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.
