Ethiopian Sugar Corporation
Fiscal Year 2015 EC (2023/2024 GC)
Revenue
ETB 7.4B
Net Loss
ETB -9.6B
Total Assets
ETB 178.3B
Total Equity
ETB 99.1B
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 2015 EC
| Item | Amount (ETB) |
|---|---|
| Revenue | |
| Revenue | 7,420,738,187 |
| Cost of sales | -4,734,872,861 |
| Gross profit | 2,685,865,326 |
| Operating Items | |
| Other operating income | 280,953,276 |
| General & administrative | -2,274,062,433 |
| Foreign currency exchange loss | -3,692,510,857 |
| Loss on damaged cane/fruit at fair value | -92,300,084 |
| Reversal of impairment on advance and prepayment | 124,704,732 |
| Reversal of/(additional provision) for legal claim | -496,927,498 |
| Provision for stock obsolescence | -25,875,180 |
| Operating profit/(loss) | -3,896,704,859 |
| Finance and Tax | |
| Finance costs/charges | -5,228,908,630 |
| Profit/(loss) before tax | -9,125,613,489 |
| Income tax expense | -448,224,751 |
| Profit/(loss) for the year | -9,573,838,240 |
| Other Comprehensive Income | |
| Remeasurement gain/(loss) on retirement benefits obligations | -63,749,919 |
| Total comprehensive income/(loss) for the year | -9,637,588,160 |
Statement of Financial Position
As at end of FY 2015 EC
| Item | Amount (ETB) |
|---|---|
| Non-Current Assets | |
| Property, plant and equipment | 150,242,878,902 |
| Right use of asset - Freehold | 358,496,066 |
| Right use of asset - Leasehold | 5,495,829 |
| Bearer plant | 924,373,684 |
| Current Assets | |
| Trade and other receivable | 688,259,235 |
| Receivables from SIDF | 23 |
| Stock & goods in transit | 7,102,580,719 |
| Tax receivable | 4,448,920,456 |
| Cash and cash equivalents | 1,595,691,359 |
| Total assets | 178,257,192,455 |
| Equity | |
| Paid up capital | 105,127,185,586 |
| Sugar Industry Development Fund | 503,159,298 |
| Reserve for SIDF | -1,705,944,545 |
| Accumulated loss | -4,725,954,174 |
| Other reserve | 53,053,920 |
| Total equity | 99,145,392,244 |
| Non-Current Liabilities | |
| Long term loan | 50,826,635,429 |
| Deferred income on concessional loan | 28,537,149 |
| Employee benefit obligation | 104,966,158 |
| Accrued annual leave | 287,280,942 |
| Retention payable | 5,238,377,363 |
| Deferred tax liability | 5,159,802,423 |
| Current Liabilities | |
| Trade and other payable | 7,447,345,478 |
| Payable to MOF | 768,421,780 |
| Long term loan - current maturity | 6,477,880,862 |
| Sugar development fund payable | 71,604,402 |
| Tax payable | 964,257,968 |
| Provision for tax payable | 10 |
| Contract liability | 148,956,324 |
| Accrual | 265,784,020 |
| Provision | 256,355,318 |
| Current liabilities total | 17,466,200,745 |
| Total liabilities | 79,111,800,210 |
| Total equity and liabilities | 178,257,192,455 |
Cash Flow Statement
FY 2015 EC
| Item | Amount (ETB) |
|---|---|
| Operating Activities | |
| Profit before tax | -9,125,613,489 |
| Provision/(reversal) for loss of plantation | 92,300,084 |
| Fair value change on biological asset | 304,209,544 |
| Stock obsolescence | 25,875,180 |
| Bad debt expense | -7,837,669 |
| Reversal of impairment on advance and prepayment | -124,704,732 |
| Amortization of right use of assets | 127,810 |
| Decrease/(increase) in trade and other receivables | 762,673,982 |
| Decrease/(increase) in advance and prepayment | -128,849,798 |
| Decrease/(increase) in inventories | 100,042,860 |
| Decrease/(increase) in biological asset | -1,083,784,508 |
| Net cash flows from operating activities | -9,789,935,304 |
| Investing Activities | |
| Investment in property, plant and equipment and sugar development | -280,212,201 |
| Disposal proceeds | -41,488,122 |
| Expenditure on bearer plant | -394,842,451 |
| Net cash flows used in investing activities | -2,193,551,989 |
| Financing Activities | |
| Proceeds from borrowings | 15,467,197,269 |
| Repayment of borrowings | -2,690,211,332 |
| Loan principal transfer to LAMC | -53,774,109,932 |
| Loan principal and interest transfer to MOF | -25,403,003,833 |
| Net cash transfer | 84,570,346,328 |
| Net cash flows from/(used in) financing activities | 9,622,303,241 |
| Net Change in Cash | -2,361,184,052 |
| Closing Cash & Equivalents | 1,595,691,359 |
Audit Findings
#1 The Group holds long-outstanding construction in-progress (CIP) balances across its subsidiaries and projects. Wonji-Shoa Sugar Factory holds a long-outstanding construction-in-progress balance of ETB 2,188,109,185 related to land development and civil and irrigation works on out-growers' land. An impairment of ETB 433,991,000 was recorded for advances and prepayments to out-growers.
The Group holds long-outstanding construction in-progress (CIP) balances across its subsidiaries and projects. Wonji-Shoa Sugar Factory holds a long-outstanding construction-in-progress balance of ETB 2,188,109,185 related to land development and civil and irrigation works on out-growers' land. An impairment of ETB 433,991,000 was recorded for advances and prepayments to out-growers.
The Group holds long-outstanding construction in-progress (CIP) balances across its subsidiaries and projects. Wonji-Shoa Sugar Factory holds a long-outstanding construction-in-progress balance of ETB 2,188,109,185 related to land development and civil and irrigation works on out-growers' land. An impairment of ETB 433,991,000 was recorded for advances and prepayments to out-growers.
Amount: ETB 2.2B
#2 We identified significant deficiencies in internal control of intercompany receivables and payables in the group, resulting in accumulated unreconciled inter-branch balances of ETB 1,511,604,528 in the prior years. The residual balance was charged to accumulated losses without appropriately reflecting the economic substance of the transactions.
We identified significant deficiencies in internal control of intercompany receivables and payables in the group, resulting in accumulated unreconciled inter-branch balances of ETB 1,511,604,528 in the prior years. The residual balance was charged to accumulated losses without appropriately reflecting the economic substance of the transactions.
We identified significant deficiencies in internal control of intercompany receivables and payables in the group, resulting in accumulated unreconciled inter-branch balances of ETB 1,511,604,528 in the prior years. The residual balance was charged to accumulated losses without appropriately reflecting the economic substance of the transactions.
Amount: ETB 1.5B
#3 During our audit, we identified a receivable balance of ETB 1,477,009,125 recorded under the Sugar Industry Development Fund for which no supporting evidence was provided. The balance was accounted for the unaccounted capital deficits and subsequently reductions in the paid-up capital of Kessem and Tana Beles Sugar Factories.
During our audit, we identified a receivable balance of ETB 1,477,009,125 recorded under the Sugar Industry Development Fund for which no supporting evidence was provided. The balance was accounted for the unaccounted capital deficits and subsequently reductions in the paid-up capital of Kessem and Tana Beles Sugar Factories.
During our audit, we identified a receivable balance of ETB 1,477,009,125 recorded under the Sugar Industry Development Fund for which no supporting evidence was provided. The balance was accounted for the unaccounted capital deficits and subsequently reductions in the paid-up capital of Kessem and Tana Beles Sugar Factories.
Amount: ETB 1.5B
#4 We have identified notable deficiencies within the inventory management system of Group, which demand immediate attention. The Group applied different accounting policy on similar inventories in different units and subsidiaries. A net discrepancy of ETB 98,030,912 was identified between the physical inventory count and the ledger balances.
We have identified notable deficiencies within the inventory management system of Group, which demand immediate attention. The Group applied different accounting policy on similar inventories in different units and subsidiaries. A net discrepancy of ETB 98,030,912 was identified between the physical inventory count and the ledger balances.
We have identified notable deficiencies within the inventory management system of Group, which demand immediate attention. The Group applied different accounting policy on similar inventories in different units and subsidiaries. A net discrepancy of ETB 98,030,912 was identified between the physical inventory count and the ledger balances.
Amount: ETB 98.0M
#5 We identified significant deficiencies in the cost accounting systems of the Group's factories, including Arjo, Omo Kuraz II, Omo Kuraz III, Kessem, and Tana Beles Sugar Factories. These factories lack adequate procedures for capturing and allocating direct costs and there is no effective mechanism for allocating overhead and production costs.
We identified significant deficiencies in the cost accounting systems of the Group's factories, including Arjo, Omo Kuraz II, Omo Kuraz III, Kessem, and Tana Beles Sugar Factories. These factories lack adequate procedures for capturing and allocating direct costs and there is no effective mechanism for allocating overhead and production costs.
We identified significant deficiencies in the cost accounting systems of the Group's factories, including Arjo, Omo Kuraz II, Omo Kuraz III, Kessem, and Tana Beles Sugar Factories. These factories lack adequate procedures for capturing and allocating direct costs and there is no effective mechanism for allocating overhead and production costs.
#7 The financial statements include advance payments to contractors totaling ETB 14,196,260,238, of which ETB 8,400,908,787 (59%) has been impaired. This includes ETB 278,050,125 related to private and share companies.
The financial statements include advance payments to contractors totaling ETB 14,196,260,238, of which ETB 8,400,908,787 (59%) has been impaired. This includes ETB 278,050,125 related to private and share companies.
The financial statements include advance payments to contractors totaling ETB 14,196,260,238, of which ETB 8,400,908,787 (59%) has been impaired. This includes ETB 278,050,125 related to private and share companies.
Amount: ETB 14.2B
#8 The Group recorded an allowance for doubtful accounts totaling under Trade and Other Receivables and Tax receivables. This raises serious concerns regarding internal controls over the recognition, monitoring, and recovery of receivables.
The Group recorded an allowance for doubtful accounts totaling under Trade and Other Receivables and Tax receivables. This raises serious concerns regarding internal controls over the recognition, monitoring, and recovery of receivables.
The Group recorded an allowance for doubtful accounts totaling under Trade and Other Receivables and Tax receivables. This raises serious concerns regarding internal controls over the recognition, monitoring, and recovery of receivables.
#9 Due to the challenges faced by the Welqait sugar project as a result of the civil war, bank withdrawals amounting to ETB 49,516,465.52 and bank deposits totalling ETB 10,832,285.70 remain undetermined.
Due to the challenges faced by the Welqait sugar project as a result of the civil war, bank withdrawals amounting to ETB 49,516,465.52 and bank deposits totalling ETB 10,832,285.70 remain undetermined.
Due to the challenges faced by the Welqait sugar project as a result of the civil war, bank withdrawals amounting to ETB 49,516,465.52 and bank deposits totalling ETB 10,832,285.70 remain undetermined.
Amount: ETB 49.5M
Extracted from audited financial statements via OCR. Figures in Ethiopian Birr.