FE REPORT
Singer Bangladesh has been downgraded to "Z" category from "A" category as its accumulated losses exceeded its paid-up capital, reflecting the prolonged financial distress facing the multinational home appliance manufacturer.
The Dhaka Stock Exchange (DSE) said the reclassification became effective on Wednesday.
According to the company's latest financial statements, Singer's retained earnings stood at negative Tk 2.05 billion as of March this year, while its paid-up capital was Tk 997 million.
The company has suffered losses of about Tk 2.74 billion over the past two years (2024 and 2025), mainly due to a sharp rise in finance costs stemming from its heavy debt burden. It also reported a net loss of Tk 578 million in the January-March quarter for the same reason.
Under the DSE listing regulations, a company is placed in the "Z" category if it has failed to declare dividends for two consecutive years, has suspended commercial operations for at least six months, failed to hold annual general meetings (AGMs) on time, recorded accumulated losses exceeding its paid-up capital, or failed to distribute at least 80 per cent of declared dividends within the stipulated time frame.
Following the downgrade, the DSE instructed all stockbrokers and merchant bankers not to provide margin loan facilities to investors for purchasing Singer shares, with effect from Wednesday, in accordance with the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025.
The premier bourse also relegated Intech Ltd to junk status on the same day for the identical reason-its accumulated losses exceeded paid-up capital.
After the inclusion of Singer and Intech, the number of companies in the "Z" category has risen to 127, underscoring the growing financial strain on a section of listed companies and reinforcing concerns over the overall health of the country's capital market.
Under the trading rules, investors cannot purchase Z-category shares using margin loans, while trades in these stocks are settled on a T+3 basis instead of the standard T+2 settlement cycle.
According to DSE regulations, listed companies must declare at least a 10 per cent cash dividend to remain in the "A" category. Companies declaring less than 10 per cent are classified under the "B" category.
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