BM Desk: Aftab Automobiles and Navana CNG, both publicly traded enterprises, have fallen behind on debts from Janata Bank totaling around Tk 100 crore. Legal action has been initiated in this regard by the state-owned bank.
Sources from Janata Bank claim that as of January 21, Navana Batteries Limited, an Aftab Automobiles subsidiary, had fallen behind on loans totaling Tk 729.4 crore. However, Navana CNG’s subsidiary Navana LPG Limited is in arrears of Tk 257.9 crore. For not repaying this loan, Janata Bank has sued the directors and chairman of both businesses.
The chairman and directors of Navana Batteries and Navana LPG were summoned to a hearing by a Dhaka money laundering court on July 17 and July 20, respectively. The court issued a warning that the verdict would be rendered without them in a notice that was printed in the newspaper on Tuesday.
In an attempt to recoup its Tk 125 crore defaulted debt, Agrani Bank attempted to sell off Navana Batteries’ assets earlier in February of this year. But there was no buyer at that auction. According to a bank official speaking on condition of anonymity, the bank consequently brought a complaint against the business in the money lending court.
As per the financial reports, Aftab Automobiles holds 99.95 percent of Navana Batteries, while Navana CNG possesses 99.99 percent of Navana LPG. The management and directors of both companies are identical.
Aftab Auto’s Managing Director is Saiful Islam, and Sajedul Islam serves as the Managing Director of Navana CNG. The chairman of these companies is Shafiul Islam Kamal, the founder of Navana Group.
The financial statements for the fiscal year 2024 indicate that Navana Batteries has an outstanding loan of approximately Tk 5 billion, primarily from Dutch-Bangla Bank, Agrani Bank, and Southeast Bank.
Conversely, Navana LPG has debts amounting to around Tk 700 crore, with City Bank and Shahjalal Islami Bank being its main creditors. The audited report for FY24 reveals that Janata Bank extended short-term loans to both companies for working capital needs.
In FY24, Navana Batteries experienced a revenue surge of 75 percent, reaching Tk 345.8 crore, and reported a net profit of Tk 39 lakh, recovering from the previous year’s losses. Meanwhile, Navana LPG’s revenue saw a slight increase to Tk 220 crore, but it still faced a net loss of Tk 16 million.
The parent companies have exhibited varied performance during the July-March period of FY25. Aftab Automobiles incurred a loss of Tk 106.9 crore, whereas Navana CNG achieved a net profit of Tk 71 lakh in the same timeframe.
Aftab Automobiles’ shares are currently classified under the ‘Z’ category due to its inability to distribute the 10 percent cash dividend announced for the fiscal year 2024.
Likewise, Navana CNGO is also categorized as ‘Z’ because it did not distribute the 10 percent cash dividend declared for the fiscal year 2024.
