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An inspection team of the Dhaka Stock Exchange (DSE) found the New Line Clothings' factory and head office shut during a visit on Tuesday.
In a stock exchange filing, the premier bourse informed that a DSE team had gone to Kaliakair in Gazipur, where the company's head office and factory were located, to examine its current operational status.
But they could not enter the head office and factory premises as both were closed.
The company listed in the stock market in August 2019, raising Tk 300 million apparently for expanding business through the acquisition of machinery and loan repayment.
It said it had failed to expand its business due to unfavorable business climate amid the Covid-19 pandemic and the dollar crisis due to the Russia-Ukraine war.
Moreover, the company could not open letters of credit (LCs) as there was a problem with Southeast Bank over repayment of loans of Tk 90 million.
Within three years, the company became non-compliant and has failed to publish quarterly and annual financial statements since the third quarter of FY22.
The company had reported a profit of Tk 128 million for FY21 and paid a 12.5 per cent cash dividend. It also reported a 26 per cent year-on-year growth in profit to Tk 125 million for the first nine months of FY22.
The company's website is non-functional.
Eventually, the Dhaka bourse transferred the company to 'Z' category from 'A' category in March last year.
Following the latest news, the stock closed at Tk 8.6 per share on Tuesday, losing 4.44 per cent over the previous day.
Company secretary Md Motiur Rahman could not be reached for comment as his phone number was switched off.
Last week, the DSE also received regulatory permission from the Bangladesh Securities and Exchange Commission (BSEC) to conduct on-site inspections of 10 listed firms.
The companies are Associated Oxygen, FAR Chemical Industries, Krishibid Seed, Nahee Aluminum Composite Panel, Ring Shine Textiles, Khan Brothers PP Woven Bag Industries, Beach Hatchery, Global Heavy Chemicals, Indo-Bangla Pharmaceuticals and Fu-Wang Ceramic Industries.
The DSE will inspect companies' head offices and factory premises to expose the real status of the businesses to investors.
Some of the companies have not been in operation for years and failed to declare dividends but they refrained from making any disclosure.
After completing factory visits, the DSE will submit reports to the securities regulator, which will then take actions as per the securities laws, said a DSE official.
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