[Archived] Company Accounts Til 31St March 2015

[1864roverite]

I would imagine if any financial irregularities had been found, they would have reported it by now and at the very least we would have probably seen men in suits hitting Ewood and talking every piece of paperwork/computers from every office !

[Stuart]

Could someone merge these two threads. It's getting hard to keep up. Maybe a "megathread".

[yoda]

Could someone merge these two threads. It's getting hard to keep up. Maybe a "megathread".

"Megathreads" the new elixir of life on brfcc

[Ben-2000]

I am sure the local paper are running scared and don't want to ask awkward questions. The reporter is due to leave soon, so I may send him a quick tweet and see what he has to say.

This was the LT article when the last auditors went, so I think not running it this time would back up your opinion.

http://www.lancashiretelegraph.co.uk/news/blackburn/8937435.Blackburn_Rovers_sever_links_with_accountants/

[Snowman54]

I have not reviewed the whole thread but am I correct that it is BRFC LTd from whom the accountants have resigned and not Venky's London in which case the accounts to 30th June 2015 will not yet have been prepared as they are normally not available until around November time each year.

Can anyone confirm that the accountants have also resigned from Venkys London?

[yoda]

You would think a statement was in order From Sicknote, the bean counter and Shaw Shaw

[The Gull]

Four main reason auditors resign:

1- the engagement is not profitable for them

2- the environment they work in is not agreeable, this could be location or conditions or managements attitude towards them

3- they do no believe the company is managing risks correctly

4- it is the end of their tenure and they have decided they don't want to continue

Reason 3 would need a statement to have been sent with the resignation letter giving their reasons and that these reason should be shared with shareholders.

Even though these auditors are for Venkys London Limited they would need comfort in any subsidiaries, which is Blackburn Rovers essentially, or they could not have signed off the accounts without a qualification. The accounts state that there are no breaches or material concerns that need to be brought to the attention of the reader.

That is key. Any material doubts would need to be expressed. Material does not just mean financially but also by nature, such as a criminal or regulatory offence that would impact the trade of their main business.

Basically they would have had up to the date the accounts were submitted to make any observations and they didn't.

Relationships with auditors can break down if you have differences of opinions, but if the company does not agree with something the auditor is duty bound to mention it in the accounts should it be material.

My theory is they have found either Venkys/Rovers difficult to deal with or they feel the industry is getting too complex and have no desire to invest in a specialist on the industry, or Rovers weren't willing to accept an increase in their rate.

If something big has been found out by the auditors after the submission of the accounts then all the conspiracy theories could come true, only sight of the resignation reason would clarify that and it is highly unlikely in my opinion.

[Roverthechimp]

Have KPMG resigned from VLL as well? Not seeing that on companies files??

[Kamy100]

Here is another view on the resignation from an accountant working for one of the big four accountants:

Just a few thoughts on the resignation of auditors at Rovers,

Rovers were previously with PM&M accountants for over 100 years I am led to believe. Then when Venky's took over, they were switched across to KPMG.

KPMG are the top 4 in accountancy firms in the world. Behind only PWC and Deloitte. So the move across to them was a very good one as they have numerous tax and accounting experts which would only benefit Rovers.

Having looked at the year-end accounts on Companies House, I believe that KPMG have done the year-end audit for the previous 5 years. The norm is that companies change auditors every 3-5 years. Therefore, this change does not seem to be something very alarming.

Another reason why I feel as though this isn't something we should worry about is that if something was wrong, then KPMG have a duty to disclose this in the year end accounts that have just been published. Having had a read through the accounts, although they don't make great reading, there is nothing to indicate from KPMG that there has been an issue.

The likelihood could be that the club may have had a disagreement with the auditors on something e.g. Accounting policies and for that reason, the auditors have resigned or alternatively, the club has dispensed of KPMG's services.

It will be interesting to see who Rovers appoint next as their auditors. Personally, I feel Rovers appointed KPMG and had some sort of arrangement with them whereby they produce the accounts for the next 5 years. Now that time has lapsed, both parties have mutually agreed to part ways.

All in all though, this is something the fans shouldn't be too concerned about. Biggest fear should be starting the new season with Chris Brown as your main striker!

[1arC]

You would think a statement was in order From Sicknote, the bean counter and Shaw Shaw

The silence is deafening and given that the latter is dated 14/08/15 they have had plenty of time to do so and assuming it was all just standard stuff, why the delay?

[Riverside67]

Cheers Kamy

Just when the stress levels were beginning to drop after the re assuring comments about the auditors you deliver that very nasty sting in the tail.

You cannot help but feel that means two things.

You believe both Gestede and Rhodes will go.......................feels like that is an inevtability now given the shambles the club has got itself into.

A main threat from a never fit Brown means relegation has to be a distinct probability this year and dreadful games v Burnley and PNE to fear.

How are the season ticket sales going set in that context.

It all looks pretty bleak at the moment.

[SoldierMo]

Or maybe rovers wanted to show greater losses than there actually was so that they can remain in embargo hence not spend any money and make money ie transfers and management can hide behind the reason of the embargo

[AllRoverAsia]

What a brilliant piece of a-rse covering. It makes me puke.

[Athlete]

Here is another view on the resignation from an accountant working for one of the big four accountants:

Just a few thoughts on the resignation of auditors at Rovers,

Rovers were previously with PM&M accountants for over 100 years I am led to believe. Then when Venky's took over, they were switched across to KPMG.

KPMG are the top 4 in accountancy firms in the world. Behind only PWC and Deloitte. So the move across to them was a very good one as they have numerous tax and accounting experts which would only benefit Rovers.

Having looked at the year-end accounts on Companies House, I believe that KPMG have done the year-end audit for the previous 5 years. The norm is that companies change auditors every 3-5 years. Therefore, this change does not seem to be something very alarming.

Another reason why I feel as though this isn't something we should worry about is that if something was wrong, then KPMG have a duty to disclose this in the year end accounts that have just been published. Having had a read through the accounts, although they don't make great reading, there is nothing to indicate from KPMG that there has been an issue.

The likelihood could be that the club may have had a disagreement with the auditors on something e.g. Accounting policies and for that reason, the auditors have resigned or alternatively, the club has dispensed of KPMG's services.

It will be interesting to see who Rovers appoint next as their auditors. Personally, I feel Rovers appointed KPMG and had some sort of arrangement with them whereby they produce the accounts for the next 5 years. Now that time has lapsed, both parties have mutually agreed to part ways.

All in all though, this is something the fans shouldn't be too concerned about. Biggest fear should be starting the new season with Chris Brown as your main striker!

The clubs a sham from top to bottom until Venky's Go things will only worsen lose Rhodes and Gestede and we're looking at league one

Can see it being a long road back when the charlatans actually do.. I for one will take that now if it means getting rid of the parasites

[tomphil]

You would think a statement was in order From Sicknote, the bean counter and Shaw Shaw

A decent reporter with an ounce of feeling for the club from the local paper should be all over this and asking the questions.

[Gav]

A decent reporter with an ounce of feeling for the club from the local paper should be all over this and asking the questions.

My thoughts exactly, just said the same to the wife.

Could be nothing in it, but questions need asking on numerous points to do with Blackburn Rovers, sadly we on have Harris at the daily mail who has shown any interest.

The local reporter is out of his depth.

[DavidMailsTightPerm]

A decent reporter with an ounce of feeling for the club from the local paper should be all over this and asking the questions.

Would it not be appropriate to give the guy a chance to look at all angles - rather than jumping to every conclusion under the sun (as has happened on this MB since Kamy dropped the bombshell) ?

[tomphil]

Would it not be appropriate to give the guy a chance to look at all angles - rather than jumping to every conclusion under the sun (as has happened on this MB since Kamy dropped the bombshell) ?

What's he ever done except state the bleeding obvious ? He's on holiday anyway but there are other reporters at the rag.

[Gav]

Would it not be appropriate to give the guy a chance to look at all angles - rather than jumping to every conclusion under the sun (as has happened on this MB since Kamy dropped the bombshell) ?

Tell me 1 angle he's looked at since taking over the role?

Any news stories he's broke that haven't been picked from here?

He's out of his depth.

[ABBEY]

Would it not be appropriate to give the guy a chance to look at all angles - rather than jumping to every conclusion under the sun (as has happened on this MB since Kamy dropped the bombshell) ?

The first thing wheelcock did was blame fans and stuck up for kean

[Iceman]

I would imagine if any financial irregularities had been found, they would have reported it by now and at the very least we would have probably seen men in suits hitting Ewood and talking every piece of paperwork/computers from every office !

Now that would have probably been in an indirect way, just possibly what we needed to get rid of the scum. Wouldn't have been nice to view as fans, to see the club in such mess though. However. I think all it takes, is for 1 person to leak something big, and we can celebrate. BUT, nobody with information has dared to reveal what they know, and I'm not sure if its money that is keeping them silent, or something else.

Could someone merge these two threads. It's getting hard to keep up. Maybe a "megathread".

Sounds like one of those Dinosaurs on Jurassic World Stu. Megathreadasaurus

[tomphil]

Would it not be appropriate to give the guy a chance to look at all angles - rather than jumping to every conclusion under the sun (as has happened on this MB since Kamy dropped the bombshell) ?

Still no mention of it in the paper from what I can see. Not so much all angles but NO angles which is strange given they lift half their 'news' from on here.

[yoda]

I think you may be over egging the situation MM, as an accountant you are making judgements based solely on published past figures and from an accountants point of view. As we all are making judgements.

Venky's will have their accountants advising on the current situation and advising on a course of action, with the Venky's formulating some kind of "plan".

They will be looking at it from a different perspective than all the accountants. If they were going to pull the plug, I think they would have done it by now.

Indian businesses in general always look long term at projects, not the new "pay back in 12 months" that seems prevalent in the west these days, which has lead to many fine companies being transplanted to foreign locations on the advice of accountants who may have had to much say in the business, especially in the UK manufacturing industry as an example.

The figures do not look good to any of us, they probably don't look good to the Venky's, but it is their money and their business.

I think there is a growing acceptance that the only way they will get their money back is if we get back to the PL.

Do we have the right team in place to achieve that, I don't think so, so the advice the Venky's are still taking seems suspect to me.

If that can be sorted, then we may see some light at the end of a long dark tunnel.

Looks like more people are beginning to question this

http://www.bbc.co.uk/news/business-33718644

[PLJPB]

A new filing at Companies House dated 31st July states that they have put another £22 million of share capital into Venkys London Limited!

This brings their total 'investment'/loss to £123m of shares plus another £16m capital contribution = total of £139 million!

Why, why, why...? What do they get out of this on-going drain on their resources?

[JHRover]

A new filing at Companies House dated 31st July states that they have put another £22 million of share capital into Venkys London Limited!

This brings their total 'investment'/loss to £123m of shares plus another £16m capital contribution = total of £139 million!

Why, why, why...? What do they get out of this on-going drain on their resources?

£100 million given to Sam Allardyce - we'd be in the Champions League by now.