Verde Agritech Ltd T.NPK

Currency loss Q2

[ICT1111]

Stan, I've just been taking a closer look at the Q2 numbers. I note that we have a currency loss on conversion to C$, hasn't that trend reversed? Is it possible that the loss of ~1.8m on currency is actually a profit? If this is the case that is a C$3.5m swing........ please put me in my place if I am wrong!

[15Stanmore]

Hello ICT1111. Your conclusion is the same as mine - the Brazil Rias appreciated against the Canadian dollar during Q2, so the translation adjustment reported as a $1,760,000 loss should have fact been a $1,760,000 gain.  This means the Q2 2021 Comprehensive Loss of $1,681,000 reported by the Company on page 3 of the statements is incorrect, and should instead be reporting a Comprehensive

[ICT1111]

Surely this correction is top urgent as investment decisions may have been made on the basis of the incorrect numbers leaving us exposed to law suits?

[15Stanmore]

Hello ITC1111, That was the main point of my communication to the ILD and Verde's CEO - if this is a mistake (and I have no doubt that it is) - the longer it goes unacknowledged and uncorrected the more risk and liability is accruing against our Company from investors who relied on the $3.5 million mis-stated earnings numbers. Given they were informed of the error on Monday afternoon and

[ICT1111]

I am so glad that you are on top of this Stan. 

[15Stanmore]

WIth over 800,000 Verde shares in various family portfolios, this is a significant holding for me, so I naturally follow it very closely. Updating various spreadsheets and models every quarter to add all the new numbers released by the Company very quickly identifies inconsistencies, especially where the predicted numbers are so different from what the Company reports as "actuals". This

[15Stanmore]

Just in case you wanted to see the post where I disclosed reporting the foreign exchange error in the Q2 statements to Verde on Monday after I had reviewed the information had just been released. The Company never acknowledged my reporting of the error and It took them over a week before they caved and issued amended statements "to address a typographical error".  Oh right, a 3.5