An audit on the financial status of the ailing Nakumatt Holdings, has contradicted earlier details given by the company's director.
For instance, the audit report compiled by Parker Randall indicates that the company made a net loss of Sh6.5 billion from February 2018, with liabilities exceeding Sh17.9 billion.
However, its director Atul Shah earlier insisted that the retailer was in sound financial position, also not touching on the fact that the company has a shareholders deficit of Sh27 billion.
‘’Having made an assessment of the company’s ability to continue as a going concern, the directors are not aware of any material uncertainties related to events or conditions that may cast doubt upon the company’s ability to continue as a going concern,’’ he had said earlier.
However, the auditor has unearthed a number of inconsistencies.
According to the auditor, Nakumatt management did not avail sufficient evidence on opening balances.
The auditor further noted that he was unable to ascertain inventory values contained in financial statements, due to the management failure to provide proper costing schedules.
"We were unable to satisfy ourselves by alternative means concerning the inventory quantities held on February 28, 2017, and 2018 which are stated in the statement of financial position at Sh5 billion and Sh1 billion, respectively," says the auditor.
The company has been closing down outlets across the country, among the latest ones being the Nakuru branch which was located on West Side Mall, which has been taken over by Naivas.