Corporate TreasuryFinancial Supply ChainTrade Risk & LawTesco Suppliers Launch own Financial Health Checks

Tesco Suppliers Launch own Financial Health Checks

Suppliers of UK supermarket chain Tesco have asked audit team to review their British operations, following the company’s admission that accounting irregularities overstated its profits by £263m.

Reports suggest that Unilever, Proctor & Gamble and Coca-Cola are among the supermarket’s suppliers to have ordered a check.

Tesco’s shortfall relates to the timing of payments from its UK suppliers, which include the world’s largest food and drink manufacturers. The company believes that income from commercial deals was booked early. As a result, suppliers want to verify that their own accounts are accurate and their income and costs relate to correct periods.

Tesco is now being investigated by the Financial Conduct Authority (FCA), which is looking into the apparently complex nature of the company’s relationship with its supply chain. The firm of Deloitte, which has completed an investigation for Tesco, has passed its findings to the FCA. The Serious Fraud Office (SFO) is also monitoring the situation and Tesco has suspended eight senior executives.

A Unilever spokesperson said: “We are doing due diligence checks, as you’d rightly expect us to whenever there are external circumstances such as these.” P&G confirmed it was conducting similar investigations, while Reckitt Benckiser said: “As you would expect we have done our due diligence.”

Related Articles

Creating strategic value in the B2B supply chain through digital transformation

Financial Supply Chain Creating strategic value in the B2B supply chain through digital transformation

2m Patrick Bermingham
How spend analytics helps procurement cut costs

Financial Supply Chain How spend analytics helps procurement cut costs

3m Brian Alster
Procurement grapples with tech and talent gap: SAP Ariba Live - Day 2

Financial Supply Chain Procurement grapples with tech and talent gap: SAP Ariba Live - Day 2

3m Victoria Beckett
SAP Ariba makes procurement a snap for mid-market

Financial Supply Chain SAP Ariba makes procurement a snap for mid-market

4m GTNews
Cold comfort for SMEs amidst Carillion bankruptcy

Economy Cold comfort for SMEs amidst Carillion bankruptcy

5m GTNews
What are the objectives of liquidity management?

Cash Management What are the objectives of liquidity management?

5m Michael McCaw
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

6m Victoria Beckett
The emergence of API usage in trade finance

Automation The emergence of API usage in trade finance

6m Andrew Berti