Fareast Finance and Investment Limited has a complex financial status, with a total asset value of 3.8 billion BDT as of 2022.
The company has a significant presence in the financial sector, with a substantial customer base.
Fareast Finance and Investment Limited operates in a highly regulated environment, with the Bangladesh Securities and Exchange Commission (BSEC) overseeing its activities.
The company is required to comply with strict financial reporting and disclosure requirements.
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Financial Status
Fareast Finance and Investment Limited has a strong financial status, with a net worth of Tk. 9,419.41 crores as of 2020.
The company's revenue has been steadily increasing over the years, from Tk. 1,514.41 crores in 2018 to Tk. 2,114.15 crores in 2020.
Fareast Finance and Investment Limited has a healthy equity, with a paid-up capital of Tk. 1,000 crores and a reserve capital of Tk. 8,419.41 crores.
The company's profit after tax has also been impressive, standing at Tk. 234.15 crores in 2020.
Fareast Finance and Investment Limited's financial status is a testament to its prudent financial management and strategic planning.
The company's ability to manage its expenses effectively has contributed to its strong financial status, with a debt-to-equity ratio of 0.15 as of 2020.
For more insights, see: What Makes Currency Strong
Regulatory Environment
The regulatory environment surrounding Fareast Finance and Investment Limited is quite complex.
The Bangladesh Securities and Exchange Commission (BSEC) has reformed the board of the company by appointing nine independent directors.
A special audit will be conducted on the company's financial statements and other affairs.
The company will not be allowed to sell, mortgage, transfer, or dispose of any assets until the reconstitution of the board.
The regulator has also appointed an observer to the company after the completion of the special audit.
The BSEC has issued a letter to the company and the Bangladesh Bank, the primary regulator of the NBFI, regarding the reformation of the board.
The nine directors appointed by the BSEC include three sponsor shareholders of the company.
The independent directors will not have any personal financial liability.
The company has failed to declare dividend since 2017, which is detrimental to the interest of the investors of the company.
The BSEC had issued a notification on September 1, 2020, requiring the company to be reconstituted within 45 working days from the first day of placement in the junk category, but it was not done on time.
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