Organic products push earns global praise
Bangladesh is fast forging its way to be a hub of organic textile manufacturing amid a rise in demand from international apparel retailers. In the country, the number of globally recognised textile factories, which use organic raw materials, rose 29 percent last year, with the growth rate being highest globally. As per the Global Organic Textile Standard (GOTS), in 2018, organic certification grew 25 percent in North America, 23 percent in Pakistan and 23 percent in South Korea. As per a (GOTS) representative for India and Bangladesh, Bangladesh continued its second position and registered a growth rate of 29 percent in terms of GOTS certified facilities. Globally, the number of facilities certified by the GOTS rose 14.6 percent to 5,760 in the year. GOTS certification covers the processing of certified organic fibres along the entire supply chain from field to finished product. Certified factories are located in 64 countries.
NBR waives 20pc SD on second tier manufacturers’ CKD bikes
As per an order of the revenue board, second-tier manufacturers of CKD (completely knocked down) motorcycles will enjoy full waiver from payment of Supplementary Duty (SD) from now on. With the duty benefit, local motorcycle manufacturers will be able to produce bikes instead of just assembling them. The National Board of Revenue (NBR) has issued a Statutory Regulatory Order (SRO), dated March 18, 2019, by offering the exemption of 20 per cent SD. The benefit will be applicable only to import of four-stroke CKD motorcycles having the cylinder capacity (cc) above 50cc but below 250cc. The NBR defines the second-tier manufacturers as the producers who have capacities to locally produce one or more important parts of motorcycles, manufacture chassis after importing their parts or those who are collecting materials from the local market for assembling or production of complete motorcycles. According to the SRO, motorcycle assembling companies which import CKD bikes with complete chassis and other parts will not get the duty benefit. The NBR also tagged some conditions including mandatory VAT registration for any motorcycle manufacturer for availing the benefit.
Shurwid enters IT enabled service business
The board of directors of Shurwid Industries has approved a proposal that the company will do the business of Information Technology Enabled Service (ITES). An agreement was signed with the company and Amarroom.com for providing service and profit sharing between the companies from the clients using promo-code. According to a disclosure, Information Technology Enabled Service is fully tax exempted up to June 2024 as per 6th Schedule, Part- A, Para- 33 of the Income Tax Ordinance, 1984. The company, however, did not disclose how much fund to be invested and profit detail in this business. Each share of the Shurwid Industries, which was listed on the DSE in 2014, closed at Tk 36.60 on Wednesday, advancing 0.28 per cent over the previous day. In the last one year, its share traded between Tk 16.30 and Tk 41.60 each. Shurwid Industries disbursed 10 per cent stock dividend for the year ended on June 30, 2018.
Top ten-traded Companies snare 37pc turnover
Top most ten-traded firms grabbed 37 per cent transaction of the prime bourse while BATBC dominated the chart for the second straight session Wednesday. As per the market analysts, investors were active on British American Tobacco Bangladesh Company (BATBC) shares after the company declared hefty dividend on March 12. The multinational company has recommended 500 per cent cash and 200 per cent dividend for the year ended on December 31, 2018. The board has also decided to increase authorised capital to Tk 5.40 billion, from Tk 600 million by amending relevant clauses. According to statistics from the Dhaka Stock Exchange, about 42,257 shares of BATBC were traded, generating a turnover of Tk 199 million, which was 4.80 per cent of the prime bourse’s total turnover. The company has also reported earnings per share (EPS) of Tk 166.87, net asset value (NAV) per share of Tk 492.15 and net operating cash flow per share (NOCFPS) of Tk 150.13 for the year ended on December 31, 2018 as against Tk 130.50, Tk 385.21 and Tk 162.22 respectively for the same period of the previous year. The BATBC, which was listed on the DSE in 1977, disbursed 600 per cent cash dividend the year ended on December 31, 2017. In 2016, the company also paid 600 per cent cash dividend.
ADB lends SAL $14.2m to enhance Agribusiness inclusiveness
The Asian Development Bank (ADB) will provide US$ 14.2 million as loan to support the expansion plans of Sylvan Agriculture Limited (SAL), a PRAN-RFL Group (PRAN) company. The loan aims to enhance inclusiveness in the agribusiness sector by lifting the incomes and skills of farmers, particularly women. PRAN-RFL Group Director (Finance) Uzma Chowdhury and Deputy Director General of ADB’s Private Sector Operations Department Christopher Thieme signed the loan agreement on behalf of their respective sides at a city hotel on Tuesday. The ADB’s assistance will finance new food processing facilities to produce potato chips, potato flakes, and pasta.
Commerce Minister seeks more Japanese investment to expedite development
As per the Commerce Minister, more Japanese investment would expedite the development of Bangladesh along with strengthening the longstanding relationship between Bangladesh and Japan. The Minister made the remark while addressing a plenary session titled ‘Doing Business with Japan’ held in the second day of a three-day BASIS SoftExpo-2019 at the International Convention City, Bashundhara in Dhaka. Terming Japan as Bangladesh’s biggest development partner, the Minister said since the independence of Bangladesh Japan had been extending cooperation to the country. In return for the Japanese cooperation, the government has decided to allocate a big economic zone to Japan as 100 special economic zones are being developed at the initiative of Prime Minister Sheikh Hasina.
Belt and Road a win-win for Bangladesh, China
As per a top Banker, China’s Belt and Road Initiative (BRI) could be a boon for Bangladesh as the former is looking to use its surplus capacity and the latter needs funds to bankroll mega infrastructure projects to transform the economy. According to the Chief Executive Officer of Standard Chartered Bangladesh (SCB), this is a win-win proposition for both Bangladesh and China. But, negotiations and evaluation of the projects are extremely important for making the most of the opening.
Life insurers to come under special audit
The insurance regulator has appointed external auditors for most life insurers to verify the latter’s ‘high’ management expenses. Insurers incur higher expenses when they procure business and such type of expenditure weakens the financial health of the companies. The Insurance Development and Regulatory Authority (IDRA) has appointed 27 auditing firms to carry out special audit of the accounts of 27 life insurers, out of the total number of 32, as per the Insurance Act of 2010. As per a member of the IDRA, this is a sort of inspection [of the insurers], as we often fail to conduct on-site inspection for shortage of manpower. The regulator will take action as per the law if insurers are found having spent in excess of the maximum allowable limit. The IDRA observed that most life insurance companies are spending in excess of the maximum allowable limit of management expenses as per the provision of Section 62 of the Insurance Act, 2010 and relevant rules for business operations, according to a note the IDRA sent to the auditing firms.
Mr. Rashid named IFPRI’s South Asia director
International Food Policy Research Institute (IFPRI) has recently named Shahidur Rashid as new regional director for South Asia, based in New Delhi, India. Rashid, a senior research fellow at the IFPRI’s development strategies and governance division, received his PhD in economics from the University of Illinois at Urbana-Champaign and an MS in economics from the University of Chittagong.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 59.83||↑0.80||↑1.36%|
|Crude Oil (Brent)|| $ 68.46|| ↓0.04|| ↓0.06%|
|Gold Spot|| $1,319.09||↑6.56||↑0.50%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.0623|
|GBP 1||BDT 111.5927|
|EUR 1||BDT 95.3351|
|INR 1||BDT 1.2266|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<