Ethiopian Sugar Corporation
Fiscal Year 2012 EC (2020/2021 GC)
Revenue
ETB 9.9B
Net Loss
ETB -11.0B
Total Assets
ETB 168.6B
Total Equity
ETB -28.8B
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 2012 EC
| Item | Amount (ETB) |
|---|---|
| Revenue | |
| Revenue | 9,929,563,760 |
| Cost of sales | -8,573,028,777 |
| Gross profit | 1,356,534,984 |
| Operating Items | |
| Other operating income | 155,274,748 |
| General & administrative | -2,003,078,765 |
| Foreign currency exchange loss | -5,306,924,328 |
| Fair value gain/(loss) cane and fruit | 251,411,629 |
| Loss on cane at fair value | -31,983,646 |
| Provision for bad debt expense | -700,123,581 |
| Provision for stock obsolescence | -52,421,697 |
| Provision expense - Standing Cane | -216,384,784 |
| Operating profit/(loss) | -6,547,695,441 |
| Finance and Tax | |
| Finance costs/charges | -4,554,566,917 |
| Profit/(loss) before tax | -11,102,262,358 |
| Income tax expense | 121,888,560 |
| Profit/(loss) for the year | -10,980,373,798 |
| Other Comprehensive Income | |
| Remeasurement gain/(loss) on retirement benefits obligations | 8,179,699 |
| Total comprehensive income for the year | -10,972,194,099 |
Statement of Financial Position
As at end of FY 2012 EC
| Item | Amount (ETB) |
|---|---|
| Non-Current Assets | |
| Property, plant and equipment | 142,831,698,760 |
| Right use of asset - Land | 364,375,325 |
| Bearer plant | 912,117,966 |
| Investment in ESISC and MSF | 3,992,000 |
| Current Assets | |
| Trade and other receivable | 1,754,168,000 |
| Stock & goods in transit | 5,790,307,459 |
| Biological Asset - Agricultural | 3,841,884,967 |
| Tax receivable | 3,942,789,946 |
| Advance and prepayments | 7,505,161,375 |
| Cash and cash equivalents | 1,696,321,460 |
| Total assets | 168,642,817,262 |
| Equity | |
| Paid up capital | 14,083,024,490 |
| Capital contribution | 393,286,376 |
| Contribution for capital expenditure | 101,054,623 |
| Sugar Industry Development Fund | 17,879,927,787 |
| Reserve for SIDF | -9,218,250,273 |
| Asset revaluation reserve | 11,977,353,299 |
| Accumulated loss | -64,002,820,014 |
| Other reserve | 11,975,728 |
| Total equity | -28,774,447,984 |
| Non-Current Liabilities | |
| Long term loan | 161,609,606,897 |
| Employee benefit obligation | 44,375,848 |
| Deferred tax liability | 3,935,086,109 |
| Non-current liabilities total | 165,589,068,854 |
| Current Liabilities | |
| Trade and other payable | 17,251,482,720 |
| Retention payable | 2,389,420,603 |
| Interest payable | 3,448,651,923 |
| Long term loan - current maturity | 6,558,796,911 |
| Sugar development fund payable | 200,991,991 |
| Tax payable | 1,095,872,342 |
| Contract liability | 207,604,194 |
| Accrual | 453,790,821 |
| Provision | 221,584,888 |
| Current liabilities total | 31,828,196,392 |
| Total liabilities | 197,417,265,246 |
| Total equity and liabilities | 168,642,817,262 |
Cash Flow Statement
FY 2012 EC
| Item | Amount (ETB) |
|---|---|
| Operating Activities | |
| Net cash flows from operating activities | -8,930,253,238 |
| Investing Activities | |
| Net cash flows used in investing activities | -21,795,694,565 |
| Financing Activities | |
| Net cash flows from/(used in) financing activities | 29,065,886,865 |
| Net Change in Cash | -1,660,060,938 |
| Closing Cash & Equivalents | 1,696,321,460 |
Audit Findings
#1 The Sugar Corporation Import account (01-12500-6000) exhibits a material long-standing outstanding balance of ETB 266,000,090 dating back to the 2014 fiscal year, persisting without resolution in the subsequent financial statements of the SIDF.
The Sugar Corporation Import account (01-12500-6000) exhibits a material long-standing outstanding balance of ETB 266,000,090 dating back to the 2014 fiscal year, persisting without resolution in the subsequent financial statements of the SIDF.
The Sugar Corporation Import account (01-12500-6000) exhibits a material long-standing outstanding balance of ETB 266,000,090 dating back to the 2014 fiscal year, persisting without resolution in the subsequent financial statements of the SIDF.
Amount: ETB 266.0M
#2 We have identified notable deficiencies within the inventory management system of the Corporation, which demand immediate attention. The inventory cost flow assumptions as policy is not consistent throughout the corporation. We were unable to determine the completeness and accuracy of stock and goods in transit and cost of sales.
We have identified notable deficiencies within the inventory management system of the Corporation, which demand immediate attention. The inventory cost flow assumptions as policy is not consistent throughout the corporation. We were unable to determine the completeness and accuracy of stock and goods in transit and cost of sales.
We have identified notable deficiencies within the inventory management system of the Corporation, which demand immediate attention. The inventory cost flow assumptions as policy is not consistent throughout the corporation. We were unable to determine the completeness and accuracy of stock and goods in transit and cost of sales.
Amount: ETB 312.4M
#3 There was no system of internal control over the accounting of intercompany accounts on which we could rely for the purposes of our audit. The financial statements reflect advance payments to contractors amounting to ETB 14,872,745,556 with ETB 7,971,912,333 (54%) being impaired.
There was no system of internal control over the accounting of intercompany accounts on which we could rely for the purposes of our audit. The financial statements reflect advance payments to contractors amounting to ETB 14,872,745,556 with ETB 7,971,912,333 (54%) being impaired.
There was no system of internal control over the accounting of intercompany accounts on which we could rely for the purposes of our audit. The financial statements reflect advance payments to contractors amounting to ETB 14,872,745,556 with ETB 7,971,912,333 (54%) being impaired.
Amount: ETB 90.0M
#4 Due to the lack of a robust internal control framework, we do not have confidence in relying on the total Cost of sales figure, which amounts to ETB 8,573,028,777.
Due to the lack of a robust internal control framework, we do not have confidence in relying on the total Cost of sales figure, which amounts to ETB 8,573,028,777.
Due to the lack of a robust internal control framework, we do not have confidence in relying on the total Cost of sales figure, which amounts to ETB 8,573,028,777.
#5 We have identified notable deficiencies within the cost accounting system of the corporation which demand immediate attention. The absence of a cost accounting system resulted in the cost of sugarcane in Arjo Sugar factory being calculated based on proportion of harvested sugar to total agricultural area.
We have identified notable deficiencies within the cost accounting system of the corporation which demand immediate attention. The absence of a cost accounting system resulted in the cost of sugarcane in Arjo Sugar factory being calculated based on proportion of harvested sugar to total agricultural area.
We have identified notable deficiencies within the cost accounting system of the corporation which demand immediate attention. The absence of a cost accounting system resulted in the cost of sugarcane in Arjo Sugar factory being calculated based on proportion of harvested sugar to total agricultural area.
Amount: ETB 87.0M
#6 The property, plant and equipment consisting of CIP-tissue culture for an amount of ETB 74,185,564 has exhibited no movement over a significant period and has not been capitalized.
The property, plant and equipment consisting of CIP-tissue culture for an amount of ETB 74,185,564 has exhibited no movement over a significant period and has not been capitalized.
The property, plant and equipment consisting of CIP-tissue culture for an amount of ETB 74,185,564 has exhibited no movement over a significant period and has not been capitalized.
Amount: ETB 74.2M
#7 Included in trade and other receivables is receivable from Commercial Bank of Ethiopia amounting to ETB 71,464,864. We have obtained no sufficient and appropriate audit evidence that this balance is recoverable.
Included in trade and other receivables is receivable from Commercial Bank of Ethiopia amounting to ETB 71,464,864. We have obtained no sufficient and appropriate audit evidence that this balance is recoverable.
Included in trade and other receivables is receivable from Commercial Bank of Ethiopia amounting to ETB 71,464,864. We have obtained no sufficient and appropriate audit evidence that this balance is recoverable.
Amount: ETB 71.5M
#8 Despite the fact that a provision of ETB 400,630,800 was held in advance and prepayment accounts of Wonji Sugar Factory for the out growers, a substantial portion of this provision was allocated for the sugar cane plantation damaged during political unrest in 2010 E.C.
Despite the fact that a provision of ETB 400,630,800 was held in advance and prepayment accounts of Wonji Sugar Factory for the out growers, a substantial portion of this provision was allocated for the sugar cane plantation damaged during political unrest in 2010 E.C.
Despite the fact that a provision of ETB 400,630,800 was held in advance and prepayment accounts of Wonji Sugar Factory for the out growers, a substantial portion of this provision was allocated for the sugar cane plantation damaged during political unrest in 2010 E.C.
Amount: ETB 400.6M
#9 We identified significant deficiencies in the internal control over cash and cash equivalents in Arjo Sugar factory. These weaknesses limit our ability to form an opinion on the reliability of the reported cash and cash equivalents balance.
We identified significant deficiencies in the internal control over cash and cash equivalents in Arjo Sugar factory. These weaknesses limit our ability to form an opinion on the reliability of the reported cash and cash equivalents balance.
We identified significant deficiencies in the internal control over cash and cash equivalents in Arjo Sugar factory. These weaknesses limit our ability to form an opinion on the reliability of the reported cash and cash equivalents balance.
#10 The revenue shown in the statement of profit or loss and other comprehensive income of ETB 9,929,563,760 is the cumulative total of the revenue recorded in the separate records of the head office and the sugar factories measured at transfer prices. This constitutes a departure from IFRS.
The revenue shown in the statement of profit or loss and other comprehensive income of ETB 9,929,563,760 is the cumulative total of the revenue recorded in the separate records of the head office and the sugar factories measured at transfer prices. This constitutes a departure from IFRS.
The revenue shown in the statement of profit or loss and other comprehensive income of ETB 9,929,563,760 is the cumulative total of the revenue recorded in the separate records of the head office and the sugar factories measured at transfer prices. This constitutes a departure from IFRS.
Amount: ETB 9.9B
#11 As discussed in Note 28.6 (Capital management) of the notes to the financial statements, gearing (Debt to Equity ratio) of the Corporation stood at 121% (115% in 2020) which imply the Corporation has larger proportion of debt than equity.
As discussed in Note 28.6 (Capital management) of the notes to the financial statements, gearing (Debt to Equity ratio) of the Corporation stood at 121% (115% in 2020) which imply the Corporation has larger proportion of debt than equity.
As discussed in Note 28.6 (Capital management) of the notes to the financial statements, gearing (Debt to Equity ratio) of the Corporation stood at 121% (115% in 2020) which imply the Corporation has larger proportion of debt than equity.
#12 Paid up capital of the Corporation is summation of the carrying amount of net asset of each of the existing factories amounting ETB 6,042,512,614 upon establishment until it is increased by ETB 8,040,511,876 through in kind contribution by the government. These dams were transferred to Ethiopian Construction Works Corporation.
Paid up capital of the Corporation is summation of the carrying amount of net asset of each of the existing factories amounting ETB 6,042,512,614 upon establishment until it is increased by ETB 8,040,511,876 through in kind contribution by the government. These dams were transferred to Ethiopian Construction Works Corporation.
Paid up capital of the Corporation is summation of the carrying amount of net asset of each of the existing factories amounting ETB 6,042,512,614 upon establishment until it is increased by ETB 8,040,511,876 through in kind contribution by the government. These dams were transferred to Ethiopian Construction Works Corporation.
Amount: ETB 6.0B
Extracted from audited financial statements via OCR. Figures in Ethiopian Birr.