Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Contribute
Submit Post

Latest topics

» Seylan right issue
by Winner123 Today at 11:28 am

» EAST WEST PROPERTIES PLC (EAST.N0000)
by Invest2018 Today at 10:25 am

» What's going on about vone
by glad Today at 9:09 am

» POSITIVE ECONOMIC & POLITICAL STABILITY
by CITIZEN Today at 8:53 am

» SEYLAN BANK PLC (SEYB.N0000)
by Intrinsicvalue Today at 6:29 am

» Central bankers trigger crises, don’t admit or learn from mistakes: economist at Sri Lanka forum
by fireshelter Yesterday at 11:18 pm

» Sri Lanka targets US$6,500 per capita income by 2025
by fireshelter Yesterday at 11:15 pm

» RENUKA CAPITAL PLC (KZOO.N0000)
by fireshelter Yesterday at 10:49 pm

» RENUKA AGRI FOODS PLC (RAL.N0000)
by fireshelter Yesterday at 10:45 pm

» GALADARI HOTELS (LANKA) PLC (GHLL.N0000)
by fireshelter Yesterday at 10:42 pm

» Banking Sector
by PDH Yesterday at 8:16 pm

» Shares to Buy
by ColomboCSE Yesterday at 6:56 pm

» Dhammika Perera Aquire ALUF @23 Now at 50%Discount
by NZ BOY Yesterday at 2:02 pm

» ALLIANCE FINANCE COMPANY PLC (ALLI.N0000)
by KavinduTM Yesterday at 1:22 pm

» Company එකක් DELIST කරන...
by ColomboCSE Yesterday at 1:03 pm

» CSE RULES (CSE වල දැනට තියන නීති ගැන)
by ColomboCSE Yesterday at 12:49 pm

» Key to staying in the trading game for Day Traders
by NANDANA2012 Yesterday at 11:30 am

» LANKA IOC PLC (LIOC.N0000)
by Teller Yesterday at 10:35 am

» Investment Advice
by Gajaya Yesterday at 9:17 am

» කාලෙකට පස්සෙ එන අවස්තාවක් උදා වෙලා කියලයි - හැබැයි අවදානම තියනවා
by Kipling Sat Dec 14, 2019 9:31 pm

» LOLC FINANCE PLC (LOFC.N0000)
by wealth123 Sat Dec 14, 2019 9:07 pm

POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC

Advertise

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Expert Chamber » REEF and VFIN- Accountants who can't calculate

REEF and VFIN- Accountants who can't calculate

Go to page : 1, 2, 3  Next

Go down  Message [Page 1 of 3]

innam

innam
Manager - Equity Analytics
Manager - Equity Analytics
REEF results are out and i'm sure we'll get multiple posts about the magical EPS figure of 7 for the March quarter that they have reported.

http://www.cse.lk/cmt/upload_report_file/568_1306907002379.pdf

But it seems that some of the accountants working for CSE listed companies don't seem to know how to use a calculator.

REEF profit after tax for the March quarter 2011 is 14 million and with 47 million shares outstanding my excel gives a figure of 30 cents but REEF is showing an EPS figure of 7.27
Profit after tax March quarter 2010 is 9 million and with 47 million shares outstanding my excel gives a figure of 20 cents but REEF is showing an EPS figure of 4.93
i have left out the dilution from the warrants to keep it simple for the moment

The same thing happened with VFIN yesterday and with two DONKEY LEVEL mistakes in two days, the troubling question to ask is, is this a deliberate attempt to mislead retailers by manufacturing incorrect EPS numbers or aren't they bothered about accuracy?
http://forum.srilankaequity.com/t4305-vfin-good-results-will-it-shoot-up-soon#29045

Don't the CEOs/CFOs/Finance Managers of these companies take look at what they file?

econ

econ
Global Moderator
thanks innam. very good observation as always you do.
I think this is not calculation problem. they may want to fool around investors.

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Man.. Innam is dead correct..

REEF and VFIN- Accountants who can't calculate Reef10

Lets take Group figures;
Equity Holders of the Parent (12 months ended 31-03-11) - Rs.14834000/-
Equity Holders of the Parent (03 months ended 31-03-11) - Rs.15721000/-

Total No of Shares after rights issue - 47,191,953 (as illustrated on the reports)

Therefore; Annual Group EPS = 14834000/47191953 = Rs. 0.314/-
Qurater Group EPS = 15721000/47191953 = Rs.0.333/-

Lets take company figures;
Compnay figure (03 months ended 31-03-11) = Rs.14286000/-
Therefore Company EPS = 14286000/47191953 = Rs.0.30/-

Now from where this magical number 7.27 came from??



Last edited by smallville on Wed Jun 01, 2011 5:19 pm; edited 1 time in total

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
interestingly, admin or moderators or any of the members of you have the contact with the company, why don't you informed to the company and ask them to correct it

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@innam wrote:REEF results are out and i'm sure we'll get multiple posts about the magical EPS figure of 7 for the March quarter that they have reported.

http://www.cse.lk/cmt/upload_report_file/568_1306907002379.pdf

But it seems that some of the accountants working for CSE listed companies don't seem to know how to use a calculator.

REEF profit after tax for the March quarter 2011 is 14 million and with 47 million shares outstanding my excel gives a figure of 30 cents but REEF is showing an EPS figure of 7.27
Profit after tax March quarter 2010 is 9 million and with 47 million shares outstanding my excel gives a figure of 20 cents but REEF is showing an EPS figure of 4.93
i have left out the dilution from the warrants to keep it simple for the moment

The same thing happened with VFIN yesterday and with two DONKEY LEVEL mistakes in two days, the troubling question to ask is, is this a deliberate attempt to mislead retailers by manufacturing incorrect EPS numbers or aren't they bothered about accuracy?
http://forum.srilankaequity.com/t4305-vfin-good-results-will-it-shoot-up-soon#29045

Don't the CEOs/CFOs/Finance Managers of these companies take look at what they file?

Yes, Innam when I saw VFIN report first time I thought two things.
a) They know the greatest of magic
b) maybe as the accountant is indisposed his 4 year old child did the math

On a serious note, as you mentioned the issue is how can it evade 3 qualified peoples eyes it is was a mistake. Accountant , Diretor, CEO ? Twisted Evil

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics
My personal idea is EPS = 7 is correct for REEF

Total equities 1,438,306,000
Total shares 47,191,953
NAV = Rs 30.59

last quarter NAV = Rs 22.39
They haven't include the profit to the PL statement but they have included to the balance sheet.
There are lot of comments about the fairness of the way ( selling lands to subsidiaries at higher prices) they earned Rs 7 EPS during the last quarter. But anyhow now they have NAV over 30.


http://forum.srilankaequity.com/t1561-cse-announcement-about-reef-reef-350mn-capital-gain

innam

innam
Manager - Equity Analytics
Manager - Equity Analytics
@sapumal wrote:My personal idea is EPS = 7 is correct for REEF

Total equities 1,438,306,000
Total shares 47,191,953
NAV = Rs 30.59

last quarter NAV = Rs 22.39
They haven't include the profit to the PL statement but they have included to the balance sheet.
There are lot of comments about the fairness of the way ( selling lands to subsidiaries at higher prices) they earned Rs 7 EPS during the last quarter. But anyhow now they have NAV over 30.


http://forum.srilankaequity.com/t1561-cse-announcement-about-reef-reef-350mn-capital-gain

so this is the target audience for the magic EPS of 7.

i may be wasting my time convincing the target audience but just so newcomers are not mislead- magical land revaluations that take place on the balance sheet (the so called change in NAV) and not on the income statement (eg-mark to market adjustment) CANNOT be taken to calculate EPS. The only thing that can be used for EPS calculation is the earnings shown in the face of the income statement.

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics
I don't have any disagree with your point innam. They can't show a EPS using this statement. It is a magic figure
My point is they had a EPS of Rs 7 during last quarter due to the land revaluation and it is in the balance sheet.

innam

innam
Manager - Equity Analytics
Manager - Equity Analytics
bottom line if these management teams can't even do a simple calculation ( dividing 14 million profits by 47 million shares ), and the error isn't spotted by senior management- what other errors and mistakes are hidden within the detailed accounts?

Fresher


Moderator
Moderator
at least cant the one who prepares spot the large discrepancy between the quarter EPS and the yearly one. purely taking retailers for a ride.
next time they'll type EPS 30 and say they forgot to place the decimal

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@Gaja wrote:interestingly, admin or moderators or any of the members of you have the contact with the company, why don't you informed to the company and ask them to correct it

I already sent them a note requesting an explanation..

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Donno how many more companies have reported like this.

monash

monash
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@innam wrote:bottom line if these management teams can't even do a simple calculation ( dividing 14 million profits by 47 million shares ), and the error isn't spotted by senior management- what other errors and mistakes are hidden within the detailed accounts?

Thank you Innam for your effort. I appreciate it.

I don't see these as mistakes. These may be done purposely to mislead investors. Fortunately this is Sri Lanka otherwise the company and auditors in trouble as investors can sue the company. Because this is CSE they are just playing games and toying investors. We have to think again about the credibility of financial statements at CSE.
Evil or Very Mad



Last edited by monash on Wed Jun 01, 2011 8:54 pm; edited 2 times in total

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
However these are not audited accounts,so audit firm has nothing to do with the quartally reports

xhora

xhora
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Can we really believe auditors?
E.g ENRON & Arthur Andersen

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
For me auditors are not ethical at all. Most of the young guys and girls who works days and nights to meets the deadline are getting paid a allowance (not salary) less than what a estate worker get paid.

So how come we can expect a reliable work from them?

mark

mark
Expert
Expert
guys,same thing i experienced in CSF results,ddn't got correct values......don't know,i may be wrongly calculated,but there was many questions.. Suspect Suspect

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
@smallville wrote:
@Gaja wrote:interestingly, admin or moderators or any of the members of you have the contact with the company, why don't you informed to the company and ask them to correct it

I already sent them a note requesting an explanation..

Good let us know, if you got the reply

Hiru


Manager - Equity Analytics
Manager - Equity Analytics
tinyman wrote:For me auditors are not ethical at all. Most of the young guys and girls who works days and nights to meets the deadline are getting paid a allowance (not salary) less than what a estate worker get paid.

So how come we can expect a reliable work from them?

That is true trainees are doing all the field work for Audits, but there are several stages which pay attention to accounts before they reach to Assigned Partner for his signature, specially in big for Audit Firms. So, have these managers at the audit firm failed to comply with procedures?
However, it seems these statements are not Audited.

Above all, I believe, there must be check for accuracy at CSE before publishing accounts on the CSE Website as all investors are not of the same quality.

GJ


Manager - Equity Analytics
Manager - Equity Analytics
is it good or bad to buy?
--
===
====
=====

Sponsored content


Back to top  Message [Page 1 of 3]

Go to page : 1, 2, 3  Next

Permissions in this forum:
You cannot reply to topics in this forum