QIS Portfolio Performance
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Posted: Friday Apr 22 1:18:09PM 2005
Excellent work Eleonty/Dundee. I have more of a Finance background then Accounting so yourk analysis is appreciated.
Eleonty, can you post you email address or can you email me.
I have some questions I want to take off-line/board.
Posted: Friday Apr 22 12:36:51PM 2005
Dundee, you make very good points.
Sorry, I was a little unclear about some the errors I think exist and how I felt G/L controls were weak. I took a second look and noticed that retained earnings 9 months ended on the statement of operations does not equal that on the balance sheet. Also, check contributed surplus in the third quarter. It showed an increase equivalent to deductions in the previous 2 quarters, yet no deduction existed in the third quarter. Sounds like a problem over the general ledger controls to me.
And although the audit committee may choose to determine an interim materiality....why would they do so if there is no review or audit engagement being completed. It is also obvious the audit committee had not scrutinized the statements; thus, I highly doubt they selected a materiality threshold. Materiality, is a value determined by the auditors NOT the audit committee. Materiality would be used as justification to the audit committee if statements were ever qualified or worse.
Posted: Friday Apr 22 12:29:20PM 2005
Oilspout, thanks so much for the numbers.
I tried calling Serge (CEO) of Ili this morning. Does anybody know if he is in today? I am going to talk to him first and I will let you now how it goes.
I am not sure if I am going to call the securities reg commision. I have done it once in the past and it is alot of hassle but the results are rewarding. Plus, I need more info before I can call. I like looking out for shareholders rights and it is very rewarding for me.
If anything wants to email me they can at email@example.com
Posted: Friday Apr 22 11:04:20AM 2005
looks like QIS beat me to the punch on my posting. We must have been typing at the same time. So did Eleonty! I guess I type slow...
A couple of points:
Eleonty mentioned some great points about materiality, however, I disagree with one point. He notes: "For instance, in the ILI case, although it is likely from a numerical sense that the numbers are not materially misstated, it appears that the controls over the general ledger and account postings are poor."
There is no evidence that there are problems with the general ledger at all, nor that there are problems with accounting postings. Such types of errors WOULD impact the BALANCE SHEET. The statement of cash flow has definitely got problems. The balances on the statement of cash flow are, in very general terms, calculated by looking at the difference between the balance sheet numbers at specific dates (start and end of period). I sugest that the cash flow statement presentation probelms have everything to do with the fact that the person preparing them simply has very little knowledge as to how to do it. Of course, this offers some concern over the technical competence at other accounting tasks, however, like I said, the rest of the numbers appear plausible.
"But the key is that interims are unaudited; thus, no materiality was officially determined for the purposes of those statements."
This is indeed true, there is no "official" materiality level set by the auditors, however, the audit committee of the board of directors should establish an appropriate level of materiality for all interim statements too.
Posted: Friday Apr 22 10:23:47AM 2005
Charlesshan, here are some numbers for you:
ILI office 403-543-0060
TSX Toronto office: 877-421-2369
TSX Calgary office: 877-884-2369
TSX Vancouver office: 877-883-2369
Ontario Securities Commission: 877-785-1555
Let us know what they say.
Posted: Friday Apr 22 8:53:31AM 2005
For the record when has Eleonty been attacked? If you looked at my past posts, all I said is that telling us earlier about the errors would have been the kind thing too do. I realize that Eleonty is not on Ili payroll and that eleonty is not investors relations for Ili.
Oilspout, you suggested that I call the exchange or the reg. commision, well could I have a phone number? Also, I think we should all suggest to Doren to see if we can get Ili CEO to post an explaination of what happenened. Ili has not released many press releases in 2005 yet it looks like the fin issue could have been mentioned in one. The investment public should decide what is material or not material.
Posted: Thursday Apr 21 3:24:46PM 2005
I know that i am to blame for following others such as doren and others on this board. That is my fault.
But tell me why ILI is still a featured company. Here is what is said that is needed to be a featured company:
"QIS Capital only provides updates on those companies which meet our strict investment criteria."
I imagine strict criteria must include competent management......hmmmmm.....competent....like being able to prepare some accurate financial statements in which people may rely on to make investment decisions. They are in the toilet share price wise.....hmmmmm.......is losing millions in share value also part of the criteria.......maybe bre-x should be a featured company.
Posted: Thursday Apr 21 1:07:01PM 2005
Well, all I know is that he is down 70% on ILI since purchase. About the same as me, except it represented 40% of my portfolio. Should I continue to average down, Doren?
Posted: Thursday Apr 21 9:48:44AM 2005
The portfolio is always available to look at by clicking on trading summary and then clicking current portfolio.