Ethiopian Sugar Corporation
Fiscal Year 2014 EC (2022/2023 GC)
Revenue
ETB 8.6B
Net Loss
ETB -19.1B
Total Assets
ETB 197.5B
Total Equity
ETB 41.9B
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 2014 EC
| Item | Amount (ETB) |
|---|---|
| Revenue | |
| Revenue | 8,572,841,728 |
| Cost of sales | -7,127,255,689 |
| Gross profit | 1,445,586,039 |
| Operating Items | |
| Other operating income | 116,130,748 |
| General & administrative | -3,114,457,220 |
| Foreign currency exchange loss | -10,453,141,844 |
| Fair value gain/(loss) cane and fruit | -783,430,846 |
| Loss on cane at fair value | -410,937,133 |
| Provision for bad debt expense | 32,465,237 |
| Provision for stock obsolescence | -12,037,959 |
| Provision expense - Standing Cane | -971,263,600 |
| Operating profit/(loss) | -14,151,086,578 |
| Finance and Tax | |
| Finance costs/charges | -4,481,322,563 |
| Profit/(loss) before tax | -18,632,409,141 |
| Income tax expense | -497,321,130 |
| Profit/(loss) for the year | -19,129,730,271 |
| Other Comprehensive Income | |
| Total comprehensive income for the year | -19,127,596,646 |
Statement of Financial Position
As at end of FY 2014 EC
| Item | Amount (ETB) |
|---|---|
| Non-Current Assets | |
| Property, plant and equipment | 169,575,126,695 |
| Right use of asset - Land | 364,119,705 |
| Bearer plant | 721,744,049 |
| Current Assets | |
| Trade and other receivable | 1,988,416,454 |
| Stock & goods in transit | 7,290,068,370 |
| Biological Asset - Agricultural | 3,833,210,823 |
| Tax receivable | 4,530,542,177 |
| Advance and prepayments | 5,084,625,340 |
| Cash and cash equivalents | 4,131,648,247 |
| Total assets | 197,519,501,862 |
| Equity | |
| Paid up capital | 14,083,024,490 |
| Capital contribution | 866,084,983 |
| Contribution for capital expenditure | 101,054,623 |
| Sugar Industry Development Fund | 19,546,786,512 |
| Asset revaluation reserve | 11,977,353,299 |
| Accumulated loss | -91,722,235,345 |
| Other reserve | 15,993,913 |
| Total equity | 41,898,475,427 |
| Non-Current Liabilities | |
| Long term loan | 130,900,475,501 |
| Employee benefit obligation | 44,901,859 |
| Deferred tax liability | 4,630,320,331 |
| Current Liabilities | |
| Trade and other payable | 10,365,607,496 |
| Retention payable | 2,926,580,422 |
| Interest payable | 1,710,284,517 |
| Long term loan - current maturity | 364,063,442 |
| Sugar development fund payable | 260,136,419 |
| Tax payable | 856,409,269 |
| Contract liability | 293,201,628 |
| Accrual | 1,380,065,161 |
| Provision | 1,857,226,074 |
| Total liabilities | 155,621,026,435 |
| Total equity and liabilities | 197,519,501,862 |
Cash Flow Statement
FY 2014 EC
| Item | Amount (ETB) |
|---|---|
| Operating Activities | |
| Profit before tax | -18,632,409,141 |
| Depreciation of property, plant and equipment and bearer plant | 3,630,665,020 |
| Provision/(reversal) for loss of plantation | 971,263,600 |
| Fair value change on biological asset | 127,532,444 |
| Stock obsolescence | 12,037,959 |
| Bad debt expense | -62,465,237 |
| Amortization of right use of assets | 127,810 |
| Severance expense (current service and interest) | -63,535 |
| Decrease/(increase) in trade and other receivables | -73,391,496 |
| Decrease/(increase) in advance and prepayment | 397,846,417 |
| Decrease/(increase) in inventories | -882,953,911 |
| Decrease/(increase) in biological asset | -814,983,543 |
| Increase/(decrease) in trade and other payables | -15,039,155,397 |
| Net cash flows from operating activities | -31,065,949,010 |
| Investing Activities | |
| Investment in property, plant and equipment and sugar development | -10,317,355,722 |
| Expenditure on bearer plant | 233,283,025 |
| Net cash flows used in investing activities | -10,080,080,697 |
| Financing Activities | |
| Proceeds from borrowings | 36,775,072,890 |
| Repayment of borrowings | -7,810,729,655 |
| Net cash transfer | 6,566,157,517 |
| Additional fund from SIDF for project expansion | 1,003,775,763 |
| Contribution to SIDF | -2,788,992,197 |
| Capital contribution | 101,684,530,396 |
| Net cash flows from/(used in) financing activities | 33,715,049,482 |
| Net Change in Cash | -7,430,225 |
| Closing Cash & Equivalents | 4,131,648,247 |
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 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 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.
#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 residual figure worth of ETB 829,581,422 is credited to Sugar Industry Development Fund account without considering the economics of the transactions.
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 residual figure worth of ETB 829,581,422 is credited to Sugar Industry Development Fund account without considering the economics of the transactions.
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 residual figure worth of ETB 829,581,422 is credited to Sugar Industry Development Fund account without considering the economics of the transactions.
Amount: ETB 829.6M
#4 The financial statements reflect advance payments to contractors as per Note 16, amounting to ETB 13,431,746,759 with ETB 9,000,349,332 (67%) being impaired.
The financial statements reflect advance payments to contractors as per Note 16, amounting to ETB 13,431,746,759 with ETB 9,000,349,332 (67%) being impaired.
The financial statements reflect advance payments to contractors as per Note 16, amounting to ETB 13,431,746,759 with ETB 9,000,349,332 (67%) being impaired.
Amount: ETB 13.4B
#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 107.2M
#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 64,572,728. 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 64,572,728. 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 64,572,728. We have obtained no sufficient and appropriate audit evidence that this balance is recoverable.
Amount: ETB 64.6M
#8 Despite the fact that a provision of ETB 433,991,000 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 433,991,000 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 433,991,000 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 434.0M
#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 of ETB 65,939,097.
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 of ETB 65,939,097.
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 of ETB 65,939,097.
Amount: ETB 65.9M
#10 The revenue shown in the statement of profit or loss and other comprehensive income of ETB 8,572,841,728 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 8,572,841,728 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 8,572,841,728 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 8.6B
#11 As discussed in Note 29.6 (Capital management) of the notes to the financial statements, gearing (Debt to Equity ratio) of the Corporation stood at 76% (128% in 2021) which imply the Corporation has larger proportion of debt than equity.
As discussed in Note 29.6 (Capital management) of the notes to the financial statements, gearing (Debt to Equity ratio) of the Corporation stood at 76% (128% in 2021) which imply the Corporation has larger proportion of debt than equity.
As discussed in Note 29.6 (Capital management) of the notes to the financial statements, gearing (Debt to Equity ratio) of the Corporation stood at 76% (128% in 2021) 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.