Evans Medical Plc has notified The Exchange that its 2008 Audited Accounts is not yet ready for submission and presentation to the market. The company’s auditors needs an extension of time to enable it study the Forensic Auditors Report and Recommendations in detail in order to determine the appropriate accounting treatment of the unsupported inventory variance of N549,886,000 as prior year adjustment or exceptional item, as the amount was accumulated between 2006 and 2007.
The Board also resolved:
1. To report to the Institute of Chartered Accountants of Nigeria (ICAN) the conducts of the professionals involved in the happenings, for disciplinary procedures.
2. If the Group Managing Director, Dr. Kiran Virat’s contract is subsisting, it should be determined in line with the Management and Training, Agreement between Evans Medical Plc and African Management Services Company (AMSCO). However, if his contract is due for renewal, it should not be renewed. In addition the company’s contract with AMSCO should be examined in order to determine the possibility of his being held responsible for the negligence which had resulted in the company’s present predicament.
3. There should be separation of accounts operations for Evans Medical Plc and Cipla Evans Nigeria Limited.
KENE H. OKAFOR