| Fri 14 Oct 2005, 8:48 | | All Joy - Accounting error and financial effects |
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All Joy - Accounting error and financial effects
ALL JOY FOODS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1989/000100/06)
(JSE Share code: ALJ & ISIN: ZAE000017240)
("All Joy" or "the company")
Warning: The listing of ordinary shares in the company is on ALTx. Investors
are advised of the risks of investing in a company listed on ALTx. Investors are
advised that the JSE does not guarantee the viability or the success of a
company listed on ALTx. In terms of the Listings Requirements, the company is
obliged to appoint and retain a Designated Adviser, which is required to, inter
alia, attend all board meetings held by the company to ensure that all the
Listings Requirements and applicable regulations are complied with, approve the
Financial Director of the company and guide the company in a competent,
professional and impartial manner. If the company fails to retain a Designated
Adviser, it must make arrangements to appoint a new Designated Adviser within 10
business days, failing which the company faces suspension of trading of its
securities. If a Designated Adviser is not appointed within 30 days of its
suspension, the company faces the termination of its listing without the
prospect of an appropriate offer to minority shareholders.
ACCOUNTING ERROR AND FINANCIAL EFFECTS
1. Accounting error and financial effects
Shareholders are advised that it recently came to the attention of the directors
of All Joy that the trade receivables at 28 February 2005 were overstated due to
incorrect accounting entries relating to discounts and rebates. The directors
immediately appointed the auditors to perform a review to determine the extent
of the error. The incorrect accounting entries were due to human error and no
misappropriation of funds took place. The directors have taken the necessary
steps to ensure the errors do not occur again.
The auditors have completed their review, which indicated that the accounts
receivables as at 28 February 2005 was overstated by R 1 633 377, and the
capital and reserves after the tax adjustments have been overstated by R 1 007
023. The effect on the profits after tax for the year ending 28 February 2005
was R 295 747 and the effect on the profits after tax for the year ending 28
February 2004 was R 711 276.
The company has consulted with its auditors and the JSE Limited if it is
necessary to with draw and re-issue the annual financial statements for the year
to 28 February 2005. Shareholders will be advised of the outcome of these
consultations.
The financial effects of the error is detailed below:
INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2005
Audited Revised % Change
Before after
R `000 error
adjustment
R `000
Profit after taxation 2,194 1,899 (13,4)
Weighted average shares in 34,415 34,415
issue (000"s)
Earnings per share (cents) 6,4 5,5 (14,0)
Headline per share (cents) 7,0 6,1 (12,9)
INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2004
Audited Revised % Change
Before after
R `000 error
adjustment
R `000
Profit after taxation 2,149 1,438 (33,1)
Weighted average shares in 33,000 33,000
issue (000"s)
Earnings per share (cents) 6,5 4,4 (32,3)
Headline per share (cents) 7,0 4,8 (31,4)
BALANCE SHEET AT 28 FEBRUARY 2005
Audited Revised %
Before after Change
R `000 error
adjustment
R `000
ASSETS
Non-current assets 7,507 7,507 -
Current assets 23,397 21,764 (6,9)
TOTAL ASSETS 30,904 29,271 (5,2)
EQUITY AND LIABILITIES
Capital and reserves 15,255 14,248 (6,6)
Non-current liabilities 1,192 1,192
Current liabilities 14,457 13,831 (4,3)
TOTAL EQUITY AND LIABILITIES 30,904 29,271 (5,2)
Number of shares issued at 41,973 41,973
year end
Net asset value (cents) 36,3 33,9 (6,6)
Net tangible asset value 34,8 32,4 (6,9)
(cents)
BALANCE SHEET AT 28 FEBRUARY 2004
Audited Revised %
Before after Change
R `000 error
adjustment
R `000
ASSETS
Non-current assets 6,700 6,700 -
Current assets 18,348 17,190 (6,3)
TOTAL ASSETS 25,048 23,890 (4,6)
EQUITY AND LIABILITIES
Capital and reserves 8,388 7,677 (8,5)
Non-current liabilities 1,380 1,380
Current liabilities 15,280 14,833 (3,0)
TOTAL EQUITY AND LIABILITIES 25,048 23,890 (4,6)
Number of shares issued at 33,000 33,000
year end
Net asset value (cents) 25,4 23,3 (8,3)
Net tangible asset value 23,3 21,2 (9,4)
(cents)
2. Circular relating to acquisition of Retailer Brands (Pty) Limited by All Joy
The circular relating to the acquisition of Retailer Brands (Pty) Limited by All
Joy is being finalised and will be mailed to shareholders shortly.
Designated Adviser
Exchange Sponsors
14 October 2005
Johannesburg
Date: 14/10/2005 08:48:55 AM Produced by the JSE SENS Department
