Why Aamra Networks is under BSEC scanner
On 20 May 2024, the company received Tk93 crore from its Right Share Issue, which was allocated for loan repayment, network system upgradation, and network coverage expansion
The Bangladesh Securities and Exchange Commission (BSEC) has once again ordered an investigation into the utilisation of funds raised by Aamra Networks Limited through its Right Share Issue. The market regulator stated that the move aims to ensure transparency in the capital market and protect the interests of general investors.
The decision was taken at the 986th meeting of the Commission held on 2 December 2025. During the meeting, the Commission noted that although the company claimed to have utilised the funds from the Right Share Issue for network system upgradation and network coverage expansion, it is necessary to verify the actual implementation and expenditure of these projects.
On 20 May 2024, the company received Tk93 crore from its Right Share Issue, which was allocated for loan repayment, network system upgradation, and network coverage expansion.
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Earlier, on 9 December 2024, the Commission initially formed an investigation committee regarding this matter. Later, the investigation officer was changed, and a new order was issued in May of the current year, with the investigation process concluding in August.
As a result, the Commission has formed a three-member full-fledged investigation committee to examine the company's activities. The committee comprises Gour Chand Sarker, Deputy Director of BSEC; Rezaun Nur Mehedi, Assistant Director; and Tanmoy Kumar Ghosh, Assistant Director.
The committee will follow a structured approach, including field inspections and detailed review of financial documents, and is expected to complete the investigation within 60 days.
On the Dhaka Stock Exchange, the company's share price increased by 3.37% to Tk18.30 today.
Speaking to TBS, an officer of the company who wished to remain unnamed said that the Commission had already conducted an investigation on the same matter but he was unaware why another committee had been formed.
Regarding the company's business, he mentioned that due to political changes, many customers have either stopped their operations or downsized their businesses. Customers who previously purchased 10 GB data packages are now opting for the smallest available packages. Previously, the company earned revenue from infrastructure setup services, which has now ceased, impacting overall business performance.
The first stage of the investigation focuses on verifying the actual implementation of projects. The committee will conduct on-site inspections to confirm whether the network system upgradation and coverage expansion projects funded by the Right Share Issue were genuinely executed. All relevant locations will be inspected, and a report will be prepared detailing the installation of network equipment, link expansions, and addition of new infrastructure, along with overall progress and operational effectiveness.
In addition, purchase and expenditure documentation will be thoroughly reviewed. All networking equipment and technological products procured by the company will be examined to ensure that purchase prices align with market rates. Contracts, vouchers, invoices, delivery challans, and other supporting documents will be analysed. The committee will also check for any related-party transactions and ensure they have been properly disclosed. All such transactions will be cross-verified with the company's bank statements to ensure transparency.
The investigation will also cover vendor confirmations and fund tracing. The committee will seek verification from all vendors regarding actual delivery of goods and will check whether payments were made without receipt of products. If necessary, the committee may visit vendor premises to inspect the actual delivery of equipment.
Vendor-wise purchase orders have already been provided to the Commission for verification purposes. The committee has also been directed to investigate whether any funds were diverted for other purposes.
Another key aspect of the investigation is to verify whether products purchased using Right Share Issue funds have been accurately recorded in the company's financial statements. The committee will review the accounting from the time of the Right Share Issue to the present, noting any discrepancies, omissions, or concealed expenses.
Additionally, the committee will examine whether the fund utilisation auditor fulfilled their responsibilities as outlined in the consent letter. Any negligence, incomplete verification, false reporting, or violation of consent terms will be highlighted in the final report.
The committee has also been instructed to identify any violations of law and determine the responsible parties. This may include members of the Board of Directors, the Chief Financial Officer (CFO), the Company Secretary (CS), the Right Share auditor, and any other relevant personnel.
In terms of financial performance, Aamra Networks has experienced significant setbacks during the July–March period of FY25. Revenue declined by 27.51% to Tk71.66 crore compared to the same period last year, indicating a sharp drop in business activity. This decline in revenue directly impacted profitability. Net profit for the nine-month period fell 68.28% to Tk7.15 crore, raising concerns about the company's earnings capacity and cost management.
During the same period, the company's earnings per share (EPS) stood at Tk0.77, a significant decrease from the previous year, indicating reduced returns for shareholders.
