The health of Carmanah Technologies seems to be a concern, and as an investor i have noted a few discrepancies in their financial statements.
I would be grateful if anyone can comment on the following points;
1. Their 4th quarter results are not listed. The company posted a loss of $48,528 for the 1st quarter 2002. The 2nd and 3rd quarters saw profits of $31,140 and $43,472 respectively. Final year profits give a total of $36,393. Simple math on these amounts tell us that the 4th quarter profits only reached $10,309, 75% down on Q3 - yet had a seemingly greater turnover. Furthermore, the company has included in their summary of results a figure of $51,364 for interest income - does this mean that if they weren't receiving interest on unused shareholder funds they would have posted another loss?
2. A bank loan of $140,000 has appeared in the financial statements which wasn't their last time. Even with a claimed $500,000 grant and another private placement, the company still ran so short of money they needed a bank loan?
3. CMH also claims a large % of their turnover comes from a successful online shopping cart. This should provide high profit margins and good cash flow through credit card transactions, yet the high accounts receivable doesnt reflect this. Also, is their a provision for bad debts, or is trading on a 30 day money back guarantee simply inflating sales figures?
Any comments would be appreciated.
Regards, EB
