Uchumi Blames Litigation Matters For Delayed Financial Audit
Uchumi Supermarkets has said it will delay the release of its financial audit and publishing of its results for the year ended June 2018 due to various litigation matters concerning the solvency of the company and the lease agreement of its headquarters office.
Through a notice addressed to investors, shareholders and the general public ,chief executive Mohamed Ahmed Mohamed announced that the company had received an exemption from CMA and will start auditing its financial books from January.
“In the coming weeks, Uchumi will engage its Auditors and Legal Team to plan out the process and to confirm that the recommendations of the Finance Expert meet, not only the threshold required, but are sustainable,” he said.
Following these reviews and reccomendations, any adjustments that may arise from that exercise will be noted for inclusion in the Financial Statement and thereafter, the auditors will be invited to audit the Financial Statements before any other Financial Obligation/Commencements.
The results will be released in March.
Under the Capital Markets Authority Act and regulations, companies are required to prepare and publish their annual and interim financial statements within four and two months of the close of the financial year respectively.
Mr Mohamed added that board had constituted a financial restructuring team that will identify and advise on options to settle creditors and restructure company’s liabilities.
The team will also identify and recommend a ‘return to normalcy restructuring plan’ that will see the rebranding of Uchumi.
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