Material Uncertainty May Cast Doubt on Oando's Ability to Continue as a Going Concern -Ernst & Young


Monday, July 04 2016 9:42AM /Ernst & Young

Independent Auditors’ Report to the Members of Oando Plc

Report on the financial Statements
We have audited the accompanying statements of Oando Plc (the company) and its subsidiaries (together, the group), which comprise the statement of financial position as at 31 December 2015, statement of profit or loss and other comprehensive income statement of changes in equity and statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory notes. 

Directors’ Responsibilities for the Financial Statements
The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and in compliance with the Financial Reporting Council of Nigeria Act, No 6, 2011 and the provisions of the Companies and Allied Matters Act, CAP 20, Laws of the Federation of Nigeria 2004, and for such internal controls as the directors determine are necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standard on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

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

Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 47 to the financial statements which indicates that the Group reported comprehensive loss for the year of N37.8billion (2014: N116.5 billion) and as at that date its current liabilities exceeded current asset by N247.9 billion (2014: N329 billion).

The company also incurred comprehensive loss of N56.6 billion for the year ended 31 December 2015 (2014: loss N566.5 billion) as at that date, its current liabilities exceeded current assets by N32.8 billion (2014:N43.7 billion).   

The note indicates that these conditions along with other matters, indicates the existence of a material uncertainty which may cast significant doubt on the Group’s ability to continue as a going concern. 

We also draw attention to Note 46 to the financial statements which indicate the corresponding figures were restated due to an error which occurred in the 2013 ans 2014 financial years. 

Report on Other Legal and Regulatory Requirements
In accordance with the requirement of Schedule 6 of the Companies and Allied Matters Act, CAP C20. Laws of the federation of Nigeria 2004, we confirm that:

       I.            We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

    II.            In our opinion, proper books of account have been kept by the Company, so far as appears from our examination of those books;

 III.            The Company’s Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive income are in agreement with the books of account.

  IV.            In our opinion, the consolidated financial statements have been prepared in accordance with the provisions in the Companies and Allied Matters Act, CAP C20 Laws of the Federation of Nigeria 2004 so as to present fairly the state of affairs and financial performance.


Related News

1.       OANDO Releases Q4 15 and Q1 16 Results Declares N4.10bn PAT in Q1 SP N6.50k

2.      Oando Plc Secures 5 Year N94.6 Billion Medium Term Facility with 10 Nigerian Banks

3.      Oando explains what Deregulation of Petrol Price means for its Downstream Operations

4.      Why Oando Plc's 2015 Audited Statements will be released on May 31, 2016

5.      OANDO to acquire OER Minority Shares for a Consideration of US 1.20 per share in Cash

6.      Bursa Malaysia Publicly Reprimands Quoted company for Breach of Main Market Listing Requirements 

7.      OANDO Notifies on Late Filing of 2015 Audited Financial Statements

8.     OANDO Gives a Brief on Key Matters Impacting Its 2014 Full Year Release

9.      NSE Continues its Review of the Situation of Oando Plc

10.  OANDO posts N418million loss as revenue slips by 5.48 in Q3 15 - Proshare 

11.   OANDO Releases Q4'14, Q1'15 and Q2'15 Results, Declares N35.13bn Loss in Q2,(SP:N10.14k) 

Related News