Rahim Textile Mills financial analysis: 60.6% of FY2025 sales to sister firms, bank loans 4.6x equity (Oct 2026)

Investment considerations: gross margin 15.9% after the switch to knit dyeing; financial expenses 71.7% of operating profit

Rahim Textile Mills PLC. (DSE: RAHIMTEXT) was incorporated on 31 December, 1981, began production on 01 July, 1987 and listed on 29 March, 1988 [1 p.10]. Its factory is at Shafipur, Kaliakoir, Gazipur, and the annual report describes it as "a 100% export-oriented industry engaged in production of Accessories, Seamless Dyeing as well as Knit Dyeing and Washing for RMG industries" [1 p.20]. The latest audited year in the corpus is FY2025, the year to 30-Jun-2025. The board approved the FY2026 accounts on 26-Oct-2026 and DSE posted the headline figures on 27-Oct-2026; the FY2026 statements are not in the corpus at 1-Nov-2026 [10].

Revenue was BDT 1,269.3m in FY2019, BDT 1,760.6m in FY2022 and BDT 975.5m in FY2025 [6 p.38] [4 p.6] [1 p.41]. Profit after tax was BDT 54.5m in FY2019 and BDT 12.2m in FY2025, with a loss of BDT 124.7m in FY2023 [2 p.41]. The company has one listed share class of 9,459,683 shares; sponsors and directors held 70.94% at 30-Sep-2026 [11].

Business: knit dyeing, washing and accessories since FY2025; two sister companies bought 60.6% of revenue

The directors' report states that "Previously, the company was involved to dyeing, printing and washing of own grey fabric and selling those products. Those business earned more revenue but less profit margin. During the year, the company introduced new product like Knit Dyeing, Seamless Dyeing, Accessories & Garments wash. The new business operation reduced sales value but increased profitability." [1 p.12]

The board approved the new facilities at meetings on 29-04-2024 and 07-11-2024. Production of accessories and washing started in October 2024 and knit fabric and seamless dyeing in January 2025 [1 p.15]. the board approved the knit dyeing and washing proposal on 07-11-2024 (DSE post 10-Nov-2024) [1 p.15] [10]. The directors' report prints the PSI dates as 29th April, 2024 and 07th November 2024 [1 p.16]; the 29-Apr-2024 PSI is outside the 24-month DSE archive, and the filings do not say which approval covered washing. On 28-04-2025 the board decided to close the woven fabric dyeing, printing, all over printing on knit fabric and finishing facilities, citing "(1) high energy cost (2) lower demand in market (3) fall in selling price and (4) increase in raw material price as well as technologically obsolete of the said facilities" [1 p.15]. The DSE post of 29-Apr-2025 gives the closed capacity as 300 lacs yards per year and the written down value of the obsolete machinery as TK. 19.98 crore on 31-03-2025 [10]. The 10-Nov-2024 DSE post gives the knit-dyeing and washing expansion as Tk. 24.76 crore, adding 3,302,400 kgs of knit dyeing and 11,250,000 pcs of garment wash a year, funded "by funds from internal generation as well as taking loan from Banks & other sources" [10].

The FY2025 statement of profit or loss reports two columns. Dyeing & Washing had revenue of BDT 887.0m and gross profit of BDT 137.8m; Accessories had revenue of BDT 88.6m and gross profit of BDT 17.2m [1 p.41]. In the nine months to 31-Mar-2026, Accessories revenue was BDT 150.7m, 19.8% of the total (derived) [7 p.2]. The segment note says general and administration overheads "are allocated among the reportable segment based on the production volume of products/sales" [1 p.8]; financial expenses are 8.4% of revenue in each column [17].

Note 33 lists capacity by unit. For 2024-25 it prints 39,368,820 Yard/Kg of dyeing, printing and finishing, 5,850,000 Pcs of washing and 14,492,400 Yard/Cones/Pcs of accessories, a total of 59,711,220 against 30,000,000 in 2023-24. Actual production was 25,617,623 units, "% Achievement" 42.90%, against 20,266,897 and 67.56% in 2023-24. The note states the new lines were "utilized for half year only" [1 p.65]. The total adds yards, kilograms, cones and pieces; the five-year table marks the 2024-25 production figure "*256.17" lac with the note that it "includes yard/cones/pcs/kgs due to changes of production pattern" [1 p.10].

Customers are named in the related-party note. J.M. Fabrics Limited bought BDT 313,756,150 and Knit Asia Limited BDT 277,196,521 in FY2025, both described as "Common Director" relationships; Knit Asia owed BDT 45,110,712 at 30-Jun-2025. Hejaz Publications Ltd., also a common-director party, received BDT 6,539,544 of office rent [1 p.64]. The two sales figures add to BDT 591.0m, 60.6% of revenue [17]. Director Saima Matin Chowdhury is a director of J.M. Fabrics Limited and Knit Asia Limited [1 p.19], and the directors' report asks shareholders to approve these sales, which exceeded 10% of the preceding year's revenue [1 p.16]. It describes them as services of "dyeing of fabric, washing services and purchase of accessories" priced "according to fair market price based on the Bangladesh export-oriented market", states that both companies "have signed Memorandum of Understanding (MOU)", and adds: "The Board of Directors gave guarantees to the above transaction which occurred as per the regular terms and conditions of the trade and no conflict of interest had arisen regarding the transaction." [1 p.16] Note 32.01 states related-party transactions "are conducted on an arm's length basis at commercial rates on the same terms and conditions as applicable to the third parties" [1 p.64]. Separately, the Mutual Trust Bank term loan carries a corporate guarantee from "JM Fabrics Ltd." and personal guarantees of all the directors [1 p.56].

The FY2025 management discussion compares the company with Evince Textiles, Anlima Yarn Dyeing and M. L. Dyeing using their June 2024 figures [1 p.21]. This note compares it with two published AnalystBro notes on June 2025 figures in the peer section below.

Seven-year record: revenue BDT 1,269.3m to BDT 975.5m, one loss year (FY2023)

Exhibit 4 sets out seven audited years. Revenue moved between BDT 975.5m and BDT 1,760.6m; the high was FY2022 and the low FY2025 [17]. Revenue rose 37.4% in FY2022, fell 16.9% in FY2023, rose 6.5% in FY2024 and fell 37.4% in FY2025; the directors' report prints the same growth rates [1 p.12]. FY2023 is the one loss year of the seven: gross profit fell to BDT 33.5m, an operating loss of BDT 23.2m followed, and after financial expenses of BDT 78.5m and tax of BDT 18.9m the net loss was BDT 124.7m, EPS BDT (13.18) [2 p.41].

EPS for FY2019 is the restated BDT 5.76 on 9,459,683 shares after the 10% bonus issue of 2018-19 [6 p.38] [1 p.55]. No bonus shares have been issued since, and the paid-up capital has been Tk. 94,596,830 since 2018-19 [1 p.55]. NAV per share was BDT 41.71 at 30-Jun-2019 on 8,599,712 shares and BDT 25.83 at 30-Jun-2025 [6 p.37] [1 p.40].

Line items: gross margin 15.9%, gas charges down to BDT 153.6m, financial expenses BDT 81.7m

Gross margin was 13.6% in FY2019, 8.6% in FY2022, 2.3% in FY2023, 11.0% in FY2024 and 15.9% in FY2025 [17]. The directors' report puts FY2025 cost of goods sold at "Tk. 820.56 million (84.12% of turnover)" against 89.01% and says "The average cost of goods sold has decreased by 4.89% due to strategic changes of production pattern" [1 p.13].

Factory overhead in note 22.04 was BDT 257,969,326 in FY2025 and BDT 340,822,537 in FY2024. Gas Charges were BDT 153,636,718 and BDT 233,061,691; Electricity Charges BDT 6,138,866 and BDT 17,418,417; Fuel Lubricant BDT 5,328,344 and BDT 12,349,640; Depreciation BDT 73,165,909 and BDT 54,480,449 [1 p.61]. Gas Charges were 15.7% of FY2025 revenue and 15.0% of FY2024 revenue (derived) [17]. Imported and local materials consumed were BDT 316,790,702 in FY2025, of which dyes & chemicals were BDT 149,927,299 and grey fabric/yarn BDT 155,610,636 [1 p.65].

Administrative & Selling Expenses were BDT 41.0m in FY2025 and BDT 49.6m in FY2024; Salary & Allowances were BDT 24,799,994 and BDT 32,392,822, and Head Office Rent BDT 6,539,544 in both years [1 p.61]. Employees numbered 344 at 30-Jun-2025 and 599 a year earlier [1 p.10]. None of the directors drew salary in FY2025; executive remuneration was BDT 7,392,063 for five persons [1 p.64].

Financial expenses were BDT 81.7m in FY2025. Note 24 lists Bank Interest on Long Term Loan of BDT 48,285,521, Bank Interest on EDF & UPAS of BDT 26,343,159, overdraft interest of BDT 3,383,539, STL interest of BDT 1,485,325 and IDBP interest of BDT 1,192,195 [1 p.61]. Interest on the long-term loan was 59.1% of financial expenses (derived) [17]. Financial expenses exceeded half of operating profit in 5 of the 6 years with an operating profit [17].

Non Operating Income/(Loss) was a loss of BDT 13.4m in FY2025, mainly an "Impairment Loss on Non Current Held for Sale" of BDT 13,672,737 [1 p.62]. Note 10 explains the 10% charge: "during the period from July\"25 to Sep\"25 few machines were sold and incurred loss average 9.52% on written down value. We anticipate 10% loss may be incurred for the remaining machinery held for sale." [1 p.54]. Machinery sold in FY2025 had a written down value of BDT 65,247,462 and fetched BDT 65,350,000 [1 p.62].

Income tax was BDT 5.7m in FY2025, after a deferred tax credit of BDT 7,394,491. Current tax of BDT 13,060,852 is the minimum tax deducted at source, above the regular tax computed at BDT 6,377,389; note 27.01 prints an effective rate of 13.40% [1 p.62].

Ratios: ROE 5.1% in FY2025, interest cover 1.39x, receivable days 120.6

ROE on average equity was 5.1% in FY2025 and 4.2% in FY2024; FY2023 was -42.7% [17]. Asset turnover was 0.56x in FY2025 and 0.89x in FY2024. Interest cover, operating profit over financial expenses, was 1.39x in FY2025, 1.28x in FY2024 and 2.51x in FY2019 [17].

Year-end receivables were 120.6 days of FY2025 revenue and 138.9 days in FY2024. Year-end inventory was 184.8 days of FY2025 cost of goods sold and 120.0 days in FY2024 [17]. Financial expenses were 6.8% of average bank loans in FY2025 and 7.6% in FY2024 [17]. The term loan carries 12.00% and the short-term facilities 13.00% (City Bank) and 12.50% (Mutual Trust Bank) [1 p.56] [1 p.58].

Balance sheet: bank loans BDT 1,115.3m against equity of BDT 244.3m at 30-Jun-2025

Bank loans, the sum of Long Term Loan, Current Portion of Long Term Loan and Short Term Loan From Bank, were BDT 1,115.3m at 30-Jun-2025, BDT 1,289.0m at 30-Jun-2024 and BDT 1,163.3m at 30-Jun-2019 [17]. The five-year table prints "Total Bank Loan" of 1,115,254 thousand for 2024-25 [1 p.10]. Equity was BDT 244.3m; bank loans were 4.57x equity and 3.24x at 30-Jun-2019 [17].

The term loan is from Mutual Trust Bank PLC.: sanction limit 408.00 Million, outstanding 380.82 Million, 20 quarterly instalments of Tk. 30,935,710, 12.00 % PA, maturity June 2030, with a corporate guarantee from JM Fabrics Ltd. and personal guarantees of all the directors [1 p.56]. Short-term borrowing at 30-Jun-2025 was BDT 288,270,933 at City Bank PLC. and BDT 446,233,871 at Mutual Trust Bank PLC., most of it EDF liability (BDT 400,784,488 at Mutual Trust Bank) [1 p.57] [1 p.58]. Sanctioned short-term facilities are 80.00 Crore at City Bank and 129.87 Crore at Mutual Trust Bank, secured by a pari-passu charge on stock and book debts [1 p.58]. Contingent liabilities were Tk. 54,836,187 at 30-Jun-2025 and Tk. 273,159,109 a year earlier [1 p.65].

Receivables at 30-Jun-2025 were BDT 322,258,466 on operations, aged up to 180 days: BDT 99,241,238 below 30 days and BDT 47,110,447 at 121-180 days; BDT 45,110,712 was from a related party [1 p.51] [1 p.52]. Inventories of BDT 415.5m included grey fabrics/yarn of BDT 123,258,947 and "are collateralised against short term loan" [1 p.51]. Non-current Asset Held for Sale was BDT 123,054,634 at 30-Jun-2025 and BDT 26,207,371 at 31-Mar-2026 [1 p.54] [7 p.1]; others provisions included an advance deposit against machinery sale of BDT 23,800,000 at 30-Jun-2025 [1 p.58].

Land, buildings and plant were revalued on 30.07.2007 by Asian Surveyors Ltd.; the revaluation surplus was BDT 70,046,152 at 30-Jun-2025 [1 p.55]. At 31-Mar-2026 the unaudited balance sheet showed Long Term Loan BDT 340,575,163, Current Portion BDT 99,376,946 and Short Term Loan From Bank BDT 547,425,585, a total of BDT 987.4m (derived), with equity of BDT 261,065,646 [7 p.1].

Cash: FY2025 operating cash flow BDT 362.9m, capex BDT 310.0m, dividends to general shareholders

Operating cash flow was negative in 2 of the seven years (FY2019, FY2024) [17]. FY2025 operating cash flow was BDT 362.9m: collections were BDT 1,238.4m and payments for materials and expenses BDT 779,719,777 [1 p.43]. The reconciliation in note 30 shows a BDT 262,627,816 decrease in receivables and a BDT 40,605,324 decrease in inventories [1 p.63]. The company's DSE post of 27-Oct-2025 states "NOCFPS has significantly increased due to decrease of receivable & increase of collection against receivable compared to last year sale and decrease of payment against inventory purchase" [10].

Acquisition of Property Plant & Equipment was BDT 310.0m in FY2025 and BDT 136.1m in FY2024; disposals brought in BDT 97.3m in FY2025 [1 p.43]. The directors' report lists FY2025 capital expenditure of Tk. 358.15 million, of which Plant & Machinery Tk. 343.80 million [1 p.15]. Financing cash flow was BDT -176,952,824, mainly a short-term loan repayment of BDT 174,850,402 [1 p.43].

Cash dividends were 10% for FY2024 and FY2025, in both years for general shareholders; sponsors and directors holding 6,711,052 shares were not entitled [1 p.15] [10]. The FY2025 dividend required Tk. 2,748,631 [1 p.15]. The DSE page lists cash dividends of 16% for 2021, 10% for 2022 and none for 2023 [11]; the five-year table shows 0% for 2022-23 [1 p.10].

FY2026: quarterly EPS of Tk. 1.28, 0.54 and 0.25, annual EPS of Tk. 2.97 as posted on DSE

The FY2026 audited statements are not in the corpus at 1-Nov-2026. DSE posted on 27-Oct-2026 that the company "reported EPS of Tk. 2.97, NAV per share of Tk. 28.50 and NOCFPS of Tk. 28.24 for the year ended June 30, 2026" against Tk. 1.29, Tk. 25.83 and Tk. 38.36 for FY2025, and that the board recommended a 10% cash dividend for general shareholders, AGM 21.12.2026 and record date 17.11.2026 [10]. The FY2026 auditor named in the FY2025 report's recommendation is Zoha Zaman Kabir Rashid & Co. [1 p.16].

Quarterly EPS posted on DSE was Tk. 1.28 for July-September 2025, Tk. 0.54 for October-December 2025 and Tk. 0.25 for January-March 2026 [10]. EPS for April-June 2026 is BDT 0.91 by subtraction of the nine-month Tk. 2.06 from the annual Tk. 2.97 (derived). In the nine months to 31-Mar-2026 revenue was BDT 762.6m against BDT 811.9m, gross profit BDT 143.5m against BDT 120.6m, and income tax a charge of BDT 0.3m after a deferred tax credit of BDT 6,732,339 [7 p.2]. Non Operating Income/(Loss) was a loss of BDT 32.8m. The explanatory notes link the EPS increase to lower costs, a "deferred tax gain for change in income tax rate" and the "loss for dispose off machinery from Non-Current Assets Held for sale" [7 p.5].

Operating cash flow for the nine months was BDT 151.5m against BDT 303.7m; the notes cite a "decrease of collection from receivable turnover" [7 p.4] [7 p.5]. The company sold machinery for BDT 29,698,500 in the period and repaid BDT 187,008,529 of short-term loans [7 p.4].

Audit: unmodified opinions FY2022-FY2025; a loss emphasis in FY2023 and two emphasis paragraphs in FY2022

Malek Siddiqui Wali, Chartered Accountants (Md. Waliullah FCA) signed the FY2025 report on October 28, 2025. The opinion reads: "In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company as at June 30, 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the company act 1994, the Securities and Exchange Rules, 2020 and other applicable law and regulations." [1 p.37]. The report has no emphasis-of-matter or other-matter paragraph and three key audit matters [1 p.37] [1 p.38].

Revenue recognition: "At the year ended, the company's reported total revenue of Tk. 975,512,255. Revenue is measured net of trade discount and VAT. Time of revenue recognition is matter. The revenue may overstated for the early recognition of revenue to achieve the desire result." [1 p.37]

Valuation of inventory: "The balance of inventory of the Company at the year-end was Tk. 415,535,052 held in the company's warehouse. Inventories should carried at the lower of cost and net realizable value. As a result, the managements apply judgment in determining the appropriate values of inventory." [1 p.38]

Measurement and recognition of deferred tax: "The balance of reported deferred tax liability of the company was Tk. 36,367,681 as on June 30, 2025. The risk for the financial statements is that these provisions may not properly measured for all types of temporary difference as per IAs 12: Income Tax." [1 p.38]

The FY2024 report by the same firm, signed October 23, 2024, reads: "In our opinion, the accompanying financial statements present fairly, in all material respects, of the financial position of the company as at June 30, 2024, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994 and other applicable laws and regulations." It moves from the basis for opinion straight to management's responsibilities, with no key audit matter or emphasis paragraph [2 p.38] [2 p.39]. The FY2023 report, signed October 28, 2023, reads: "In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at June 30, 2023, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the company act 1994, the Securities and Exchange Rules 1987 and other applicable law and regulations." It carries an "Emphasis Matter": "With reference to note 27.01, which describes that the company is incurred huge loss of Tk. 13.18/- Per Share during the year in comparative with profit per share of Tk. 1.58/- in comparative year due to increase of cost and reduction of Sales & underutilization of Production capacity during the year." [3 p.38] [3 p.41].

The four FY2023 key audit matters read, in full: Revenue recognition: "At the year ended, the company's reported total revenue of Tk. 1,463,655,297. Revenue is measured net of trade discount and VAT. Time of revenue recognition is matter. The revenue may overstated for the early recognition of revenue to achieve the desire result." [3 p.38] Valuation of inventory: "The balance of inventory of the Company at the year-end was Tk. 451,895,610 held in the company's warehouse. Inventories are carried at the lower of cost and net realizable value. As a result, the Directors apply judgment in determining the appropriate values for slow-moving or obsolete items." Property, Plant and Equipment: "The carrying value of property, plant and equipment amounts to BDT 609,891,205. This represents a significant amount in the company's statement of financial position as at June 30, 2023. There is a risk of: determining which costs meet the criteria for capitalization; determining the date on which the assets is recognized to property, plant and equipment and depreciation commences; The estimation of economic useful lives and residual values assigned to fixed asset. We identified the carrying value of property, plant and equipment as a key audit matter because of the high level of management judgment involved and because of its significance to the financial statements." [3 p.39] Measurement and recognition of deferred tax: "Company reported net deferred tax liability BDT 45,245,047 as at June 30, 2023. Significant judgment is required in relation to deferred tax liability as their liability is dependent on forecasts of future profitability over a number of years." [3 p.40]

For FY2022 the auditor was Zoha Zaman Kabir Rashid & Co. (Md. Iqbal Hossain FCA, October 22, 2022). Its opinion reads: "In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company as at June 30, 2022 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the company act 1994, the Securities and Exchange Rules 1987 and other applicable law and regulations." The report has two "Emphasis of Matters": "The company maintains an employee's provident fund for which a separate audited financial statement is also maintained. However due to changes in the policy of fund, the Board of Trustees unanimously decided to operate the fund until 31st March 2022 and susbsequently the activities of the Fund shall be suspended beginning from April 1st 2022. Meanwhile the accumulated contributions shall be distributed among the workers and employess and following the annual audit due to be conducted later in the year the fund will be re-establish as per the new group policy." and "The company has not formulated any policy for depreciation of their non-current assets under cost and revaluation models. Therefore in the absence of a policy the entity shall abide by the requirement under IAS 16 which states that “depreciation begins when the asset is available for use and continues until the asset is derecognised, even if it is idle”. However depreciation on additions are charged for the whole years regardless of the acquisition date which is interdicts the aforesaid requirements stated above." [4 p.1] [4 p.4].

The six FY2022 key audit matters read, in full: Valuation of Inventory: "As at 30th June 2022 inventory value of BDT 508,821,620 is held on the financial position. Inventory is carried in the statement of financial position at the lower of cost and net realizable value. Sales in the manufacturing industry can be extremely volatile based on significant changes in consumer demand. As a result, there is a risk that the carrying value of inventory exceeds its net realizable value. Moreover, the process of estimating provision for inventories is judgmental and complex. Due to high level of judgment involved and use of some manual process in estimating the provision and net realizable value of inventories, we considered this to be a key audit matter." [4 p.1] Tax provisioning and recognition of deferred tax liability: "The company reported total income tax expense of BDT 21,732,454. Current tax expense is BDT 10,564,708 with tax provision BDT 16,973,338. Deferred tax liability of the company was BDT 46,758,019 note no. 26, 19 & 14. The Company has recognized deferred Tax Liability for deductible temporary differences that it believes are payable. The recoverability of recognized deferred tax liability is in part dependent on the company's ability to generate future taxable profits sufficient to utilize deductible temporary differences." Recoverability assessment of account receivables: "The company has a net account receivable of BDT 513,750,430 as at 30 June 2022. Bill receivables of the company comprise mainly receivables in relation to the trading business regarding the export of fabrics, which is secured and guaranted by bank against Letter of Credit (L/C). The recoverable amount was estimated by management based on their specific recoverability assessment on debtor with reference to the aging profile, historical payment pattern and the past record of default of the customer." Advance, Deposit and Prepayments: "Advance, deposit and prepayments BDT 56,916,501 for advance against long term, short term, Advance and Prepayments & Income Tax." Property, Plant and Equipment: "The company has represented total Property Plant and Equipment (WDV) BDT 659,807,419 during the financial year 30 June 2022 which recovers 37.62% of total assets. The company represents addition for property, plant and equipment BDT 2,130,379 and charges depreciation during the financial year BDT 65,669,380." [4 p.2] Revenue Recognition: "At year end the Rahim Textile Mills Limited reported total sales revenue (net sales) of BDT 1,760,606,702 in the company's financial statement. Revenue is recognized when the performance obligation is satisfied by transferring goods or services to a customer, either at a point in time or over time. Goods or services are “transferred” when the customer obtains control of it. It is a matter of consideration whether revenue may be misstated due to recognition of sales transaction before performance obligation being satisfied. This was an area of focus for our audit and significant audit effort to rectify the export income." [4 p.3]

Malek Siddiqui Wali retires at the 2025 AGM after three consecutive years; the board recommended Zoha Zaman Kabir Rashid & Co. for 2025-2026 [1 p.15] [1 p.16]. The FY2025 statutory audit fee was BDT 172,500 [1 p.61].

Governance: sponsors/directors 70.94%; the Managing Director sits on the Audit Committee and NRC; no 'Not Complied' marks

The FY2025 board lists Mr. Didar A. Husain (Chairman), Dr. Shamim Matin Chowdhury (Managing Director), Mr. A. Matin Chowdhury, Ms. Saima Matin Chowdhury and Mr. Azizur Rahim Chowdhury (Directors), and three Independent Directors: Maj. Gen. Muhammed Masudur Rahman, Bir Protik nwc, psc (Retd.), Mr. Muhammad Abul Hossain, PhD and Mrs. Shahana Parvin, FCMA [1 p.9]. A. Matin Chowdhury is printed as "Husband of Dr. Shamim Matin Chowdhury" and Saima Matin Chowdhury as his daughter [1 p.18] [1 p.19]. Saima Matin Chowdhury is also a director of Malek Spinning Mills PLC., Salek Textile Limited, J.M. Fabrics Limited, Knit Asia Limited, Aurum Sweater Limited, Fatehbagh Tea Company Limited and Design Asia Limited; Didar A. Husain is Managing Director of Graphics Information System Ltd and Property Care Services Bangladesh (Pvt.) Ltd. [1 p.19].

Lt. Col. Serajul Islam, Bir Protik (BAR) Retd. resigned as Independent Director with effect from 13-04-2025; Mr. Muhammad Abul Hossain, PhD was appointed on 11-07-2025 and Mrs. Shahana Parvin, FCMA on 22-09-2025 [1 p.14]. The board met six times in 2024-25. Attendance: Didar A. Husain, Dr. Shamim Matin Chowdhury, A. Matin Chowdhury and Azizur Rahim Chowdhury 06; Saima Matin Chowdhury 05; Maj. Gen. Muhammed Masudur Rahman 04; Lt. Col. Serajul Islam 03; the two new independent directors Nil [1 p.17]. Meeting fees were Maj. Gen Muhammed Masudur Rahman BDT 24,889 and Lt. Col Serajul Islam BDT 18,500 (2023-24: BDT 30,000 each) [1 p.64].

The Audit Committee and the Nomination and Remuneration Committee each have the same three members: Maj. Gen. Muhammed Masudur Rahman (Chairman), Dr. Shamim Matin Chowdhury and Mr. Azizur Rahim Chowdhury, with Company Secretary Md. Kamruzzaman as secretary [1 p.9]. The Audit Committee held four meetings in 2024-25 [1 p.6] [1 p.33] and the NRC two [1 p.6]. The annual report prints meeting counts and no per-member committee attendance [1 p.6] [1 p.33]. Key management named are Mr. Ghaus Mohammad (Director, HR & Admin), Md. Saiful Islam (Executive Director), Mr. Amit Kumar Saha (Chief Financial Officer), Mohammad Kamal Hossain (Sr. General Manager), Md. Kamruzzaman (Company Secretary) and Md. Jamal Uddin (Head of Internal Audit and Compliance) [1 p.9].

The corporate governance compliance report (Annexure-C) marks no condition "Not Complied"; conditions shown "Not Applicable" include 1(3)(b)(i), 1(3)(b)(ii), 1(3)(b)(iv), 1(5)(vii), 1(5)(viii), 1(5)(xx), 2(a)-2(e), 5(5)(m), 5(6)(b) and 6(2)(f) [1 p.25] [1 p.26] [1 p.27] [1 p.28] [1 p.29] [1 p.30] [1 p.31] [1 p.32]. Das Chowdhury Dutta & Co. certified compliance on 09 November 2025 and wrote "The Governance of the company is satisfactory" [1 p.24]. Condition 1(2)(a), at least 2 independent directors including one female, is ticked complied [1 p.25]; Lt. Col. Serajul Islam resigned on 13-04-2025, Mr. Muhammad Abul Hossain was appointed on 11-07-2025 and Mrs. Shahana Parvin on 22-09-2025 [1 p.17], and the tick carries no date. Condition 5(2)(b), ticked complied, requires Audit Committee members to be "non-executive directors of the company" [1 p.29]; the report describes the committee as "consisting of three Non-Executive Directors" and names the Managing Director as a member [1 p.6].

Shareholding at 30-Jun-2025 was Sponsors & Directors 70.94%, Institutions 7.39% and General Investors 21.67% [1 p.54]. Directors held Didar A. Husain 18.91%, Saima Matin Chowdhury 18.79%, A. Matin Chowdhury 17.26%, Dr. Shamim Matin Chowdhury 12.36% and Azizur Rahim Chowdhury 3.62% [1 p.18]. At 30-Sep-2026 DSE shows 70.94% sponsors/directors, 7.22% institutions and 21.84% public [11]. The company had 3,264 shareholders at 30-Jun-2025 [1 p.10]. CRISL rated the company "AA-" long term and "ST-3" short term with a Stable outlook on 14-Dec-2025 (DSE post date), the same as the 28-Nov-2024 post [10].

Peers: FY2025 figures for Alltex Industries and Hwa Well Textiles on their own printed labels

Exhibit 11 compares FY2025 company-basis figures with two textile companies that have published AnalystBro notes [12] [13]. Alltex Industries Limited describes itself as "an export oriented industry of dyeing, finishing and printing of gray fabrics towards making of Home Textile products" [8 p.15]; its FY2025 audit opinion was qualified (from its published note) [12]. Hwa Well Textiles (BD) PLC. describes itself as "a 100% export-oriented, backward-linkage textile manufacturer specializing in a wide range of knitted fabrics" [9 p.24]; its FY2025 opinion was unmodified [13]. Rahim Textile's FY2025 opinion was unmodified [1 p.37]. Each company's printed labels differ. The businesses differ; the margins are not ranked. RAHIMTEXT and HWAWELLTEX financial expenses are gross; ALLTEX's are net of BDT 1.0m FDR interest (per its published note) [12], and its profit after tax includes its share of an associate's loss [8 p.12].

Printed conflicts: committee composition wording and a PPE figure in the FY2022 key audit matter

The table lists printed statements that disagree with each other at the same date. Restated comparatives and OCR readings are not listed.

What's next: record date 17-Nov-2026, Q1 FY2027 accounts 5-Nov-2026 to 12-Nov-2026 (inferred) and the AGM on 21-Dec-2026

The record date for the FY2026 dividend is 17.11.2026 and the AGM is on 21.12.2026, on a digital platform, as posted by DSE on 27-Oct-2026 [10]. No board date for the Q1 FY2027 accounts (quarter to 30-Sep-2026) had been notified on DSE at 2-Nov-2026 [10]. The DSE archive holds two Q1 board-meeting dates: 07-Nov-2024 and 12-Nov-2025. The inferred range covering both is 5-Nov-2026 (Thu) to 12-Nov-2026 (Thu) (inferred, 2 years); 7-Nov-2026 falls on a Saturday. No precedent date has passed at 2-Nov-2026. A search of the quarterly statements in the corpus found no printed signing or approval date; they add no precedents. Annual reports FY2016-FY2025 print no financial calendar, and the DSE archive returns 24 months; two precedents are available.

Q2 board meetings were held on 14-Jan-2025 and 22-Jan-2026; the inferred Q2 FY2027 range is 14-Jan-2027 (Thu) to 24-Jan-2027 (Sun) (inferred, 2 years), as 22-Jan-2027 is a Friday. Q3 board meetings were held on 28-Apr-2025 and 29-Apr-2026; the inferred Q3 FY2027 range is 28-Apr-2027 (Wed) to 29-Apr-2027 (Thu) (inferred, 2 years) [10]. CRISL rating results were posted on DSE on 28-Nov-2024 and 14-Dec-2025; the inferred range for the next post is 26-Nov-2026 (Thu) to 14-Dec-2026 (Mon) (inferred, 2 years), as 28-Nov-2026 is a Saturday [10].

Bangladesh's LDC graduation date is 24-Nov-2029 [14] [15]. The FY2026 annual report and audited statements are not in the corpus at 1-Nov-2026.

Risks: related-party sales of 60.6%, bank loans of BDT 1,115.3m and machinery held for sale

Each risk below is listed with the filing that prints it. The "line it moves" column reads "None disclosed" unless a filing quote links the item to a line.

Key questions: the FY2026 accounts, the new auditor's report and the remaining machinery sale

At 30-Jun-2025 equity was BDT 244.3m, bank loans BDT 1,115.3m and cash BDT 5.9m [1 p.40] [17]. At the 1-Nov-2026 close of BDT 162.8, the stock traded at 54.8x FY2026 EPS as posted on DSE and 5.71x NAV at 30-Jun-2026 as posted [16] [17]. The 52-week range of closes was BDT 146.1 on 5-Nov-2025 to BDT 265.9 on 22-Jan-2026 [16].

FAQ

What does Rahim Textile Mills do?

It dyes and washes knit garments and fabric, including seamless dyeing, and makes accessories for RMG exporters at Shafipur, Kaliakoir, Gazipur [1 p.20].

Why did FY2025 revenue fall?

The directors' report links the 37.41% fall to the change from dyeing and printing its own grey fabric to knit dyeing, seamless dyeing, accessories and garment wash [1 p.12].

Who are the main customers?

The related-party note names J.M. Fabrics Limited (BDT 313,756,150) and Knit Asia Limited (BDT 277,196,521) for FY2025, both common-director companies [1 p.64].

Who lends to the company?

Mutual Trust Bank PLC. holds the term loan and part of the short-term facilities; City Bank PLC. holds the rest of the short-term facilities [1 p.56] [1 p.57].

What did DSE post for FY2026?

EPS Tk. 2.97, NAV per share Tk. 28.50, NOCFPS Tk. 28.24 and a 10% cash dividend for general shareholders, sponsors and directors excluded [10].

Who owns the company?

Sponsors/directors 70.94%, institutions 7.22% and the public 21.84% at 30-Sep-2026 [11].

What is the 52-week range?

BDT 146.1 (5-Nov-2025) to BDT 265.9 (22-Jan-2026) on unadjusted DSE trading-day closes, 2-Nov-2025 to 1-Nov-2026 [16].

Sources

1. Rahim Textile Mills PLC. 44th Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-02
2. Rahim Textile Mills PLC. Annual Report 2023-2024 (year to 30-Jun-2024) · link · accessed 2026-11-02
3. Rahim Textile Mills Limited Annual Report 2022-2023 (year to 30-Jun-2023) · link · accessed 2026-11-02
4. Rahim Textile Mills Limited auditors' report and financial statements, year to 30-Jun-2022 (27 pages: auditors' report and statements, no directors' report) · link · accessed 2026-11-02
5. Rahim Textile Mills Limited Annual Report 2020-2021 (year to 30-Jun-2021) · link · accessed 2026-11-02
6. Rahim Textile Mills Limited Annual Report 2019-2020 (year to 30-Jun-2020) · link · accessed 2026-11-02
7. Rahim Textile Mills PLC. un-audited statements, nine months to 31-Mar-2026 (Q3 FY2026) · link · accessed 2026-11-02
8. Alltex Industries Limited audited financial statements, year to 30-Jun-2025 · link · accessed 2026-11-02
9. Hwa Well Textiles (BD) PLC. Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-02
10. DSE news archive, RAHIMTEXT, all news 31-Oct-2024 to 2-Nov-2026 (45 posts dated 4-Nov-2024 to 27-Oct-2026) · link · accessed 2026-11-02
11. DSE company page, RAHIMTEXT (shareholding to 30-Sep-2026, dividend history; read 2-Nov-2026) · link · accessed 2026-11-02
12. AnalystBro, Alltex Industries financial analysis (published note) · link · accessed 2026-11-02
13. AnalystBro, Hwa Well Textiles financial analysis (published note) · link · accessed 2026-11-02
14. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
15. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
16. AnalystBro price data (TradingView DSE daily feed): DSE:RAHIMTEXT daily bars 29-Oct-2025 to 2-Nov-2026 · link · accessed 2026-11-02
17. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-02