Dacca Dyeing and Manufacturing Company Ltd is facing a deepening financial crisis that has cast serious doubt over its ability to continue as a going concern, according to its latest audited financial statements.
In the audit report for the financial year 2024–25, the company’s auditor flagged significant uncertainties surrounding its future operations, citing accumulated losses, mounting debt obligations and substantial underutilisation of production capacity.
The audit observations show that the company has incurred heavy retained losses, eroding its capital base. A sizeable portion of both long-term and short-term loans has either matured or is due for repayment, intensifying liquidity pressure.
At the same time, a large share of its installed production capacity remains idle, reflecting weak operational performance and limited business activity.
Considering these conditions, the auditor expressed concern about the company’s ability to continue its business operations in the foreseeable future.
Listed on the Dhaka Stock Exchange PLC in 2009, the company has a paid-up capital of Tk87.15 crore.
Its shareholding structure shows that sponsors and directors hold 30.10%, institutional investors 17.25%, foreign investors 0.08%, while the remaining 52.57% is held by general shareholders.
Today (4 March), the company’s shares closed 0.56% lower at Tk17.90.
The textile manufacturer has been incurring losses and has not declared any dividend since the 2022–23 financial year, leading to its downgrade to the Z category on the stock exchange.
Companies placed in the Z category typically fail to pay dividends or hold annual general meetings on time, signalling elevated risk for investors.
The financial strain has intensified further in the current fiscal year. In the first half of FY26, the company reported a loss of Tk372.20 crore, marking a sharp deterioration in its financial health.
During the July–December period of FY26, turnover fell 41% year-on-year to Tk8 crore, underscoring a severe contraction in business activity. In the corresponding period a year earlier, the company had reported a loss of Tk18.20 crore.
Loss per share surged to Tk42.71 during the period, reflecting the scale of the downturn.
Founded in 1963, the company is currently operated under the QC Group. Its board includes Gias Uddin Quader Chowdhury, Samir Quader Chowdhury, Samiha Quader Chowdhury and Sajia Quader Chowdhdhury, who are relatives of former BNP leader Salahuddin Quader Chowdhury, executed in 2015 for crimes against humanity committed during the 1971 Liberation War.
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