Keya Cosmetics Limited has requested permission from the High Court to convene its annual general meetings (AGMs) for fiscal years 2020-21 and 2021-22.
When a company fails to hold an AGM within the stipulated time, capital market rules will necessitate High Court approval to proceed with the pending meeting at a later date.
To adhere to the regulations, the cosmetics manufacturer on 20 August filed a petition with the High Court.
Keya had its last AGM for fiscal 2019-20 in January 2021.
After that, it could not arrange any AGM, and investors have since been in the dark about its financials.
The company was once a popular brand in the cosmetics industry but fell into a sorry state, allegedly due to poor leadership and mismanagement.
About a decade ago, its shares were traded at Tk140 each on the Dhaka Stock Exchange, but currently they are trading at only Tk6.
In 2019, it released financial reports for FY19 and FY20 together.
Keya's loss per share dropped to Tk12.94 for FY19, which dragged its net asset value to Tk0.02 from Tk14.02 at the end of June 2018.
However, absorbing the one-off shock, it posted Tk0.24 in earnings per share for FY20.
In May this year, the Bangladesh Securities and Exchange Commission (BSEC) decided to investigate the company's financial statements for the last five years, as the regulator suspected mismatches in the accounts.
Keya has two legal battles with Sonali Bank and Pubali Bank over defaulted loans.
In 2021, the Anti-Corruption Commission filed five cases against Keya Cosmetics owners Abdul Khaleque Pathan, his wife, and their three children on charges of illegally amassing wealth worth over Tk183.84 crore and concealing assets worth over Tk96.29 crore.
Source: The Business Standard
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