Hippo Valley Estates financial statements get clean bill of health from auditors

Hippo Valley Estates Limited’s inflation-adjusted consolidated and separate financial statements have been given a clean bill of health by auditors, Ernst & Young Chartered Accountants (Zimbabwe).

The auditors conducted an independent audit of the financial statements for the year ended March 31, 2024, and expressed an unmodified opinion that the financial statements “present fairly, in all material respects, the financial position of the Group and the Company as at 31 March 2024, and their financial performance and cash flows for the year then ended” in accordance with International Financial Reporting Standards (IFRS).

The auditors noted that the valuation of sugar inventory was a key audit matter due to its complexity and materiality. The inventory balance stood at ZWL306,582,865,000 as of the reporting date.

The auditors performed procedures to test the reliability of the underlying data, reviewed contractual agreements, and analysed the consistency of the cost allocation.

They also assessed the appropriateness of the inventory valuation accounting policy applied by management and recomputed the weighted average production costs to ensure accuracy.

“We have fulfilled the responsibilities described in the Auditor’s responsibilities for the Audit of the inflation adjusted consolidated and separate Financial Statements section of our report, including in relation to these matters,” the auditors stated.

“We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.”

The auditors also noted that they had nothing to report regarding the other information included in the annual report, which includes the consolidated financial summary, management and administration information, statistical summary, chairman’s statement, and chief executive review.

The directors of Hippo Valley Estates Limited are responsible for the preparation and fair presentation of the financial statements, as well as for internal control and assessing the company’s ability to continue as a going concern.

The auditors’ responsibilities included obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor’s report that includes their opinion.

“We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit,” the auditors stated.

“We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.”