Serbian companies loaned 9 mln EUR to Agrokor’s companies Ledo and Jamnica

In 2016, Agrokor’s loss stood at 440 million EUR, out of which the company’s retail section was 300 million EUR in debt, while the Konzum supermarket alone generated 250 million EUR of loss.

These are the results of an extraordinary audit that was carried out recently by Ernst & Young in the entire Agrokor and its 27 companies, including the three companies from Serbia and the three from Bosnia and Herzegovina.

The audit also showed that Agrokor’s aggregate capital was negative 2.4 billion kunas at the end of 2016, or 1.8 billion EUR below the figure reported in 2015. According to the temporary administrator of Agrokor, the audit was carried out with the purpose of ascertaining Agrokor’s chances for continuation its operations.

The audit also encompassed the balance sheets from 2015. The loss generated in this year was actually 140 million EUR, and not 110 million EUR, as originally reported.

In a complex web of mutual lending and claims between Agrokor’s companies, the auditors find out that the Serbian cooking oil manufacturer, Dijamant and the ice cream and frozen food producer, Frikom (also from Serbia) lent money to Agrokor’s companies. Dijamant, for example, lent 2.5 million EUR to Croatian company, Ledo, 2.8 million EUR to Jamnica, and 130,000 EUR to Konzum.  Frikom, on the other hand, lent 3.65 million EUR to Jamnica.

After finding out the results of the newest audit, the head of Croatia’s Committee on Financial Reporting Standards, Ivica Smiljan said that he was shocked by the huge corrections that PricewaterhouseCoopers (PwC), which did the auditing for Agrokor in 2015 and 2016. “I’ve been in accounting for a long time. I am very surprised at the amount of the corrections that PwC made”, Smiljan added.

The new audit, done by Ernst & Young, revealed huge discrepancies between the 2015 financial reports of nine key companies in Agrokor. Inflated value of assets, understated claims towards group members, overestimated inventory and undocumented costs were some of the reasons behind the discrepancies.

(Danas, 07.10.2017)


This post is also available in: Italiano

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