Company have initiated legal actions to recover their dues. Given these severe difficulties, the auditor has expressed serious doubt about the company’s ability to continue as a going concern.

Despite its distressed condition, Jute Spinners’ share price stood at Tk 197.70 on Tuesday (December 30). Even in such a company, institutional investors hold a 23.20 percent stake.