Transcorp blames Nitel over delay in financial result
Category: Capital Market
Monday, 14 Jun 2010
Transnational Corporation of Nigeria Plc has blamed the Nigerian Telecommunications Limited for the delay in its financial statements to the regulatory authorities.Transcorp said that the delay in the release of its 2009 financial statements was as a result of irregularities in Nitel‘s accounts from the year 2003 to 2005.
Transcorp, according to a notice presented to the Nigerian Stock Exchange, said that NITEL has not maintained proper books for accounts for three years, prior to its acquisition by Transcorp.
The notice presented to operators in the capital market by the NSE, reads in part: ”The 2009 audited account was delayed and the company has explained that this was because the requirements of the Companies and Allied Matters Act, required it to consolidate the audited financial statements of NITEL for the period it was one of its subsidiaries, which is, 2006, 2007, 2008 and 2009.
”Transcorp said efforts to complete the audit of NITEL failed, as NITEL had not maintained proper books for three years, prior to our acquisition of the company.”This has caused delay in producing the audited accounts and consequently resulting to non-compliance.”
However, Transcorp informed the NSE that it was currently working with its external auditors to complete the audits for the period and also conduct its Annual General Meeting.It noted that the accounts would be forwarded to the NSE and other regulatory authorities once it was completed.
According to Transcorp‘s unaudited result for the first quarter ended March 31, 2010, turnover was N587.8m, as against N617.1m in the comparable period of 2009. Profit before tax stood at N326.1m, compared to loss before tax of N3.36bn in 2009.
Profit after tax for the period stood at N326.08m, as against N3.36bn loss recorded in 2009.