Why we delayed our financial account – R T Briscoe

NSE

A week after the suspension of trading on its shares, RT Briscoe Plc wrote to the Nigerian Stock Exchange (NSE) to explain why its audited financials for the year ended December 2017 may take some more time in coming.
RT Briscoe was suspended by the NSE management along with seven other companies, mostly insurers for failing to meet its post-listing requirement, especially as it concerns timely presentation of audited and unaudited reports that are necessary for investment decision taking.
In a filing the managing director and chief executive officer of the company, Seyi Onajide, said the company, with product portfolio including renown automobile/industrial equipment brands, power products and real estate services, said the delay in presenting the financials was due to the finalization of the report by its external auditors.
The financial report, he noted, has been finalized and is now “subject to regulatory review by the Financial Reporting Council of Nigeria (FRC).” Onajide expressed the board’s hope “that the process will be concluded on or before 31 July 2018.” The interest of the FRC is not out of place, given that the 2016 full year financials was qualified by KPMG Professional Services, RT Briscoe’s external auditors, which flagged an impairment loss of N1.1 billion for the year ended 31 December 2015, which was written off to the profit or loss account for the period.
The auditors in their report wrote: “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.” KPMG believed there is further cause for “material uncertainty related to going concern,” drawing attention to the outcome of the lawsuit filed against RT Briscoe by Diamond Bank Plc, in addition to a N3.1 billiin loss incurred during the year ended 31 December 2016.
As of that date, the auditors again noted that the RT Briscoe’s current liabilities exceeded its current assets by N7.9 billion, while total liabilities exceeded total assets by N3.4 billion.
These conditions along with other matters, it stressed, “indicate that a material uncertainty exists that may cast significant doubt about the company’s ability to continue as a going concern.” These may be why the FRC decided to probe into the company’s affairs and overall health status.
The Nigerian Stock Exchange (NSE), had last week announced the immediate suspension of trading in the shares of eight companies.
The affected companies include are: R.T.
Briscoe, African Alliance Insurance, Cornerstone Insurance, Royal Exchange, STACO Insurance, Standard Alliance Insurance, Universal Insurance Company and Veritas Kapital Assurance.

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