Btw, who is this Shankar anyway?

steadyaku47 comment : On the 8th of February I posted the following ES Shankar's piece on Tabung Haji. And below is a reply from Khairul Ashram Muhamad. Read both and make up your own mind as to the veracity of both.

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!

Khairul Ashraf Muhamad · 4 mutual friends

Bengap pegi share article bengap yang ditulis orang bengap, dan ramai bengap percaya . Benda tu clearly xbetul n sampah . It shows nothing except that it shows that fella is stupid and know nothing about accounting . I’m not sure whether u have read or not that article but i’m not gonna share that article because it’s not worth sharing . Anyway financial statement for 2017 still not released yet but this mangkok used 2016 financial statement .

Answering his stupid allegation ;

1 - “ TH shows the reserves are negative. Basically it accumulated losses exceed profits by about $3billion “

This stupid fella referring to the column “ other reserves “ under Fund Represented section . From where this number comes from ? This number comes from CHANGES IN FAIR VALUE OF SECURITIES AVAILABLE FOR SALE + FOREX LOSS FOR FOREIGN OPERATION . What does it mean ? It’s just a paper loss not real loss . That paper loss happen because of market for 2015-2016 is not really good and everyone know our currency depreciating . If incase TH have to realise the loss , it is already counted .

2 - “ You can also see the window dressing in TH balance sheet . $2.8billion dividend is a liability because it’s due to be paid . Yet its shown as part of the depositors fund . The way its presented, it boost depositor fund “

Aduhaii . There’s no window dressing or creative accounting la dol . First u have to understand TH account is not like normal company account , they have no shareholder . Who held the equity ? To make it easy to understand , depositor hold the “equity” . That’s why no equity section in TH financial statement but they used FUND REPRESENTED by section and that’s why “ non controlling fund “ is put under the same section ( Non controlling fund is the EQUITY of subsidiary not attributable directly or indirectly to TH ) . So if u understand this , u will know straight away there’s no window dressing activity . When TH paid dividend(HIBAH) , TH doesn’t issued any cheque or bank in to depositor normal saving account . TH MASUKKAN BALIK DALAM ACCOUNT TABUNG HAJI PENDEPOSIT . That’s why it’s shown in Fund Represented by section and obviously it will boost depositor fund .

Nak sokong pembangkang tu hak korang , nak jadi bengap pon hak korang jgk tapi tolonglah jangan hasut orang utk jadi bengap sama .