Zaheen Spinning Ltd declares no dividend for 2019-20 FY

The Board of Directors of Zaheen Spinning Ltd has recommended no dividend for 2019-20 fiscal year. 

The annual general meeting of the company is scheduled to take place on December 28. 

The company has also reported earnings per share (EPS) of Tk (3.39), net asset value (NAV) per share of Tk 8.78 and net operating cash flow per share (NOCFPS) of Tk 0.07 for 2019-20 FY, against Tk 0.60, Tk 12.16 and Tk 0.34 respectively for the same period of the previous fiscal year. 

As for the reasons behind a significant deviation in NAV, EPS and NOCFPS, the company said that EPS had decreased due to the fall in production after a fire incident in December 2019, adverse effect of Covid-19 resulting closure of Mill for around two and a half months, decrease in sales and increase of the cost of goods sold on sales and increase in administrative expenses. 

Besides, provision for bad and doubtful debts, write off of advance, deposits and prepayments and write off of obsolete raw materials and obsolete finished goods were the major reasons behind negative EPS. 

NAV decreased due to the increasing number of shares for allotment of 5 percent bonus share in the previous year and the negative balance of retained earnings.