Auditors Delay Agrokor Reports

Total Croatia News

They will not be able to finish their job in time due to its scale and complexity.

Belje, Vupik, PIK Vinkovci and Žitnjak, which are parts of the embattled Agrokor group, announced on Friday that they would not publish their financial reports for 2016 by the previously announced deadline of 31 July. The reason is that auditors will not be able to finish their job by then, reports Večernji List on 29 July 2017.

In almost identical notices sent from these Agrokor’s companies, they said that audited financial statements for 2016 would not be published by the deadline mentioned above, given that, due to their complexity and the volume of work, the authorised auditors have still not completed them.

The notices point out that it was announced on 14 June that, due to the extraordinary scope of work and the complexity of Agrokor’s business operations, the newly appointed auditors would not be able to carry out audits within the deadlines stated when they were appointed. According to forecasts at the time, it was expected that audit reports for 2016 would be published by 31 July, and reports for the first and the second quarter of this year by 31 August at the latest.

Ledo and Tisak also joined Belje, Vupik, PIK Vinkovci and Žitnjak and announced that their audited financial statements would also not be published in time.

New audit reports for 2016 have been commissioned by the government-appointed extraordinary administration of Agrokor, Croatia’s largest privately-owned company after the truthfulness of previous financial statements was brought into question. At the same time, the new administration also appointed new auditors who are supposed to provide a realistic assessment of Agrokor’s business results last year and in the first half of this year.

Simultaneously with this process, businesses which are owed money by Agrokor had to register their claims with the company, which is currently checking the received information and is expected to announce next month the total amount of the company’s debts and financial obligations. The first repayments of debts to smaller suppliers and vendors have started in recent days.

Ante Ramljak, the government, appointed a commissioner, said earlier this week, commenting on the results of the auditor’s work so far, that there would be significant unpleasant surprises once the audit reports are published. It is expected that Agrokor’s real financial status is even worse than previously reported.

Translated from Večernji List.


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