C&I Leasing Explains Impact of Financial Error of Subsidiary

C&I Leasing Plc last Friday said the financial error in the audited accounts of its Ghana subsidiary, Leasafric Ghana Limited (Leasafric) will have insignificant impact on its 2019 audited results.

C&I Leasing owns 71 per cent equity stake in Leasafric and the subsidiary contributes about 10 per cent to the group’s financial performance.

The company had last month notified the Nigerian Stock Exchange (NSE) and market operators that the board of directors of Leasafric Ghana would to review the matter and would notify all regulators including the Bank of Ghana and carry out a special investigation into the circumstances surrounding the likely errors in the Audited Accounts.

According to the company, while the exact amount in question will be ascertained by the ongoing investigations, “we estimate that the write-off of the amount may not have any material impact on the group’s net earnings for 2019. Nevertheless, we assure all the stakeholders and the investing public that C&I Leasing Plc is resilient and well diversified to cushion any likely impact of the financial error.”

In a notification on Friday, C&I Leasing said following the review, the Auditors recommended that the financial statement be restated for 2018 in order to effect the correction.

“Based on the Auditor’s review, C&I Leasing Plc has estimated the impact of the restatement on its Group’s 2019 financial performance to be a maximum of N25.5 million and therefore considered not significant. C&I Leasing assures its stakeholders and the investing public that the group is resilient and well diversified to cushion the impact of the above detected financial error and adequate and robust control frameworks are in place to prevent a recurrence,” the company said.