Tight relations: City rejects ZIBL reports

09.07.2021. / 16:41

BANJA LUKA – The Institute for Construction (ZIBL) Banja Luka managed to significantly reduce the loss last year, but that did not help the Board of Directors and the Management of the Institute to get a “pass” at the Shareholders’ Assembly, which rejected their reports.

Photo: Nezavisne novine

General Meeting of Shareholders ZIBL did not adopt the report on the work of the Management Board, nor the financial report of the Institute.

ZIBL ended last year with a loss of 162,127 KM, which is an improvement compared to business in 2019, when they were in the minus of 449,058 marks.

On the other hand, their income last year amounted to 788,257 KM and is lower than the year before when it was 935,512 marks. Their expenses in the year of the pandemic were significantly lower (950,384 KM) compared to 2019 (1,384,570 KM).

Strbac: We did not receive an adequate explanation

Director of the Banja Luka Institute for Construction Milovan Strbac for CAPITAL He pointed out that he did not know why the reports did not receive the support of the Shareholders’ Assembly, ie the City of Banja Luka.

“I did not receive an adequate explanation for not adopting the report, they should say what the reason is”, said Strbac.

Kresojevic: Financial reports are negative

The President of the Commission for Corporate Governance of the City of Banja Luka, Bojan Kresojević, said that the reports of ZIBL were analyzed in detail, and that the Assembly provided support to the director of the company by adopting the Work Program for this year.

“The situation in which ZIBL finds itself financially and negative business is such that we assessed it as unacceptable, having understood that this is a situation inherited by the director, but we still considered it unacceptable for the financial result to be as it is,” Kresojevic told CAPITAL.

He emphasized that they did not comment directly on the work of the director, in the sense of his work in relation to the previous manager, but they evaluated the financial report, which is negative.

“It is, of course, an indirect evaluation of the work of the director, but not a direct evaluation”, Kresojevic pointed out.

The auditors gave ZIBL a qualified opinion

The General Meeting of Shareholders adopted the Independent Auditor’s Report in which the ZIBL received a qualified opinion on the financial statements.

The auditor reprimands them, among other things, for not revaluing property, plant and equipment regularly enough.

“Real estate, plant and equipment on the last day of 2020 amount to 2,807,881 KM, while the corresponding revaluation reserve based on the assessment of their value amounts to 2,821,887 KM. After initial recognition, the Company subsequently measures property, plant and equipment at revalued amount “, stated the auditor.

The audit report also pointed out that the joint stock company has outstanding liabilities to the City of Banja Luka in the amount of 60,000 KM.

They also drew attention to the fact that the short-term liabilities of the Bureau are higher than its current assets by 561,028 KM.

“These facts indicate the existence of significant uncertainty that may cast doubt on the Company’s ability to operate on a going concern basis,” the auditor concluded.

We remind you that ZIBL was recapitalized in 2019, which is what it is about CAPITAL wrote in the text “ZIBL stands on its feet, Management promises progress”.

CAPITAL: Bojana Ninković

Source: Capital.ba – Informacija je capital by www.capital.ba.

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