SK Trims reports loss in Jul-Sep
It attributes the loss to temporary suspension of operations for bank account freeze
SK Trims and Industries, a publicly traded company, reported losses in the July-September quarter of the fiscal year 2024-25 due to a temporary suspension of operations.
The suspension followed a High Court order freezing the company's bank accounts.
According to a disclosure filed on the Dhaka Stock Exchange today (1 January 2025), the company posted a loss per share of Tk0.53 in the first quarter, compared to earnings of Tk0.51 per share in the same period last year.
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As of September 2024, SK Trims and Industries reported a net asset value per share of Tk14.96, while its net operating cash flow per share was negative at Tk0.02.
In its price-sensitive statement, the company attributed the losses to the freezing of its bank accounts from 25 June to 18 September 2024. The action significantly reduced export and import activities during the quarter, leading to the financial downturn.
On 18 September, the High Court issued a stay order overturning the Metropolitan Sessions Judge Court's decision, which had resulted in the freezing of SK Trims and Industries' bank accounts. The initial freeze had been enacted following recommendations from the Anti-Corruption Commission.
The Bangladesh Financial Intelligence Unit froze the company's bank accounts held with ONE Bank on 25 June. Subsequently, on 10 July, the Bangladesh Bank reopened the accounts without conditions, considering the importance of the company's export activities, government revenue contributions, employment creation, and public interest.
However, the very next day, on 11 July, the Metropolitan Sessions Judge Court and the BFIU ordered the freezing of nine additional accounts belonging to SK Trims.
In a letter sent to The Business Standard, SK Trims addressed allegations of undue targeting by the anti-corruption watchdog, purportedly due to connections with Matiur Rahman, a former NBR official who was accused of huge corruption and subsequently lost his job.
The company clarified that neither Matiur nor his immediate family members — his wife, son, or daughter — hold positions as board members or shareholders in SK Trims and Industries Limited.
However, shareholder data reveals that Global Max Packaging Industries Limited, where Matiur's son and daughter are shareholders, holds an 11.31% stake in SK Trims.
Additionally, Global Shoes Limited, also linked to Rahman's family, owns a 2.72% stake in the company.
