The Bangladesh Securities and Exchange Commission or BSEC is all set to launch a special audit on Ring Shine Textiles to figure out the company’s financial health. As per media reports, the BSEC in connection with the same appointed Hoda Vasi Chowdhury & Co. on 5 December (Tuesday) to work on Ring Shine’s financial statements (including its exports and other findings), within a very short period. This was, reportedly, underlined by the BSEC Executive Director and spokesperson, Md. Rezaul Karim, while speaking to the media. As per reports, the export-oriented textile manufacturer made its debut on the bourses on 12 December 2019, to raise Taka 150 crore amidst a spate of criticisms and various allegations against the company. Further, owing to the global COVID-19 pandemic, production at its plant has, reportedly, been on halt since 27 September 2020 for want of orders and shortage of imported raw materials thereby raising question mark on when would production resume even as its board of directors and top management are said to be missing in action. To add to the concerns is Ring Shine’s reported disclosure in its 2019-20 financial year report that it has a negative cash flow per share even as its board allegedly failed to turn up for the rescheduled extraordinary general meeting on 31 December — The extraordinary general meeting was originally scheduled for 14 November so as to go over the unaudited financial statement (for the first quarter of its 2020-21 financial year) and also to review the utilisation of its IPO funds (over which there are some complications). But it was called off for “unavoidable circumstances” without any prior notice — and a new date was yet to be announced in this regard.
