Trading Fiscal year ends Sene 30

Ethiopian Trading Businesses Corporation

Imports, exports, and distributes grain, coffee, and other commodities.

Qualified (2016)

Revenue

ETB 9.5B

FY 2016

Net Profit

ETB 525.3M

Profit

Total Assets

ETB 15.2B

FY 2016

Total Equity

ETB 2.5B

Revenue & Profitability

Revenue, cost of sales, and net profit over time

Balance Sheet

Total assets, liabilities, and equity over time

Key Audit Findings

Basis for qualified opinion from the latest audit report

#1

Trade receivables of Grain and Coffee BU include Birr 1,363,351,892 long-outstanding (>1 year). Allowance for expected credit loss of only Birr 406,543,950 is inadequate. Receivables and profit overstated by Birr 3,710,699,390 and Birr 594,862,390 respectively.

Trade receivables of Grain and Coffee BU include Birr 1,363,351,892 long-outstanding (>1 year). Allowance for expected credit loss of only Birr 406,543,950 is inadequate. Receivables and profit overstated by Birr 3,710,699,390 and Birr 594,862,390 respectively.

Amount: ETB 3.7B

#2

Unable to verify Grain and Coffee BU wheat profit margin increase from 2% to 2.5%; risk of revenue overstatement by Birr 30,489,320.

Unable to verify Grain and Coffee BU wheat profit margin increase from 2% to 2.5%; risk of revenue overstatement by Birr 30,489,320.

Amount: ETB 30.5M

#3

Inventory discrepancy of Birr 28,936,366 between records and physical count (including armed conflict losses). Unable to verify inventory balance of Birr 5,847,831,220.

Inventory discrepancy of Birr 28,936,366 between records and physical count (including armed conflict losses). Unable to verify inventory balance of Birr 5,847,831,220.

Amount: ETB 5.8B

#4

Trade creditors include Birr 5,050,602,050 long-standing payable to Ministry of Finance and NDPP. Unable to verify trade payables of Birr 10,146,989,170.

Trade creditors include Birr 5,050,602,050 long-standing payable to Ministry of Finance and NDPP. Unable to verify trade payables of Birr 10,146,989,170.

Amount: ETB 10.1B

#5

Grain and Coffee BU wheat borrowing from NDPP: liability of Birr 3,219,072,242 not adjusted to market price. Unable to verify Birr 4,028,072,242 payable.

Grain and Coffee BU wheat borrowing from NDPP: liability of Birr 3,219,072,242 not adjusted to market price. Unable to verify Birr 4,028,072,242 payable.

Amount: ETB 4.0B

Financial Summary

All figures in Ethiopian Birr (ETB).

Year Revenue Net Profit Total Assets Total Liabilities Equity Opinion
2013 ETB 4.5B ETB 60.0M ETB 8.2B ETB 6.0B ETB 2.1B Qualified Details
2014 ETB 10.4B ETB 219.6M ETB 13.0B ETB 10.8B ETB 2.2B Qualified Details
2015 ETB 14.6B ETB 1.1B ETB 14.7B ETB 12.5B ETB 2.3B Qualified Details
2016 ETB 9.5B ETB 525.3M ETB 15.2B ETB 12.8B ETB 2.5B Qualified Details

All amounts were originally reported in Birr'000 and have been converted to full ETB. The EC 2013–2015 audit reports were scanned in landscape orientation and have been digitally rotated for processing.