business
Envoy Textiles’ 28th AGM held, Shehrin Salam dismissed from board, Tanvir re-elect MD
Envoy Textiles Limited has conducted its 28th Annual General Meeting (AGM) amid critical outcomes for its leadership and board structure.
Tanvir Ahmed was emphatically re-elected as Managing Director (MD) for another term of five years, receiving a unanimous vote of confidence from the shareholders. He got a total of 10 crore 63 lakh 83 thousand 178 votes in his favour.
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The AGM, held in a hybrid format at Gulshan Shooting Club, Dhaka, on Thursday, was chaired by Kutubuddin Ahmed, the founder and chairman of Envoy Textiles Limited.
A major reshuffling of the board occurred during the meeting. An overwhelming 99.97 percent of shareholders opposed the re-election of Shehrin Salam Oishee as a director, leading to her removal from the board.
Sunil Daulatram Daryanani, nominated by Epic Garments, was elected as a new director. Furthermore, the AGM reinforced the company’s strategic direction by unanimously re-electing Kutubuddin Ahmed and Sumayyah Ahmed as directors, ensuring a continuity of strong leadership.
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Adding to the backdrop of these decisions, in a previous Extra-ordinary General Meeting (EGM) held on March 2, 2024, Shehrin Salam Oishee was also not elected as Deputy Managing Director (DMD), indicating a significant shift in the company's executive leadership dynamics. These developments underscore a period of transition and strategic realignment for Envoy Textiles Limited.
Cold storage owners want integrated policy to enhance cold chain efficiency for sustainable goods supply
Bangladesh Cold Storage Association (BCSA) on Thursday urged for an integrated policy for the development of cold chain infrastructure in the country to ensure a strategic supply of perishable goods such as potatoes, onions, and tomatoes in off-seasons.
The leaders of BCSA said this at a meet the press, held at BSCA Office in Paltan in the capital ahead of the Cold Chain Bangladesh-2024 exhibition, scheduled to be held at the International Convention City Bashundhara (ICCB) in May this year.
Savor International Ltd, in collaboration with the BCSA, will organise the exhibition, with participation of 14 countries.
Mostofa Azad Chowdhury Babu, President of BCSA, said there is an urgent need to reform the current financial structure including introducing lower interest rates for investments in cold chain management.
He highlighted the necessity of accessing loans from foreign sources at lower interest rates to facilitate the development of state-of-the-art cold chains.
BCSA President said in the exhibition, stakeholders will advocate for implementing public-private partnerships (PPPs) in cold chain management, emphasising the importance of specialised cold storage facilities and post-harvest management education for farmers and industry professionals.
In response to a question, he expressed concerns over potential potato shortages and urged authorities to provide accurate data on potato production to mitigate market disruptions.
He expressed his concern that consumers might have to buy potatoes at over Tk 50 a kg as farmers' level price is Tk 27-32 a kg this year, which was a maximum Tk 18 a kg last year.
Mohammad Asaduzzaman, President of Bangladesh Refrigeration and Air-conditioning Merchant Association (BRAMA) and Chairman of the Standing Committee on Refrigeration, Air Conditioning, and Cold Chain Policy Implementation of FBCCI, mentioned the challenges faced in importing cold storage equipment and spare parts, which is needed to cut higher import to stimulate investment in the country's cold chain infrastructure.
Istiaque Ahmed, Senior Vice President of the Cold Storage Association, emphasised that cold storage is essential not only for food security but also for ensuring food safety by reducing the need for harmful preservatives.
Md Faizul Alam, Managing Director of Savor International Ltd, Md Hasmotuzzaman, Chairman RP, ASHRAE Bangladesh Chapter also spoke among others at the event.
Govt has no complete list of public services against which it levies fees or charges: Finance Ministry document
The government of Bangladesh has no complete list of public services against which it levies fees or charges.
“There are thousands of public services against which the government levies fees or charges, but there is no complete list of such fees and charges and when those were imposed,” according to an official document of the Finance Ministry.
According the official document titled ‘Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)’ of the Finance Division of the Finance Ministry, the government has partially set up an online database of all non tax revenue (NTR) items with the fees, charges or prices and their dates of imposition.
“This partial database has opened scope with the hope of increasing NTR income manifolds from administrative fees,” it said.
On the other hand, the government is not only focusing on enhanced revenue mobilisation from NTR by raising fees or charges, but also putting its best effort to ensure efficient and satisfactory service delivery.
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The government has taken numerous initiatives to make service delivery systems paperless and to minimise human deployment in this system. This is one of the key features to building Smart Bangladesh by 2041, the document said.
The government has multiplied public investment during the last one and a half decade, of which the SOEs/Autonomous Bodies (ABs) have enjoyed capital support either in the form of loans or equities.
Loans are registered under government accounts through Subsidiary Loan Agreements (SLAs) and thereby interest is charged.
“However, there is no consolidated database for equity investments of the government and therefore there is no precise estimate for dividend income,” the official document said.
The government has taken the initiative to create an exhaustive database for equity investments in the SOEs/ABs as well as establish a Financial Reporting Council for setting standard financial statements to ensure proper assessment of these organisations.
According to the ‘Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)’, With the economic advancement of the country the scope and volumes of public services have evolved and expanded.
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Government organisations are engaged in delivering various new services in new forms to the public.
The government has taken initiatives to explore such novel and voluminous services against which fees/charges may be collected through organising stakeholders’ consultation workshops, seminars, etc.
As per the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division, some Tk 5343 billion will come from tax revenue sector in the 2024-25 fiscal year and Tk 6463 billion in 2025-26 fiscal year.
In the next two fiscal years, the National Board of Revenue (NBR) will provide Tk 5095 billion and Tk 6171 billion.
From the Income Tax wing, the collection will be Tk 1753 billion for the next fiscal while Tk 2123 billion for 2025-26 fiscal, and the collection from import duties will be Tk 1511 billion and Tk 1830 billion respectively.
From the VAT and supplementary Duties, the revenue collection will be Tk 1831 billion and Tk 2218 billion respectively.
The non-NBR tax for the 2024-25 fiscal and 2025-26 fiscal will be Tk 248 billion and Tk 292 billion respectively with non-tax revenue collection will be Tk 529 billion and Tk 634 billion respectively.
The target for running 2023-24 fiscal is Tk 5000 billion with Tk 4500 billion from tax revenue. Of the total amount, Tk 4300 billion will come from NBR through Tk 1480 billion from income tax, Tk 1275 billion from import duties, Tk 1545 billion from VAT and supplementary duties. Some Tk 200 billion will be collected from the non-NBR sector while Tk 500 billion from the non-tax revenue sector.
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FBCCI urges market committee to be proactive to prevent dishonest traders
The market monitoring committee of FBCCI has called upon the concerned market committee to be proactive to counter any traders who try to make extra profit through dishonest means.
Md Amin Helaly, senior vice-president of FBCCI and convener of the market monitoring committee, made the call at the FBCCI's market monitoring committee meeting with the leaders of the local market committee at Mohammadpur town hall Katcha Market in the capital on Wednesday.
Speaking as the chief guest at the meeting, Helaly said dishonest businessmen and all parties involved with them should be identified and punished.
He asked to collect reports of dishonest traders and submit it to the FBCCI. "We will take strict action against them with the cooperation of the government."
The FBCCI leader said the federation is monitoring the market from the place of responsibility of the private sector to keep the market stable during Ramadan.
He said, “Our activities will continue along with various government agencies. But consumers also need to change their buying habits. A month's market should be more moderate than in one day.”
FBCCI directors and members of the Bazar Monitoring Committee were present at the meeting.
Women entrepreneurs' fair promotes 'Made in Bangladesh' products
Women entrepreneurs’ products fair titled "She Entrepreneurship Fair 2024" is going on at Aloki Convention Centre in Dhaka's Gulshan.
Brac Bank organised the fair to promote the campaign "Made in Bangladesh" products.
A total of 85 women entrepreneurs from all over the country have participated in the fair.
Brac Bank is organising this product exhibition for women entrepreneurs for the second time, where entrepreneurs get their stalls without any cost. Most of the women entrepreneurs participating in the fair are involved in the manufacturing sector.
Deputy Governor of Bangladesh Bank (BB) Nurun Nahar inaugurated the fair as the chief guest on Tuesday.
Chairman of SME Foundation Dr Masudur Rahman and Managing Director of Green Delta Insurance Company Farzanah Chowdhury, Brac Bank Managing Director and CEO Selim RF Hussain, and head of SME Banking of Brac Bank Syed Abdul Momen, among others, were present at the inaugural event.
Banks’ CSR spending down by 18 percent in 2023: Bangladesh Bank
Banks’ spending in Corporate Social Responsibility (CSR) has decreased by 18 percent to Tk 924.32 crore in 2023, compared to the previous year.
Bangladesh Bank (BB) report on CSR of 2023 released on Wednesday saw that banks spent Tk 924.32 crore in 2023, which was Tk 1129 crore in 2022. It shows that banks’ spending in the CSR sector decreased by 18 percent or Tk 204.67 compared with the previous year.
According to the report, the highest expenditure in 2023 was in the health sector followed by education and environment and climate change issues.
According to the BB guidelines, 30 percent of the total CSR expenditure of banks and financial institutions should be spent on education, 30 percent on health, and 20 percent on environment and climate change mitigation and adaptation. The remaining 20 percent is directed to be spent on income-generating activities, disaster management, infrastructure development, sports and culture, and other sectors.
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According to the report, 61 scheduled banks have spent Tk 924.32 crore in 2023. Out of this, the health sector spent the most 31.26 percent or Tk 289 crore of the total expenditure.
The spending on the education sector is 17.65 percent or Tk163.10 crore, and the expenditure on the environment and climate sector is 7.38 percent or Tk68.17 crore of the total expenditure. Apart from this, the expenditure on other sectors is 43.72 percent or Tk404 crore of the total expenditure.
According to the CSR report, among the 61 scheduled banks operating in the country, 5 banks did not spend a single taka on CSR in 2023. These are Basic Bank, Bengal Commercial Bank, Citizens Bank, ICB Islamic Bank, and National Bank.
On the other hand, 9 banks did not earn net profit in 2022. They are Basic Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, Bengal Commercial Bank, Citizens Bank, ICB Islamic Bank, Padma Bank and National Bank of Pakistan.
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However, 5 of these 9 banks spent on CSR in 2023 despite not earning net profit. The banks are Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, Padma Bank, and National Bank.
The 13 banks licensed after 2013 have a requirement to spend at least 10 percent of the previous year's net profit on CSR in the following year. If a bank cannot make a net profit, it cannot spend on CSR.
In analysing the report found that 6 banks of the fourth generation --South-Bangla Agriculture and Commerce Bank Limited, Midland Bank Limited, Madhumati Bank Limited, Shimanto Bank Plc, NRB Commercial Bank Plc, and Global Islami Bank Plc-- have failed to comply with the conditions of the central bank during the discussed period.
Islami Bank Bangladesh Plc has spent the highest CSR among the banks. In 2023, the bank has spent about Tk 100 crore in this sector. Dutch-Bangla Bank spent the second highest amount of Tk 94 crore and Jamuna Bank is in the third position by spending Tk 56.73 crore in the CSR sector.
Summit Group’s 3 power plants receive nod for further 5 years extension
Three gas-fired power plants, each having 10 MW capacity, of Summit Group received the nod of the Cabinet Committee on Government Purchase (CCGP) for further extension of existing agreements for next 5 years.
Finance Minister Abul Hassan Mahmood Ali presided over the CCGP meeting.
Power Division moved the proposal to the CCGP meeting.
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The power plants, located in Ashulia, Madhabdi and Candina, were set up as independent power plants (IPP) in 2003 under 15 years power purchase agreements (PPAs) with Dhaka Palli Biduyt Samity -1, Narshingdi Palli Biduyt Samity -1 and Cumilla Palli Biduyt Samity -1 of the Bangladesh Rural Electrification Board (BREB).
The PPAs were first expired in 2018 and the government expended their tenure for 5 years until August 2023.
“This time the agreements were extended for next five years on “No electricity, No Payment” basis,” said an additional secretary of the Cabinet Division who briefed reporters about the decision.
“The new levelised tariff for the plants were settled at Tk 5.82 per kilowatt hour which is Tk .07 lower than the existing bulk power supply tariff”, he added.
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However, it was not mentioned in the proposal of the Power Division what was the previous tariff.
It is mentioned that the non- fuel component of the tariff is Tk 1.75 and fuel component tariff is Tk 4.07.
The government will buy electricity worth Tk 546.795 crore over the next 5 years from the three power plants of the Summit Group.
Currently Summit Group has been the largest owner of private power plants having 15 plants with about 975.96 MW from which the government has been purchasing electricity.
Chinese company Song Shin Leather to invest US$ 6 million in Cumilla EPZ
Chinese company Song Shin Leather (BD) Limited will set up a Leather processing industry in Cumilla EPZ.
An agreement to this effect was signed between Bangladesh Export Processing Zones Authority (BEPZA) and Song Shin Leather (BD) Co. Limited at BEPZA Complex, Dhaka on Wednesday.
The company will invest US $6 million to produce annually 8 million square feet of ‘Cow Finished Leather’ and ‘Buffalo Finished Leather’, creating job opportunities for 100 Bangladeshi nationals.
In the presence of BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman, Member (Investment Promotion) of BEPZA Ali Reza Mazid and General Manager of Song Shin Leather (BD) Co. Limited Wang Jingzhao signed the agreement on behalf of their respective sides.
Bangladesh to import 50,000 MT onion from India
Bangladesh will import 50,000 metric tons of onion from India.
Cabinet Committee on Economic Affairs in a meeting on Wednesday approved in principle a proposal of the Commerce Ministry in this regard.
Finance Minister Abul Hassan Mahmood Ali presided over the meeting.
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As per the proposal, state-owned Trading Corporation of Bangladesh (TCB), a subordinate body of the Commerce Ministry, will import the onion from Indian National Cooperative Export Limited on G-to-G basis.
However, the price of the onion was not disclosed in the meeting as the proposal will again come to the Cabinet Committee on Government Purchase for approval.
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“At that time, the rate of the onion might be disclosed,” said an additional secretary of the Cabinet Division who briefed reporters about the decision.
Bangladesh Bank issues detailed directive on appointment of MD, CEO for NBFIs
Individuals found to be involved in financial irregularities will be barred from leading Non-Bank Financial Institutes (NBFIs) as managing director or chief executive officer.
The Department of Financial Institutions and Markets of Bangladesh Bank issued detailed guidelines on the appointment of MDs/CEOs for NBFIs on Monday. The move had been sounded out by the central bank in recent weeks, as part of large-scale reforms aimed at ensuring good governance in the financial sector.
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The directive was sent to the top executives of NBFIs for immediate execution adhering to the guidelines contained in it.
The notification from Shapla Chattor stated that if an individual is involved in financial irregularities of any kind during their tenure at a bank or financial institution, they cannot be appointed as MD or CEO of an NBFI. If irregularities surface during a person's tenure as MD/CEO, they cannot be reappointed to the position.
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According to the circular, a person convicted by a criminal court or involved in forgery or financial crimes cannot be appointed as managing director of an NBFI.
Among the qualifications, it states that the individual should not have violated the rules and regulations of any regulatory authority, or been associated with any establishment whose registration or license has been cancelled, or has been decommissioned.
In order to become an MD, one must have at least a master's degree from a recognised university. Higher institutional or professional education in economics, accountancy, finance, banking, management or business administration, will be considered as an additional qualification of the concerned person.Ban traveling abroad and state honours for wilful defaulters: Bangladesh Bank
Third division or class at any stage of education cannot be eligible for the MD and CEO post.