KDS Accessories to invest Tk 114.50mn for procuring machinery, automation

The board of directors of KDS Accessories Ltd has decided to invest 144.50 million taka (estimated) for procuring machinery and civil construction for finishing line automation of corrugated packaging.

The project will increase the ability to maximise total capacity utilization with variety of printing breakdown and product sizes, said the company.

After automation, the overall capacity utilization can be increased by another 15% from the existing proportions. An additional 30,00,000 pieces of carton box can be finished upon having order per year. It may generate approximate additional sales revenue of 250 million taka annually.

The project will be financed through combination of bank loan and the company's own source, as said on the website of the Dhaka Stock Exchange (DSE).

Besides, the board of directors of KDS Accessories Ltd has recommended 7.50 per cent cash and 7.50 per cent stock dividend for the year ended on June 30, 2020.

The final approval will come during the annual general meeting (AGM) scheduled to be held at 11am on November 11 through the digital platform. The record date is November 4.

The company has also reported earnings per share (EPS) of 2.18 taka, net asset value (NAV) per share of 24.99 taka and net operating cash flow per share (NOCFPS) of 8.12 taka for the year ended on June 30, 2020 as against 2.09 taka, 24.94 taka and 2.02 taka respectively for the same period of the previous year.

The company has said the stock dividend is declared out of the distributable profit of the company for the year ended on June 30, 2020 which will be utilised for automation of existing finishing line of corrugated packaging.

Bonus shares are not declared from capital reserve or revaluation reserve or any unrealised gain or out of profit earned prior to incorporation of the company or through reducing paid up capital or through doing anything so that the post dividend retained earnings become negative or a debit balance, according to sources in the DSE.

There will be no price limit on the trading of the shares of the company today (Wednesday) following its corporate declaration. However, as per a Bangladesh Securities and Exchange Commission (BSEC) order issued on March 19, 2020, the floor price will be applicable accordingly.