Smartech Zimbabwe Limited (CSZL) have said that recent currency reforms have forced them to value debentures held by the company’s local shareholders in the local currency.
Company chairperson Tracy Mpofu has in a statement accompanying the company’s financial results, said:
According to the legal advice received by the board, debentures held by local members were converted into RTGS dollars at US$1: ZWL1 immediately prior to February 22, 2019 in accordance with Statutory Instrument 33 of 2019.
As at June 21, 2019, being the last practicable date prior to the publication of these financial results, US$1 was trading at ZWL6.3 on the interbank market. On the other hand, the value of debentures held by foreign shareholders, including Econet Global Limited, who paid for their debentures offshore in US dollars, are not affected.
Mpofu said CSZL’s property and equipment were revalued as the change in functional currency resulted in the replacement value of assets being grossly understated.
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