Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
|
Extraterrestrial wrote:Ericsson wrote:The CEO's statement on the Annual Report
Covid-19 Pandemic
"We expect the Company’s future performance in the last Quarter of 2019/20 and the first two Quarters of 2020/21 to be impacted as the Pandemic is affecting demand and payments for electricity, progress of capacity expansion projects and business lines under our diversification agenda. We are closely and continuously monitoring developments in relation to the Pandemic and taking measures to conserve capital and manage costs while keeping a keen eye on liquidity.
Finance Act 2020
The Finance Act, 2020 was assented to and came into effect in June 30, 2020. The said Act has several implications on the Company, key among them being introduction of a minimum tax of 1% of turnover payable on a monthly basis, stringent requirements on treatment and recognition of input VAT, withdrawal of VAT exemption (which was previously applicable on some of the Company’s inputs for wind and solar projects) and withdrawal of the exemptions on Import Declaration Feed and Railway Development Levy (which were previously applicable to goods imported for geothermal projects). The uncertainties and evolving developments in the current business environment notwithstanding, I believe that we are well positioned to deliver sustainable value for our shareholders and all stakeholders over the long term." If they haven't delivered sustainable value for the shareholders for almost a decade and a half, then I don't know how they will onwards. Stock is down almost 60% from IPO price and dividends have been far from stable. Value has been delivered to PIBO bondholders and multilateral creditors such as JICA,EIB Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|