- OK Zimbabwe Limited has delayed its full year results again
- The delay is due to the implementation of a new ERP system at the start of the financial year
- The company aims to publish its Audited Financial Results by 31 August 2023
Harare- Preeminent retailer, OK Zimbabwe Limited, has once again deferred the announcement of its full year results, which were originally slated to be released on or before 31 March 2023, and were subsequently postponed to on or before 30 June 2023.
According to a circular released by the Group today, the primary impetus behind this delay continues to be the transition to a new Enterprise Resource Planning ("ERP") System at the inception of the financial year under scrutiny, which has led to prolonged finalisation of the financial statements.
Despite this setback, the Group anticipates that the Audited Financial Results will be made public by 31 August 2023.
In terms of section 39 (1), of the Securities and Exchange, ZSE-listed companies are required to publish audited financial statements not more than three months after the end of respective financial years or they face a fine or suspension.
The implementation of an ERP system can have a significant effect on the publication of financial results. An ERP system is a comprehensive software suite that integrates various business functions and processes, such as accounting, inventory management, sales, and purchasing, into a single system.
When a company transitions to a new ERP system, it often involves a significant investment of time, resources, and effort to migrate existing data to the new system. This process can be time-consuming and complex, as the data must be accurately reconciled and verified before it can be integrated into the new system.
Moreover, the transition to a new ERP system can lead to changes in accounting policies and procedures, which can further complicate the process of finalizing financial statements. These changes may require additional time and effort to ensure that the financial statements comply with the applicable accounting standards and regulations.
As a result, the implementation of a new ERP system can cause delays in the finalisation of financial statements and, by extension, the publication of financial results. The delays can be exacerbated if the system encounters unexpected technical issues or data inconsistencies, which can further prolong the finalization process.
However, the system bears a multitude of advantages to a company once implemented as I once analysed here OK Zimbabwe Modernizes Operations with ERP Implementation (equityaxis.net).
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