Why market regulator appointed special auditor at Safko Spinning | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
The Business Standard

Monday
December 04, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
MONDAY, DECEMBER 04, 2023
Why market regulator appointed special auditor at Safko Spinning

Stocks

Salah Uddin Mahmud
24 January, 2023, 10:20 pm
Last modified: 24 January, 2023, 11:20 pm

Related News

  • BSEC reshuffles duties for commissioners, officials
  • Al-Amin Chemicals seeks post-facto BSEC approval to issue fresh shares
  • Proposed insider trading rule change raises concerns about stock manipulation
  • BSEC extends time for assessing status of Emerald Oil
  • BSEC to formulate sustainable bond guidelines next year

Why market regulator appointed special auditor at Safko Spinning

Salah Uddin Mahmud
24 January, 2023, 10:20 pm
Last modified: 24 January, 2023, 11:20 pm
Infographic: TBS
Infographic: TBS

The stock market regulator has appointed a special auditor to review the financial statements and overall business of Safko Spinning Mills in the interest of investors.

Islam Jahid & Co Chartered Accountants has been given 30 working days to examine the balance sheet and other parts of the financial statements, fixed assets, related party transactions, procurement of raw materials, costs of goods sold, imports, and relevant documents of the company.

Seeking anonymity, officials at the Bangladesh Securities and Exchange Commission (BSEC) said the regulator observed that the spinning mill is not appropriately growing and the investors are not getting expected returns from it.

Although the spinner could not recommend dividends in the fiscal 2018-19 and 2019-20, its share prices increased unusually. The company also raised paid-up capital by 87.39% since listing through the declaration of stock dividends, they said.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

According to the financial reports for 2019-20, the sales of the company were Tk33.18 crore, but the cost of goods sold was Tk34.56 crore, which the BSEC deemed unrealistic, the officials added.

The company provided loans to a related party, violating the BSEC order. The regulator deems it detrimental to the interests of the investors in the company and undesirable to the commission.

Company Secretary Iftekhar Ahmed stated that they had not yet received a letter in this regard.

In May last year, the BSEC formed a committee to investigate the securities law violations by controversial stock investor Abul Khayer Hero and his allies in trading Safko Spinning Mills shares.

In September 2021, the market regulator recast the board of directors of the spinning mill by nominating four independent directors.

The commission has recently turned down the proposal of Safko Spinning Mills to issue a 1% stock dividend for the fiscal 2021-22 because the company does not have enough retained earnings.

The spinner had negative retained earnings of Tk21.49 crore from the July to September quarter of the fiscal 2022-23.

It had recommended 2% cash and 1% stock dividends for FY22.

Safko Spinning Mills, which went into commercial production in 1997, got listed on stock exchanges in 2000.

In January 2009, its production stopped owing to big losses in the two prior consecutive years. The company then resumed production in May 2010.

In the July-September quarter of the current fiscal year, its revenue increased to Tk13.44 crore from Tk12.94 crore in the same period a year ago, and its net loss stood at Tk48 lakh compared to Tk60 lakh profit in the previous year.

Its loss per share stood at Tk0.16 and its net asset value per share was Tk21.28.

As of 31 December 2022, sponsors and directors jointly held 30%, institutions 3.49%, and general investors 66.41% of the company's shares.

The last trading price of each of its shares was Tk23.60 at the Dhaka Stock Exchange on Tuesday. 

Top News

Safko Spinning Mills / Special Auditor / BSEC

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • For the first time, Bangladesh seeks foreign loans to support Rohingyas
    For the first time, Bangladesh seeks foreign loans to support Rohingyas
  • Treasury bill interest rate tops 11%
    Treasury bill interest rate tops 11%
  • File Photo of Prime Minister Sheikh Hasina
    PM to hold meeting with leaders of 14-party alliance tomorrow

MOST VIEWED

  • Representative image
    5.5 magnitude earthquake jolts Dhaka, parts of country
  • Cox's Bazar Express started its first journey from Cox's Bazar to Dhaka at 12:40pm on Friday (1 December). Photo: Nupa Alam
    Man crushed by Cox's Bazar Express on debut journey
  • Representative image
    BCS admin cadres' organisation forays into luxury hotel business
  • Will Bangladeshi garment exporters be able to meet EU's upcoming standards?
    Will Bangladeshi garment exporters be able to meet EU's upcoming standards?
  • 5 renewable power projects on cards to counter global fuel price surge
    5 renewable power projects on cards to counter global fuel price surge
  • Collage of the Android Earthquake Alerts System screenshots posted on the social media on Saturday, 2 December 2023
    Here’s how your Android phone alerts you of an earthquake

Related News

  • BSEC reshuffles duties for commissioners, officials
  • Al-Amin Chemicals seeks post-facto BSEC approval to issue fresh shares
  • Proposed insider trading rule change raises concerns about stock manipulation
  • BSEC extends time for assessing status of Emerald Oil
  • BSEC to formulate sustainable bond guidelines next year

Features

Designed for utility, the D90 is a giant in comparison to other MG models and misses out on design elements which gives the other models their sporty stance. Photo: Akif Hamid

Maxus D90: Spacious, capable and practical

8h | Wheels
Maria Callas: Remembering the soprano diva on her century

Maria Callas: Remembering the soprano diva on her century

7h | Features
Photo: Touseful Islam

Last sip of coffee with cats: Bidding adieu to Capawcino

9h | Features
Jannatul Ferdous Ivy has written 11 books so far with the latest, a series of poems, being published this year. Photo: Noor-A-Alam

Jannatul Ferdous Ivy: Overcoming tragedy, excelling in life

17h | Panorama

More Videos from TBS

Euro champion Italy in 'Group of Death' with Spain and Croatia

Euro champion Italy in 'Group of Death' with Spain and Croatia

4h | TBS SPORTS
Will Israel kill expatriate Hamas leaders after the war?

Will Israel kill expatriate Hamas leaders after the war?

3h | TBS World
Mahiya Mahi, Dolly Sayantani and Hero Alam's candidacy canceled!

Mahiya Mahi, Dolly Sayantani and Hero Alam's candidacy canceled!

7h | TBS Stories
Doctors of bike engines

Doctors of bike engines

5h | TBS Stories
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net