Thursday, March 23, 2023
  • Login
No Result
View All Result
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
No Result
View All Result
The News Beam
Home News

Auditors warn investors as Chellarams Plc posts N3.7bn loss

November 2, 2021
in News, Business & Economy, Finance, Uncategorized
Reading Time: 5 mins read
0
A A
0
Auditors warn investors as Chellarams Plc posts N3.7bn loss
Share on FacebookShare on Twitter

Auditors of Chellarams Plc have warned investors over the dwindling  fortunes of the company, saying the continued existence of the company is doubtful in view of the N3.7 billion loss and  negative shareholders’ funds of N6.81 billion recorded as well as the  withdrawal of financial support by banks in  the financial year ended March 2021.

The warning was contained in a Qualified Opinion issued by the audit firm, BDO Professional Services Chartered Accountants, on Chellarams financial statement for the year ended March 31st 2021 released to the Nigeria Stock Exchange (NGX).

Auditors issue Qualified Opinion when they are not  confident about any specific process or transaction that prevents them from issuing an unqualified, or clean, report on the financial statement of a company. 
Founded in 1923, Chellarams Plc is a fully integrated Sales and Marketing Organisation with Pan-Nigeria coverage through an extensive branch network and distributor base.
The Company’s trading operations are focused on distribution of polyurethane, industrial chemicals, raw materials and also providing warehousing and logistics services. Three subsidiary Companies and five associated Companies further comprise the Group’s operations.
Auditors warn investors as Chellarams Plc posts N3.7bn loss
Led by Asiwaju Dr. Solomon K. Onafowokan as Chairman and Aditya Chellaram as Chief Executive Officer, Chellarams recorded another year of dismal performance, as revenue fell by 46% to N1.39 billion  resulting to N3.7 billion loss in the financial year ended March 2021.
This development among others prompted the auditors of the company to warn that the company may be unable to continue as a going concerns.

Auditors Cite Material Uncertainty

In their report to the shareholders of Chellarams Plc and its subsidiaries, the auditors stated: “. Furthermore, we also wish to draw attention to the existence of the following conditions as at year end: 
“Withdrawal of financial support by bankers due to the inability of the Company to meet up with covenant agreements as noted during the year ended 31 March 2020 still subsists; 
“Negative operating cash flows as indicated by historical financial reports; 
“Adverse key financial ratios. Decrease in revenue arising from lack of working capital to import products to meet up with customers’ orders;
“A Mareva injunction restraining the operations of the Parent Company’s bank accounts noted during the year ended 31 March 2020 is yet to be lifted. 
“These conditions indicate the existence of a material uncertainty which may cast significant doubt on the Company’s and group’s ability to continue as a going concern and therefore, the Company and group may be unable to realise its assets and settle its liabilities in the normal course of business. 
“In the event that the Company and the group is unable to continue as a going concern, necessary adjustments would have to be incorporated to the financial statements to reclassify non-current assets and liabilities as current assets and liabilities and provide for further liabilities that may arise.”

CEO blames COVID, CBN

Explaining the reason for the continued decline in the company’s fortunes, Chellarams Chief Executive Officer, Aditya Chellaram, said:
“The recent year was a pivotal and challenging one for us all though our Government did take considered action to reduce the impact of Covid-19 and we see a good number of our customers returning to pre-pandemic levels. 
“However, we did have other challenges to face, including a new policy from the Central Bank of Nigeria that prohibits us from importing dairy products and, as such, we have suspended all operations of our subsidiary Chellarams DMK Ltd.”
Highlighting measures to reverse the dwindling fortunes of the company, the CEO said: “To mitigate further losses, we have taken significant steps to increase our rental income and reduce our overhead and expenses. We have shut down our branches and only operate out of our Lagos hub. 
“A large number of our staff supported us and either took pay-cuts or worked part-time and we could not have made it through this period until now without their loyalty and support. 
“Our subsidiaries Dynamic Industries Limited and United Technical & Allied Services Limited have both seen a growth in demand from their industrial customers. Dynamic Industries has also positively diversified into chemicals sales and this reflects our group strategy to represent strong international companies for speciality products that retain customer’s loyalty and command healthy margins. 
“Devyani International Nigeria Limited has performed well during and after lockdown with a significant increase of takeaway business for its KFC restaurants and had put in place plans to open a new store in Port Harcourt. 
“We believe that our investment in this business is secure. Conditions for the year ahead are improving, though not perfect. We are putting all of our efforts into increasing our turnover, reducing our liabilities and keeping our expenses under control. We thank you for your support during this difficult time.”
Tags: AuditorsChellaramsInvestors
ShareTweetSend
Previous Post

CBN devalues naira, Sells dollar to Foreign Investors at to N444/$

Next Post

Gas Explosion Kills 3, Injures Others In Mushin

Related Posts

Politics

Guber Elections: Tech leaders launch Collate, a live-result viewing platform

March 16, 2023
69
Business & Economy

Bread and Cereal push Nigeria’s inflation rate to 21.91% in February

March 15, 2023
21
Business & Economy

CBN bows to Supreme Court, says old N200, N500, N1000 remain legal tender

March 13, 2023
51
Business & Economy

Naira scarcity: Nigerians use PoS for 113.5 million transactions in February 

March 13, 2023
13
Business & Economy

Naira Scarcity: Buhari says CBN has no reason not to comply with Supreme Court Judgement on old N500, N1000

March 13, 2023
65
SPECIALS

How Lagos landlord send tenant parking after 6 months, and millions spent to renovate apartment

March 13, 2023
56
Next Post
Close-up of Blaze fire flame at night.

Gas Explosion Kills 3, Injures Others In Mushin

#EndSARS Panel Report: Nigerians Call For Action Against Sanwo-Olu

#EndSARS Panel Report: Nigerians Call For Action Against Sanwo-Olu

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

  • Trending
  • Comments
  • Latest
How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

October 16, 2020
Covid-19: See List of Vaccination Centers in Lagos State

Covid-19: See List of Vaccination Centers in Lagos State

August 19, 2021
Banks suffer 11% reduction in new loans as customers resist interest rate hike

CBN reveals 9 Business Categories that recorded Increased Activity This Month

9
BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from 'Anonymous' hack

BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from ‘Anonymous’ hack

7

Guber Elections: Tech leaders launch Collate, a live-result viewing platform

March 16, 2023

Bread and Cereal push Nigeria’s inflation rate to 21.91% in February

March 15, 2023

Categories

  • Agriprenuers (12)
  • Books & Arts (7)
  • Business & Economy (442)
  • Capacity Building (25)
  • CDAs (2)
  • Community Champions (1)
  • Crime (196)
  • DEVELOPMENT (74)
  • Development Agencies (109)
  • Economy (319)
  • Education (193)
  • Entertainment (405)
  • Faith (55)
  • Finance (342)
  • Global (103)
  • Guest Columnists (17)
  • Health (56)
  • Health (242)
  • Industry (149)
  • LGAs (1)
  • Lifestyle (98)
  • MGDs (10)
  • News (2,305)
  • Politics (376)
  • Projects (2)
  • Relationships (70)
  • Security (164)
  • SMEs (15)
  • SPECIALS (88)
  • Sports (311)
  • Street Money (9)
  • Tech (138)
  • Teens World (3)
  • The Entrepreneur (26)
  • Uncategorized (74)
  • Your Community (33)
  • Youthprenuers (14)
No Result
View All Result
News
Politics
Business & Economy
Sports
Entertainment
Global

Development

Health
Education
MGDs
Development Agencies

Your Community

CDAs
LGAs
Projects
Community Champions

The Entrepreneur

Street Money
SMEs
Youthprenuers
Agriprenuers
Capacity Building

Specials

Lifestyle
Relationships
Books & Arts
Faith
Teens World
Guest Columnists

Follow Us

  • About Us
  • Contact Us
  • Terms of Usage
  • Privacy Policy
  • Advert Rates
  • Newsletters
  • Resources
  • Submit a Story
No Result
View All Result
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
  • Login

© 2020 The News Beam is the highest circulated and most read newspaper in Nigeria. The online portal of The News Beam is the most visited website in the world.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Subscribe With The News Beam