e_Paper, Sunday, July 23, 2017

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SUNDAY, JULY 23, 2017
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How did Hungama Ltd’s Tk2lakh investment
make Tk13cr in profit?
• Hitler A Halim
SPECIAL
Hungama Bangladesh Private Limited
– an Indian digital media company
– invested Tk2lakh in Bangladesh
and has sent back nearly
Tk13cr in profits to India.
The profit is a whooping 320 times
its original investment. Bangladesh
Bank is treating the subject as an
“unusual business activity.” As such,
the central bank has twice asked the
chairman of Bangladesh Telecommunication
Regulatory Commission
(BTRC) via letters on their opinion
on “Hungama Bangladesh Private
Limited sending excessive dividend
to non-residential shareholders.”
Bangladesh Bank alleges that
Hungama invested only Tk2lakh in
Bangladesh and has sent back profits
in crores. In 2015, it sent back
Tk6.74cr as dividend and in 2014 it
was Tk6.07cr. The total dividend of
the past two years is 320 times the
original investment in Bangladesh.
The central bank, in its investigation,
found that Hungama Bangladesh
has just one employee. It
has no fixed assets in Bangladesh.
The fact that a “small-capital”
managed to raise profit 320 times
its original investment has given
Bangladesh Bank a cause for concern.
In the letters to BTRC, Hungama
is referred to as a “disreputable
company with 100% foreign ownership”
by Bangladesh Bank.
Hungama Bangladesh is a subsidiary
of India’s Hungama Digital
Media Entertainment Private Limited.
The company is helmed by
Neeraj Roy, who serves as both the
managing director and the chief executive
officer. Hungama provides
a diverse array of mobile services
ranging from WAP, CRBT (Caller
Ring Back Tone), IVR (Interactive
Voice Recognition) and music
streaming.
Bangladesh Bank analysed the
financial reports of Hungama and
found that the majority of its income
came from selling various services
to different mobile operators.
Bangladesh Bank Deputy General
Manager (Foreign Exchange
Investment Department) Md Ali
Akbar Farazi signed the letter that
was conveyed to the BTRC. In the
letter, Bangladesh Bank asked if
the provision of any such services
required taking permission from
the BTRC, and asked if there was
any justification in permitting a
“disreputable company which is
fully owned by foreigners” and
whether there should be any regulation
in mobile phone operators
charging such exorbitant prices in
providing WAP, CRBT, IVR and music
streaming services.
Recently, Hungama applied to
the BRRC for a shortcode service.
The shortcode has been requested
for e-entertainment services (music,
wallpaper, animation, games,
videos). Hungama paid the BTRC
Tk1.15lakh (VAT inclusive) through
a cheque. The shortcode application
bears the authorisation of
CEO-MD Neeraj Roy, followed by
his phone number in India. The
pad bears a Gulshan address, but
no Bangladesh contact number or
e-mail address.
The BTRC has said that they will
look into the matter after Bangladesh
Bank expressed its concerns.
The office of Hungama Bangladesh
is located on Road 126 in Gulshan.
They share an office with an
accounting firm. A visit to the office
on Thursday revealed that the digital
media company occupies just
one room, which often remains
closed, even on weekdays. A CIMA
employee said that the Hungama
office has just one employee, who
only shows up from time to time.
Hungma is registered with the
Bangladesh Office of the Registrat
of Joint Stock Companies and
Firms with the number C-86484.
The contact number on the application
was called and the receiver
said it was the Mumbai office of
Hungama. The received said Neeraj
Roy was not in the office and his
contact number was not permitted
to be given out. After persisting,
the call was transferred to a woman
who identified herself as Priyanka,
overseeing the Mumbai operations
of Hungama.
She said that Hungama operates
out of their Gulshan office in Bangladesh.
She failed to provide a reason
when asked why the office was
closed on weekdays.
Priyanka also said that mobile
phone users in Bangladesh purchase
content from them. When
asked for details, she could not provide
any further insight.
She took the caller’s number
and said that the legal department
of Hungama Digital Media will contact
them with the details. But as
of this report was written, nobody
from Hungama reached out.
Officials at several mobile
phone operators in Bangladesh
have revealed that their users often
download songs, wallpapers,
ringtones or welcome tunes from
various content providers. The users
are charged from their account
balance. Businesses like Hungama
share the profits with the mobile
phone operators. Said profit has
amounted to Tk13cr, which has
been transferred back to India as
dividend for the shareholders.
BTRC Secretary Md Sarwar Alam
said the central bank has informed
that this firm has no fixed asset in the
country and has only one employee.
He said: “We have asked all the
mobile phone operators to provide
us with information to help with
our investigation. Afterwards, we
will decide on our next course of
action.” •
This story was first published on the
Bangla Tribune.
International Math Olympiad: Bangladesh best in South Asia
• Tribune Desk
FEATURE
Bangladeshi students have won four
medals, including two silver and two
bronze, in the 58th International
Mathematical Olympiad held in Rio de
Janeiro, Brazil.
Though one of the students missed out
on a gold medal by one point, Bangladesh
ranked 26th, while India finished 52nd, Sri
Lanka 62nd, Pakistan 81st and Nepal 110th
among 111 countries. Bangladesh was
ranked in the 35th position last year.
The silver medal winners are Asif-e-
Elahi of MC College, Sylhet and Ahmed
Jawad Chowdhury of Cantonment
English School and College of Chittagong.
The bronze winners are Tamjid
Morshed Rubab of Notre Dame College
and Rahul Saha of Dhaka College.
Sabbir Rahman of Notre Dame
College and AM Naimul Islam of Amrita
The Hungama office has just one employee,
who only shows up from time to time
Lal Dey Mohabiddyaloy were given
Honourable Mentions for their scores in
the competition.
Muhammad Zafar Iqbal, vice president
of Bangladesh Mathematical Olympiad
committee, said: “Missing gold for
one point is heart breaking but I will not
let this to ruin my joy. I am proud of our
BdMO team and congratulate everyone.
“It must be fun to beat every country
in our region and climb 8 steps up in
world ranking,” he added.
The 58th International Mathematical
Olympiad (IMO 2017) was held in Rio de
Janeiro of Brazil from July 12 to 23.
This was the first IMO to be held in
Brazil. However, the history of the IMO
goes back to 1959 when its first edition
was held in Romania.
Since then, the competition has
provided a stimulus to mathematics,
offering a great opportunity for the creative
exchange of ideas and experiences
among students from various cultures. • The Bangladesh team poses for a photo after the announcement PHOTO: COLLECTED
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