TABUNG HAJI
E.S. Shankar: The reserves of an entity are the accumulated profits less losses, dividends and write-offs of any biz entity from the time it started operations.
TH shows the reserves are negative. Basically it means the accumulated losses exceed profits by abt $3 billion.
Yet, they hv been consistently paying dividends? How is this possible? It cannot happen in a Plc or private limited company.
So, they must be using new deposits to pay dividends. TH has very peculiar way of calculating funds available for paying divs. It's not a prudent policy just to keep its depositors happy!
E.S. Shankar: You can also see the window dressing in TH bal sheet. $2.8 billion div is a liabilty coz its due to be paid. Yet its shown as part of depositors funds.
Normally, proposed dividends will be shown under accruals/other creditors and correspondingly deducted from reserves.
The way its presented, it boosts depositors funds (capital) and understates negative reserves!!! This is called window dressing to fool the masses & kampong mak ciks & pak ciks!
Are you in need of a loan. Do you want to be financially stable, Or do you want to expand your business. We offer company loan, Auto loan, Business loan,and personal loan at a very reduce interest rate of 3%, with comfortable duration which is negotiable. This offer is open to all that will be able to repay back in due time. Get back to us if interested with our Email: urgentloan22@gmail.com
ReplyDelete