Far East Knitting keen to keep operations vibrant

FE Report | Published: May 19, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Far East Knitting and Dyeing Industries (FEKDI), a cent per cent export-oriented company which got regulatory nod to offload shares, plans to keep their operations vibrant to ensure due benefits of workers and shareholders, officials said.
The company management said this Saturday while talking of their future plan with journalists who visited the factory.
"Nobody will be able to assess whether there is any gap between the prospectus of our company and the reality unless s/he observes the physical existence and operational capacity of our factory," said Asif Moyeen, managing director of the company.
The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO (initial public offering) proposal of Far East Knitting on March 25 for raising fund worth Tk 675 million under fixed price method.
As per the proposal, the company will offload 25 million ordinary shares at an offer price of Tk 27 each, including a premium of Tk 10.
The company will raise the fund for BMRE (balancing, modernization, rehabilitation and expansion) of its factory and repayment of bank loans.
"After repayment of bank loans our profit is likely to increase significantly," Mr. Moyeen said.
According to the audited report, the company's sales revenue was above Tk 2.08 billion for the year ending on June 30, 2011, above Tk 2.35 billion for the year ending on June 30, 2012, and above Tk 2.31 billion for the year ending on June 30, 2013.
"On the basis of the current orders our sales revenue is likely to stand at Tk 2.70 billion for the year ending on June 30, 2014," said the Far East Knitting MD.
The company's net profit after tax stood at Tk 319.30 million for the year ending on June 30, 2011, Tk 399.51 million for the year ending on June 30, 2012, and Tk 231.65 million for the year ending on June 30, 2013.
When asked about their company's compliances, Mr. Moyeen said two global platforms on industrial safety issues - the Accord and the Alliance - have appreciated their building structure and fire safety measures along with ensuring due benefits to the workers.
Every year a portion of the company's profit goes to Workers Profit Participation Fund (WPPF).
The company can internally produce 2.7 MW power by using diesel and gas, whereas it requires 1.5 MW supply from the Rural Electrification Board (REB).
The factory of Far East Knitting has also fulfilled all requirements, set by the Department of Environment.
As per the financial statement for the year ending on June 30, 2013 and audited financial statements of the previous five years, the company's weighted average earning per share (EPS) and re-valued net asset value (NAV) is Tk 3.28 and Tk 19.08 respectively.
Since inception in 1994, the company maintains high standards in manufacturing garment products for the world's renowned brands by using the latest machinery, imported from Singapore, Taiwan, Greece, South Korea, Turkey and USA, the MD added.