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Ausnutria must strengthen internal control
Dairy group Ausnutria reported too high turnover between the beginning of 2020 and March 2023 due to errors in internal control. This is partly because discounts have not been discounted, too few periodic interim balances have been drawn up and insight into various items has been lost.
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There has also been underreporting of costs. Deloitte Consultants Shanghai noted this in a study commissioned by top management. Ausnutria mentioned this at the last minute last year made an announcement.
Ausnutria is mainly active in the production of infant nutrition and also has factories and milk supply in the Netherlands. It is particularly a major player in goat dairy.
Failure to discount discounts when selling products cost Ausnutria more than €2021 million in the 28 financial year alone. In addition, a number of less significant shortcomings have been identified, such as weak project management, inadequate accounts receivable management and ditto shortcomings in the control of unsold stocks.
It is also reported that insufficient attention has been paid to the management of joint venture costs, as well as to the compensation for the (now departed) senior management.
Ausnutria has promised improvement and will take the required recovery measures before the end of the first quarter of this year.