BSEC directs Alhaj Textile to resolve FDR issue with Agrani Bank
Agrani Bank owes Alhaj Textile at least Tk20 crore
The Bangladesh Securities and Exchange Commission (BSEC) has verbally directed Alhaj Textile Mills Ltd to resolve an issue regarding a fixed deposit receipt (FDR) with Agrani Bank for the interest of investors.
The stock market regulator recently held a meeting with the officials concerned and gave directions regarding the matter.
A few months ago, the company sought advice from the regulator to issue rights shares to comply with the rule that dictates sponsors and directors of a company must jointly hold a minimum of 30% share of it.
As of 31 July 2022, the sponsors and directors Alhaj Textile Mills jointly held 25.63% shares of its paid-up capital.
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The commission has told the company that it first has to resolve the issue regarding the FDR with Agrani Bank to get advice from the commission.
As per an audit estimation, Agrani Bank owes Alhaj Textile at least Tk20 crore kept as fixed deposit.
Sources said the company has tried to collect the money, but to no avail.
Alhaj Textile Company Secretary Md Selim Parvez could not be reached over phone for comments regarding the matter.
The company was incorporated in 1961. In 1972, the government nationalised it and entrusted its management to Bangladesh Textile Mills Corporation (BTMC).
In 1982, Alhaj Textile was privatised and it was handed over to its previous owners. In 1983, it was listed on the bourses.
When the company was returned to its previous owners, it had a Tk2.29 crore loan. A special fund was set up as per an agreement for repaying the loans.
From 1989 to 1992, the company deposited Tk2.09 crore to that account, which was converted to FDR according to the agreement.
After repaying the loans, the company continued the account and in 2008, the FDR reached Tk25 crore. When the company demanded to withdraw the money from the account, the Agrani Bank authorities agreed to pay only Tk5.07 crore. For this reason, the company stopped depositing money to the account and filed a writ against Agrani Bank in 2009.
In 2018, the court appointed Pinaki and Company as auditor to determine the amount of money Agrani Bank owes to Alhaj Textile based on a joint consent of both parties.
Later, on the basis of this auditor's report, the High Court directed Agrani Bank to pay Tk55.83 crore in favour of Alhaj Textile to settle the matter. So far, the company has received Tk36 crore from the bank in two phases.
The company that mainly manufactures cotton yarn suspended its operation In October 2019. In June last year. The securities regulator reconstituted the board of the company to bring it back in operation.
The regulator appointed Shafiqul Islam, a former additional secretary of the commerce ministry, KM Sala Uddin, a Dhaka University professor of management information systems, and Melita Mehjabeen, an associate professor at the Institute of Business Administration of Dhaka University, as its board members.
In the July-march period of this year, its revenue stood at Tk28.49 crore, which was Tk11.90 crore in the same period in 2021.
During that period, the company's net profit was Tk0.67 crore, which was Tk0.84 crore one year ago.
Its share price soared sharply by 185% within the last 10 months. On Thursday, the last trading price of its share was Tk135.90 in the Dhaka Stock Exchange.
The government holds 0.01%, while institutional investors hold 18.75%, and general investors hold 55.61% share of the company.
