1 Project Financial Statements

Transcription

1 Public Disclosure Authorized 1 Project Financial Statements 1 EDM - ELECTRICIDADE DE MOQAMBIQUE, E.P. 1 Transmission Upgrade Project -Extension and Reinforcement of Matambo Substation Public Disclosure Authorized 1rst January 2014 to 31 December 2015 Public Disclosure Authorized -I -J Public Disclosure Authorized EY Building a better working world

2 EDM - ELECTRICIDADE DE MOgAMBIQUE, E.P. TRANSMISSION UPGRADE PROJECT - EXTENSION AND REINFORCEMENT OF MATAMBO SUBSTATION CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT 1-2 FINANCIAL STATEMENTS 3 ACCOUNTING POLICIES 4 NOTES TO THE FINANCIAL STATEMENTS 5-7 LI LI

3 Rua Belmiro Obadias Muianga, N' 179 Fax: M ET Y Caixa Postai emst.young.ey.com Maputo NUIT: Building a better Mogambique working world INDEPENDENT AUDITOR'S REPORT To the Project Management of ELECTRICIDADE DE MOQAMBIQUE, E.P. TRANSMISSION UPGRADE PROJECT - EXTENSION AND REINFORCEMENT SUBSTATION OF MATAMBO Report on the financial statements We have audited the accompanying financial statements of TRANSMISSION UPGRADE PROJECT - EXTENSION AND REINFORCEMENT OF MATAMBO SUBSTATION, which comprise the statement of receipts and payments at 31 December 2015 (reflecting a total of payments of USD ), for the period from 1rst January 2014 to 31 December 2015, and a summary of significant accounting policies and other explanatory notes set out in page 5. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in Mozambique. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility U U U Our responsibility is to express an opin on on these financial statements based on our audit. We conducted our audit in accordance with nternational Standards on Auditing. Those standards require that we comply with ethcal requ rements and plan and perform the audit to obtain reasonable assurance whether the fnandia statements are free from material misstatement.

4 Building a better working world An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of TRANSMISSION UPGRADE PROJECT - EXTENSION AND REINFORCEMENT OF MATAMBO SUBSTATION as of 31 December 2015, for the year then ended in accordance with accounting principles accordance with the accounting policies set out in page 5. YOUNG, LDA 2

5 CONSOLIDATED STATEMENT OF INCOME AND EXPENDITURE FOR THE PERIODO COMPRIDING 1 JANUARY 2014 TO 31 DECEMBER 2015 (Accounts Expressed in USD) L Notes 31-Dec Dec-2014 CASH RECEIPTS Opening balance Funds received , Interests L I TOTAL RECEIPTS EXPENDITURES Supply and installation Consultants services Others suppliers Bank charges Withholding tax TOTAL EXPENDITURES Closing balance Bank balance FINANCE AND ADMINISTRATION MANAGER PROJECT MANAGER LUA U - LlL

6 (Accounts Expressed in USD) 1. INTRODUTION World Bank, represented by IDA - International Development Association and the Government of Mozambique represented by EDM signed an agreement to carry Out a project called EDM Transmission Upgrade Project, Mozambique L I The main objective of improving the transmission system of Matambo Substation (Transmission upgrade of Matambo substation) is to reduce the frequency of electricity outages in Tete province. The specific objectives are to enable EDM to provide sufficient, affordable and reliable electricity for the purpose of economic growth. The project shall carried out in accordance with the programme document titled "Credit number MOZ Amended and Restated Financing Agreement" dated L I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [AJ Basis of Presentation The financial statement, compiled from the Project Unit accounting records, was prepared on the cash basis of accounting. Under cash basis of accounting, receipts are not recorded until received in cash and disbursements are assigned to the period in which cash payment is made. Foreign Currency Transactions The books of accounts of the Project are maintained in American Dollars (USD). The statement of receipts and payments is also expressed in American Dollars (USD) unless otherwise stated. Transactions in other currencies are converted in American Dollars (USD) by the Project, and are reflected as expenditure in the year of purchase. Procedures The disbursements of the funds, made available by the International Development Association (IDA), are made by direct transfers or by requests for payments sent to the Special Account, which was created with funds made available by IDA, in a bank account of the Project maintained in Maputo (BCI - Fomento) 3. Funds received Funds received from donor are analyzed as follows: ir 2015 Donors (Funds transferred on ) Donors (Funds transferred on ) Direct payment made by donor Total cash receipts U 4

7 U WI (Accounts Expressed in USD) 4. Interests Revenue from interest relating with the Project's deposit account, could be analyzed as follows: 2015 January 60 February 54 March 61 April 58 May 38 June 31 July 31 August 40 September 66 October 64 November 50 December 49 U [. 5. Supply and installation 602 Expenses with Supply an installation are made as follows: Joint Venture National Contracting Co. Ltd - EMCO Ltd L I 6. Consultant's services Expenses with Consultant's services are made as follows: SMEC Intemational (Pty) Ltd

8 (Accounts Expressed in USD) -incr.-lerm.vrwwilim Wo 4.P 1UrI %I 31 UMEilDErAUI a 7. Others suppliers Expenses with Others suppliers are made as follows: Siemens, S.A Bank charges Bank charges corresponds are made as follows: 2015 April 357 May 374 June 76 August 20 September 287 November Withholding tax Corresponds to the interest withholding tax, and could be analyzed as follows: 2015 January 12 February 11 March 12 April 12 May 8 1 June 6 July 6 August 8 September October November December

9 (Accounts Expressed in USD) 10. Closing Balance The financial position of the income over expenditure as at December 31, 2014, corresponds to the existing final balance in banks, which is represented by: BCl Fomento USD , Taxes The possibility exists that the fiscal authorities could review the amount of company tax as well as other taxes paid by the company including employee tax and withholding taxes. FINANCE AND ADMINISTRATION MANAGER PROJECT MANAGER 2:ALV -]

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