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An ill attempt by Hami Industries to upgrade its status by disbursing nominal dividends has been foiled.
The statutory auditor found that the interim dividends declared and disbursed by Hami Industries were not supported by quarterly profits. The company experienced losses of Tk 3.79 million-Tk 8.22 million in the last five fiscal years.
So, the company, which now belongs to Z category on the bourses, will not be elevated based on the declared dividends for the 3rd quarter of FY24.
On June 2, Hami Industries, formerly known as Imam Button Industries, recommended 1 per cent cash dividends for shareholders other than sponsor-directors for the quarter ended in March.
On August 7, it informed that it had completed the disbursement of the said dividends.
A filing of the Dhaka Stock Exchange (DSE) on Wednesday said the company's dividend would not be considered for adjustment of stock categorization.
A directive issued by the securities regulator in May 2024 said any issuer would be considered for an adjustment or placement of categorization if its interim dividends are justified by profits duly reviewed by statutory auditors.
Many 'Z' category companies earlier declared dividends as low as 0.25 per cent to upgrade their listing category to avail of benefits, including margin facilities and reduced trading cycle.
The DSE website has no record of dividend distribution by Hami Industries. The company that resumed operations in 2023 became a matter of discussion as its fabricated financial results came to light in April this year.