Tung Hai directors siphoned off entire Tk 35 crore it drew from capital market

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Tung Hai directors siphoned off entire Tk 35 crore it drew from capital market

Even a devastating fire which left eight people including Tung Hai Group Chairman and founder of the Business Mahbubur Rahman killed could not stopped its other directors draw Tk 35 crore from Market and divert it to other business.

Although the business of Tung Hai group increased manifold Tung Hail Knitting & Dyeing Ltd became an empty basket since it drew money from Capital Market.

Recently Tung Hai came into scene again as Bangladesh Securities and Exchange Commission (BSEC) imposed penalty to the directors for their failure of submission the monthly shareholding report from August 2017 to August 2018 in accordance with the law.

The company violated the section 35 of the Dhaka Stock Exchange (Listing) Regulation, 2015. It had failed to submit the monthly shareholding report from August 2017 to August 2018 in accordance with the law.

The company also did not reply to the Dhaka Stock Exchange’s (DSE) query letter. Later, a DSE team conducted a visit to the factory, but found it locked down.

The company’s sponsors and directors jointly own 30.04 percent shares, institutional investors 5.62 percent, and general investors 64.34 percent.

Sources said the company directors intentionally shut down Tung Hai and has played wrongly by shifting all Tk 35 crore to other business of the group .

Sources said, after died of Mr. Mahbubur Rahman his wife Anjum Ara Khanam and daughters took management of the group and running it successfully as it became a top ranked textile suppliers in the world. The annual turnover of the group stood at US$150 million, industry sources said. Rahman’s business venture Tung Hai Group counts the UK’s Primark, Peacock, New Look and Spain’s Inditex as its clients.

When asked Tung Hai management did not reply the email and phone calls of Business Mirror. Sources alleged that the directors in connivance with BSEC officials siphoned off the entire money from the listed company and invested those to other companies which are not listed.

Tung Hai group owned six garment factories — of them Tung Hai Sweaters Ltd and Tung Hai Knitting and Dyeing Ltd are located in the fire ravaged building while the four others- –Tung Hai Knit Fashions Ltd, Tung Hai International, Agrani Sweaters Ltd and NN Sweaters are at Savar and Ashulia. The building at Mirpur is also the head office of the Tung Hai Group and Mahbubur had his chamber on its ninth floor, beside a rest room.

The directors also went into hiding so that law enforcers and capital market regulators could not identify them and bring them into legal obligations.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk2.80. The company was listed on both the stock exchanges in 2014. It is again a scrip to good gambling item.

The group produced knitted sweaters, cardigan, jumper, twinsets, poncho, pullover, shrug, scarf, hat and leggings, printed and embroidered fashion wear, basic and fashion polo shirts, basic and fashion t-shirts, basic & fashion tank tops, fleece shirts and pants, knitted underwear, children wear, pajama sets.

Bmirrorhttps://bmirror.net/
businessmirror20@gmail.com

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