Unifreight Africa : FY21 Results and Audit Opinion

Abridged Audited

Financial Results

for the year ended 31 December 2021

Total Transport & Logistics Solutions

Corner Orme and Willow Road, New Adbernnie Harare P.O. Box 772 Harare, Zimbabwe, Tel: [phone], Website: www.unifreight.co.zw

Chairman's Statement

Overview

The year 2021 was characterised by a rebound in economic activity as a result of the easing of restrictions that had been implemented to combat the Covid 19 pandemic. This was a welcomed development although the operating environment remained challenging. The effect of rising inflation, volatility of exchange rates, and policy inconsistencies has affected business confidence within the economy. We have implemented measures to reduce the impact on the business and we are confident the measures will secure the future of the business.

Financial performance

We are happy to present inflation-adjusted Group Revenue of ZW$3.212Billion which is 32% above prior year and 2% above budget. Despite this healthy growth in Sales, margins have been pressed by the rising in cost. This rise in cost is mainly because of exchange rate volatility and US Dollar inflation experienced during the year. Tonnage was 0.7% above budget and 22% up from the prior year. This increase in tonnage was a result of new business acquisition and

average growth of 50% in volume as existing customers recovered from the impact of Covid 19 restrictions. Inflation-adjusted profit for the year was ZW$581million as compared to a ZW$123 Million Inflation Adjusted loss the prior year. (Historical Profit ZW$ 197 Million)

Outlook

Under the circumstances, the Board is relatively happy with the results produced during the period under review, particularly the acquisition of new revenue-earning equipment, growth in the balance sheet in real terms, and the investment in Zimplow Limited which will result in the Group enjoying benefits from the synergy. The operating environment remains challenging but we are confident that the authorities will implement measures to stabilize the exchange rate and inflation. Meanwhile, as the country gears up for the 2023 elections, the Group will continue to look for opportunities to remain profitable.

Dividend

The board has recommended the declaration of a dividend of 59 cents per share, a separate announcement will be made giving details of payment.

Appreciation

On behalf of the Board, I would like to extend my sincere appreciation to our valued stakeholders. I am grateful to my fellow board members for their strategic insight, management and staff for their continued commitment and dedication.

Peter Annesley

Chairman

28 June 2022

ABRIDGED AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 Dececember 2021

		Audited		Unaudited
		2021		2020		2021	2020
		ZW$ 000		ZW$ 000		ZW$ 000				ZW$ 000
		Inflation Adj	Inflation Adj		Historical				Historical
ASSETS
Non current assets	3,288,820		2,477,323		1,148,848	142,037
Property, vehicles and
equipment	1,289,563			1,413,221		168,349				84,551
Investment property	732,707			745,196		18,193				18,565
Investment in equity
instrument	810,258			-		810,258				-
Rigt of use of asset	389,111			251,725		150,548				37,421
Intangible assets	67,181			67,181		1,500				1,500
Current assets	538,837		566,250		528,836	336,419
Inventories	193,670			203,211		183,669				105,875
Income tax asset	300			-		300				-
Trade and other receivables	320,128			281,660		320,128				179,918
Cash and cash equivalents	24,739			81,379		24,739				50,626
Assets held for sale	-			72,428		-			2,046
TOTAL ASSETS	3,827,657		3,116,001		1,677,684	480,502
EQUITY AND LIABILITIES
Equity	3,140,642		2,204,455		1,206,415	258,557
Share capital	47,700			47,700		1,065				1,065
Share premium	92,265			92,265		2,060				2,060
Non-distributable reserve	1,622,559			1,622,559		46,356				46,356
Fair value reserve for
financial assets at FVOCI	363,985			-		476,994				-
Equity component of
shareholders loans	400,009			400,009		8,931				8,931
Retained Earnings	614,124			41,922		671,009				200,145
Non current liabilities	395,687		612,971		179,941	39,845
Lease liability	154,020			59,635		154,020				37,590
Deferred tax liabilities	241,667			553,336		25,921				2,255
Current liabilities	291,328		283,690		291,328	181,980
Trade and other payables	240,459			190,023		240,459				123,706
Income tax payable	-			79,051		-				49,161
Deferred consideration	-			118		-				73
Lease liability	7,013			2,382		7,013				1,502
Loans and borrowings	43,856			12,116		43,856				7,538
Liabilities directly associated
with the assets held for sale	-		14,885		-	120
TOTAL EQUITY AND
LIABILITIES	3,827,657			3,116,001		1,677,684		480,502
ABRIDGED AUDITED CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the year ended 31 December 2021
		Audited		Unaudited
		2021		2020		2021	2020
		ZW$ 000		ZW$ 000		ZW$ 000				ZW$ 000
		Inflation Adj	Inflation Adj		Historical				Historical
Revenue	3,211,716		2,440,827		2,561,597	1,038,701
Operating costs	(3,209,945)		(1,949,981)		(2,392,373)	(821,640)
Movement in expected
credit losses	(45,070)		(370)		(45,070)	(9,196)
Dividend Received	4,102		-		3,667	-
Other operating income	640,120		100,094		481,734	63,617
Earnings before interest,
tax, depreciation
and amortisation (EBITDA)	600,923		590,570		609,555	271,482
Finance costs	(44,464)		(11,696)		(38,748)	(12,281)
Depreciation	(227,355)		(333,213)		(30,740)	(13,149)
Monetary (loss)/ gain	(54,314)		(330,246)		-		-
Profit before taxation	274,790		(84,585)		540,067	246,052
Income tax expense	305,828		(37,924)		(23,692)		(48,953)
Profit /(Loss) for the year	580,618		(122,509)		516,375	197,099
Other comprehensive income
Other comprehensive income
not to be reclassified
to profit or loss
in subsequent periods:
Net gain on equity instruments
designated at fair value
through other
income		363,985		-		453,144		-
Other comprehensive
income for the
year, net of tax	363,985		-		453,144	-
Total comprehensive
income/ (loss) for the
year, net of tax		944,603		(122,509)		969,519		197,099
Earnings per share
- Basic earnings for
the year attributable to
ordinary equity
holders of the parent (cents)	545.31		(115.06)		484.98	185.11
- Diluted earnings for the
year attributable to
ordinary equity holders of
the parent (cents)	545.31		(115.06)		484.98	185.11

ABRIDGED AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2021

														Attributable to equity shareholders of the parent
								Share		Share	Non-distributable	Fairvalue reserve	Equity portion of		Retained						Total
								capital		premium		reserves	of financial	Shareholders loans		Earnings					Equity
								Inflation Adj		Inflation Adj		Inflation Adj	assets at FVOCI	Inflation Adj		Inflation Adj			Inflation Adj
								ZW$ 000		ZW$ 000		ZW$ 000		ZW$ 000	ZW$ 000		ZW$ 000					ZW$ 000
	Balance as at 1 January 2020				47,700		92,265		1,639,122		-			400,009		161,396			2,340,492
	Loss for the year						-		-		-		-					-		(122,509)			(122,509)
	Dividend						-		-		-		-					-		(13,528)					(13,528)
	Realised portion of non-distributable reserve			-		-		(16,563)		-					-		16,563					-
	Balance as at 31 December 2020			47,700		92,265		1,622,559		-			400,009		41,922				2,204,455
	Balance as at 1 January 2021				47,700		92,265		1,622,559		-			400,009		41,922			2,204,455
	Profit for the year				-		-		-		-					-		580,618					580,618
	Dividend						-		-		-		-					-		(8,416)					(8,416)
	Net gain on equity instruments
	designated at fair value through
	other comprehensive income				-		-		-		363,985					-		-					363,985
	Balance as at 31 December 2021			47,700		92,265		1,622,559		363,985			400,009		614,124				3,140,642
													Accounting policies
ABRIDGED AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS				The consolidated financial statements have been prepared in accordance with International Financial Reporting
for the year ended 31 December 2021									Standards (IFRS) as issued by the International Accounting Standards Board.
									Audited		The policies applied are consistent with those applied in previous years.
							2021		2020
							Inflation Adj	Inflation Adj		Trade and other receivables							Trade and other payables
							ZW$ 000		ZW$ 000						Inflation Adj								Inflation Adj
																	2021			2020								2021	2020
Net cash generated from operating activities			158,324		669,056		Current			ZW$ '000		ZW$ '000		Current					ZW$ '000			ZW$ '000
Cash generated from operations				227,703			710,744		Trade receivables			250,821			248,019		Trade payables		138,960	90,561
						Receivables due from								Trade payables due
Dividend paid						(8,416)			(13,528)
								related parties			7,988			6,105		to related parties		36,752	10,027
Interest paid						(42,355)			(11,695)		Less: provision for impairment		(63,985)		(18,916)		Accrued expenses		33,212	19,650
Taxation paid						(18,608)			(16,465)		Trade receivables - net			194,824			235,208		Social security and other
																	statutory liabilities					69,785
																							31,535
													Prepayments			20,822			5,441								240,459			190,023
Net cash utilised in investing activities			(42,294)		(74,583)		Staff debtors			187			1,042
Purchase of property, vehicles and equipment to									VAT receivable			723			133
								Other debtors			103,572			39,836
increase operations				(54,469)			(87,560)
										320,128			281,660
Dividend Received						4,102			-
	Proceeds from sale of property, vehicles and equipment	8,073			12,977		Borrowings
													Borrowings represent facilities for capital expenditure and working capital. The interest rates is 65%.
	Net cash generated/(utilised) in financing activities	6,286		(54,947)
	Proceeds from borrowings				75,913			16,752											Dec		Dec
	Payment of deferred consideration			(225)			(362)											2021		2020
	Principal payment of lease liabilities			(32,932)			(2,016)											ZW$ '000	ZW$ '000
															Inflation Adj	Inflation Adj
	Repayments of borrowings				(36,470)			(69,321)
							Shareholder loans								400,009		400,009
	Increase in cash and cash equivalents			122,316			539,526		Equity component of shareholders loans			(400,009)			(400,009)
																						-		-
	Cash and cash equivalents at beginning of year			81,383		58,746		Loans and Borrowings							43,856			12,116
														43,856		12,116
	Net foreign exchange differences				6,925		11,131
	Effect of inflation on cash and cash equivalence			(185,885)		(528,020)		Finance cost
													Finance cost comprises the following:
	Cash and cash equivalents at end of year			24,739		81,383
																						Dec		Dec
																						2021		2020
																						ZW$ '000	ZW$ '000
																						Inflation Adj	Inflation Adj
	NOTES TO THE ABRIDGED AUDITED CONSOLIDATED FINANCIAL STATEMENTS		- Bank borrowings								17,661		5,210
	for the year ended 31 December 2021
														- Consideration liability							4		31
	General Information													- Leases liabilities								26,799			6,454
	Unifreight Africa Limited (formerly Pioneer Corporation Africa Limited) was incorporated in Zimbabwe in 1970.										44,464		11,695
	It is the holding company of a Group of companies primarily involved in the road transport industry whose	Capital expenditure
	main activities include inter-city freight consolidations, the distribution of general goods, and a courier service.	Acquisition of property,
													vehicles and equipment							54,469		87,560
	The Company is incorporated in Zimbabwe. Other entities in the Group are incorporated in	Botswana. The
	company is listed on the Zimbabwe Stock Exchange									Approved capital commitments
													at the date of approval
	These Group consolidated financial statements are presented in Zimbabwean Dollars and were authorised	of financial results								-		-
	for issue by the Board of Directors on 28 June 2022.									Contingent liabilities
	Basis of preparation										The group is a defendant in various labour disputes with former employees. The cases are at various stages.
	The consolidated financial statements of the Group have been prepared in accordance with International	The total being claimed in all these cases is ZW$ 895,800.
	Financial Reporting Standards (IFRS) as issued by the international Accounting Standards Board (IASB).
	The accounting policies are applied consistently throughout the Group. The consolidated financial statements	Subsequent events
	are presented in Zimbabwean dollars (ZW$) and all values are rounded to the nearest 1 000 dollars except	There are no adjusting or non-adjusting events after the reporting date which have an effect on the financial
	where otherwise stated.										position of the group as at the reporting date nor require disclosure in the financial statements.
	The consolidated financial statements are initially prepared under the historical cost convention as restated
	for the changes in the general purchasing power of the functional currency for the purposes of fair presentation	INDEPENDENT AUDITOR'S REPORT
	in accordance with IAS 29 (Financial Reporting in Hyperinflationary Economies). This historical cost information
	has been restated for changes in the general purchasing power of the Zimbabwe dollar and as a result are
	stated in terms of the measuring unit current at the end of the reporting period. Accordingly, the inflation
	adjusted consolidated financial statements represent the primary financial statements of the Group.	This abridged inflation adjusted consolidated financial statements should be read in conjunction with the
													complete set of inflation adjusted consolidated financial statements for the year ended 31 December 2021
	Inflation adjustment												which have been audited by Ernst & Young Chartered Accountants (Zimbabwe).
	The Public Accountants and Auditors Board (PAAB) in their circular 01/19 communicated that the factors and
	characteristics to apply IAS 29, Financial Reporting in Hyper-Inflationary Economies had been met in	An adverse opinion has been issued thereon in respect of non-compliance with the requirements of International
	Zimbabwe. The pronouncement require that entities reporting in Zimbabwe apply the requirements of IAS
	Accounting Standard 21:"The effects of changes in Foreign Exchange rates", including historical errors not
	29 with effect from 1 July 2019.
													adjusted in terms of International Accounting Standard 8:"Accounting Policies, Changes in Accounting Estimates
	IAS 29 requires that the financial statements prepared in the currency of a hyperinflationary economy be	and Errors", International Financial Reporting Standard (IFRS 13) Fair Value Measurement, IAS 2 inventories
	stated in terms of the measuring unit current at the balance sheet date and the corresponding figures for the	and consequential impact on the inflation adjusted amounts determined in terms of IAS 29 Financial Reporting
	previous period be stated in the same terms. The restatement has been calculated by means of conversion	in Hyperinflationary Economies. Additionally, the opinion was also further qualified due to the limitation of scope
	factors derived from the consumer price index. The Group used the inflation adjustment factors derived from	due to circumstances relating to the nature of our work and non compliance with International Financial
	the monthly Consumer Price Indices as published by the Reserve Bank of Zimbabwe. The following factors
	Reporting Standard (IFRS) 11: Joint Arrangements.
	were applied:
													The Independent Audit Report on the inflation adjusted consolidated financial statements is available for
	Period / Month	Factor	Period / Month	FactorJ
	Jan-21	1.5246		Jul-21	1.2986							inspection at the registered office of the company. The engagement partner responsible for this audit is Mr.
	Feb-21	1.4737		Aug-21	1.2464							David Gwande. (PAAB Practicing Certificate Number 132)
	Mar-21	1.4412		Sept-21	1.1901
	Apr-21	1.4187		Oct-21	1.1186
	May-21	1.3835		Nov-21	1.0576
	Jun-21	1.3318		Dec-21	1.0000

Directors: P.J. Annesley (Chairman); R.E. Kuipers * (Chief Executive Officer); B.N. Ndebele; H. Crabbe; M. Kalweit *Executive

Ernst & Young	Tel: [phone] or 2750979-83
Chartered Accountants (Zimbabwe)	Fax: [phone] or 2773842
Registered Public Auditors	Email: [e-mail]
Angwa City	www.ey.com
Cnr Julius Nyerere Way /
Kwame Nkrumah Avenue
P O Box 62 or 702
Harare
Zimbabwe

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF UNIFREIGHT AFRICA LIMITED

Report on the Audit of the Inflation Adjusted Consolidated Financial Statements

Adverse Opinion

We have audited the inflation adjusted consolidated financial statements of Unifreight Africa Limited and its subsidiaries (the Group), as set out on pages 10 to 52, which comprise the inflation adjusted consolidated statement of financial position as at 31 December 2021, and the inflation adjusted consolidated statement of profit or loss and other comprehensive income, the inflation adjusted consolidated statement of changes in equity and the inflation adjusted consolidated statement of cash flows for the year then ended, and notes to the inflation adjusted consolidated financial statements, including a summary of significant accounting policies and other explanatory notes.

In our opinion, because of the significance of the matters discussed in the Basis for Adverse Opinion section of our report, the accompanying inflation adjusted consolidated financial statements do not present fairly, the financial position of the Group as at 31 December 2021, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and Companies and Other Business Entities Act (Chapter 24:31).

Basis for Adverse Opinion

Non-compliance with IFRS: Inappropriate application of International Accounting Standard (IAS) 8 - Accounting Policies, Changes in Accounting Estimates and Errors

Historical functional currency matter

As explained in note 2.4a to the inflation adjusted consolidated financial statements, the Group changed its functional currency from the United States Dollars (US$) to Real Time Gross Settlement Dollars (RTGS$), now Zimbabwe Dollars (ZW$), on 23 February 2019 in order to comply with Statutory Instrument 33 of 2019. The inflation adjusted consolidated financial statements is presented in ZW$.

We however believe that the change occurred on 1 October 2018 in terms of International Accounting Standard (IAS 21) - The Effects of Changes in Foreign Exchange Ratesgiven the significant monetary and exchange control policy changes witnessed in Zimbabwe from 2016 through to 2019.

Our audit opinion for the year ended 31 December 2021 was therefore modified as the matter emanating from 2020 had not been corrected.

A member firm of Ernst & Young Global Limited

3

Independent Auditor's Report (Continued)

Unifreight Africa Limited

Basis for Adverse Opinion(continued)

Non-compliance with IFRS: Inappropriate application of International Accounting Standard (IAS) 8 -

Accounting Policies, Changes in Accounting Estimates and Errors (continued)

Management has not made adjustments in current period in terms of IAS 8. The matter therefore continues to impact the following amounts on the inflation adjusted consolidated statement of financial position which still comprise of material amounts from opening balances: vehicles and equipment of ZW$ 1 289 563 000 (31 December 2020: ZW$ 1 413 221 000), investment property of ZW$ 732 707 000

(31 December 2020: ZW$ 745 196 000) and retained earnings ZW$ 614 123 000 (31 December 2020: ZW$ 41 922 000).

As opening balances enter into the determination of cash flows and performance, our audit opinion is modified in respect of the impact of this matter on the depreciation expense of ZW$ 227 355 000 (31 December 2020: ZW$ 333 213 000), operating expenses of ZW$ 3 209 945 000(31 December 2020: ZW$ 1 949 981 000) and income tax credit of ZW$ 305 828 000 (31 December 2020: expense of ZW$ 37 924 000) on the inflation adjusted consolidated statement of profit or loss and other comprehensive income and cashflows from operating activities on the inflation adjusted consolidated statement of cash flows.

Further to the above, corresponding amounts for inventories, non-distributable reserve, and deferred tax

liabilities on the inflation adjusted consolidated statement of financial position remain misstated as they have not been corrected in terms of IAS 8. Therefore, our audit opinion on the current period's inflation

adjusted consolidated financial statements is also modified because of the possible effect of this matter on the comparability of the current period's inflation adjusted consolidated financial statements.

Exchange rates used (Non-compliance with IAS 21)

For the period 1 January 2021 to 31 December 2021, management applied internally derived exchange rates to translate foreign denominated transactions and balances to the functional and reporting currency, the ZW$. We believe that the internally derived exchange rates do not meet the definition of spot rates in terms of IAS 21 and that instead, management should have adopted the spot exchange rates derived from the Foreign Currency Auction system. The following misstatements in the table below arise on the inflation adjusted consolidated statement of financial position balances:

	31 December 2021		31 December 2020
		Disclosed			Misstatement	Disclosed	Misstatement
		amount ZW$			ZW$	amount ZW$	ZW$
Inventories		193 670 000			Could not be	203 211 000	Could not be
				determined	determined
Trade and other		320 128 000			4 938 415	281 660 000	6 469 434
receivables
Cash and cash		24 739 000			722 386	81 379 000	23 603 635
equivalents
Trade and other		240 450 000			1 897 262	190 023 000	9 372 259
payables

4

Independent Auditor's Report (Continued)

Unifreight Africa Limited

Basis for Adverse Opinion (continued)

Exchange rates used (Non-compliancewith IAS 21)(Continued)

In the inflation adjusted consolidated statement of profit or loss and other comprehensive income, revenues, income taxes and operating expenses are affected. However, the misstatements cannot be quantified owing to the large volume of affected transactions. Consequently, the inflation adjusted consolidated statements of changes in equity and cashflows are also impacted.

Further to the above, corresponding amounts for Vehicles and equipment, equity component of the shareholders' loan and deferred tax liabilities remain misstated as they have not been corrected in terms of IAS 8.

Therefore, our audit opinion on the current period's inflation adjusted consolidated financial statements is also modified because of the possible effect of this matter on the comparability of the current period's

inflation adjusted consolidated financial statements.

Inventory Valuation not in compliance with IFRS requirements of IAS 2 - Inventories

For the period under consideration, the Group revalued their opening spare parts inventory items from their original purchase cost to a fair value determined from the open market US$ values. This revaluation was however not in compliance with IAS 2 which requires that inventories should be measured at the lower of cost, and net realizable value. As a consequence, the current year inventories balances of ZW$193 670 000 could be overstated by ZW$18 999 000, since some of the spare parts inventory items are still available as part of the year end balances.

Further to this, the First-inFirst-out (FIFO) method of valuing inventory has not been applied correctly by Management. Due to challenges in the valuation process during the year, the inventory at year end was valued using the last invoice received. This method assumes that all inventory items were purchased at the same time, contrary to the requirements of the FIFO method. The misstatement could however not be quantified due to the nature of the accounting records.

Consequently, operating expenses on the inflation adjusted consolidated statement of profit or loss and other comprehensive income and working capital movements on the inflation adjusted consolidated statement of cashflows are impacted.

Valuation of Investment Property for Disclosure purposes (Non-compliance with IFRS 13 - Fair Value Measurement and IAS 40 Investment Property

The Group's properties, which are accounted for at cost in terms of the Group's accounting policy, are

subjected to valuation, for disclosure purposes, as per the requirements of IAS 40. The standard requires the fair value details to be disclosed as is described in Notes 7 and 10.1 to the inflation adjusted consolidated financial statements. The relevant fair value principles are set out in IFRS 13- Fair Value Measurement.

Consistent with the prior year, these investment properties were valued as guided by management experts using historical US$ denominated inputs and converted into ZW$ at the applicable closing exchange rates as at 31 December 2021.

5

Independent Auditor's Report (Continued)

Unifreight Africa Limited

Basis for Adverse Opinion(continued)

Valuation of Investment Property for Disclosure purposes (Non-compliance with IFRS 13 - Fair Value

Measurement and IAS 40 Investment Property(continued)

We have concerns over the appropriateness of using a foreign currency for the valuation and then applying a conversion rate to determine the ZW$ values of the investment property and freehold land and buildings. The translation process adopted by management would not meet the fair value measurement principles of the affected items as set out in IFRS 13 due to the following considerations:

1. With respect to the implicit investment approach, the US$ estimated rentals may not be an appropriate proxy for the ZW$ amounts in which rentals are settled.
2. While historical US$ amounts based on similar transactions have been used as a starting point in determining comparable values on the market comparable approach, it is noted that market participants consider different risk factors in determining an appropriate value in ZW$ terms which are not necessarily limited to the exchange rate.

Scope Limitation on Transactions and balances with a third party

1. Included in the inflation adjusted consolidated financial statements are the results of the contract entered into between the entity and a third party.
   In terms of the agreement, the two parties planned to expand and diversify their respective businesses by operating a Joint Venture, whereby SWIFT (a division of the company) would procure, pack and redistribute food packs through its depots with the third party selling the food packs and marketing the service. The above provisions in the contract implied that that the arrangement was to be accounted for as a joint venture under IFRS 11 -JointArrangements wherein the Group would have accounted for the investment in the joint venture as a noncurrent asset and subsequently recorded the profits or losses earned or incurred respectively by the joint venture as other income in inflation adjusted consolidated statement of profit or loss and other comprehensive income. We were however unable to determine whether the IFRS 11 conditions for recognition of an investment in joint venture had indeed been met as the information required to do so was not available.
   Instead, the Group accounted for the revenues and cost of sales from the arrangement as part of normal trading with unrelated parties. As the agreement became effective in 2020, the limitation of scope extends to the prior year inflation adjusted consolidated financial statements as well.
2. We were unable to obtain sufficient and appropriate evidence to support some of the revenue and cost of sales amounts recorded in relation to this arrangement as management were unable to provide the supporting information required to validate the amounts. As a result, we could not determine whether any adjustments might have been necessary in respect of the following accounts:

6