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Tawanda Musarurwa
Listed sugar processing concern Hippo Valley Estates Ltd, says “complexities” around its financial results had necessitated a further extension of a grace period assigned to it by the Zimbabwe Stock Exchange.
Hippo Valley Estates is a subsidiary of South Africa-headquartered sugar manufacturer Tongaat Hullet.
The ZSE had previously given Hippo Valley the leeway to publish its financial results by July 31, 2019, from the initial publication deadline of June 30, 2019.
And now another extension has been sought and granted.
“The board would like to advise members that while the preparation of the financial results is in the finalisation stage and given the complexity of the issue involved, they require more time for completion.
“Consequently, a request has been made to the ZSE who have granted the company a final extension and as such, the company’s abridged audited financial results will now be published on or before August 14, 2019,” said Hippo Valley company secretary Bigboy Shava.
Allegations of financial misappropriation of Tongaat Hullet Limited (THL) has forced Zimbabwean subsidiary, Hippo Valley Estates Limited to postpone publication of its FY2019 results.
The parent company is facing an accounting scandal back in South Africa, which resulted in the suspension of its securities on the Johannesburg Stock Exchange (JSE) in June.
The group’s share was suspended following the JSE’s announcement on May 31 that the company would have to restate its equity by between R3,5 billion and R4,5 billion for its 2018 year.
To this extent, Tongaat Hullet Ltd moved to delay the announcement of its 2019 financial results to October, by which time it is targeting to recommence trading on the South African bourse.
Hippo Valley Estates has said although it is not aware of any financial impropriety by the company, it has decided to carry out its own internal investigations as it is likely be impacted by investigations on its parent company.
Hippo Valley Estates and Tongaat Hullet use the same accounting policies.
Tongaat Hulett Limited has been conducting a strategic and financial review since February this year.
The parent company at the time said the adjustments relate to the “reassessment of land sales against the revenue recognition criteria defined by International Financial Reporting Standards and the associated profit margins”, a revision to growing cane valuations and a reversal of capitalisation costs related to cane roots, projects, maintenance and inventory.
At the end of May, the group announced that the financial review had revealed certain past practices that would result in the restatement of its audited consolidated financial statements for the year ended March 31, 2018.
The board of THL concluded that reliance on the 2018 financial statements is “no longer appropriate and that the financial information therein should not be relied upon”.
Bongani Ndlovu