The inventory market regulator has recast the board of directors of Safko Spinning Mills and appointed a particular auditor to conduct an audit of The complete affairs of The agency To shield buyers’ curiosity.
The Bangladesh Securities and Commerce Fee (BSEC) has already issued a letter On this regard following buyers’ complaints in the direction of The agency.
The inventory market regulator nominated 4 unbiased directors for The agency. They’re SM Munir, senior advocate, Appellate Division, Mustafizur Rahman, retired army officer, Md Wali Ullah, ex-deputy managing director of Agrani Financial institution, and Professor Sumon Das, division of administration, Dhaka College.
BSEC observes that as per the Dhaka inventory exchange report, The agency declared no dividend for the monetary yrs 2018-19 and 2019-20. Since itemizing, the paid-up capital of The agency has been elevated 87.39% by way of the declaration of inventory dividend.
The sale of The agency was Tk33.18 crore Based mostly on monetary reviews of 2019-20 However The worth Of merchandise purchased was Tk34.56 crore, which is unrealistic, deems BSEC.
The agency provided the mortgage for the associated celebration, violating BSEC order.
The time period mortgage was Tk67.79 crore for the interval ended 3 June 2019, which was Tk37.54 crore Inside the earlier yr.
In consequence, The agency has paid An further Tk7.59 crore in finance prices, which finally generated adverse EPS for The agency Through the interval.
The BSEC further observes that The agency Isn’t appropriately rising and the inventorymaintainers of The agency are getting no dividend for the final two yrs.
The regulator deems it detrimental to the curiosity of the buyers of The agency and undesirable to the commission.
The shares held by The prevailing directors and sponsors Will not be unblocked till further instruction from the commission.
The agency shall not be allowed to promote, mortgage, pledge, change, and transmit with out permission of the BSEC.
The commission-appointed unbiased directors Will not have any private monetary authorized obligation.
Safko Spinning Mills, which went into enterprise manufacturing in 1997, acquired listed on inventory exchanges in 2000.
From January to March 2021, the earnings per share of the agency was Tk0.05, with A scarcity of Tk1.85 per share.
In 2019-2020, Safko Spinning Mills incurred A scarcity of Tk17.05 crore, whereas The quantity was Tk1.45 crore Inside the earlier fiscal yr.
Sponsors and directors collectively maintain 30% shares whereas institutional shares 14.35%, and widespread buyers’ shares 55.65% of The agency.
The share worth of The agency at DSE was Tk28.80 on Monday.