Listed firms build huge reserve of Tk 153,000cr

[Tom-tom]

Listed firms build huge reserve of Tk 153,000cr

Listed companies in Bangladesh have built up reserves of Tk 153,000 crore collectively from their respective earnings for use in expansion and to weather out rainy days, when they would otherwise be forced to raise fresh funds from investors or borrow from lenders.

www-thedailystar-net.cdn.ampproject.org

 

[mb444]

Listed firms build huge reserve of Tk 153,000cr

Listed companies in Bangladesh have built up reserves of Tk 153,000 crore collectively from their respective earnings for use in expansion and to weather out rainy days, when they would otherwise be forced to raise fresh funds from investors or borrow from lenders.

www-thedailystar-net.cdn.ampproject.org

Is this necessarily a good thing? If the company is a public one than shareholder dividend is being illegally withheld and this is a case of systemic breakdown.

If these companies are fully privately owned or like walton where only one percent of their shares are in the hands of the public then cool to some extent.

Holding on to huge reserves is not a good thing.... the opportunity cost of such descisions is incredible.

 

[PakFactor]

Is this necessarily a good thing? If the company is a public one than shareholder dividend is being illegally withheld and this is a case of systemic breakdown.

If these companies are fully privately owned or like walton where only one percent of their shares are in the hands of the public then cool to some extent.

Holding on to huge reserves is not a good thing.... the opportunity cost of such descisions is incredible.

I'm not sure about the laws in Bangladesh, but from what I know, a certain amount from the gross net is set aside for dividend payout. All profit is never paid out in dividends.

As for having the reserve, they do is a brilliant move in times we are headed. Even Warren Buffet hasn't made any significant acquisitions last several years, so that should tell you something.

 

[Tom-tom]

Is this necessarily a good thing? If the company is a public one than shareholder dividend is being illegally withheld and this is a case of systemic breakdown.

If these companies are fully privately owned or like walton where only one percent of their shares are in the hands of the public then cool to some extent.

Holding on to huge reserves is not a good thing.... the opportunity cost of such descisions is incredible.

I'm not sure about the laws in Bangladesh, but from what I know, a certain amount from the gross net is set aside for dividend payout. All profit is never paid out in dividends.

As for having the reserve, they do is a brilliant move in times we are headed. Even Warren Buffet hasn't made any significant acquisitions last several years, so that should tell you something.

Pakfactor is right only a certain mark up gets paid out as dividends. Every responsible company has reserves it can rely on incase of the market down turns or for rapid expansion.

Look at apple for example it has around 1 trillion in of assets and reverse dollar just sitting in their account.


Yes a lot of it is through clever accounting and tax dodging.


The difference between these u.s companies and bdeshi companies is that bdeshi companies are investing domestically

 

[mb444]

I'm not sure about the laws in Bangladesh, but from what I know, a certain amount from the gross net is set aside for dividend payout. All profit is never paid out in dividends.

As for having the reserve, they do is a brilliant move in times we are headed. Even Warren Buffet hasn't made any significant acquisitions last several years, so that should tell you something.

We are talking about BD here.... the market is systematically flawed.

If the companies were building reserves ad infinitum i wont necessarily have an issue. With very weak audit oversight, non existant application of law the underlying fear that has been realised many times is that the major shareholders are stealing the profits and moving them offshore with direct government and banking official partcipation.

Are these reserves in BD banks or just nominally in the balance sheets that has been published. If the latter then it assuages my basic fear somewhat, but that is not what the report states.

 

[BananaRepublicUK]

We are talking about BD here.... the market is systematically flawed.

If the companies were building reserves ad infinitum i wont necessarily have an issue. With very weak audit oversight, non existant application of law the underlying fear that has been realised many times is that the major shareholders are stealing the profits and moving them offshore with direct government and banking official partcipation.

Are these reserves in BD banks or just nominally in the balance sheets that has been published. If the latter then it assuages my basic fear somewhat, but that is not what the report states.

This is a good thing.

Scam businesses pay dividend by borrowing money.

Good businesses keep healthy reserves for investment and rainy day.

 

[Skull and Bones]

This is a good thing.

Scam businesses pay dividend by borrowing money.

Good businesses keep healthy reserves for investment and rainy day.

So Intel, IBM, Exxon are all scam business?

 

[bluesky]

Listed firms build huge reserve of Tk 153,000cr

Listed companies in Bangladesh have built up reserves of Tk 153,000 crore collectively from their respective earnings for use in expansion and to weather out rainy days, when they would otherwise be forced to raise fresh funds from investors or borrow from lenders.

www-thedailystar-net.cdn.ampproject.org

I wish the holders of this huge capital (about $13 billion in dollars) invest it to build new industries, especially in the mechanical sector.

This will provide jobs to the young people, generate new wealth for the nation, and personal income tax and corporate tax collected by the govt.

Keeping the money in the banks does not serve the national interest. The Govt of Hasina Bibi will borrow it from the banks and waste it on unnecessary projects from which the sitting politicians and bureaucrats regularly steal money, and claim BD is a fast developing country.

 

[mb444]

This is a good thing.

Scam businesses pay dividend by borrowing money.

Good businesses keep healthy reserves for investment and rainy day.

Umm... yeah alright... i am sure you think you know what you are talking about...