ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) -ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS For the year ended 30 JUNE 2018 ENRGTY SALTOR OF MAA WI LIMMD (ESco) - EERG SETORSUPPORT PROJECT (ESp) FINANCIAL STATEMJ, NTS FOR THE YEAR ENDED 30 JUNE 2018 Contents Page Introduction 1.1 Background information 1.2 Project's immediate objective 1.3 Project components 1 1-2 2 The audit Scope and reporting 2.1 Introduction 3 2.2 Scope 3 2.3 Reporting3 2.4 Distribution 3 3 3 Statement of directorsp responsibilities 4 4 Independent auditor's report 4 5 Financial statements 9 Statement Of income and expenditur for the year ended 30 June 2016 9 5.2 Balance Of Project's funds and cash status 10 5.3 Notes to the statement of income and expenditure 10 5.3.1 Significant accounting policies 11 5.3.2 Income 11 5.3.3 Expenditure 11 5.3.4 Project unutilised funds 11 5.3.5 Opening balance 11 12 5.3.6 Critical accounting judgements and key sOurces of estimation uncertainty 12 5.3.7 Exchange rates and inflation 1 6 Report on our review of expenditure 13 6.1 Scope and work performed 13 6.2 Findings 13 7 Annexures 7.1 Fixed asset register 14 7.2 Detailed income and expenditure report 16-17 7.3 Detailed expenditure report by component 18-19 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 1. Introduction 1.1 Background information Malawi Government entered into a contract agreement with the World Bank to finance the Energy Sector Support Project (ESSP) in Malawi. The project is implemented by the Electricity Supply Corporation of Malawi (ESCOM) in conjunction with the Ministry of Natural Resources, Energy and Environment (MoNREE). The project is financed by a credit and grant in the amounts of US$19,300,000.00 and US$ 65,400,000.00, respectively. 1.2 Project's immediate objective The proposed project contributes directly to the set of objectives set out in the Malawi Country Assistance Strategy (CAS) (FYO7-FYl 1). The CAS is a program of country assistance in support of the overall Malawi Growth and Development Strategy (MGDS), which underscores the importance of putting in place a foundation for long-term economic growth through improved infrastructure and the investment climate. It specifically proposes that the Bank continues to play a central role in infrastructure development, focusing its efforts in energy and water development. The proposed Energy Sector Support Project encompasses: (i) rehabilitation, upgrading and expansion of existing electric transmission and distribution systems; (ii) funding of feasibility studies and preliminary design work for new hydropower plants and backbone transmission line; (iii) demand side management and energy efficiency measures; and (iv) Technical assistance and capacity building for ESCOM and MoNREE. The project is directly associated with the CAS outcome of putting in place a foundation for long-term economic growth through improved infrastructure and the investment climate by helping to close the supply-demand gap and improve the electricity distribution and transmission sector. The project aims at increasing the reliability and quality of electricity supply in the major load centres in Malawi. 1.3 Project components Component 1: Electricity Network Strengthening and Expansion (estimated at US$56.2 million, including contingencies) This component includes the rehabilitation, upgrade and expansion of priority parts of the existing distribution and transmission system, including extension of the network in selected peri-urban areas and reinforcement of the Low Voltage (LV) reticulation. The component is divided into three sub-components: * Component la: Distribution & Transmission Uprating and Expansion (estimated at US$41.9 million, including contingencies); * Component lb: Low Voltage Reticulation Reinforcement and Technical Implementation Support (estimated at US$10.5 million, including contingencies); and * Component lc: Design, Procurement & Supervision (estimated at US$3.8 million, including contingencies). ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 1. Introduction (Continued) 1.3 Project components (Continued) Component 2: Generation and Transmission Feasibility and Design Studies (estimated at US$15.2 million, including contingencies) This component includes financing for feasibility studies needed for eventual development of an additional 200-380 Megawatts (MW) of new hydropower generation capacity in Malawi, The feasibility studies will include technical, engineering design & economic assessments and Environmental Social Impact Assessments (ESIAs) (at either preliminary or full level, depending on the site), and development of the necessary environmental and social mitigation/management plans (again at either preliminary or full level, depending on the site). Component 3: Demand Side Management and Energy Efficiency Measures (estimated at US$6.8 million, including contingencies) Given the severe capacity constraints in Malawi's power system, and evidenced by the extensive and year-round load-shedding program, it was proposed to finance several demand- side management (DSM) and energy efficiency activities, focusing on reducing the coincident peak load and therefore reducing load-shedding. Some of those activities will also contribute to achieve energy savings. These interventions will provide, at relatively low cost, critical "quick wins" in Malawi's efforts to close the demand-supply gap, pending the installation of new generation capacity in the medium term. They will also help Malawi manage its system more reliably and at a lower cost. Component 4: Capacity Building & Technical Assistance (estimated at USS3.5 million, including contingencies) This component will provide institutional strengthening and technical assistance to both MoNREE and ESCOM to support their efforts to further develop Malawi's energy sector. Activities will include: * Component 4.A Support to ESCOM (estimated at US$0.6 million, including contingencies); and * Component 4.B Support to MoNREE (estimated at US$2.9 million, including contingencies). 2 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 2 The audit scope and reporting 2.1 Introduction We were engaged to perform the audit of the Electricity Supply Corporation of Malawi Limited (ESCOM) - Energy Sector Support Project (ESSP) for the year ended 30 June 2018 in accordance with the engagement letter dated 22 August 2018 signed between the Electricity Supply Corporation of Malawi Limited (ESCOM) - Energy Sector Support Project (ESSP) and Deloitte. The audit was undertaken to address the following specific objectives: * To perform an audit in accordance with International Standards on Auditing in order to provide an opinion on the true and fair view of the project's financial statements for the year ended 30 June 2018; * To confirm that the project is in compliance with relevant Project documents and applicable regulations; * To report on significant control weaknesses and make recommendations to address these weaknesses as appropriate; * To ascertain that the reported surplus/(loss) is represented with corresponding assets; and * To determine whether the project's income was used to further the project's objective. The project's financial statements and the responsibility for establishing an effective system of internal control are the responsibility of project management. 2.2 Scope We conducted our audit in accordance with International Standards on Auditing. 2.3 Reporting We have presented our report as follows: * Audit of the project's statement of income and expenditure (Section 5); and * Review of the project's expenditure (Section 6). 2.4 Distribution This report may only be used by Management of ESCOM-Energy Sector Support Project (ESSP) for the intended purposes based on the specified procedures. 3 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 3 Statement of Directors' responsibilities The directors are responsible for preparing the financial statements that reflect a true and fair view of the project's financial statements in accordance with the Cash Basis of Accounting Method of the International Public Sector Accounting Standards. Directors are also responsible for the maintenance of adequate accounting records and internal controls, the selection and application of suitable accounting policies, and safeguarding the assets of the project. The directors accept responsibility for the financial statements which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with the requirements of the project. The directors further accept responsibility for the maintenance of the accounting records, which may be relied upon in the preparation of the financial statements, as well as adequate systems of internal financial control. CHAIRMAN D C OR OF FINANCE Date: 47.February, 2019 4 PO BOX 187 N1itte Chartered Accountants D e lo itte Registered Auditors latte Malawi 1 st Floor pCL House, Top Mandala Blantyre Malawi Tel :+265 (0) 7 822 277 :+265 (0) 1 820 506 Fax :+265 (0) 1 821 229 Email :btdeloitte@deloite.comw wwwdeloittecom Independent auditor's report Sco ehol of Eericity Supply Corporation of Malawi Limited (ESCOM) - Energy Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Electricity Supply Corporation of Malawi (ESCOM)- Energy Sector Support Project (ESSE) (the Project) as Set out on pages 9 to 19, which comprise the statement of income and expenditure for the year ended 30 June 2018, balance of project funds and cash status, and the notes to the financial statements, including a summary of significant accounting policies. In our opinion, the financial statements give a true and fair view of the financial position of Electricity Supply Corporation of Malawi (ESCOM)-Energy Sector Support Project (ESSP) as at 30 June 2018, and its financial performance and cash status for the year then ended in accordance with the Cash Basis of Accounting Method of the International Public Sector Accounting Standards and in the manner required by the World Bank. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsihilifies for the Audit ofthe Financial Statements section of our report. We are independent of the Project 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 financial statements in Malawi. We have fulfilled our 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 opinion. Emphasis of Matter We draw attention to note 5.3.7 of the financial statements. The Project is no longer a going concern because it wound up on 15 October 2018. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. 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. Partners; NT Uka VW BRza CA Rapenda MC Mwenelupembe (Mo) 5 Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Lmited ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Key Audit Matters (Continued) Key Audit Matter How the matter was addressed in the audit Basis of accounting As disclosed on 5.3.1 (b), the financial We checked and ensured that the financial statements statements are prepared using the Cash Basis are prepared using the Cash Basis of Accounting of Accounting Method of the International Method of the IPSAS and not accruals basis. Public Sector Accounting (IPSAS). For selected expenditures, we checked if they were recognised when disbursement of cash had occurred. We considered the basis of accounting as a We further checked if income was recognised on receipt key audit matter due to the mix up of of cash. accounting bases that was noted in the prior years. In prior years we noted erroneous We assessed the accounting basis that was applied and application of the Accrual Accounting the result of our assessment were satisfactory. Basis on some transactions of the Project instead of Cash Accounting basis as per IPSAS. Other Information The directors are responsible for the other information. The other information comprises the introduction which we obtained prior to the date of this auditor's report. The other information does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 6 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Responsibilities of the directors for the Financial Statements The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with the Cash Basis of Accounting Method of the International Public Sector Accounting Standards and the requirements of the World Bank and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement., whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; * Obtain an understanding of internal control relevant to the audit 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 Project's internal control; * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors; * Conclude on the appropriateness of the directors' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern; and * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 7 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Responsibilities of the directors for the Financial Statements (Continued) 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. 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, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Deloitte Chartered Accountants Madalo Mwenclupembe Partner 4 February 2019. 8 ['�I Q "�7 г--� Г'1. С7. , f".. 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Е,.,, е� �в х U гуу р, r � с�а ,w �j � � � � w ,� � гJ�] � С�д] �.�`+ .-+ G� а v � ;�с о � О О С7 С} о ее @ л � гл а Е"�-� Fz+ `� � k, � С�'С С� �, � U Н ;„ U U U С.1 г� � U f�' ,� г'] Е-� �и.,� � � � � �, :�Uw С� W � Е-+ � а��о Г�й � �1 W И ELECTRICITY SUPPLY CORPORATION OF MAILAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 5. Financial statements (Continued) 5.2 Balance of project's funds and cash status 2018 2017 MK USD MK USD 1. Opening balance 2 991 344 851.07 4167488.68 3 210 085 442.59 4554884.46 2. Add: Total income during the reporting period 17 707 254 057.97 24 683 929-87 8 879 059 047-87 12 380 911.91 3. Less: Total expenditure during the reporting period (20 071 882 122.00) (27 364 365-67) (9 3 12 679 069.99) (12 782 580-32) 4. Add: Interest received 4837782.41 6740.95 10 207 783.65 14 27163 5. Add: Exchange rate gain ----440 223 177,41 204 671 646.95 - Excess of income over Expenditure LQ7jj7Z2+ M j 4n =T 3 2-19 10 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 5. Financial statements (Continued) 5.3 Notes to the statement of income and expenditure 5.3.1 Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are as follows: (a) Accounting convention The financial statements have been prepared under the historical cost convention. The historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The principal accounting policies are set out below in the following paragraphs. (b) Basis of accounting The statement of income and expenditure has been prepared on the Cash Basis of Accounting Method of the International Public Sector Accounting Standards whereby income is recognised on receipt of cash or cash equivalents and the expenditures recognised on the disbursement of cash or cash equivalents. (c) Revenue recognition Grant income is recognised on a cash receipt basis. (d) Foreign currency transactions Transactions in other currencies are translated into Malawi Kwacha at the rate ruling on the date of transaction. (e) Reporting currency The financial statements are presented in Malawi Kwacha and United States Dollar. (f) Property, plant and equipment Plant, vehicle and equipment are recorded as an expense at the time of acquisition, because of the short-term nature of the project. A comprehensive fixed assets register is maintained for all items of plant and equipment held by the project. 5.3.2 Income Income represents funds received from World Bank and interest from the bank. 5.3.3 Expenditure The reported expenditure includes all payments made by the project. 5.3.4 Project unutilised funds Total income for the project (unutilised funds brought forward plus funding received during the year and any other income) is reduced by total expenditure incurred by the project to arrive at unutilised funds carried forward to the following year. 11 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 5. Financial statements (Continued) 5.3.5 Opening balance The opening balance is made up of cash balances from both Standard Bank US Dollar designated account and FDH Bank Malawi Kwacha Account. 5.3.6 Critical accounting judgements and key sources of estimation uncertainty No critical judgements were made by the management during the current year that would have a material impact on the financial statements and no estimates were made as there is no uncertainty concerning the future at the reporting date that may have a significant risk of causing any material adjustment to the carrying amounts of assets within the next financial year. 5.3.7 Going Concern In accordance with the project financing agreements with the World Bank, the ESSP was supposed to have wound up on July 31, 2018. However, owing to some remaining works, an extension was granted for the project to wind up on 15 October, 2018. All outstanding works have since been completed and all assets that were acquired and developed under the project have been transferred to ESCOM. 5.3.8 Exchange rates and inflation 2018 2017 K K Kwacha/US Dollar 733.95 733.95 Inflation rate (%) 8.6% 10,2 % As at 16 October 2018 the above rates had moved as follows: Kwacha/US Dollar 735,5 Inflation rate (%) (August 2018) 9.3% No adjustments arising from the movement of the exchange and inflation rates after the year-end have been made in the financial statements. 12 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 6 Report on our review of expenditure 6.1 Scope and work performed We performed the following procedures on a sample basis: - * We checked that the opening and closing foreign accounts relating to the project were translated at the rate ruling on the opening and closing dates respectively; * We verified that expenditures made out of the projects accounts were stated at the rate ruling on the transaction date; * We reviewed a sample of project purchases and checked that a no objection approval was obtained from the World Bank; * We checked that the project's financial reports were prepared in an accurate, reliable and timely manner; * We checked that the projects staff received training and have experience in World Bank funded projects; * We reviewed the statement of income and expenditure and ensured it was in compliance with the World Bank acceptable reporting requirements; * We reviewed designated accounts and bank accounts showing deposits and replenishments received and payments duly supported by withdraw application's, interest earned on the accounts and the balance at end of reporting period; * We checked that procurement reports provided information on the procurement of goods, works and consultant and on compliance with the agreed procurement methods; * We checked that the project accounts were prepared on cash basis; * We verified if the reconciliations of bank and other control accounts were periodically prepared in accordance with project appraisal document; * We verified if the fixed assets schedule was properly maintained and if it reconciled with the general ledger and also that the assets were safely guarded; * We verified if the account balances in the trial balance are reconciled to the underlying ledgers; * We reviewed the management accounts to ensure that they reconcile to the trial balance; and * We reviewed reports of the internal audit department of ESCOM for any issues raised relating to the project. 6.2 Findings Exceptions noted have been reported in the management letter which has been issued separately. 13 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 7 Annexure 7.1 Fixed asset register 2018 Asset Supplier Unit price Qty Total cost K K Laptops MBH Power 1 238 907.60 3 3 716 722.80 Mobile Phones Appollo 73 395.00 5 366 975.00 Mobile Phones Appollo 73 395.00 4 293 580.00 Furniture Block Buster 197 900 3 593 700.00 Training Room Tables Hisco Ltd 170 000.00 10 1 700 000.00 Rick Stackers Chairs Hisco Ltd 60 000.00 15 900 000.00 Desk (6 Drawers) Hisco Ltd 185 000.00 1 185 000.00 High Back Swivel Chairs Hisco Ltd 300 000.00 2 600 000.00 Chest Freezer Game Stores 916 100.00 1 916 100.00 Gas & Electric Freezer Game Stores 580 400.00 1 580 400.00 Defy Cooker Game Stores 369 900.00 2 739 800.00 Dell Inspiron Laptops Xerographics 882 992.00 8 7 063 936.00 Desk Top Computers Globe Internet 520 000.00 5 2 600 000.00 Toyota Hilux BU 8835 EMCO 31 574 529.00 1 31 574 529.00 Toyota Hilux BU 9905 EMCO 38 718 000.00 1 38 718 000.00 Toyota 1ilux BU 9906 EMCO 38 718 000.00 1 38 718 000.00 Land Ministry of Lands 44 072 350.25 1 44 072 350.25 Office Equipment Various 13 626 628.00 Toyota Coaster BU 6384 Toyota 50 200 250.25 1 50 200 250.25 Toyota Hino BU 5148 Toyota 79 844 533.70 1 79 844 533.70 Toyota Hilux BU 2088 MBH Power 24 003 711.71 1 24 003 711.71 Toyota Hilux BU 2095 MBI Power 24 003 711.71 1 24 003 711.71 Toyota Hilux BU 2093 MBH Power 24 003 711.71 1 24 003 711.71 IVECO Truck BU 5055 Rousant 142 451 036.20 1 142 451 036.20 IVECO Truck BU 5054 Rousant 72 947 146.25 1 72 947 146.25 IVECO Truck BU 5053 Rousant 142 451 036.20 1 142 451 036.20 IVECO Truck BU 5052 Rousant 72 947 146.25 1 72 947 146.25 IVECO Truck BU 5051 Rousant 72 947 146.25 1 72 947 146.25 IVECO Truck RU 5049 Rousant 142451 036.20 1 142451 036.20 Ford Ranger BU 4105 Sieyan 17 132 90229 1 17 132 902.29 Ford Ranger BU 4106 Sieyan 17 132 902.29 1 17 132 902.29 Ford Ranger BU 4107 Sieyan 17 132 902.29 1 17 132 902.29 Total 1 086 614 894.35 14 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 7 Annexure (Continued) 7.1 Fixed asset register (Continued) 2017 Asset Supplier Unit price Qty Total cost K K Land Ministry of Lands 44 072 350.25 1 44 072 350.25 Office Equipment Various 13 626 628.00 Toyota Coaster BU 6384 Toyota 50 200 250.25 1 50 200 250.25 Toyota Hino BU 5148 Toyota 79 844 533.70 1 79 844 533.70 Toyota Hilux BU 2088 MBH Power 24 003 711.71 1 24 003 711.71 Toyota Hilux BU 2095 MBH Power 24 003 711.71 1 24 003 711.71 Toyota Hilux BU 2093 MBH Power 24 003 711.71 1 24 003 711.71 IVECO Truck BU 5055 Rousant 142 451 036.20 1 142 451 036.20 IVECO Truck BU 5054 Rousant 72 947 146.25 1 72 947 146.25 IVECO Truck BU 5053 Rousant 142 451 036.20 1 142 451 036.20 IVECO Truck BU 5052 Rousant 72947 146.25 1 72 947 146.25 IVECO Truck BU 5051 Rousant 72 947 146.25 1 72 947 146.25 IVECO Truck BU 5049 Rousant 142 451 036.20 1 142 451 036.20 Ford Ranger BU 4105 Sicyan 17 132 902.29 1 17 132 902.29 Ford Ranger BU 4106 Sieyan 17 132 902.29 1 17 132 902.29 Ford Ranger BU 4107 Sieyan 17 132 902.29 1 17 132 902.29 Total 953115L'5 15 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 7 Annexure (Continued) 7.2 Detailed income and expenditure report Reporting period: 1 July 2017 to 30 June 2018 USD MK INCOME Opening balance 4 167488.68 2 991 344 851.07 World Bank Funds received during the year 24 683 929.87 17 707 254 057.97 Exchange gain - 440 223 177.41 Interest received 6 740.95 4 837 782.41 Total income > 28 858 15950 21_14365986886 EXPENDITURE Consultancy 1 680 935.87 1 233 722 881.79 Travel and Subsistence allowance 437 699.31 316 141 852.88 Line Materials 4049571.46 2 972 171 708.38 Tax paid 125933.19 90 778 912.79 Consumables and Sundries 147 126.97 106601 049.59 Spare Parts Clearing goods charges 42379.07 31 104 118.43 Motor vehicles 129661.68 95 165 190.04 Furniture 9 076.38 6 568 000.00 BuiIding Materials 7991.97 5727094.18 Computers 24032.72 17 517 813.37 Compensation 10 307.48 7442000.00 Communication and Insurance 10616.28 7 791 818.17 Purchase of software 77247.31 56 695 663.17 Training 1 263 680.36 924 940 800.08 Bank charges 14 059.89 10 309 365.59 Audit fee 32679.63 23 627 131.71 Wages and Salaries 43418.22 31 261 115.40 Land Acquisition 351.05 251 000.00 Substations 19 257 596.83 14 134 064 606.43 Total expenditure 27 364 365.67 20 071 882 122.00 Surplus income over expenditure 1 493 793.83 17i 777 74686 16 ELECTRICITY SUPPLY CORPORATION OF MALAWI LIMITED (ESCOM) - ENERGY SECTOR SUPPORT PROJECT (ESSP) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 7 Annexure (Continued) 7.2 Detailed income and expenditure report Reporting period: 1 July 2016 to 30 June 2017 INCOME USo MK Opening balance 4554884.46 3 210 085 442.59 World Bank Funds received during the year 12 380 911.91 8 879 059 047.87 Exchange gain - 204 671 646.95 Interest received 14 272.63 10 207 783.65 Total income 1950A9,0 12304023 21,06 EXPENDITURE Consultancy 1 474 769.75 1 078 724 887.00 Travel and Subsistence allowance 52 522.32 36 443 195.94 Line Materials 3943239.87 2 846 943 613.81 Tax paid 78681.26 57 212 186103 Consumables and Sundries 20615.13 15 039 343.49 Spare Parts 128913.89 94 380 380.39 Clearing goods charges 16 165.23 11 791 177.65 Motor vehicles 1 143 949.61 835 107 303.30 Purchase of software 1 255 758.01 920 894 595.23 Training 135438.54 98 519 918.15 Bank charges 5 049.75 3 688 164.91 Audit fee 29 106.19 21 562 823.69 Substations 4 498 37077 3 292 371 480.40 Total expenditure 12 782 580.32 9 312 679 069.99 Surplus income over expenditure _ 4 167i868 2 99_L4A 851.07 17 � v юх ха+г* ч-� м.• n,-. x сС v С- w г+у � i=^+П �' �.� С С тТ С l'� и м�^.мti, �. � � п�`� гr�i с0 e�i о� о м �� С ич ,^ - 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