National Tea seeks 3-month extension to to file nine-month financials

Infographic: TBS

Amid management turmoil, labour unrest, and acute staffing shortages, National Tea Company Limited – a listed, state-owned firm – has sought a three-month extension to publish its nine-month financials for FY2024–25, covering up to March.

At the end of April, National Tea applied to the Bangladesh Securities and Exchange Commission (BSEC) seeking the extension, but is yet to receive final approval from the regulator, according to company officials.

As per listing regulations, all publicly listed firms are required to submit their unaudited third-quarter financial statements within one month after the quarter ends, and publish them in at least two widely circulated dailies – one in Bangla and one in English. 

Failure to comply results in a penalty of Tk5,000 per day, as per the rules.

The third quarter of FY25 ended in March, and the deadline for publishing its financials expired in April.

A National Tea official said internal disruption since the political change last year has hindered its financial reporting.

"The company has faced serious difficulties since the political shift last year. Several board members appointed by the previous government were removed, and the company struggled to pay workers' salaries. That led to unrest in the tea gardens," the official told The Business Standard.

The official added that although business operations have now resumed, the current management is facing challenges in finalising financial statements.

In its letter to the BSEC, National Tea listed three key reasons behind the delay.

First, National Tea pointed to political instability in July and August 2024, which led to major administrative reshuffles in ministries and state-owned entities, including the industries ministry, Krishi Bank, and Bangladesh Bank. These disruptions affected wage disbursements, sparked labour unrest, and delayed accounting activities at multiple tea estates.

Second, in August last year, the resignation of four independent directors and two elected directors rendered the board and its committees inactive, halting key oversight functions.

Third, the company's finance and accounts department is currently being operated by only one assistant manager and three office assistants. This staffing shortage has hindered both day-to-day and year-end financial operations.

Despite these setbacks, the company said it has recently reconstituted its board. 

The letter said: "However, it is worth mentioning that the company has recently formed a full-fledged board. A new chairman has been elected by the board and has already assumed responsibilities. Two new directors have joined the board to fill the vacant elected director positions, along with three new independent directors. In addition, a new Managing Director and Company Secretary have joined the company. We are hopeful that the recruitment process for a Chief Financial Officer (CFO) will begin very soon."

In light of these developments, National Tea has requested a three-month extension for the submission of its unaudited nine-month and third-quarter financials, covering the periods from 1 July 2024 to 31 March 2025, and 1 January to 31 March 2025, respectively, under Rule 17(1) of the Listing Regulations.