Financial institution Asia has announced an auction to sell the resources of publicly listed Hamid Materials, a subsidiary of Mahin Group, in a uncover to recuperate an prominent loan of Tk55.96 crore. The auction follows provisions of the Cash Mortgage Court Act, 2003.
The interrogate, printed in everyday newspapers final week, invitations patrons to post stamp quotations by 29 December. The auction involves 296.50 decimals of land, alongside with the factory constructing and machinery, positioned in Narsingdi, all owned by Hamid Materials.
Abdullah Al Mahmud, managing director of Hamid Materials, urged TBS, “Right here’s terribly depressed. We’re in talks with the bank to resolve the topic and hope it will seemingly be resolved soon.”
Sources at the bank stated the firm before the entirety took a requirement loan for working capital, which was later converted staunch into a term loan. No topic more than one notices, Hamid Materials didn’t fabricate timely loan installments, prompting the auction court docket cases.
Hamid Materials’ factory has three production units. The woven fabric unit has an installed capability to originate 32.40 million yards each and every year, while the weaving units bask in an annual capability of 9.88 million yards, and the dyeing unit has about 1.37 million kg myth capability.
Basically essentially based on its monetary file, Hamid Materials has resources valued at Tk571 crore and equity totalling Tk 296 crore.
Basically essentially based on industry insiders, the total Narayanganj-Narsingdi place is severely impacted by a gasoline crisis, including the perform where Hamid’s factory is positioned. Consequently, most factories within the place bask in been unable to perform at full capability.
To mitigate this scenario, Hamid Materials invested in and activated alternative energy sources take care of LPG, incurring charges of at the least Tk10 lakh each and every 36 to 48 hours. This has very much increased their operational expenses, stated a senior officer of the firm.
Substitute deterioration
Hamid Materials reported that its earnings dropped over 52% to Tk24.87 crore within the July-September quarter of the fiscal year 2024-25 when put next to the same time of the old year.
For the period of the period, it incurred a loss of Tk9.65 crore. At the raze of September, its earnings per half stood at Tk1.06 harmful.
The firm stated in its stamp-tender assertion, that earnings has decreased very much due to the a discount of sale orders from the world patrons. Which means, profitability at some level of the quarter has decreased accordingly which has affected earnings per half.
The board of the firm has decided no longer to pay dividends to its shareholders for the final fiscal year due to the incurring a Tk37 crore loss.
The auditor of the firm stated within the audited file for FY24, that Hamid Materials has offered cash salaries amounting to Tk1.28 crore to dash place of labor workers and Tk1.56 crore to factory workers, which constitutes a violation of the Earnings Tax Act 2023.
Its top seemingly dividend payout was 20% in FY14 and FY15. Since then, the dividend payout has progressively decreased. In the final three years leading up to FY23, it has easiest paid a 5% cash dividend to its shareholders.
Hamid Materials was listed on the stock exchanges in 2014. It raised Tk105 crore by issuing shares at Tk35 each and every including a top price of Tk25.
It spent Tk30 crore for repaying loans from the general public fund, while Tk72 crore for industrial growth.
Hamid Materials shares ended 3.12% decrease at Tk9.30 on Thursday at the Dhaka Inventory Substitute.
