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DSE to unearth reasons for ACI subsidiary's loss

FE Report | Published: May 13, 2019 11:02:23 | Updated: May 20, 2019 11:11:05


The country's premier bourse has asked its chief regulatory officer (CRO) to submit a report by probing into the reasons of chronic loss of Swapno, a subsidiary of ACI Limited.

The concerned committee of the Dhaka Stock Exchange (DSE) took the decision on Sunday as the ACI's explanation regarding continuous loss incurred by its subsidiary was 'not acceptable' to them.

Recently, the ACI has replied to the queries made by the DSE. After getting the company's reply, the DSE committee took the decision of preparing a complete report by its committee on the company's financials.

"The company's explanation regarding continuous loss is illogical and unacceptable to us. That's why, we have asked its committee to submit a report on the company's financials of last 10 years," said DSE director Minhaz Mannan Emon.

He said the committee would submit its report within seven working days.

"After getting the report, the DSE will urge the securities regulator to take necessary measure", Mr. Emon said.

He said Swapno incurred an aggregate amount of loss worth Tk 8.91 billion in last 10 years.

"Nevertheless, the ACI Limited is bearing the loss of its subsidiary. It spreads a bad signal in the market and investors are losing faith to the company," Emon said.

He said in its reply the company said their shareholders gave consent in favour of business expansion even after incurring losses.

"Such kind of reply is illogical. The DSE's CRO will submit its report scrutinising the company's financials of last 10 years," Emon added.

The officials of the ACI Limited could not be reached for their immediate reaction.

The ACI Limited reported its consolidated EPS of Tk. 10.73 for the year ended on June 30, 2018 as against Tk. 22.10 for the same period of the previous year.

Later, the company incurred a consolidated loss Tk 0.78 per share for October-December 2018 as against the EPS of Tk. 5.44 for October-December 2017.

mufazzal.fe@gmail.com

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