Ring Shine cancels declared dividend for FY20

Ring Shine Textile, a listed firm on the stock market, has cancelled its declared dividend for the shareholders for the 2019-20 fiscal.

Informing the cancellation owing to incurring losses, Ring Shine Textile said, the 1% cash and 1% stock dividend will be revoked and will consider as no dividend for 2019.

Ring Shine Textile declared the dividend on October 2020 based on its annual profit in the 2019-20 fiscal. Now, the board of directors has decided no cash and stock dividend shall be recommended for that year.

That means, the company has recommended no dividend for the shareholders.

In a disclosure on the DSE on 9 July (today) the company said, owing to the deviation ascertained upon the re-valuation of assets and liabilities, a restatement of assets and liabilities for 2019-2020 was made in the following year's 2020-2021 audited financial statements, which reflects an incurring loss.

Although, the textile firm said on the Dhaka Stock Exchange (DSE), its earnings per share (EPS) stood at Tk0.29, down from Tk1.72 in the previous fiscal year or 2018-19.

Owing to the covid-19, the company was forced to shut down its production as product demand declined significantly.

To date, it failed to operate its factory in full-fledge, and now its partial production is continuing.

Later, the Bangladesh Securities and Exchange Commission (BSEC) reconstituted its board.

And the company is in the process of selling as Queen South Textile's managing director is eager to buy the company.