The representative of state-owned Investment Corporation of Bangladesh (ICB) has resigned from the board of listed company Advanced Chemical Industries (ACI) Limited as its subsidiary ‘Shwapno’, a chain super shop brand, has been incurring huge losses.
The super shop has been running at a loss since its inception in 2008. In the 2017-18 fiscal year, ‘Shwapno’ incurred a loss of Tk135 crore, and its accumulated loss in the year stood at Tk891 crore.
For this reason, Kazi Sanaul Hoq, representative of the ICB, resigned from the board of ACI Limited on July 1, an ICB higher official said.
As per official sources, ICB owns 18.86%, including 8.16% ICB Unit Fund, share of ACI Limited.
The Company Secretary of ACI Limited Mohammad Mostafizur Rahman acknowledging the resignation told Dhaka Tribune: “State-owned investment company ICB has a large investment in our company. One of their representatives was on the board; he resigned last month. We hope to have another of their representatives sent to the our board.”
Meanwhile, ICB higher officials, speaking to Dhaka Tribune, said that the shareholders criticized the loss of the company’s subsidiary. For this reason, ICB Managing Director Kazi Sanaul Hoq resigned from the ACI board.
Asked about ICB share in the company, the officials said they might sell their shares if they got good price.
Previously, on February 12, DSE launched an inquiry into why ACI Logistics Limited (Shwapno) was incurring losses and gobbling up the profits of its parent company.
The inquiry committee was formed following a Dhaka Bank Securities’ complaint claiming that by carrying the burden of ACI Logistics’ losses, the board of directors of ACI Limited failed to carry out their legal duties and responsibilities to protect the interests of small shareholders.
Losing money for a decade since its inception in 2008, Shwapno — comprising of 76% of ACI Logistics — has weighed on the profitability of ACI Ltd, registering a loss for the parent company as a consequence. The situation has aggrieved ACI shareholders, as its prices in the DSE fell.
Mohammad Ali, also chief executive officer of Dhaka Bank Securities Limited, told Dhaka Tribune: “Our concern is that a company having an accumulated loss of Tk8,91 crore which is 24.75 times of its paid-up capital reflects that the board of directors are not discharging their due responsibilities as entrusted to them by the shareholders.”
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