London Mwafulilwa: I now request the auditors to make their report to the meeting. I invite Mr. Andrew Chibuye of Messrs PricewaterhouseCoopers to make the presentation.
Andrew Chibuye: Thank you very much. Our opinion is presented in the annual report and starts on page 106. I’ll take the report as read. I will give some comments and highlights just for the record to the shareholders of Copperbelt Energy Corporation Plc.
In our opinion, the annual financial statements give a true and fair view of the financial position of Copperbelt Energy Corporation Plc, the Company as at 31 December 2020, and of its financial performance and its cash flows for the year then ended, in accordance with international financial reporting standards as issued by the International Accounting Standards Board and the requirements of the Companies Act of Zambia and the Securities Act of Zambia.
What we audited: Copperbelt Energy Corporation Plc’s annual financial statements are set out on pages 111-150, comprised of the statement of profit or loss and other comprehensive income for the year then ended, the statement of changes in equity for the year then ended, the statement of cash flows for the year then ended, the notes to the annual financial statements, which include a summary of significant accounting policies and other explanatory information.
Basis of the opinion: We conducted our audit in accordance with International Standards on Auditing.
Independence: We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants, including international Independence Standards as issued by the IESBA.
On the next page, we discuss key audit matters. The first is the determination of the amount of revenue recognized on the wheeling arrangement with ZESCO. The MD has explained the circumstances relating to the contractual arrangements between CEC and ZESCO and their judgements that have been applied in determining the amount of revenue recognized, and those are disclosed in the financial statements.
On the next page, the next key audit matter in assessing the impairment of non-financial assets. This relates to excess capacity on some of the assets that are currently in use, and so an assessment of those is done, and the appropriate disclosures and accounting treatment is shown in the financial statements in note 3 and note 11.
Other information: The directors are responsible for the other information that is presented together with these financial statements.
On the next page is the responsibility of the directors for the annual financial statements.
The directors are responsible for the preparation of the annual financial statements to give a true and fair view in accordance with IFRS as issued by the IESBA and the requirements with the Companies Act and the Securities Act. Our responsibility as auditors is to obtain reasonable assurance as to whether the financial statements are free from material misstatement, whether due to fraud or error and issue our report, which includes an opinion.
I then go to page 110 and take the meeting to the report on other legal requirements. The Company’s Act requires that in carrying out our audit of Copperbelt Energy Corporation Plc, we report on whether:
- As required by Section 259:3, there is a relationship, interest or debt, which ourselves as company auditor have in the Company;
- As required by Section 259:3-b, there is a serious breach by the Company’s directors of corporate governance principles or practices contained in Sections 80 to 122 of part 7 of the Companies Act of Zambia, and
- in accordance with Section 252 as regards loans made to a company officer, the Company does not state:
- Particulars of any relevant loan made during the financial year to their which accounts apply, including any loan, which was repaid during the year
- Any amount of any relevant loan whether made, which remained outstanding at the end of this financial year.
In respect to the foregoing matters, we have no matters to report. This opinion is signed by myself on behalf of PricewaterhouseCoopers. I submit Chair.