BSEC appoints four independent directors

The Bangladesh Securities and Exchange Commission (BSEC) has appointed four independent directors in Zaheen Spinning Limited, in an effort to help the company recover from long-standing poor condition.

The move came on the heels of the textile company’s consistent losses in the last two years.

On Monday, the stock market regulator wrote to the textile company about the move.

Three of the newly appointed directors are university professors while the remaining one is from the business community.

According to the letter, the independent directors are Shahidul Islam, professor at Dhaka University’s Banking and Insurance Department; Saud Ahmed, associate professor at DU’s Tourism and Hospitality Management Department; Taslima Akther, associate professor at Jagannath University; and Ismat Jerin Khan, managing director of Jermatz Ltd.

According to the company financials, Zaheen Spinning posted a loss of Tk 28.69 crore in the financial year 2020-21 while the loss was Tk 38.58 crore in the previous year. It failed to provide the investors with dividend for the years.

At the beginning of the current year, the company suffered a fire accident at its factory and was forced to suspend production until July.

The company’s share changed hands at prices under its face value throughout the last one year.

The share price declined 3.37 per cent to Tk 8.6 on the Dhaka Stock Exchange on Monday.

Zaheen Spinning was incorporated in 2007 and started commercial operation in 2010.

It got listed with the stock exchange in 2015 and carries out share trading under the ‘B’ category at the Dhaka bourse.

Zaheen Spinning, which manufactures quality cotton yarn of different counts, has a market

capitalisation of Tk 101 crore while its paid-up capital is Tk 114 crore. Currently it has a negative reserve of Tk 14 crore.