The Dhaka Stock Exchange’s (DSE) inquiry into the reported huge loss of ACI Logistics Ltd, the ACI subsidiary which operates chain super shop Shwapno, is at its final stages with the report likely to be submitted next week.
According to a member of the DSE probe body, the inquiry found evidences which point to ‘manipulation’.
“The committee has evidences of manipulation,” he told Bangla Tribune on condition of anonymity but declined to provide any further details.
The findings of the investigation are likely to be submitted next week.
On Feb 12, the country’s top bourse formed a six-strong panel headed by its Independent Director Justice Siddiqur Rahman Miah.
DSE Director Rakibur Rahman, who also sits on the inquiry committee, told Bangla Tribune on Saturday (Feb 23) that their last meeting was held on Feb 17, four days after the probe was opened.
“We couldn’t have a meeting last week as the chief of the panel was abroad. He is expected to return today [Saturday] and we are scheduled for a meeting later this week,” he said before adding that a decision ACI is likely next week.
The DSE formed the panel on instructions of the Bangladesh Security and Exchange Commission (BSEC) upon complaints from a brokerage firm.
On Feb 10, Dhaka Bank Securities lodged a complaint with the stock market regulator, where it said ‘the interests of the minority shareholders were jeopardised by irresponsible activities of the board of directors of ACI’.
It said that Shwapno has been incurring huge losses and gobbling up profit of its parent company ACI.
It’s more than Tk 2.7 billion losses in 2016-17 and 2017-18 fiscals prove that the board was not discharging it responsibilities depriving investors from profit and fair share price, according to the complaint filed with market regulator.
Since its inception in 2008, the super shop chain has been running at a loss. In 2017-18 fiscal, ACI Logistic Ltd (Shwapno) has incurred losses of Tk1.35 billion, and its accumulated loss in the year stood at Tk 8.91 billion, according to the annual report of ACI.
“Our concern is that a company having an accumulated loss of Tk 8.91 billion which is 24.75 times of its paid up capital reflects that the board is not discharging their due responsibilities as entrusted to them by the shareholders,” Dhaka Bank Securities CEO Mohammad Ali told an English daily last week.
ACI Ltd share prices have slumped by nearly Tk 128 in a year. On Wednesday (Feb 20), it closed at Tk 302.40, down from Tk 430 a year ago.
The company, with a paid up capital of nearly Tk 489.89 million, gave 115% cash and 3.5% stock dividend to its shareholders last year, according to information posted on the DSE website.
Its earnings per share (EPS) for the October-December quarter stood at Tk0.78 in the negative. EPS was Tk.1.26 for July-September 2018 against Tk.2.36 for July-September 2017.
ACI in a statement posted on the DSE website cited a number of factors for the dismal earning situation of the company. They include currency devaluation, interest rate increase, decrease in share of profit from JVs and associates, purchase rate variance due to international price hike and high income tax expenses.