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NTC

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NTC 28-Oct-2020

(Continuation news of NTC): under audit the Company could not make required profit and as such no provision for WPPF and WF has been made. Gratuity valuation: Without qualifying our report, we draw attention to the note 5H ii(a) to the accompanying financial statements where the Company has maintained and presented defined benefits plan (gratuity). During the year, the Company has shown gratuity amounting to Taka 253,598,661 which is calculated based on last (cont.6)

NTC 28-Oct-2020

(Continuation news of NTC): capital-work-in-progress which overstated the property, plant and equipment even further. Emphasis of Matter: Workers' Profit Participation Fund (WPPF) and Welfare Fund (WF) Without qualifying our report, we draw attention to the note 5H (i) to the accompanying financial statements that no provision has been made in previous years for Workers' Profit Participation Fund (WPPF) and Welfare Fund (WF). Incidentally, during the year (cont.5)

NTC 28-Oct-2020

(Continuation news of NTC): statements. The management of the Company could not quantify the impact of such under provision of depreciation. In the absence of bearer plants capitalization and deprecation policy neither we could calculate accumulated depreciation and depreciation charge for the year nor we could find any basis for the lump sum provision. Immature bearer plants for which no valuation is available either have also been capitalized as asset rather than (cont.4)

NTC 28-Oct-2020

(Continuation news of NTC): which is resulting in overstatement of property, plant and equipment, profit for the year and cumulative retained earnings. Although the Company has made a provision for the lump sum amount of Taka 27,060,250 for depreciation on bearer plants on straight line basis this year, neither the life of such assets are clearly defined and recorded nor any adjustments with retained earnings for prior year depreciations are reflected in the financial (cont.3)

NTC 28-Oct-2020

(Continuation news of NTC): a finite life and must be depreciated under IAS 16 Paragraph 6. However, the Company does not have any policy to value such asset either at cost or revaluation model as per IFRS requirement and depreciate accordingly over the asset's useful life. As a result, since the asset is gradually losing its finite life and ability to generate cash flow in the future, the financial statements are not reflecting the outcome of appropriate valuation and required depreciation (cont.2)

NTC 28-Oct-2020

The auditor of the National Tea Company Ltd has given the "Qualified Opinion" & "Emphasis of Matter" paragraphs in the Auditor's Report for the year ended on 30 June 2020. In this regard, we may disseminate the following news through our online trading system: Qualified Opinion: We refer to note 6.01 and 5A (iii), property, plant and equipment which include "bearer plants" presented under "Plantation" for the amount of Taka 1,869,983,676. Bearer plants have (cont.1)

NTC 28-Oct-2020

There will be no price limit on the trading of the shares of the Company today (28.10.2020) following its corporate declaration, however, as per the BSEC Order No. BSEC/CMRRCD/2001-07/04 dated March 19, 2020; the floor price shall be applicable accordingly.

NTC 28-Oct-2020

(Continuation news of NTC): The Company has also informed that significantly decrease EPS compare to previous year for main reason is per kg tea average price decrease tk. 101.00 compared to the previous year in Chattagram auction market. It is mention that current year, the Company able to sale total 54.49 lac kg tea in Chittagong auction market which is more than 9.95 lac kg compared to the same period of last year. (end)

NTC 28-Oct-2020

The Board of Directors has recommended 5% Cash dividend for the year ended on June 30, 2020. Date of AGM: 24.12.2020. Time: 11:30 AM, Venue: Digital Platform. Record Date: 18.11.2020. The Company has also reported EPS of Tk. (55.71), NAV per share of Tk. 116.75 and NOCFPS of Tk. (34.20) for the year ended on June 30, 2020 as against Tk. 20.67, Tk. 174.66 and Tk. 2.12 respectively for the same period of the previous year. (cont.)

NTC 19-Oct-2020

As per Regulation 19(1) of the Dhaka Stock Exchange (Listing) Regulations, 2015, the Company has informed that a meeting of the Board of Directors will be held on October 27, 2020 at 3:30 PM to consider, among others, audited financial statements of the Company for the year ended on June 30, 2020.

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