Ethiopian Trading Businesses Corporation

Fiscal Year 2016 EC (2024/2025 GC)

Qualified

All Years

Download Original Audit Report FY 2015

Revenue

ETB 9.5B

Net Profit

ETB 525.3M

Total Assets

ETB 15.2B

Total Equity

ETB 2.5B

Profit Breakdown

Key income statement items

Cash Flow Activities

Net cash from each activity

Asset Composition

Breakdown of total assets

Statement of Profit or Loss and Other Comprehensive Income

FY 2016 EC

Item	Amount (ETB)
Revenue
Sales Revenue	9,374,261,640
Rent and Other Fees Income	106,656,820
Total Revenue	9,480,918,460
Cost of Sales
Cost of Sales of Goods and Services	-8,211,272,150
Gross Profit	1,269,646,310
Operating Expenses
Other Income/Expenses	114,394,320
Selling and Distribution Cost	-7,197,360
Administrative and General Expenses	-499,398,890
Expected Credit Loss	-90,137,630
Provision of Legal Cases	0
Total Operating Expenses	-596,733,880
Income from Operation	787,306,750
Finance and Tax
Interest and Bank Service Charges	-48,457,820
Gain/Loss on Exchange Rate	50,242,610
Net Finance Cost	1,784,790
Profit before Tax	789,091,540
Profit Tax for the Period	-263,792,190
Profit after Tax	525,299,350
Actuarial Gain/Loss	0
Deferred Tax Income/Loss	13,662,460
Total Comprehensive Income	538,961,810

Statement of Financial Position

As at end of FY 2016 EC

Item	Amount (ETB)
Non-Current Assets
Property, Plant and Equipment	2,475,793,080
Land Use Right	1,286,954,820
Right-of-Use Land	1,548,280
Intangible Asset	815,410
Time Deposit	94,772,990
Deferred Tax Asset	16,354,450
Total Non-Current Assets	3,876,239,040
Current Assets
Stock in Hand and In-Transit	5,848,130,590
Trade and Other Debtors	3,642,940,100
Advance, Prepayment and Deposits	40,307,790
Cash and Bank Balance	1,838,544,270
Total Current Assets	11,369,922,750
Total Assets
Total Assets	15,246,161,800
Equity
Paid up Capital	959,100,000
Non-distributable Reserve	1,880,011,470
Legal Reserve	94,252,010
Retained Earnings	-466,204,660
Total Equity	2,467,158,820
Non-Current Liabilities
Long Term Loan	714,514,900
Long Term Lease Obligation	1,760,710
Severance Payable	8,684,930
Deferred Tax Liability	414,494,180
Total Non-Current Liabilities	1,139,454,710
Current Liabilities
Trade and Other Payables	10,123,901,680
Provision Obligation	183,241,630
Dividend Payable	860,067,250
Bank Overdraft	171,630,300
Current Maturity of Long Term Loan	58,940,260
Annual Leave Payable	32,906,010
Provision for Business Income Tax	208,861,140
Total Current Liabilities	11,639,548,270
Total Liabilities and Equity
Total Liabilities	12,779,002,980
Total Equity and Liabilities	15,246,161,800

Cash Flow Statement

FY 2016 EC

Item	Amount (ETB)
Operating Activities
Profit/Loss Before Taxation (Comprehensive Income)	538,961,810
Depreciation and Amortization	78,287,970
Severance and Annual Leave Expense	29,619,290
Deferred Tax Payables	-13,662,460
Adjustment to Tax and Others	21,445,330
Time Deposit	-39,570,150
Net Operating Cash Flows before Working Capital Changes	615,081,790
Net Decrease/(Increase) in Stocks	-2,513,977,890
Net Decrease/(Increase) in Trade and Other Receivable	-34,881,460
Net Increase/(Decrease) in Trade and Other Payables	1,348,022,640
Cash Generated from Operation	-585,754,920
Dividend Paid	-349,324,070
Net Cash from (used in) Operating Activities	-935,078,980
Investing Activities
Interest Received	0
Purchase of Property, Plant and Equipment	-406,148,940
Proceeds from Disposal of PP&E	0
Net Cash from (used in) Investing Activities	-406,148,940
Financing Activities
Addition (Repayment) of Borrowings	-874,714,980
Lease Obligation Paid	-12,350
Net Cash from (used in) Financing Activities	-874,727,330
Net Change in Cash	-2,215,955,250
Closing Cash & Equivalents	2,010,174,570

Audit Findings

#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.

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.

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.

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.

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.

Amount: ETB 4.0B

Extracted from audited financial statements via OCR. Figures in Ethiopian Birr (originally reported in Birr'000).