The Bangladesh Securities and Exchange Commission (BSEC) sought long-term investment information for the last five years along with clarification from Premier Cement Mills Limited.
The stock market regulator recently issued a letter in this regard.
The company's cement manufacturing plant is located at West Muktarpur in Munshiganj. It sells its products both in the local and foreign markets.
In its financial statements on 30 June 2021, the company showed its capital work in progress at Tk955 crore, which was Tk820.53 crore in the previous year.
The commission has observed that the amount of capital work in progress is gradually increasing every year and the maximum portion goes to the vertical roller mills (VRM) project, but the firm did not convert it into a fixed asset.
The commission is also concerned that the company's short-term bank liabilities significantly increased during fiscal 2020-21.
In the year, its short-term bank loans stood at Tk1,178.25 crore, up from Tk907.57 crore a year ago.
Company Secretary Kazi Md Shafiqur Rahman told The Business Standard that they have received the BSEC's letter and that they will reply to the commission properly.
In the January-March quarter of 2022, the revenue of the company increased 17% year-on-year and stood at Tk425.67 crore.
During the period, its net profit came down by 91% to Tk1.51 crore as prices of raw materials – clinker, gypsum, slag, limestone, fly ash – rose on the international market but cement prices did not increase at the same rate.
Its earnings per share stood at Tk0.14 and its net asset value per share was Tk78.20 as of 31 March 2022.
On 30 June last year, the company recommended a 20% cash dividend for its shareholders.
As of 30 April this year, the sponsors and directors jointly held 47.15% shares, institutions 20.26%, foreign investors 0.03%, and the general public held 32.56% shares in the company.
The last trading price of each share of the company on the Dhaka Stock Exchange was Tk51.60 on Monday.