5 more firms downgraded to Z category
The Dhaka Stock Exchange (DSE) today decided to downgrade five more firms to the Z category, making the decision effective the same day after they failed to disburse approved dividends to their shareholders.
The companies are Samata Leather Complex, Golden Son, SS Steel, Aamra Technologies, and Aamra Networks.
According to the DSE, after declaring dividends in their board meetings and obtaining approval from general shareholders at the annual general meeting (AGM), the five companies failed to disburse the dividends to their shareholders within the stipulated timeframe.
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As per listing regulations, listed companies must disburse declared or approved dividends within 30 days of approval at their AGM.
Due to the failure to disburse dividends on time, the DSE downgraded these companies to the Z category.
Z category criteria
Companies fall into the Z category if they fail to hold an AGM, fail to declare any dividends based on annual performance, have not been in operation continuously for more than six months, or accumulate losses that exceed their paid-up capital after adjusting revenue reserves.
Five firms were reinstated to their respective categories.
After disbursing dividends on Tuesday, the DSE announced that four companies would be reinstated to their respective categories, effective from Wednesday.
The four companies—Shepherd Industries, Rahima Food Corporation, Beach Hatchery, and Union Insurance—were reinstated to their previous categories in line with their dividend payments.
Meanwhile, Alif Industries was downgraded on Tuesday due to its failure to disburse dividends to shareholders.
However, on Wednesday, the bourse reinstated the textile firm to the A category after the company disbursed a 10% cash dividend and a 10% stock dividend to its shareholders for FY24.
