Tabung Haji bleeding billions in cash -Evidence from TH's audited cash flow statements

by Ganesh Sahathevan

The following figures (in  Ringgit million ) have been extracted from Tabung Haji's audited financial statements for the relevant years.  The  figures are from the cash flow statement, not the profit and loss,for the cash flow statement gives a better picture of how much cash a business has gained or lost. In that way it is  more a  objective assessment of a business' performance,for profit and loss numbers are easily manipulated.
These numbers show how much cash TH has mostly lost from its ordinary business operations.
The "Group" column is a consolidated figure ,summing up cashflow from operations of all the companies TH controls.The "Tabung Haji" column shows what Tabung Haji earns on its own, without counting the companies it controls.
We usually look at the Group figure to provide a better overall view of the business,and in this case one can see that in the past 4 years, the Tabung Haji Group had a positive cash flow from operations in only 2013.In all other years it has lost billions in cash.


Net cash used in operating activities
 Group
 Tabung Haji
2011
-1 767 361
-1 150 025
2012
-1 354 224
-1 863 515
2013
 205,63
-1 335 595
2014
 -2 268 827
 -1 108 847



However, in the case of Tabung Haji the Group figure is not so useful for there is no guarantee that TH can draw on the cashflow of Group companies to meet its financial obligations ie its obligations to depositors who can at anytime demand their money.
As shown in the table above, TH has been losing billions in  cash over the past four years.
While its overall cash position might be positive, this is due to borrowing, sale of investments, property and the like. That can never be the basis for a any business, particularly one that has immediate demands on cash from depositors.
In any case, a large significant deficit of cash from operations will ultimately impair any business' ability to raise funds,and will push it into disposing  assets at fire sale prices.
END 


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