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RT Briscoe: Material Uncertainty Related to Going Concern

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Tuesday, July 18, 2017 8:25AM / RT Briscoe Annual Report & Financial Statements

Kindly find below the Independent Auditors Report for R.T. Briscoe as contained in the 2016 Annual Report and Financial Statements (Page 22)


Report on the Audit of the Consolidated and Separate Financial Statements


Qualified Opinion

We have audited the consolidated and separate financial statements of R.T. Briscoe (Nigeria) PLC (“the Company”) and its subsidiaries (together, “the group”), which comprise the consolidated and separate statement of financial position as at 31 December, 2016, the consolidated and separate statement of profit or loss and other comprehensive income, consolidated and separate statement of changes in equity, consolidated and separate statement of cash flows for the year then ended, a summary of significant accounting policies and other explanatory information, as set out on pages 26 to 76.


In our opinion, except for the possible effects on the corresponding figures for the year ended 31 December 2015 of the matter described in the Basis for Qualified Opinion section in our report, the accompanying consolidated and separate financial statements give a true and fair view of the consolidated and separate financial position of the Company and its subsidiaries as at 31 December, 2016, and of its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and in the manner required by the Companies and Allied Matters Act, Cap C.20, Laws of the Federation of Nigeria, 2004 and the Financial Reporting Council of Nigeria Act, 2011.


Basis for Qualified Opinion

Included in impairment loss for the year ended 31 December 2015 was an amount of N1.1billion which was written off to the profit or loss account for the year then ended.


We were unable to obtain sufficient appropriate audit evidence regarding the nature and accounting for the underlying transaction that related to the amount because management was unable to provide satisfactory explanations and relevant supporting documents.


Our audit opinion on the financial statements for the year ended 31 December 2015 was modified accordingly. Our opinion on the current period’s financial statements is also modified because of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.


We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the consolidated and separate Financial Statements section of our report.


We are independent of the Group and Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated and separate financial statements in Nigeria and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.


Material Uncertainty Related to Going Concern

Without further qualifying our opinion, we draw attention to Note29(a) and Note 32 to the financial statements. Note 29(a) describes the uncertainty related to the outcome of the lawsuit filed against the Company by Diamond Bank Plc, while Note 32 indicates that the Company incurred a loss of N3.1 billion during the year ended 31 December 2016 and, as of that date, the Company’s current liabilities exceeded its current assets by N7.9 billion, while the total liabilities of the Company exceeded total assets by N3.4 billion.


These conditions along with other matters as set for in Note 32, indicate that a material uncertainty exists that may cast significant doubt about the Company’s ability to continue as a going concern.


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