Page 49 - IBT December 2020

package was offered within the
existing credit limit the company
had and not as an additional limit.
Even then the reduced rate of
interest allowed breathing space
for this capital-intensive sector.
Almost all the banks extended this
facility and it was a welcome move
by the government.

Can you tell us what kind of
initiatives will strengthen the
sector to become
business-friendly? What is the role
that VAT and Supplementary Duty
can play to allow the sector to
remain sustainable?
issue ourselves. The It is of utmost importance that the
idea is that once the stance of NBR towards the steel
At the onset of the capacity and we had to utilize all customer has made a sector changes. The imposition of
coronavirus pandemic the available storages we have transaction with KSRM, AIT should be withdrawn. It is now
the import of raw around the country to its he can sit back and treated as a minimum tax for this
have the peace of mind
materials and production maximum capacity. We had to that his requirement sector. They have assumed that we
was disrupted. What was make sure the products which will be executed by the make at least a 5 % profit of the
the coping strategy that started to rust were delivered at company by any value of the raw materials. This is
KSRM deployed in the the first opportunity, again, means. Such far from reality. We pay AIT on the
first 3 months? How has something extremely difficult for tax at 5%. As the tax is deducted experiences keep them additional chemicals needed to
KSRM adapted to the heavy products such as steel. at the import stage as a coming back to KSRM manufacture steel. Then there are
pandemic? As the sales dropped and cash percentage of the value of the raw and thus the vast loyal rising energy costs in this already
Whenever there is a dip in the raw flow halted, we needed to focus material, the amount becomes customer base it has energy-intensive industry. Gas and
electricity prices are surging as we
on cutting any cost that we could
material prices internationally, we do without. We undertook almost 60-70% of the actual profit acquired over the all know. Under such
try to buy in bulk and maintain a extensive deep dive into our we make. There is VAT on top of The pandemic, it seems, years. We focus on the service and circumstances, income tax should
buffer stock which gives us a expenses and singled out this. Such taxation is unheard of was particularly harsh quality; the customers reward us be imposed on an actual basis, or
safety net in case there is a whatever we could do without. anywhere in the world. The for steel makers, with their trust. So even after the over time the sector will recede to
shortage of supply. During the The positive side to this was the fundamental of income tax is that devastation of the pandemic when grow when the country needs this
pandemic slow down we were fact that the entire KSRM family the tax is imposed on the profit eviscerating demand for the market opened, the consumers sector at this crucial stage of
able to rely on this stock and as a whole got a renewed sense of made. Hence, any additional their products like turned to KSRM. We made sure our growth.
continue production as much as the need for extracting ultimate income tax that is taken at the never before and profits partners and dealers were not
possible. Our primary intention import stage should be adjusted. tumbling in the heavily affected by the losses by Please share some
was to continue production even efficiency in every avenue of our The steel industry so far has not financial year that extending their credit lines and examples of CSR
operations. This experience will
through the pandemic. A had any adjustments of AIT which ended on June 30. How allowing more time to settle the initiatives taken by KSRM
slowdown in production will help the entire team to approach is creating a serious impediment has KSRM managed to dues. recently?
any task in the future with the
mean a rise in overhead which in to the growth of this industry. sustain its position as a
turn would increase our per-unit need for ultimate efficiency in Every single company is suffering lead contender in the BSMA sought Tk 30 billion KSRM stood by the needy in the
mind.
manufacturing cost. Even though from a liquidity crunch because of sector? as loan from the time of lockdown in alliance with
it was challenging due to the The industry suffered an this capital tied up with NBR. An unwavering focus on quality government's COVID-19 the administration and provided
restriction of movement of estimated loss of Tk3,000 Steel is an industry that operates and obsessing on user’s needs stimulus package for steel food support for the low-income
vehicles, we were still able to crore in March and April, at large volumes but with narrow have propelled KSRM to the manufacturers to help segment that was affected the
continue production as the margins. The price of steel leading position in this fiercely them continue their most. We provided food for over
government very prudently gave and it could rise to as internationally also fluctuates competitive market. We make business. With the central forty thousand families during the
the decision to keep industries much as Tk15,000 crore quite drastically and hence losses sure to attend to a customer bank providing 30% of a first three months of the pandemic
which are not human-intensive by December. What kind can be incurred quite heavily too. with the utmost diligence in the company’s existing in addition to a vast number of
running. of policy support does the If the NBR does not take these case of a complaint in any working capital from the PPEs and oxygen concentrators to
The most challenging part of the sector require to combat things into consideration the aspect of the purchase. Even in fund, was the stimulus the hospitals and front liners. In
pandemic was the drastic drop in these dire projections? growth of this sector will be extreme cases such as theft or addition to this, last year we
sales. The first two months it was The steel sector has been hampered quite heavily. Actions loss of product during the package effective? Where provided all the steel necessary to
almost non-existent when the subjected to heavy tax burdens in must be taken as early as possible shipment, we take the were the shortcomings? build several schools, most notably
lockdown was put in place. Our recent years. At the import stage, to ensure that capital is not tied responsibility to resend the The stimulus package was a sigh the Zainul Abedin primary school
inventories shot up to the extreme we have to pay advance income up from the imposition of AIT. shipment and we deal with the of relief for this sector. The in Satkania.

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