BSEC looking into Bay Leasing financials

The Bangladesh Securities and Exchange Commission (BSEC) on Thursday formed a three-member committee to look into the financial statements of Bay Leasing and Investment Limited – a non-bank financial institution – as its net profit has drastically dropped.

Headed by BSEC Additional Director Md Kawsar Ali, the other committee members are Deputy Director Kazi Md Al-Islam and Assistant Director Md Atikur Rahman.

It will review the company's financials for four quarters, share price movement, insider trading, and manipulation, if any, during the period.

The officials will conduct the inquiry and submit their report to the commission within 20 working days.

Market insiders said usually an investor decides to lodge money in a listed firm considering its fundamental and business prosperity.

But due to such an earnings deviation of the company, investors suffer drastically.

The company provided an explanation through the stock exchanges that the consolidated earnings per share decreased due to profit after tax drastically falling because of an increase in provision by 1,343.01% although the increase of operating income was 68.36%.

The total provision had been kept against lease and investment in the share of Tk97.72 crore. Additional Tk57.72 crore had been added for the year-end 2021 as per the explanation.

Company Secretary Sharmin Akhter declined to comment in this regard.

Incorporated in 1996, Bay Leasing and Investment was listed on the stock market in 2009.

The company extended lease financing as its core business for all types of machinery and equipment including vehicles for industrial, commercial, and private purposes.

It has also expanded its activities into term finance and housing finance.

BLI Capital Limited is a subsidiary company of Bay Leasing and Investment. It also has two associate companies – Lucky Feed Limited and BLI Securities Limited.

In 2021, the company recommended a 5% stock dividend for its shareholders compared with a 10% cash dividend in 2020.

In that year, it incurred a loss of Tk13.92 crore, taking its losses per share to Tk0.99.

From April to June 2022, its net profit was Tk3.54 crore and earnings per share stood at Tk0.25.

As of August this year, sponsors and directors held 30.07%, institutions 21.42%, foreign investors 0.15%, and general investors 48.36% shares of the company.

The last closing share price of the company on the Dhaka Stock Exchange was Tk23.90 on Thursday.