First Finance’s board restructured

Business Report :
The stock market watchdog has restructured the board of First Finance as the company has been performing poorly for a long time.
At present, the company’s accumulated loss stands at Tk 325 crore and the total shareholders’ equity is Tk 169.8 crore in the negative, according to the letter the Bangladesh Securities and Exchange Commission (BSEC) sent to the company.

On Thursday, the BSEC letter was posted on the website of the Dhaka Stock Exchange (DSE).
According to Investopedia, shareholder’s equity is a company’s net worth and it is equal to the amount that would be returned to the shareholders if the company must be liquidated and all its debts are paid off.

If a company’s shareholder equity remains negative, it is considered to be balance sheet insolvency.
First Finance got listed with the stock exchange in 2003 and was downgraded as a Z category share in 2016 because of its failure to provide any cash dividend to its shareholders for the last 14 years.
On top of that, around 86.6 percent of the company’s loans have become non-performing loans.