The audience finds that Kosovo Telecom is in the phase where it can access “into” key

The audience has come to the conclusion that their findings issues are indications that the company has a lot of uncertainty with the principle of continuing, respectively, it is not certain whether it can handle obligations and continue its operational activities.

The audience's findings:

Obligations to ATK at the end of the year have reached 12,727,748 euros.

The company's main business activity is based on information technology. The state of platforms and telecommunications systems continues to be heavy. For most systems there are no active maintenance and technical support contracts from the manufacturer. According to estimates by company officials, the necessary investment projects total 19m euros.

The company has suffered losses for the year ending on 31 December 2021, worth 10,89,000. (2020: 18,727,000. The company has continued the loss-losing trend for seven years and the losses accumulated by December 31st 2021 are worth 76,264,000. In addition, on December 31, 2021, current obligations exceed current assets for the total amount of 52,605,000, (2020: 66,23,000).

The key financial indicators estimated in 2021 financial figures are negative.

All the above-listed issues are indications that the company has a lot of uncertainty with the principle of continuing, it is not certain, respectively, whether I can handle these obligations and continue its operational activities.

The contingent duties revealed in mirrors were overestimated for 63,588,796. And explanatory notes do not contain information about events that meet their obligations to treat them as contingent obligations. In 2018 an OE had initiated an arbitration against the company. The value of the lawsuit according to the OE is 10,377,264m and refers to compensation for lost damage-profit due to unilateral secession of the 5th annex of the commercial platform development agreement IPTV and IPTT.

Donations by the Government presented under extended revenues of 2,350,526 had been underestimated for the value of 1,200,025. This was not in harmony with the determined life expectancy of the property for which it was destined. This has also affected the overestimation of other revenues in the income mirror.

Recording the total value of the rent bill as prepaid expenses, even though the company had signed deals with the monthly tranche owner, has adversely affected prepaid spending and other short-term cashiers worth $307,520, and also in bad order the balance of financial position score at 362,873.

The company had failed to harmonise the compatible situation with creditors' data. As a result, in a (1) case, the amount of debt confirmed through external confirmation was lower for 6.830 euros than the amount of debt in the accounting registers, as well as four (4) cases confirmed amount was higher for 355,125m than that of the accounting records. In addition, in their absence of confirmation, for eleven (11) suppliers we have failed to verify the sound state of obligations worth 916,224.

The voice of the use of assets presented in the balance of the situation worth 7,673,312, does not represent the exact situation. Under this voice, no value was included 375,930 for two rental contracts the company signed in 2021. As a result, voices of depreciation and interest in the right to exploit the assets presented in the income mirror had been underestimated for $18,650.

The projects presented in the financial position mirror and the spending on accounting projections in the revenue mirror were overestimated for 200,000, as a result of the involvement of a closed case in favour of the company by the relevant court.

The company for collections in the advance worth 362,431m of its consumers had not recognised them as obligations to consumers or short-term obligations, but for this amount had reduced the total amount of cashable accounts.

The corresponding audio “Inves following”, presented in the financial position mirror at 277,152, does not represent his situation correctly. Within this amount, the value of the “project is included Um... FI Offflower”, which according to official confirmation, these devices are in operation and the company is making economic benefits.

The company had broken obligations in 2020 with Kosovo Radio Television. This has contributed to the underestimation of the early 2021 control accounts worth 186,033.

Because of the difficulties in identifying consumers in the case of debt payments, cash collections of 137,658 have not been reduced to relevant consumers for the company's paid obligations, but these tools were registered in the revenue system as “-enhanced months.

During the year 2021, the company had closed the voice of ongoing investments worth 53,913, which date to earlier periods since 2017. This value was not capitalised as wealth, but was known as the expense of the period.

During our tests, we have noted that for much of the cost of devaluation for 2021 but also of previous years, devaluation rates have been applied, not to compliance with the legal basis. As a result, we have failed to confirm the correct assessment and accurate presentation of devaluation spending and net value of assets.

Because of issues raised about income, spending and devaluation, which have an impact on the financial outcome in the income mirror, also have an incorrect reflection of the profit period carried in the mirror of changes in the balance.

Based on issues raised for accounting voices such as cash collection, payable, payment and depreciation, voices of cash operating activities, money flow does not provide accurate information.

We have audited whether the related processes and transactions are in compliance with the specific auditing criteria stemming from applicable legislation for the audited subject in the context of the use of financial resources.

According to our conclusion, because of the importance of the issues described in the Base for Conclusion chapter, the transactions conducted by Kosovo Telecom s.a were not in line with:

The Basis for Understanding

The company has not finalised financial mirrors for 2021, until the date 22.04.2022, when their approval was made by the Steering Board, even despite the legal requirements for the same being signed and approved on March 15, 2022.

As a result of changes by annexing the terms of the company's disparative basic contract, for 2021 the company had paid 155,156m euros in profits to the business partner.

The company, in addition to paying the bill and bonus, compensates business partner even with a flat fee of 1.2% of monthly sales for marketing spending that the partner has earned the company's name, but does not receive any return/accession report on these expenses. Their cost for 2021 was 49,845 euros. /Periscopi/