@XXXXX and @Fyatu are rather quiet at this turn of events.

What would you want them to say bwana Kwiklana.. That @Obiero had warned them of the folly of chasing a rapidly moving monkey?

Haha...any responsible investor would know that this is not NEWS and should not elicit noise or even a reaction fOtherwisearket. All this is already priced in and was the main reason why @the price tanked decisively in April, May and the larger part of June.

The issue is simple. The auditor's challenge was doubts about the going concern of @ARMCement because as at reporting date, CDC had not committed to supporting the group's survival given the deteriorating Working K position. The auditor's concerns were mainly due to the fact that AFC's long term debt as well as the banks' loans were due this year.

The auditor has been engaged as group auditor for over 10 years. During that time, @ARM has constructed plants in TZ to the tune of so many billion KES. This plant is carried as PPE in the group's books.

The funds were advanced to Maweni Limestone which is 100% owned by @ARM. So there's a payable to @ARM in Maweni Limestones books as well as a receivable from Maweni in @ARMs books which cancel out on consolidation.

The auditor wanted either 1) this receivable to be provided for by @ARM which doesn't make sense because of the related party relationship and cancellation on consolidation which leaves a net of zero.

2) Failing that, because Tanzania is not performing, the auditor then wanted to impair this PPE which also didn't make sense since @ARM was in the process of debt restructure as well as confirming support from CDC which is now confirmed.

If you try to understand the reality of the situation, you would see the opportunity. Just a little bit of research and reading may open your eyes. Otherwise, stick to companies you purport to understand.

Just to be clear, if CDC had confirmed the debt restructure terms and conditions before the reporting period, the auditor would have been satisfied with ARMs going concern status and such provisions/impairments would never have been mooted. We wouldn't even be having this discussion regardless of ARMs financial performance.

The zig zagging of @ARMCement's price (or any other security for that matter) in the short term owing to regurgitated noise shouldn't blow you off your investment principles bwana. This is a stock market.

As always, if its not palatable for you, sit back, watch and learn.

Well what you wrote above this post is like an essay, couldn't even finish it. Cha muhimu ni uhai :)

Both @ARM TZ and Maweni are 100% sub's. But Maweni is the one that deals with the manufacture of cement and related products ( the subs which @ARM said they didn't intend to sell).
As for the talks the truth is CDC got burnt and really dragged their feet. In fact, if you recall, they were looking for an exit at some point. So the decision to remain/back ARM was not taken lightly I promise you.

The auditor just read their opinion page as included in the annual report..as well as referring questions to the going concern note in the FS.

Still think that balance sheet is hiding alot more skeletons than what has been revealed so far. Time will tell.

@Obiero is all smiles

The time is nigh for Paunrana to make an appearance on rich Tv(https://www.rich.co.ke/rctools/richtv.php) as he used to do in the past and put the record straight.

What about safaricom and kengen bonds? ARM was junk bond

The pain of these Kenya corporate bonds