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Kuflink’s Audit and EY Resign: An Update

 

Kuflink has been in the peer to peer market since 2016. The company has built its image on transparency, steady returns and due diligence. However, the firm made some headlines when EY quit as Kuflinks auditor in February. According to the letters, there was lack in Kuflink governance, and there was poor record keeping. However, there is no suggestion from the provider of wrongdoings.

Since the report came out, Kuflink has joined hands with a new auditor’ MHA Maclntyre Hudson’ and has addressed the issues raised by EY.

Narinder Khattoare – Kuflink CEO has issued a statement that “the company is in good health” after EY raised concerns regarding governance.

In his latest statement, the CRO provided an update on the firm’s latest Audited Account for 30 June 2019 published at Companies House, filed by Ernst & Young in 2021 February.

He continued to shed light on some important news which EY forgot to mention in their statement “Kuflink’s board had made the decision to appoint MHA Macintyre Husdon as new auditors in September 2020 (before EY formerly withdrew). The FCA register was updated on 1 September of 2020. The Audited Accounts of 2019/2020 are under process and will be filed soon.”

The firm has been working through all the highlighted points in Audit EY during their 2019 accounts audit. There has been no suggestion of wrongdoings by Kuflink. The firm has been successful in tackling the majority of the concerns mentioned by EY and is still working on the remaining points with Macintyre Hudson.”. Khattoare emphasized the fact that “None of the issues highlighted has or would have compromised our investors’ funds.”

VAT Concerns

Earnest and Young’s resignation letter noted that the Audit for 15 February 2021 had an ‘except for qualification’ about VAT. 

In the process, Khattoar has stated that ‘the firm has been in contact with the HMRC since September 2020, there were some delays in earlier contact because of the pandemic. Kuflink has already set aside a VAT amount of £160k. And our new auditors will settle everything by the required deadline of June 2021 by HMRC.”

Material Uncertainty

The company has taken steps to reduce their costs within the business. Which has them to have a self-sustainable business model. This means that the profits are being generated each month. Furthermore, the firm is in contact with its major shareholders if equity injection is required.

Kuflink in 2021 so far

The company has been is a good shape for 2021. The losses have been very narrow, and the business is likely to announce break-even or a profit soon.

The table below shows Kuflink Audit for 2018, 2019, 2020 and 2021

table2 (4)

During the Coronavirus, the company has repaid more than £25m in capital and interest to their investors. In total, Kuflink has paid over £74m, and they continue to pay their investors the capital and interest. To date, no investor has lost money with Kuflink.

Finally, Khattoar, the CEO of Kuflink, stated that “the firm is in very good health and we look forward to strong inward investment this year and beyond