DSE inspection team finds Active Fine Chemicals' factory shuttered

The production operations of Active Fine Chemicals Limited, a listed pharmaceutical ingredient maker, remain entirely suspended, according to an inspection by the Dhaka Stock Exchange (DSE).

The findings were revealed following a physical visit to the company's factory premises on 25 June, according to a regulatory disclosure filed with the bourse today (28 June).

Despite the disclosure, the company's share price remained unchanged at Tk7.20 at the close of trading today.

Repeated attempts by The Business Standard to obtain comments from the company's management were unsuccessful, as the managing director did not answer phone calls and the company secretary's phone remained unreachable.

Active Fine Chemicals, the country's first local producer of active pharmaceutical ingredients (APIs) – key raw materials for the pharmaceutical industry – has been in steady decline for several years. 

Once hailed by investors for its potential to establish a strong backward linkage for Bangladesh's booming drug sector, the company has failed to publish any financial statements since March 2023.

The company is currently under the Bangladesh Securities and Exchange Commission scanner over a series of systemic regulatory breaches. The alleged violations include the failure of its sponsor-directors to maintain the mandatory minimum 30% shareholding, qualified audit opinions highlighting financial discrepancies, and the company's failure to hold mandatory annual general meetings (AGMs) for shareholders.

The regulator's investigation is also seeking to determine the reasons behind the company's sharp financial deterioration and persistent lack of transparency.

In 2022, the BSEC imposed a collective fine of Tk20 lakh on three directors and the company secretary – Tk5 lakh each – for failing to cooperate with a commission-appointed special auditor.