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Group Group Bank Bank Report on the revised consolidated financial statements
2008 2007 2008 2007 We have audited the accompanying revised consolidated financial statements of Oceanic Bank Interna-
N'000 N'000 N'000 N'000 tional Plc (“the Bank”) and its subsidiaries (together,” the Group”) which comprise the consolidated balance
sheets as of 31 December 2008, the consolidated profit and loss accounts and consolidated statements of
Cash and balances with central banks 219,603,069 191,872,199 209,928,721 186,871,542
Treasury bills 51,599,267 287,879,611 51,143,306 287,879,611
cash flow for the period then ended and a summary of significant accounting policies and other explana-
Due from other banks 188,624,756 122,163,536 186,354,159 121,287,431 tory notes. These revised consolidated financial statements have been prepared under the accounting
Loans and advances to customers 503,693,644 339,498,600 490,075,624 338,338,721 policies set out therein and replace the original consolidated financial statements approved by the
Advances under finance lease 4,833,839 2,528,240 4,832,376 2,528,240 directors on 28 May 2009.
Insurance receivables 223,437 140,714 - -
Investment securities 104,906,107 32,724,951 80,545,839 31,876,387 Directors’ responsibility for the revised financial statements
Investment in subsidiaries - 67,698 33,068,771 6,013,528
The directors are responsible for the preparation and fair presentation of these revised consolidated finan-
Deferred tax asset 102,098,798 - 101,606,826 -
Other assets 37,885,550 31,464,450 36,529,451 26,083,115 cial statements in accordance with Nigerian Statements of Accounting Standards and with the require-
Investment property 11,865,798 369,623 4,300,000 - ments of the Companies and Allied Matters Act and the Banks and Other Financial Institutions Act. This
Property and equipment 62,969,353 29,726,956 60,959,754 29,562,312 responsibility includes: designing, implementing and maintaining internal control relevant to the prepara-
Total assets 1,288,303,618 1,038,436,578 1,259,344,827 1,030,440,887 tion and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates
Customer deposits 1,088,881,437 693,924,840 1,090,506,806 690,394,946 that are reasonable in the circumstances.
Due to other banks 81,133,911 12,621,065 79,144,343 11,251,881
Liability on investment contracts 463,664 61,441 - - Auditor’s responsibility
Borrowed funds 85,504,350 21,460,070 77,920,850 21,460,070 Our responsibility is to express an opinion on these revised consolidated financial statements based on our
Current income tax 2,461,024 4,184,958 886,969 3,952,555 audit. We conducted our audit in accordance with International Standards on Auditing. Those standards
Other liabilities 52,867,108 78,583,220 42,478,234 77,155,872
require that we comply with ethical requirements and plan and perform our audit to obtain reasonable
Provision on insurance contracts 1,033,847 477,364 - -
Deferred income tax liabilities - 3,112,360 - 3,077,686 assurance that the financial statements are free from material misstatement.
Retirement benefit obligations 3,764,955 880,882 3,352,809 672,491
1,316,110,296 815,306,200 1,294,290,011 807,965,501 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the revised financial statements. The procedures selected depend on the auditor’s judgement, including
Equity the assessment of the risks of material misstatement of the revised financial statements, whether due to
Share capital 11,110,685 5,821,003 11,110,685 5,821,003
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
Share premium 176,748,589 14,677,493 176,748,589 14,677,493
Retained earnings (230,375,878) 16,284,975 (237,185,268) 16,013,220
entity’s preparation and fair presentation of the revised financial statements in order to design audit proce-
Other reserves 14,816,834 14,409,901 14,380,810 14,380,810 dures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
Deposit for shares - 171,582,860 - 171,582,860 effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of
Equity holders of parent (27,699,770) 222,776,232 (34,945,184) 222,475,386 accounting policies used and the reasonableness of accounting estimates made by the directors, as well as
Non-controlling interest (106,908) 354,146 - - evaluating the overall presentation of the revised financial statements.
Total equity (27,806,678) 223,130,378 (34,945,184) 222,475,386
The audit of revised financial statements includes the performance of procedures to assess whether the
Total equity and liabilities 1,288,303,618 1,038,436,578 1,259,344,827 1,030,440,887
revisions made by the directors are appropriate and have been properly made.
Acceptances and guarantees 171,929,386 219,535,338 170,812,831 224,135,338 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
In our opinion the revised consolidated financial statements give a true and fair view of the state of the
Group Group Bank Bank financial affairs of the Bank and the Group as of 31 December 2008 and of their losses and cash flows for
15 months to 12 months to 15 months to 12 months to
the period then ended in accordance with Nigerian Statements of Accounting Standards, the Companies
December September December September
2008 2007 2008 2007 and Allied Matters Act and the Banks and Other Financial Institutions Act.
N'000 N'000 N'000 N'000
Matter of Emphasis
Gross earnings 118,298,499 74,936,710 106,038,572 73,746,812 Without qualifying our opinion, we draw attention to the following matters.As described in note 2 in the
financial statements, the current management team of the bank which resumed in August 2009 identified
(Loss)/Profit before taxation (338,233,659) 23,007,153 (345,724,748) 22,341,307 significant errors and irregularities in the accounting records of the Bank and some of its subsidiaries, which
Taxation 103,557,554 (5,469,912) 104,401,107 (5,207,222)
were indicative of management override of processes and controls. In response, the current management
(Loss)/Profit after taxation (234,676,105) 17,537,241 (241,323,641) 17,134,085
Non-controlling interest 96,387 (4,764) - -
team carried out a comprehensive exercise designed to identify and correct all material errors in the
(Loss)/Profit attributable to the group (234,579,718) 17,532,477 (241,323,641) 17,134,085 accounting records. This exercise resulted in the recognition of loans amounting to N231 billion that were
previously not recognised, additions to provisions for loans and interest-in-suspense amounting to N238
Appropriated as follows: billion and N78 billion respectively, and other adjustments set out in note 2.As described in note 43 in the
Transfer to statutory reserve 29,557 2,570,113 - 2,570,113 financial statements the Bank and the Group incurred losses before tax amounting to N346 billion and
Transfer to SMEIS reserve - 856,704 - 856,704 N338 billion respectively for the period ended 31 December 2008 and had negative shareholders funds of
Transfer to contingency reserve 176,733 26,591 - - N35 billion and N28 billion respectively as of that date. These conditions, along with other matters as set
Transfer to retained earnings reserve (234,786,008) 14,079,069 (241,323,641) 13,707,268
(234,579,718) 17,532,477 (241,323,641) 17,134,085
forth in note 43 indicate the existence of a material uncertainty which may cast significant doubt about the
bank’s ability to continue as a going concern. However, as indicated in note 43 the bank has received finan-
cial support from the Central Bank of Nigeria and has also received a confirmation of continued financial
Earnings per share (basic) (N10.56) N1.51 (N10.86) N1.47 support for a period of at least 12 months from the date of these financial statements."
Dividend per share (proposed) - 102k - 102k
Report on Other Legal Requirements
The Companies and Allied Matters Act and the Banks and Other Financial Institutions Act require that in
carrying out our audit we consider and report to you on the following matters. We confirm that:i) we
obtained all the information and explanations which to the best of our knowledge and belief were neces-
sary for the purposes of our audit;ii) in our opinion proper books of account were kept by the Bank;iii) the
Bank’s balance sheet and profit and loss account are in agreement with the books of account;iv) our exami-
Apostle Hayford I. Alile Mr John Aboh nation of loans and advances was carried out in accordance with the Prudential Guidelines for licensed
Chairman Managing Director banks issued by the Central Bank of Nigeria; v) related party transactions and balances are disclosed in Note
35 to the consolidated financial statements in accordance with the Central Bank of Nigeria Circular
The balance sheets, profit and loss accounts, report of the independent auditor and specific disclosures are
published in compliance with the requirements of S.27 of the Banks and Other Financial Institutions Act.The Contraventions
information disclosed have been extracted from the full financial statements of the bank and the group and During the period, the bank contravened certain provisions of the Banks and Other Financial Institutions
cannot be expected to provide as full an understanding of the financial performance, financial position and Act and the relevant circulars issued by the Central Bank of Nigeria. The details of these contraventions are
financing and investing activities of the bank and the group as the full financial statements. Copies of the full disclosed in Note 42 to the consolidated financial statements."
financial statements can be obtained from the Registrars of the Bank.

Chartered Accountants 11 June 2010


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