Bangladesh: The Bangladesh Securities and Exchange Commission (BSEC) has written to Aramit Cement to seek an explanation for the company’s transfer of around US$9m as an interest-free loan to a sister company. The Dhaka Tribune newspaper says that the cement producer reported a loss in the financial year to 30 June 2020 and issued no dividend to its shareholders. However, had the company charged 10% interest on the loan, it could enabled the payment of a 20% cash dividend to shareholders. BSEC subsequently sought information on loans to associated companies.
Company secretary Syed Kamruzzaman said, “The board of directors would explain the issue to the BSEC soon.” The BSEC has ordered a refund of the loan along with interest by the end of November 2020.
