AfricaPress-Tanzania: TCCIA Investment Limited (TICL) has issued cautionary note, saying its profit may drop massively in the first six months of this year.
The note showed that the chamber for commerce, industry and agriculture, profit figured to plummet by 1,121 per cent affected by new accounting system requirements.
TCCIA said the financial institutions were affected mainly by de-recognition of some of its equity investments as per International Financial Reporting Standards (IFRS) 9 requirement.
“TCCIA Investment expects its profit for six months ended June 2020 to be lower by 1,121 per cent compared to that of 2019 due to realisation of fair value reserves…,” the note said.
The note however, said the cash flows and revenues would not be affected by the de-recognition of some of its equity investments.
“However, the company cash flows and revenues are not affected by this,” TCCIA said.
The Dar es Salaam Stock Exchange (DSE) listing rules require companies to issue a cautionary note as soon as they are satisfied that a reasonable degree of uncertainty lingers to affect financials by at least 25 per cent.
TCCIA Investment said it will publish the financials soon. The company raised some of its capital after an IPO in 2018 is listed at DSE and its share was trading at 350/- on Tuesday.
The company profit after tax had dropped by 3.0 per cent to 410m/- last year from 422m/- in 2018. Despite a profit decline in 2019, the directors recommended payment of a final dividend of 6/- compared to 2/54 in 2018.
In the same year it invested 5.42bn/- in government securities. TCCIA holds 0.5 per cent in NMB Bank as of March 2017.
