“This has been done purely in the interest of investors,” Md Rezaul Karim, spokesperson of the BSEC, told Dhaka Tribune. In the first week of this month, the BSEC appointed Hoda Vasi Chowdhury & Co. to conduct an audit into the books of Ring Shine Textiles to get a handle on the elusive company’s financial health. Since the expenses related to depreciation and amortisation are not actually cash expenses, adding them back keeps the company’s cash flow numbers from being artificially deflated. Because cash flow per share represents the net cash a company produces, some financial analysts view it as a more accurate measurement of a company's financial health. Ring Shine Textiles posted a negative net operating cash flow per share of Tk 0.76 for the 2019-20 financial year that wrapped up on June 30, in contrast to Tk 1.83 a year earlier.

Source: Dhaka Tribune January 26, 2021 19:07 UTC