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Eastern Cables Limited has been placed to 'Z' category from existing 'A' category with effect from today (Monday) as the company failed to hold annual general meeting (AGM) in scheduled time.
Dhaka Stock Exchange (DSE) sent the state-run company to 'Z' category for failing to maintain maximum 45 working days gap for holding AGM from record date, according to a disclosure posted on the DSE website on Sunday.
The board of directors of the company has recommended 10 per cent cash dividend for the year ended on June 30, 2017. The record date was on November 30, 2017.
After a query made by DSE, it was found from the reply of the company that they have not sought any permission from Bangladesh Securities and Exchange (BSEC) to conduct their AGM after 45 working days from the record date, said the disclosure.
The stockbrokers and merchant bankers have been requested to abstain from providing loan facilities to purchase security of Eastern Cables with effect from Monday as per securities regulator's directive in this regard dated October 01, 2009.
Each share of the company closed at Tk 200.20 each on Sunday at the DSE, losing 1.47 per cent over the previous session.
Eastern Cables, which was listed on the Dhaka bourse in 1986, disbursed 10 per cent cash dividend for the year ended on June 30, 2016.
The company's paid-up capital is 240 million, authorised capital is Tk 600 million and the total number of securities is 24 million.
Sponsor-directors own 0.01 per cent stake in the company, the government owns 51 per cent, institutional investors 13.50 per cent and the general public 35.49 per cent as on April 30, 2018.
The company's earnings per share (EPS) stood at Tk 0.46 for January-March 2018 as against Tk 0.11 for January-March 2017.
In nine months for July 2017-March 2018, the company's EPS was Tk 0.51 as against Tk 0.15 for July 2016-March 2017.
Eastern Cables, a subsidiary company of Bangladesh Steel & Engineering Corporation (BSEC), is situated at the port city of Chittagong. The company is engaged in production and sales of the electric cables.