ZCCM IH has advised shareholders and stakeholders that its 2021 audited financial statements will be further delayed due to the non-completion of the fair valuation of Mopani Copper Mines PLC, according to an official statement.
“Shareholders are referred to the Company announcement dated 28 February 2022 where it was communicated that the audited 2021 financial statements would be issued by 31 March 2022. ZCCM-IH is yet to publish its financial statements for the year ended 31 December 2021”, read a statement issued by Company Secretary Chabby Chabala on 10 October authorized by the Dolika Banda led Board.
The official reason for the non-issuance of the said financial statements was occasioned by the “delayed completion of the audit of the financial statements”. Grant Thronton are currently ZCCM IH’s auditors and were responsible for the audited financials in the groups 2020 Annual Report.
According to the official statement, it can be implied that GT has some audit concerns that still require clarification around the valuation of Mopani Copper Mines Plc. “The financial statements audit for the year 2021 awaits completion of fair valuation of assets and liabilities related to the acquisitions of 90% shares of Mopani Copper Mines PLC as of 31 March 2021”.
Without GT and ZCCM IH Management agreeing of the pertinent issues raised by the former, the financial statements cannot be signed off as per international standards on financial reporting. “The fair valuation is required for incorporation in the 2021 financial statements as per International Financial Reporting Standards”.
ZCCM IH are hopeful though that this workstream should be concluded before year end. “The fair valuation exercise is expected to be completed before the end of the year, after which the audit will then be finalized”. However, according to Clause 17 of the Securities and Exchange Commission’s Accounting and Financial Requirements rules, ZCCM IH “are expected, in each financial year, as a licensee, to submit audited annual financial statements to the Commission within four months after the end of the financial year to which the annual financial statements relate” (in this case 2021).
For now, ZCCM IH indicates that it will “in the meantime issue provisional financial statements for the said financial year within the month of October 2022”.
The wait continues…
