₦airaland Forum

Do you think I'm talking about Oando? I'm addressing the issue someone raised about CFO, most problems are from the CEO & Board. The CFO do exactly what they want and they make his job difficult especially from a gangster MD who doesn't listen to professional advise on treatment of transactions because all they care is to meet their objective at that point in time.

They believe they understand everything about accounting because they one year MBA in a business school. Forgetting that accounting is double entry principle if you dress your account to avoid tax, it will affect you when it comes to corporate finance because your books won't look fine to attract investors, also if you dress your books to attract investors, you will have to pay big tax. You can't eat your cake and have it.

ghm:
... and submit the report as at when due. That is not so difficult, don't we have hundreds of company doing exactly that?

phadriz:
Do you think I'm talking about Oando? I'm addressing the issue someone raised about CFO, most problems are from the CEO & Board. The CFO do exactly what they want and they make his job difficult especially from a gangster MD who doesn't listen to professional advise on treatment of transactions because all they care is to meet their objective at that point in time.

They believe they understand everything about accounting because they one year MBA in a business school. Forgetting that accounting is double entry principle if you dress your account to avoid tax, it will affect you when it comes to corporate finance because your books won't look fine to attract investors, also if you dress your books to attract investors, you will have to pay big tax. You can't eat your cake and have it.

Where's the lie there? 😂

megawealth01:
Wale should just step down

wale has done that already

Redoil:
wale has done that already

When? Abi there's something I'm missing?

Sunrisepebble:
Leave them, they’ll call us MH. It’s a shame I didn’t buy earlier

I bought in the past at #29 but later sold thinking I hammered at 100 plus. Now I bought at #345 and won't sell ever unless fundamentals change. It is retirement investment. I will be adding gradually more at dip

Agbalowomeri:
But foreign reserve is foreign reserve. Obligations no join for the matter. Even the US is in a large negative. Let them keep building the foreign reserve. At least, it is a positive in one direction

Very true.
Foreign reserves rising and not being depleted is a long term positive for the Naira to be strengthened and stable.
It’s that forex instability that scares the hell out of foreign investors both in equity and in the real sector.

phadriz:
Do you think I'm talking about Oando? I'm addressing the issue someone raised about CFO, most problems are from the CEO & Board. The CFO do exactly what they want and they make his job difficult especially from a gangster MD who doesn't listen to professional advise on treatment of transactions because all they care is to meet their objective at that point in time.

They believe they understand everything about accounting because they one year MBA in a business school. Forgetting that accounting is double entry principle if you dress your account to avoid tax, it will affect you when it comes to corporate finance because your books won't look fine to attract investors, also if you dress your books to attract investors, you will have to pay big tax. You can't eat your cake and have it.

That means you can only be smart by half..lol

phadriz:
It is Creative Accounting (Window dressing). For you to know the extent of the fraud, check intercompany payable and receivable. You will discovered that most of the group funds are stock there. Unfortunately, you can not get the ledgers because AFS is summary.
Talking about principles all will be done in line with Accounting principles, but most fraudulent transactions are hidden there. All what you said are theory.

This is my field I know what I'm talking about.

This is what you said: ''Any company that has so many intercompany transactions is a fraudulent company/''
The meaning of what you said is ''every company that has so many intercompany transactions is a fraudulent company''
But I am telling you that it is not accurate. You may say that all the companies that you know that have so many intercompany transactions are fraudulent companies, but you cannot use a sweeping generalized word like ''any'' or ''every'' company.

And how do you mean by ''you cannot get the ledgers because AFS is summary''?
The ledgers are in the accounting system or ERP and you must provide the ledgers and official background documentation, explanations, schedules etc. to auditors and investigators from e.g. FIRS, external auditors, internal auditors etc. when they come for audit and investigation. Your failure to provide these could lead to penalties and interests in hundreds of millions and possibly billions of naira (because most of the transactions are in foreign currency e.g. dollars or euros)

I don't know the kind of companies that you know.
But I know many organizations that have many intercompany transactions and they are not fraudulent.
For instance, what some of them do is to take advantage of favourable tax regimes (tax avoidance) and forex availability in different countries, e.g. tax avoidance is not fraudulent, but tax evasion is fraudulent.

What I am saying is an open truth that is known to all professionals in the accounting and audit industry globally!

We Nigerians should stop the mentality of thinking that every person or company that we meet is corrupt or a thief.
It worsens the image that we create of ourselves

BabsO2:
Unipetrol purchase is just one of the achievement milestones of his entrepreneurial journey.

The purchase of Unipetrol was an anomaly. He is one of the billionaires created by Obasanjo. Used to work with late Chief FRA William law chamber and was on the desk that handle oil and gas contracts and law.

The company which he promoted was less than 10% of Unipetrol, reason why the purchase was highly leveraged and they went on asset stripping when they took over the company.

The company was the least among those that bidded for FGN shares in the company

Redoil:
na so i do those years 25 - 26 years ago always waiting at the news paper stand to check price

My brother, no be small.

Agbalowomeri:
Una don old for this game o😂

Small boys like us.
Wetin we sabi?
Na learner I be o jare.

BabsO2:
Unipetrol purchase is just one of the achievement milestones of his entrepreneurial journey.

Stories

ghm:
... and submit the report as at when due. That is not so difficult, don't we have hundreds of company doing exactly that?

Most companies that do that always have incomplete records and have issues with auditors who know their work because they will always ask for source documents which are not available. Tell me where you will get source documents for money collected by CEO to flex with his girlfriend or family on sea in a yatch which is outside the approved allowance and he asked you to book it to intercompany transactions. Although the auditor will later allow them for somethings but they will tell them to do some documentations which they will use as a cover if it backfire which they will cause delay in AFS concnclusion.

A criminal always leave a trace!

PETERiCHY:
Some of us still dey wear pampers then

Na today?
This man!
Where you enter since?
Good to see you and your usual memes.
We don miss your essential ingredient here.

BabsO2:
Like a man shouting I have 40 million naira in my bank account when at the same time he has a debt of 100 million naira.

I think foreign reserves as a standalone number doesn't paint the picture of economic health. Some other numbers like annual FG FX Income and current FG FX debt need to be quoted along with it each time its quoted. And a trend of the three is needed.

Same scenario is applicable to your beloved company

OakPearl:
Na today?
This man!
Where you enter since?
Good to see you and your usual memes.
We don miss your essential ingredient here.

Transcorp don wound PeTEriCHy

ghm:
Good morning All,

Do anyone has a list of companies in NIgeria paying dividends quarterly (or monthly)?

Only NIDF pays dividend quarterly at the moment.
Monthly dividend to the best of my knowledge doesn’t happen in Nigeria except in the US.

How many TAX Audit have you witness? You are sounding as if you're not a Nigerian. Most tax audit with issue is either the company don't want to settle or vested interest in the case or the settle went to the wrong place.
Can you as a shareholder have access to company ledgers ?
Auditors will reach a compromise at a point once the company can provide the some documents to cover themselves for negligence except if the going concern of such company is under threat which will make them to disclose it in the auditors report.

Remember auditors are also in business and they will want to retain their clients.

mikeapollo:
This is what you said: ''Any company that has so many intercompany transactions is a fraudulent company/''
The meaning of what you said is ''every company that has so many intercompany transactions is a fraudulent company''
But I am telling you that it is not accurate. You may say that all the companies that you know that have so many intercompany transactions are fraudulent companies, but you cannot use a sweeping generalized word like ''any'' or ''every'' company.

And how do you mean by ''you cannot get the ledgers because AFS is summary''?
The ledgers are in the accounting system or ERP and you must provide the ledgers and official background documentation, explanations, schedules etc. to auditors and investigators from e.g. FIRS, external auditors, internal auditors etc. when they come for audit and investigation. Your failure to provide these could lead to penalties and interests in hundreds of millions and possibly billions of naira (because most of the transactions are in foreign currency e.g. dollars or euros)

I don't know the kind of companies that you know.
But I know many organizations that have many intercompany transactions and they are not fraudulent.
For instance, what some of them do is to take advantage of favourable tax regimes (tax avoidance) and forex availability in different countries, e.g. tax avoidance is not fraudulent, but tax evasion is fraudulent.

What I am saying is an open truth that is known to all professionals in the accounting and audit industry globally!

We Nigerians should stop the mentality of thinking that every person or company that we meet is corrupt or a thief.
It worsens the image that we create of ourselves

phadriz:
It is Creative Accounting (Window dressing). For you to know the extent of the fraud, check intercompany payable and receivable. You will discovered that most of the group funds are stock there. Unfortunately, you can not get the ledgers because AFS is summary.
Talking about principles all will be done in line with Accounting principles, but most fraudulent transactions are hidden there. All what you said are theory.

This is my field I know what I'm talking about.

You no suppose to dey give unsolicited counsel. Experience is the best teacher

Agbalowomeri:
Transcorp don wound PeTEriCHy

You mean am?

Liabilities greater than Assets 😂

emmanuelewumi:
Same scenario is applicable to your beloved company

Ginalex:
There's nothing like monthly dividend payment sir. It's mostly Interim and full year dividend

Correct me if I'm wrong, some pay quarterly.

OakPearl:
Only NIDF pays dividend quarterly at the moment.
Monthly dividend to the best of my knowledge doesn’t happen in Nigeria except in the US.

Thank you Sir.
What of Seplat &, Aradel? I thought I heard someone mentioned they pay quarterly. I just want to confirm.

phadriz:
How many TAX Audit have you witness? You are sounding as if you're not a Nigerian. Most tax audit with issue is either the company don't want to settle or vested interest in the case or the settle went to the wrong place.
Can you as a shareholder have access to company ledgers ?
Auditors will reach a compromise at a point once the company can provide the some documents to cover themselves for negligence except if the going concern of such company is under threat which will make them to disclose it in the auditors report.

Remember auditors are also in business and they will want to retain their clients.

I know many multinational companies that do not settle. They defend their transactions, sue the FIRS if they come up with unreasonable assessments or they pay their obligations in full if they are convinced.

Your choice of word is what is causing the issue: you cannot just say ''any'' or ''every'' because you don't know all and you have not seen all. Just say the ones you have seen or known!

emmanuelewumi:
You no suppose to dey give unsolicited counsel. Experience is the best teacher

I know, just for those who will gain from it ni.

Intercompanies is the middleman for major shareholders to cheat other stakeholders

emmanuelewumi:
Same scenario is applicable to your beloved company

That yardstick is not applicable or not allowed with O company..lol.So don't ever ask again or you chop another ban in the name of b o .t

edwardaigb:
Correct me if I'm wrong, some pay quarterly.

the only quarterly I know of is just 2; NIDF and Seplat. If there there are others as per "some", please state them.

phadriz:
I know, just for those who will gain from it ni.

Intercompanies is the middleman for major shareholders to cheat other stakeholders

Na the conduit pipe used in wrecking quoted companies

Mpeace:
Lol. Its really taking too long. I know someone with huge short term funds in Oando and transcorp. He is over trapped at the moment.

Why will anyone put short term funds into Oando PLC or any other stock when there are many money market instruments available?

🤷🏽‍♂️

Ginalex:
the only quarterly I know of is just 1; NIDF. If there there are others as per "some", please state them.

seplat pays quarterly and also adds a special dividend at the end of the year

Sunrisepebble:
Those not in Presco already, I think this alongside naira depreciation are good signals for stellar Q3 and FY results.

https://www.malaymail.com/amp/news/money/2024/10/25/malaysias-palm-oil-surge-whats-driving-prices-to-biggest-highs-since-2022/154752

DYOR

I am picking more Ellah. I wish them good success as the Agric space is over under-exploited.

Ginalex:
the only quarterly I know of is just 2; NIDF and Seplat. If there there are others as per "some", please state them.

SEPLAT