BFIU freezes SK Trims' bank accounts
The bank accounts were frozen at the recommendation of the Anti-Corruption Commission (ACC)
Bank accounts of SK Trims and Industries, a publicly traded firm reportedly owned by family members of former National Board of Revenue (NBR) official Matiur Rahman, have been frozen by the Bangladesh Financial Intelligence Unit (BFIU) following court orders.
The bank accounts were frozen at the recommendation of the Anti-Corruption Commission (ACC), according to a disclosure published on the websites of Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) today.
MA Kaium Howlader and Md Nurul Huda, who are brothers of Matiur Rahman as per media reports, are serving as managing director and sponsor director, and sponsor shareholder of the company respectively.
The ACC is currently investigating Matiur's assets on charges of acquiring illegal wealth.
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On 11 July, a Dhaka court ordered the freezing of 116 bank accounts and 23 beneficiary owner (BO) accounts, along with the seizing of several properties owned by Matiur Rahman and his family members.
Yesterday, in a disclosure, SK Trims said the Metropolitan Sessions Judge Court and Bangladesh Financial Intelligence Unit had frozen all of their bank accounts by recommendation of the Anti-Corruption Commission.
However, Md Riaz Haider, company secretary, and Md Nazmul Hossain, chief financial officer (CFO), of the company could not be reached over the phone for comments in this regard.
According to its annual report for 2022-23, SK Trims owns over a dozen bank accounts in several banks, including FDRs, loans and other bank accounts to continue its business activities and payments.
The company was listed on the bourse in 2018 after raising a Tk30 crore fund to expand its business, issuing shares at Tk10 each.
When allegations of Matiur Rahman acquiring illegal wealth came to light at the end of June, the company's share price started to decline, going down to Tk24.4 each on 2 July from Tk27.6 each on 20 June.
Later, on 9 July, the price for each share increased to Tk27. However, since then, the share price has declined for three consecutive trading days.
Yesterday, its share price closed at Tk24.8 each at the DSE.
The principal activities of SK Trims are to manufacture all kinds of sewing thread, elastic, poly, carton, photo cards, backboards, bar code, hang tags, tissue paper, gum tape, etc. for the export-oriented garment industry.
Tk17cr investment in placement
According to the company's annual report, SK Trims invested Tk17 crore in seven companies as of 30 June 2023.
Of them, four firms – Dominage Steel Building Systems, Mamun Agro Products, Acme Pesticides, and Asiatic Laboratories – are listed on the bourses.
The other three – Anik Trims, B Brothers and Banbiz (Pvt) – are non-listed.
However, it could not be confirmed whether the company has sold shares of placement or if it holds any shares.
Revenue grew 40%and profit 86% in Jul-Mar
According to SK Trim's quarterly financials, its revenue in the first nine months of the 2023-24 fiscal year grew by 40% to Tk92 crore.
Meanwhile, its net profit jumped by 86% to Tk8.81 crore.
According to the statements, its nine-month revenue and profit surpassed its annual revenue and profit of Tk88.75 crore and Tk7.97 respectively in the 2022-23 fiscal.
It paid a 3% cash dividend to its shareholders in FY23, and its shares are trading in the B category.
As of 30 June, sponsor-directors held 31.23%, institutional investors 28.86%, and the general public 39.91% of the company's shares.
