Gachihata Aqua's output tumbles for working capital shortfall

Gachihata Aquaculture at a glance:

• Listed on bourses in 1998
• Placed to OTC in 2009
• Tk20.70cr paid-up capital
• Owns a 109 acre land in Kishoreganj
• Tk556cr land value
• Total term loan Tk24cr

FY22 financials:

• Loss per share: Tk10.34
• Net asset value per share: Tk2,205
• Net cash flow per share: Tk1.59
• Recommended dividend: 1% cash

Gachihata Aquaculture Farms Ltd – an agro-based firm delisted from the stock exchanges – is not able to run business in full swing owing to a working capital shortage.

In fiscal 2021-22, the company incurred a loss of Tk2.14 crore compared to a profit of Tk139.24 crore in the previous fiscal year.

The company recommended only 1% cash dividend for FY22.

The company's Chairman and Managing Director Major (retd) Md Akhtaruzzaman, a former lawmaker from the Bangladesh National Party, told The Business Standard, "Gachihata Aquaculture has been facing serious working capital shortage and able to run only at 10% of its total capacity."

As a result, the company could not recommend expected dividends for its shareholders, he added.

Gachihata Aquaculture Farms was listed on the stock exchanges in 1998. Presently, it has inventories of cattle, fish, and trees on its factory premises.

The company is also in the process of being shifted to the SME platform of stock exchanges.

The Bangladesh Securities and Exchange Commission (BSEC) has asked the company to explain its poor performance despite owning a massive land of 109 acres in Kishoreganj

According to an inspection report by the Dhaka Stock Exchange (DSE) a few months back, Gachihata's 109 acre land, that includes 85.25 acres of pond area, currently has a market value of approximately Tk556 crore.

It has a Tk23.71 crore term loan from National Bank.

In 2000, it borrowed Tk15.24 crore from the state-run Agrani Bank to import raw materials and machinery for its business expansion.

But due to a lack of effort from the owners and the management, the company not only failed to act on its expansion plan, but also defaulted on the loan in 2002.

Agrani Bank charged the company Tk132 crore in interest against the principal amount until 30 June 2020.

Gachihata's paid-up capital is Tk20.70 crore. Sponsors and directors hold 25.86%, institutional investors 18.12%, and general investors 56.02% shares in the company.