Shareholders in dark as Metro Spinning fails to disclose financials
Shareholders of Metro Spinning Limited - a listed company under the Makson Group – are in the dark as it failed to disclose its January-March financials due to software disruptions.
Usually, a publicly listed company has 30 days to disclose its quarterly financials. This implies that the yarn manufacturer has failed to meet the deadline, which constitutes a breach of the stock listing regulations.
Company Secretary Mohammad Jewel Rana said, "Due to a software problem, it has not been possible for the company to publish its financials for that quarter at this moment."
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"The software used for storing the company's income and expenditures has crashed. The software provider is working to recover data and resolve problems," he told The Business Standard.
He said, "Failure to reveal financials in time is a non-compliance, but the issue of the software problem has been reported to the stock exchange and the regulator in writing. We got their verbal permission."
According to its unaudited financials, in the first half of fiscal 2022–23, the company reported a 16% decline in revenue to Tk44.77 crore and a 15.93% growth in profit to Tk6.04 crore.
Investing Tk200cr to boost production capacity
Metro Spinning has undertaken a balancing, modernization, rehabilitation, and expansion project to enhance its existing production capacity.
In the project, the investment will be Tk200 crore, of which 40% will be equity and 60% will be debt financing, said Mohammad Jewel Rana.
Even though the project was initiated in November 2021, the company has now announced that it has initiated the process of opening a letter of credit for the import of the latest automated capital machinery with modern technology, comprising 24,000 spindles.
In a stock exchange disclosure on Tuesday, it said the project is designed to produce all types of yarn, which includes value added man-made fibre yarn besides the cotton yarn.
In another disclosure earlier in November 2021, the company said that to expand the business and thereby increase profitability and secure greater interest in the company, the board has undertaken the projects, which include the reconstruction of factory buildings.
On completion of the project, the production capacity will be 25,000 kg per day and 91,25,000 kg per annum.
The annual revenue is expected to be around Tk300 crore.
