These sentiments still hold 13 months later....

The stores are still dirty and clattered... broken shelves, check-out conveyors not working, POS that cannot do multiplications and so on...

And now a financial statement that has no comparison figures... I read that PBT had gone up 40% and wondered how 169m going to 162m can be called an increase!


I think it was a mistake to retain Ciano after lifting of the receivership. They could have picked a guy like Ramamurthy [formerly at Nakumatt]

Bad show!

I looking at the annual accounts for Uchumi that was in the mail last week. These accounts look cooked - no, actually tenderised, marinated and deep fried.

The Consolidated Statement of Financial Position (Balance Sheet) shows only two items under Equity, that is Share Capital and Reserves.

The Statement of Changes in Equity shows SIX items. In my common accounting understanding, each item under Equity must have a corresponding column showing the movement on that item in the Statement of Changes in Equity.

What seems to have happened is that all columns save for share capital have been reflected as Reserves in the balance sheet, thereby hiding Accumulated Losses of ksh 1B and creation of a curious item called "Equity pending allotment" of ksh 850M. When consolidated, under reserves, we get a positive reserve figure of ksh 600M.

I wish to know which IFRS says you can show Equity Pending Allocation. There is even no notes to the accounts that explains what this is, much as I know it is Govt and suppliers debt pending conversion to Equity. So what happens if we shareholders reject this conversion at the AGM, will the books be redone?

The Income Statement also has an Income Tax Credit of 424M which in effect increases the PBT of 294M to profit for the year of 718M. This profit for the year is what together with the "Equity pending allotment" has wiped out accumulated losses and made the Reserves positive.

I am a shareholder, Uchumi cant get any worse, it can only get better, so stop sanitizing the accounts and just tell us how we will get out of this hole. For my part I have stopped patronizing Naku***t and am exclusively using Uchumi even for a packet of milk.

Ernst and Young, how you signed off these accounts are still an amazement to me.

Equity pending allocation is a valid item to use IF there is an agreement in place that allows & defines the terms for the 'new' Equity.

Other terms are 'Call on Shares'...

GoK had agreed to convert Debt to Equity so it will happen but just a matter of timing...