SK Trims & Industries, a scam-hit company allegedly tied to the ill-gotten money of former revenue official Md Matiur Rahman, posted a loss of Tk 282 million in FY25 - the first since its listing.
The company's earnings disclosure on Monday on the Dhaka Stock Exchange, however, did not explain the loss, even though listed companies are required under securities rules to cite reasons behind any significant deviation in key financial indicators such as profits or income.
No representative of SK Trims & Industries could be reached by phone for details, and the company is yet to upload its financial statements for FY25.
Listed in 2018, SK Trims' profits and dividends have shown a declining trend since FY21.
Although Md Matiur Rahman held no stake in the company himself, his family members - including his brother, sister, daughter, second wife and two family-led companies, Global Max Packaging and Global Shoes - held a combined 74.7 per cent of shares in SK Trims.
Mr Rahman and his family grabbed media headlines after his son Mushfiqur Rahman Ifat posted a photo of a sacrificial goat on social media in June 2024, claiming to have bought it for Tk 1.5 million. The post triggered public outrage and sparked investigations into Mr Rahman's immense, unexplained wealth and alleged involvement in stock market irregularities. Investigations by mainstream media and the Anti-Corruption Commission (ACC) exposed a massive web of hidden assets and large shareholdings in publicly listed companies, with investigators citing his involvement in illegal insider trading.
In July 2024, the central bank froze nine of SK Trims' bank accounts linked to exports, imports, daily transactions and dividend distributions. The action came on the recommendation of the ACC, following allegations of illegal wealth accumulation and money laundering against Mr Matiur. In September of that year, the company announced the closure of its factory, saying it could not continue operations with its bank accounts frozen.
Before reporting losses in FY25, the company had recorded its highest-ever revenue of Tk 1.11 billion in FY24. However, the profit of Tk 45 million reported for FY24 was the lowest since listing.
A gradual decline in cash flow and return on equity suggests that SK Trims had been losing business competitiveness due to financial mismatches following its listing. The company's return on equity stood at 13.19 per cent in FY20, declining steadily to 3.44 per cent by FY24. Similarly, operating cash flow fell from Tk 1.86 per share in FY20 to Tk 0.90 in FY24, before turning negative at Tk 0.25 per share in FY25 - the first time it has done so.
A negative cash flow generally indicates that more money is leaving a business than coming in during a given period, and often signals financial trouble.
The company's non-current liabilities, also known as long-term liabilities, rose steadily from Tk 16.86 million in FY20 to Tk 28.90 million in FY24.
According to DSE data, SK Trims - now a 'Z' category company - failed to hold its annual general meeting (AGM) within the timeframe prescribed under the Companies Act, 1994. The DSE disclosure noted that the board of directors had resolved to seek permission from the High Court Division to convene the pending meetings, adding that shareholders would be notified of the exact AGM date once court approval is obtained.
Meanwhile, the recent rise in the company's stock price appears at odds with its financial performance. The share price closed at Tk 6.10 on November 16 last year, climbed gradually to Tk 13.40 on May 21, and closed at Tk 12.40 on Monday.
mufazzal.fe@gmail.com
© 2026 - All Rights with The Financial Express
