Ring Shine’s financial performance worsens

Ring Shine Textiles (RSTL), a publicly traded company, has reported a net loss of Tk 74.5 crore in the first nine months of current fiscal year, much higher than the loss of Tk 47 crore in the same period last year.

The company’s financial performance got worsened, as it posted a net loss per share of Tk 1.49 for July-March of FY23, against the loss per share of Tk 0.94 for the corresponding period last fiscal.

In the third quarter (January-March) of FY23, the listed firm posted a loss per share of Tk 0.73, a decline from loss Tk 0.59 for the same period in FY22.

The company’s net operating cash flow per share (NOCFPS) also deteriorated, with a negative value of Tk 0.13 for July-March of FY23, compared to Tk 0.83 negative in the same period last fiscal.

Furthermore, the textile company’s net asset value (NAV) per share remained negative, amounting to Tk 3.94 as on March 31, 2023.

All these figures indicate the company’s financial challenges and the need for an improvement.

Earlier, an investigation by The Business Post uncovered substantial money laundering activities within the company. The investigation revealed that the company management had transferred Tk 1,242 crore ($124 million) through telegraphic transfers to overseas accounts, falsified expenses, and engaged in over-invoicing. An unidentified individual facilitated the laundering of Tk 19.2 crore and Tk 20 crore.

In response to the corporate governance guidelines, its managing director resigned. The Bangladesh Securities and Exchange Commission (BSEC) also dissolved the company’s board, and appointed a new board to restore the company’s operations.

RSTL resumed production in June 2021, operating at 25 per cent capacity after a nearly nine-month closure due to the Covid-19 pandemic.