REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF NATIONAL INVESTMENTS PUBLIC LIMITED COMPANY
Qualified Opinion in respect of limitation of scope to consolidate results and cash-flows of Tanzania Meat Company limited We have audited the Company financial statements of National Investments Public Limited Company, set out on pages 11 to 34 which comprise the Company statement of financial position for the year ended 31 December 2019, and the Company statement of profit or loss and other comprehensive income, Company statement of changes in equity and Company statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements give a true and fair view of the Company’s financial position for the year ended 31 December 2019, and the Company financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and the Tanzania Companies Act, 2002. Basis for Qualified Opinion As described in Note 25 to the financial statements, on 27 December 2019, The Ministry of Livestock and Fisheries took over the management and control of Tanzania Meat Company Limited (TMCL), the company’s former 51 % owned subsidiary. Following the takeover, the company lost control and ability to consolidate the activities and results of operations of Tanzania Meat Company Limited for the year as required under International Financial Reporting Standard No. 10 and the Tanzania Companies Act, 2002. The non-presentation of consolidated financial statements is therefore not in compliance with the requirements of International Financial Reporting Standard No.10 with regard to the requirement to present Group financial statements. We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Tanzania, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Emphasis of matter: Reissuance of amended financial statements and audit report We draw attention to Note 1 (a)(i) to the financial statements, which indicates that the financial statements have been revised and reissued following the public notice in the daily newspapers dated 26 May 2020 following the shareholders of Tanzania Meat Company Limited decision of 24 April 2020 to liquidate the Tanzania Meat Company Limited (TMCL). This audit report on the revised financial statements supersedes our previous audit report dated 4 May 2020. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company financial statements. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be a key audit matter to be communicated in our report. We have determined the matter described in the Basis for Qualified Opinion section of our report, regarding the takeover of the company’s subsidiary company by the Ministry of Livestock and Fisheries and the subse quent decision on 24 April 2020 to liquidate TMCL as described in Note 25 to the financial statements to be a key audit matter.
NATIONAL INVESTMENTS PLC Annual Report
2020
49
