Tanganda Tea Gets Clean Audit from Deloitte, Despi...

Tanganda Tea Gets Clean Audit from Deloitte, Despite Inflation and Economic Challenges

Nyashadzashe Ndoro

International audit firm Deloitte and Touche Zimbabwe has issued a clean audit opinion on the inflation-adjusted financial statements of Tanganda Tea Company Limited for the year ended September 30, 2023.

This positive report comes despite a challenging economic environment marked by high inflation and exchange rate volatility.

The audit, conducted in accordance with International Financial Reporting Standards and Zimbabwean regulations, concluded that Tanganda Tea’s financial statements "fairly present, in all material respects, the inflation-adjusted financial position ... and its inflation-adjusted financial performance and inflation-adjusted cash flows for the year then ended.”

While Deloitte identified no specific “key audit matters” requiring particular attention, the report acknowledges the complexities of operating in an inflationary environment. The company's financial performance saw mixed results, with revenue increasing by 42% while profit after tax suffered a significant decline. This can be attributed, in part, to difficulties sourcing inputs due to global logistical challenges.

“The financial statements of the Company are properly drawn up in accordance with this Act so as to give a true and fair view of the state of the Company’s affairs at the date of the financial statements for the year ended 30 September 2023,” the auditors noted.

The company’s financial performance reflects the challenging economic environment, with mixed results in revenue and profitability.

Tanganda Tea continues to navigate global disruptions and adapt to changing consumer preferences.

The clean audit report provides assurance to investors and stakeholders regarding Tanganda Tea’s financial health and reporting practices. However, the company acknowledges ongoing challenges and plans to address them by clearing unfulfilled orders, expanding its range of herbal infusions, and focusing on cost-efficiency.