Special auditor to review National Tea financials
The company allegedly embezzled assets from 2010 to 2020 financial years
Key Points:
- The auditor will examine the financials from 2010 to 2020
- It will also scrutinise production capacity and forestation
- Total loan stood at Tk200cr as of Dec 2021
- Net profit was Tk5.72cr from July to Dec 2021
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The Bangladesh Securities and Exchange Commission (BSEC) will appoint a special auditor at National Tea Company for reviewing its financial statements in a move to protect the interest of the general investors.
In this regard, the BSEC has already sent quotation letters to its panel auditors, a copy of which was obtained by The Business Standard.
According to sources, the BSEC has taken the decision based on some allegations of asset embezzlement in the company from 2010 to 2020 financial years.
The special auditor will therefore review the financial statements for the aforementioned years.
In February this year, to comply with regulatory requirements, the publicly-listed tea manufacturer decided to increase its paid-up capital by issuing the right shares.
The company applied to the BSEC in this regard and will take the next step after getting the commission's approval.
Incorporated in 1978 and listed on the stock market in 1979, National Tea Company Limited carries on the business of plantation, cultivation, manufacturing, and selling of tea and rubber in Bangladesh.
According to the company's website, National Tea's annual average production is about 5.2 million kg and its major portion is sold through the Chattogram auction market.
In 2000, National Tea started selling tea at the local market on a small scale through its dealers. It has a sales centre at its registered office, which is open to all consumers.
There are about 12,500 permanent labourers in the company's 12 tea estates.
The company has been generating profits from 2000 to 2019. But the state-owned firm suffered losses over the last two years due to the Covid-19 pandemic.
In the July-December period of 2021, the company's net profit was Tk5.72 crore, up from Tk1.59 crore a year ago.
As of 30 June 2021, its short-term loan stood at Tk137.18 crore, while the long-term loan stood at Tk63.32 crore.
As of 31 January 2022, sponsors and directors jointly held 48.6%, the government 4.33%, institutions 8.55%, and the general public 38.52% shares of the company.
The last trading share price of the company on the Dhaka Stock Exchange was Tk765 per share on Monday.
