Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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researchfirst wrote:dsktop wrote:researchfirst wrote:dsktop wrote:researchfirst wrote:murchr wrote:dsktop wrote:poor centum shareholders.....company has a weak cashflow sustained only by borrowing(bonds this year,last year loan from avic et al all at 6B).The income statement is buoyed by revaluation gain,exaggerated at that!....and forced books as in can anyone show me the source of 4,695,509 listed in the cashflow as purchase of investment property cause its not explained by note 14 ...and by the way that is 4.6Billion Anyone please explain? Who audits Centum's books? pwc are their auditors. If you look at the annual report, it was not revaluation gains but beverage sales that were by far the biggest income driver (8,140,574,000 in FY16 versus 36,792,000 in FY15). See note 6. The unrealised gains in investment property were 5,118,581,000 in FY16 and 1,737,045,000 in FY15). Again, note 6. Given the disclosures in note 14, they seem reasonable to me. Ok great. one question though,what growth does that represent i.e from 36.7M in FY15 to 8.14B in FY16 is it realistic to you? Also kindly show me the make up of their cashflow figure for investment property 4,695,509 noting that under note 39 they have already handled the 5,118,581,000 when determining the cash from operations 3,631,542,000 Like you, I cannot figure out exactly how they got to the 4,695,509 figure and am annoyed that I cannot. Some of it clearly comes from capitalised subsequent expenditure on existing properties, but I cannot reconcile everything precisely. For what it's worth, I am not terribly worried by it. To put it in context, Safaricom switched from reporting cost of sales in 2013 to direct costs and other expenses in 2014 and that change also drove me crazy trying to reconcile. I prefer consistent reporting, but I wasn't worried that they were trying to hide anything. I'm not in this case either. Sometimes things just get shifted around due to a rules change or management preference. As long as it isn't intentionally shady, it isn't a problem. It cant be from anything capitalised or what not ,it has to be cash hence its presence in the cash flow.... Their reporting format is consistent from last year and before (which btw also had fraudulent elements) hence am not buying the switching format argument. For that reason I'm calling their accounts shady and their omission intentional/fraudulent until someone shows me otherwise...I'm willing to learn I understand your point. Send them an email. I did it once with Dangote and actually got a direct reply. If you don't ask, you don't get!  They impliedly valued 2 Rivers at 23B. The mall is yet to open, yet to book a revenue. That is when they lost me. Creative accounting at work. Life is short. Live passionately.
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