Understanding Corporate Compliance and Financial Profile (CCFP)
Learn how to interpret key terms in CCFPs.
Last updated 29 January 2026
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Understand the six main sections in a CCFP:
1. Business Profile
This shows general company information such as:
Company name and incorporation date
Business activities and registered addresses
Capital details, such as issued and paid-up share capital
Particulars of officers, shareholders, and the audit firm
2. Compliance Profile
This shows whether the company meets statutory requirements under the Companies Act 1967, such as:
Timely holding of annual general meetings (AGMs)
Laying of up-to-date financial statements at AGMs
Timely filing of annual returns (ARs)
3. Financial Profile
This shows key highlights from up to three years of comparative data, including the:
Balance sheet
Profit and loss
Cashflow
4. Financial figures and ratios
The CCFP measures financial health through liquidity, profitability, operating efficiency and solvency.
It includes financial figures and ratios to help you assess the company's financial health.
Financial figure
Earnings before interest and tax (EBIT): Shows a company’s profit or loss from core business operations before deducting interest and taxes. It is a key measure of operational performance.
Calculation: Profit (or loss) from continuing operations, net of tax + Income tax expense + Finance costs
Liquidity ratios
Current ratio (Times): Shows the company's ability to meet short-term financial obligations.
Calculation: Current assets / Current liabilities
Example: A ratio of 1.00 means that for every $1 of current liabilities owed, the company has $1 of current assets that can be converted to cash.
Profitability ratios
What profitability ratios mean
Term | Calculation | What it means |
|---|---|---|
Operating profit margin (%) | [(Profit (loss), net of tax + Income tax expense + Finance costs) / Revenue] x 100 | Measures the company's operating performance as a percentage of revenue. Example: A margin of 36% means that for every $100 of revenue, the company makes $36 in profit before interest and tax. |
Net profit margin (%) | [Profit (loss), net of tax / Revenue] x 100 | Shows the portion of sales remaining after all costs and expenses. Example: A margin of 7% means for every $100 of sales, $7 is available for distribution. |
Return on assets (%) | (Net profit + Tax + Finance costs) / Total assets x 100 | Measures how effectively the company uses its resources to generate profit. Example: A ratio of 25% means that for every $100 in assets, the company generates $25 in profit before interest and tax for owners and creditors. |
Return on equity (%) | [Profit (loss), net of tax / Total equity] x 100 | Measures the profitability of capital invested by owners. Example: A ratio of 30% means that for every $100 invested, the company yields $30 in profit for its owners. |
Solvency ratios
What solvency ratios mean
Term | Calculation | What it means |
|---|---|---|
Total liabilities to equity (Times) | Total liabilities / Total equity | Measures how much the company relies on debt. A higher ratio indicates greater dependence on debt to finance operations. |
Interest cover ratio (Times) | (Profit (loss), net of tax + Income tax expense + Finance costs) / Finance costs | Measures the company’s ability to pay interest on outstanding debt. |
Operating ratios
Total assets turnover (Times): Measures how efficiently a company uses its assets to generate sales or revenue.
Calculation: Revenue / Total assets
5. Audit opinions
The CCFP includes the auditor's opinion on the filed financial statements. This opinion tells you if the financial statements are accurate and can be trusted.
Audit opinions explained
Type of opinion | Simplified interpretation | Official definition |
Unqualified opinion | Reliable: The financial statements are reliable and presented fairly. | The auditor concludes that the financial statements give a true and fair view in accordance with applicable financial reporting standards. |
Emphasis of matter (EOM) | Reliable, with a note: The statements are reliable, but the auditor highlights an important matter you should be aware of. | Highlights a matter affecting the financial statements that is discussed in a note to the financial statements. This does not affect the auditor's opinion |
Qualified opinion | Reliable with specific concerns: The statements are mostly reliable, except for specific issues the auditor has identified. | *The auditor concludes that an unqualified opinion cannot be expressed but that the effect of any disagreement with management, or limitation on scope is not so material and pervasive as to require an adverse opinion or a disclaimer of opinion. |
Disclaimer of opinion | Inconclusive: The auditor did not have enough information to form an opinion. | *This is expressed when the "possible effect of a limitation on scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial statements." |
Adverse opinion | Unreliable: The financial statements contain material errors or misstatements. | *This is expressed when the "effect of a disagreement is so material and pervasive to the financial statements that the auditor concludes that a qualification of the report is not adequate to disclose the misleading or incomplete nature of the financial statements.” |
*Definitions are according to SSA 700 “The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements” and SSA701 “Modifications to the Independent Auditor’s Report”.
6. Directors' opinion
States whether the directors see the accounts drawn up to be accurate.