BSEC to review RN spinning's post-fire financial statements | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
May 29, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, MAY 29, 2025
BSEC to review RN spinning's post-fire financial statements

Stocks

Salah Uddin Mahmud
01 July, 2024, 09:55 pm
Last modified: 02 July, 2024, 12:40 am

Related News

  • Berger Paints gets BSEC approval to issue rights shares
  • BSEC slashes BO account fee by Tk300
  • BSEC to Hold meeting with retail investor representatives on 29 May
  • What finance adviser tells TBS about NBR split, BSEC chair removal
  • Merchant bankers renew plea for extension of provisioning deadline till 2030

BSEC to review RN spinning's post-fire financial statements

Salah Uddin Mahmud
01 July, 2024, 09:55 pm
Last modified: 02 July, 2024, 12:40 am
TBS Illustration
TBS Illustration

The Bangladesh Securities and Exchange Commission (BSEC) has decided to review the financial statements of RN Spinning Mills Limited to scrutinise the impact of a fire accident in FY19 on the company's financial performance and ensure the transparency of the reported losses.

The commission has decided to appoint a special auditor in this regard as part of its regulatory role to protect investors and maintain market integrity.

An official of the BSEC, speaking on condition of anonymity, told TBS that RN Spinning Mills Limited reported a significant loss due to a fire incident in its financial statements for FY19.

The commission aims to ascertain the exact impact of the fire on the company's finances. Specifically, the BSEC wants to determine the actual extent of the losses caused by the fire and verify the accuracy and truthfulness of the financial statements presented by the company for that period, he added.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Low return from the firm

Market insiders say the investors are suffering for not getting the expected return since listing, as the company did not pay any cash dividend to its investors. They noted that two other companies in the group, also listed on the capital market, have not generated good returns for the investors.

There are allegations that Abdul Kader Faruk, the group chairman, was involved in placement tricks with Ring Shine Textile.

Ring Shine raised its paid-up capital from Tk9.95 crore to Tk285.05 crore by issuing pre-IPO, known as placement shares, to existing sponsors, directors, and 73 external local shareholders.

Of these, however, 11 sponsors and directors and 33 external shareholders did not make any payment against their allotted shares, according to findings by the market regulator.

RN Spinning-Samin Food merger

According to the Dhaka Stock Exchange (DSE), RN Spinning has incurred losses since FY19, as its operations fully ceased in 2019 due to a fire incident at Cumilla EPZ. In January last year, the High Court approved a merger between publicly listed RN Spinning Mills and non-listed Samin Food & Beverage Industries and Textile Mills.

In October last year, the BSEC also approved this merger following the High Court's approval. After the merger, RN Spinning's existing shareholders received shares at a 1:5.59 ratio, meaning they got one new share of post-merger RN Spinning against the 5.59 shares held in the company before the merger.

The share price of the post-merger RN Spinning plunged 45% from its adjusted price to Tk12.70 on Sunday. The company stated that it achieved remarkable progress in operations following the merger with non-listed firms owned by the same group, facilitating its comeback.

Md Humayun Kabir, director of marketing at FAR Group, said earlier, "RN Spinning's operation has been closed for around five years due to a fire incident. Investors also did not get anything during the period. We try to change this situation for the better. After the merger, we have been able to get back into business properly. We hope investors will get better returns from now on."

In the July-March period of the last fiscal year, RN Spinning posted revenue of Tk280.65 crore, compared to Tk272.89 crore a year ago. Its profit after tax stood at Tk2.74 crore and earnings per share stood at Tk0.09.

Bangladesh / Top News

BSEC / RN Spinning

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • How termination of USDA-funded trade facilitation project will affect Bangladesh
    How termination of USDA-funded trade facilitation project will affect Bangladesh
  • File photo of Bangladesh Secretariat. Photo: Collected
    Visitors banned from entering Secretariat on Mondays and Thursdays
  • File photo of BNP Secretary General Mirza Fakhrul Islam Alamgir. Photo: Collected
    Asked for roadmap, govt didn’t give in 10 months, now 'December it is': Mirza Fakhrul

MOST VIEWED

  • Google Pay. Photo: Collected
    Google Pay likely coming to Bangladesh soon
  • Graphics: TBS
    Suspicious banking activities surge by 56% since July: Cenbank
  • Representational image of cable car/Freepik
    Cable car to be installed from Himchari to Reju Khal in Marine Drive Road
  • Illustration: TBS
    Bangladesh sees highest-ever per capita income of $2,820 in FY25, BBS provisional data shows
  • IFIC Bank receives Tk6,000 cr in new deposits in six months
    IFIC Bank receives Tk6,000 cr in new deposits in six months
  • Abdul Awal Mintoo, chairman of National Bank Limited. Sketch: TBS
    'Regulatory support must for National Bank to restore depositors' confidence'

Related News

  • Berger Paints gets BSEC approval to issue rights shares
  • BSEC slashes BO account fee by Tk300
  • BSEC to Hold meeting with retail investor representatives on 29 May
  • What finance adviser tells TBS about NBR split, BSEC chair removal
  • Merchant bankers renew plea for extension of provisioning deadline till 2030

Features

In recent years, the Gor-e-Shaheed Eidgah has emerged as a strong contender for the crown of the biggest Eid congregation in the country, having hosted 600,000 worshippers in 2017. Photo: TBS

Gor-e-Shaheed Boro Maath: The heart of Dinajpur

2d | Panorama
The Hili Land Port, officially opened in 1997 but with trade roots stretching back to before Partition, has grown into a cornerstone of bilateral commerce.

Dhaka-Delhi tensions ripple across Hili’s markets and livelihoods

3d | Panorama
Photo: Collected

Desk goals: Affordable ways to elevate your study setup

3d | Brands
Built on a diamond-type frame, the Hornet 2.0 is agile but grounded. PHOTO: Asif Chowdhury

Honda Hornet 2.0: Same spirit, upgraded sting

3d | Wheels

More Videos from TBS

The fight between two brothers; Adidas vs Puma

The fight between two brothers; Adidas vs Puma

4h | Others
Trump is again keen to make Canada the 51st state

Trump is again keen to make Canada the 51st state

6h | Others
Trump's tariff strategy and Europe's investment politics, violence or negotiation?

Trump's tariff strategy and Europe's investment politics, violence or negotiation?

7h | Others
Rumours surrounding the Club World Cup: Which club will Ronaldo join?

Rumours surrounding the Club World Cup: Which club will Ronaldo join?

7h | Others
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net