Annual general report of the controller and - Parliament of Tanzania

6.13.2 National Development Corporation Investments in
Associates
Latest financial statements of Ms Siemens (T) Ltd for the
year ended 30 th September, 2006 showed that net equity
distributable to equity holders was Shs.280,904,000. This
implies that the 20% holding attributable to the
Corporation was Shs.56,180,800 as compared to
investment amount of Shs.80,000,000 (at Cost) reflected
in the accounts.
Latest financial statements of Ms Ace Audit & Expertise
Ltd showed that the Company had accumulated deficits
to the tune of Shs.132,061,256 as at 31 st December, 2004.
As a result the Company’s net equity was negative at
Shs.78,061,256. This implies that the 30% holding
attributable to the Corporation was negative
Shs.23,418,377 as compared to investment amount of
TZS. 15,000,000 (at cost) reflected in the accounts.
Furthermore, we were informed that the Corporation had
never received dividends from any of the companies in
which the Corporation has invested.
In view of the foregoing, it is in our professional opinion
that the Corporation’s investments in the Associated
Companies have been impaired. No provision has been
made for this fact as is required by IAS 28.
6.14. National Insurance Corporation
6.14.1 Long Outstanding Claims with National Insurance
Corporation
In accordance with Section 109 of the Insurance Act,
1996, every insurer is required to pay claims received
within sixty days of admission of the liability. If the
insurer is unable to settle the claims within that time he
may apply to the Commissioner of Insurance for extension
and the Commissioner may grant an extra time within
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Office of the Controller and Auditor General PA&oBs 2007/08 121