CMSMEs get one more year to submit audited reports

The Bangladesh Bank has extended the deadline for submission of audited financial statements by one year till December 31, 2024 for small and medium companies while taking loans from non-bank financial institutions (NBFIs).

Previously the deadline was set to end on December 31, 2023.

According to a central bank circular issued on Monday, the facility has been given to the companies of cottage, micro and small sub-sectors included in the CMSME sector that are considered as public interest organisations according to the Financial Reporting Act.

The central bank had earlier introduced the facility in a circular issued on August 17, 2021.

The regulator said while taking or renewing loans from NBFIs, many companies submit financial statements under different names, such as management audit, review report instead of submitting audited and up-to-date financial statements prepared by chartered accountants.

It said the submission of such unaudited reports are creating obstacles in ensuring credit discipline and the amount of defaulted loans is increasing in NBFIs.