Proshare Logo
   Market Date: 23-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Cadbury writes off overstated amount, send report to SEC

Category: Capital Market

  Read (1755)
Cadbury writes off overstated amount, send report to SEC

April 02, 2007/BusinessDay




Cadbury Nigeria plc has written off the overstated amounts as contained in its 2005 annual reports and accounts. This is effected in the company’s 2006 annual reports and accounts which has been submitted to the Securities and Exchange Commission (SEC) for verification and approval prior to its being made public.


According to a reliable source, the company decided to absorb the total overstated amount in one go as a way of pushing the incident behind and move the operations of the company forward.


The source said the decision to write off the amount in one year may result to a loss in the 2006 accounts, but noted that it is a temporary set back which the company is well positioned to overcome in the shortest time.


\"Obviously, we will record a loss in the 2006 financial result following the quantum write-off, but our fundamentals remain very strong, our factories are running, our products still command the larger share of the market resulting in steady growth in turnover, and we are still very cost conscious. So in all we look forward to better years.\"


In spite of the crisis of confidence that the firm may have suffered as a result of the unethical practices of the two principal actors in the mess of the company’s accounts, the source said Cadbury as a corporate body still maintains high ethical standards and good corporate practices.


BusiessDay had exclusively reported that a stock broking firm and a group of shareholders numbering about 341 took Cadbury Nigerian plc to court over what they described as a flagrant negligence and disregard to duty by two key officials of the company.


Specifically, they accused the defendants of presenting incorrect, deceitful, and deliberate overstatement of financial position in the company’s annual reports and accounts for the financial year ended December 31, 2005. They aver that the defendants were aware that the said annual reports and accounts was a deliberate overstatement of the company’s financial position over a number of years to the tune of between N13 and N15 billion.


But contrary to a report that the company preferred to settle out of court, the source at Cadbury said they are yet to receive any summon from the court and that as soon as that happens, they will simply go to the court and state their case.


He explained that high value ethical process in Cadbury is what led to the discovery of the overstatement internally, contrary to believe that the matter was discovered following a prompting from an external influence.


\"We carried out an internal review and discovered the overstatement. Going by our principle of good ethics, we decided to blow our own whistle by alerting our stakeholders.\"

Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014