Together with Directors` and Auditor`s Reports

Lenux Inkgrated R m n r c a Limfted
Financial Statements - 31 December 2008
Together with Directors' and Auditor's Reports
L e m I-Amuwc&Mcd
-
Fimurcial Starements 31 b m k r 2008
Together with Directors' and Auditor's Reports
Contents
Page
Coqmak information
1
Directors' report
2
5
Indepdent auditofs report
6
Statement of accounting policies
7
Profit and loss account
10
Balance sheet
I1
Statement of cash flows
12
Notes to the financial statements
13
Value added statement
21
Five-year financial summary
22
Lenux Integrated Resourca Li&d
Finaplcial Sfotement$ - 31 Dccember 2008
Together wrth Direclors ' and Auditor's Reports
Corporate Information
Board of Directors:
Ibrahirn Boyi
lbrahim Dikko
Mahmud Tukur
Daoud O.Daoud
Dr. Ahmed Rufai
(Chairman)
(Direclor)
(Director)
(Director)
(Director)
Company Secretaries &
Solicitors:
Babatunde Osikoya & Co
26, King George V Road, 2nd Floor
Onikan, Lagos
Lagos State
Registered Office:
6th Floor, Kariko Towers
9 Wharf Road
A P ~ P ~
Lagos
Principal Business Office:
6th Floor, Kariko Towers
9 Wharf Road
A P ~ P ~
Lagos
Auditors:
KPMG Professional Services
KPMG Tower
Bishop Aboyade Cole Street
Victoria Island
Lagos
Principal Bankers:
Finbank Plc
Access Bank PIC
Unity Bank Plc
Zenith htemational Bank PIC
Lenux B p m t e d Re~ourcesL i m M
Financial Setements -- 31 December 2W8
T-er
~ l Mars
b
' end Auditors' Rep&
Directom' Report
For ike year ended 31 December I@#
The directors present their annual report on the affairs of Lenux Integrated Resources Limited ("theCompany"),
together with the financial starernenls and auditor's reporl far tht year ended 3 1 December 200%.
Principal A c M i y and B ~ ~ RM
w huv
Lenux Integrated Resources Limited was incorporated as a private limited liability company on 16 October
2002 and the principal pursuit of the Company i s the marketing, storagc and distribution or refined petroleum
products. The main activity during the.year was trading in equity of Eterna Oil and Gas Pk (Eterna).
'me Company did not e x v t e any contract during the year and wnquently did not earn any revenue.
During the year, the Company a c q u i d f5,000,000 ordinap shares o f McNichols Consolidated PIC at
W14,700.000, and disposed of 32,445,123 units of its shamholdingsin Eterna thereby educing its shamholding
in Eterna to 163,330,272units of shares.
The Company's interest in the equity of Etema d c c m s d from N757,949,000 to P2603,069,000, and a total of
W275,000,000 was also advanced to Eterna during the year. The resulting inter& income on debt for the year
was W2,839,CKM (2007: ?48,873,000).
The following is a summary ofthe Company'soperating results:
Profit before taxation
Taxation
Profit after taxation
-
Transfer to general reserve
D~mamdTLeirI&~
The directors who dduring the year were as follows:
M h u d Tukur
I h h i m Dikko (representing Hambali lnvcshnents Limited)
Sadiq Ibrahim
Mohammed F.Ahmed
L a ~ m a r ~ ~ Umited
m e s
Finandal Statmnts 31 December 2008
Tm&herwim Diredors' and Auditors' Reports
-
The interests ~f the directocs in the issued share capital of the Company as recorded in the register of members
and as wiified by them for the purpose of -ion
275 of the Companies and Allied Matters Act, 1990 are as
iollows:
Called-Up Share Capital
Ordinary sham of PC1 each
2008
2007
Nurnhr
Numbtr
Mahmud Tukur
Sadiq Ibmhim
Mohammed F.Ahmed
In accordance with Section 277 of the Companies and Allid Matters Act 1990, nane of lhe directors has
notifid the Company of any d e c l d 1 e interests in contracts with the Company except as indicated in Note 21
to Lhe accounts.
Shareholding Straetan
The sharehoIding wcture of the Company is as follows:
Called-Up Share Capitd
Ordinary Shares of Pll each
2008
2007
Number
Number
Mahmud Tukur
Hambali Investments Lhited
Sadiq Ibmhim
Mohammed F. Ahrned
Fixed Asmts
+
Informalion relating to c h g e s in fixed assets is given in Nole 10 to the financial statements.
CharItrrble donatiou
No charitable donations we= made by the Company during the year (2007: Nil)
There were no post balance sheet events which wuld have had a material effect on the state of affairs of the
Company as at 31 Decemkr 2008 and on the profit for the year ended which have not been adequately
provided for.
Larue I n t r g d d R w m W t e d
FI-ihI
Sluremems 31 December 2008
Together ~ 1 ~ 1Dixctws
th
' and Atrdltor 's Rsporab
--
The Company places considerable value on the invoI.ternent of its employees in major policy matters
and keeps them informed on matters a e c t i n g them as employtcs and on various factors affecting the
perfomance of the Company. This is achieved through regular meetings with employes and
consuItations with their representatives.
Management, profesimal and technical expmise am the Company's major assets. The Company
conlinues to i ~ t s tin developing such skills. The Company has in-house training facilities,
complemented, when and where necessary,with external and overseas mining for its employees.This has
broadened opportunities for career development within the organization.
(b)
Dfswdnadon of I @ k m Y o n
In order to maintain shared perception of our goals, the Company is committed to communicating
infomalion to empioyees in as fast and effective a m m e r as possible. This i s considered critical lo the
maintenmce oftearn spirit and high employee morale.
(c)
E n y b y m d qfmSabled Pmm
The Company has no disabled p m n s in its employmht. However, applications for employrnmt by
disabld persons are always fully considered, bearing in mind the respective aptitudes and abilities of h e
applicanls concerned. In the event ofmembers of staff b m m i n g disabled, every effort is made to amre
that their employment with the Company continues and that appropriate araining is arranged. It is the
paticy of the Company that mining, career development and promotion ofdisabled persons should, as far
as possible, be identical with that of other employees.
(4
-ee
Wea&
R-
WW-
The Company places a high prunium an the health, safety and welfare of its employees in their glace of
work. In Mdet to protect staff and other persons againd risk to health and safety h d s arising out of or
in connection witb the Company's aclivities, the Company h& set up safety comminees, which review
safety facilities and make recommendations. The Company is dso planning to take on v d o w forms of
insurance policies, including workmen's compensation insurance, to adequately secure and protect its
employees.
A*ra
-
In accordance wilh Section 35712) of the C~mpaniesand Allied Matters Act, 1990, the auditors, KPMG
Professional Services have indicated their willingness to continue in office as auditors.
BY ORDER OF THE BOARD
Babatunde 0shikoy;& Co.
Company Secretary
Statement of Dictomr R q ~ n a W t l e isn &tion
, ,
December 2008
to the Fhancial Statements for the year ended 31
h accordance with the provisions of the Companies and Allied Matters
Act of Nigeria, the Directors
are
responsible for the prepration of annual financial statements which give a-trueand fair view of the financial
position of the Company at the end of the financial year and of the profit for the year then ended.
The responsibilitiesinclude ensuring that:
i
the Company keeps proper acwunting records that disclose, with reasonable accuracy, the financial
position of the m p a n y and comply with the requirem&ts of the Companies and Allied Matters Act of
Nigeriq;
ii
appropriate and adequate inrema1 controls are established to safeguatd the Company's assets and to
prevent and detect fraud and other irregularities;
iii the Company prepares its financial statements using suitable accounting policies supported by
reasonable and prudent judgments and estimates that are consistently applied; md
iv it is appropriate for the financial statements to be prepared on a going concern basis.
The directors accept responsibility for the annual fmancial statements, which have been p r e p a d using
appropriate accounting policies supported by reasonable and prudent judgments and estimates in conformity
with Nigerian Statements of Accounting Standards and the requirements of the Companies and Allied
Matters Act of Nigeria.
The directors are of tJx ophim that the financial statemenis give a true and fair view of tRe state of the
financial affairs of the Company and of its operating results.
The directors further accept responsibility far the maintenance of accounting records h t ;nay be relied upon
in the preparation of financial statements, as well as adequate systems of internal financial control.
Norhing has come to the attention of the directors to indicate that the Company will not remain a going
coneern fot at l a s t twelve months from the date of this statement.
n
SIGNED ON BEHACF QF THE W A R D OF DIRECTORS BY:
WMQ P m k w s k ~
Services
Telephone
KPMOMr
BishopAboyade Cote Street
ktoria lslend
PMB 40M4, Falomo
Fax
234 (1) 271 8966
234(1) 271 8599
Internet
234 (11 462 0704
www.nQ.kpmg.cam
b
INDEPENDENT AUDITOR'S REPORT
To the Members of Lenux Iategmted Resourn
Limited
Report on the Financial Statements
We have audited the accompanying financial
statements o f Lennx Integrated Rmonrces
Limited, which comprise the balanw sheet as at
31 M m b e r 2008, the profit and loss account,
statement o f cash flows and value added statement
for the year then ended, the statement of
accounting policies, notes to the financial
statements and the five-year financial summary,
as sot out on pages 7 to 22.
circumstances, b t ~ t not for the purpose of
expressing an opinion on h e effectiveness of the
entity's internal control. An audit also includes
evaluating the appropriateness of accounting
policies used and the reasonableness of
accounting estimates made by the directors, as
well as evaluating the overall presentation o f the
financial statements.
Dkectom' Repdm for the Finandarl
We believe that the audit evidence we have
obtained is suficicnt:and appropriate to provide a
SLalemSlrlg
basis for our ailriit opinion.
The directors are responsible for the preparation
of financial statements that give a true and fair
view in accordance with Statements of
Accounting Standards applicable in Nigeria and
the manner required by the Companies and Allied
Matters Act of Nigeria, and for such internal
control as the directors determine is necessary to
enable the preparation of financial statements that
are free from material misstatement, whether due
to fraud or m r .
A d & r % Raponsibil@
Our responsibility is to express an opinion on
these financial statements based on our audit. We
conducted
our ;audit
in
accordance
@#mion
In our opinion, the financial statements give a true
and fair yiew o f the financial position o f Lenux
Inkgrated W u m Limited as at 31
~ecember2008, and of its financial performanw
and cash flows for the year then ended in
accordance with Statements of Accounting
Standards applicable in Nigeria and in the manner
required by the Companies and Allied Maners Act
o f Nigeria.
Report on Other Legal and Regulatory
Requiremenb
with
International Standards on Auditing. Those
standards require that we comply with ethical
requirements and plan and perform the audit to
obtain reasonable assurance whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures
in the financial statements. The procedures
selected depend on the auditor's judgment
including the assessment o f the risks o f material
misstatement of the financial statements, whether
due to fraud or error. In making those risk
assessments; the auditor considers internal control
relevant to the entity's preparation and fair
pmtation o f the financial statements in order to
design audit procedures that are appropriate in the
Cotnpliance with 14e Requiretrenonis of Schedule 6
of the Compntties crnd Allied Mutters Act of
Nigeria
In our opiiiion, proper books of account have been
kept by the Company, so far as appears from our
examination of those books and the Company's
balance sheet and profit and loss account are in
agreement with the books of account,
30
hp* 2012 i
Lagos, Nigeria
L
L a w x I ~ R ~ R UL r c W~
Financial SmremcnIs -- 31 December 2008
Together with Directors' andduditor$' Repwrs
Statement of Accounting Policies
A summary of the principal accounting policies, all of which have been applied consistently thoughout the
current and preceding years, is set out below.
(a)
Bash of Accounting
These financial statements are prepared in accordance with generally accepted accounting principles in
Nigeria and on the basis of historical cost accounting.
(b) Revenue
Revenue represents amounts (net of value added tax and any discounts) earned from the provision of
services to cusiomers. Revenue is recognized to the extent that it is probabIe that the economic benefits
will flow to the Company and the revenue can be reliably measured.
(c)
Foreign currency transactions
Transactions denominated in foreign currencies are recorded in Naim at exchange rates d i n g at the
dates of the tmsactions. Monetary assets and liabilities denominated in foreign currencies at the
balance sheet date are reported at the rates of exchange prevailing at that date. Any gain or loss mising
from a change in exchange ntes subsequent to the date of the transaction is included as an exchange gain
or loss in the profit and loss account.
(d) h t i o n
h o m e tax expenseslcredits are recognised in the profit and loss account. Current income tax is the
expected income tax payable on the taxable profit for the year, using applicable statutary tax mas as at
the balance sheet date. Education tax is assessed at 2% of the assessable profit.
(e)
Deferred Taxation
Defemd taxation, which arises From timing differences ia the recognition of items for accounting and
tax purposes, is recognised using the liability method. Deferred tax is provided on all timing differences,
which are expected to reverse at the rates oftax likely to be in force at the time of reversal.
A deferred tax asset is r e w i s e d only to the extent that is probable tbat future taxable profits will be
available againstwhich the asset can Ix utilised. Deferred tax assets are reduced to the extent that it is no
longer probable that the related lax benefit will be realised.
(f)
Cash and cash eqaivdenta For the purpose of reporting cash flows, cash and cash equivalents include cash on hand, cash hlanca
with banks, shoa term deposits with banks with orighal maturities of three months or less, and bank
overdrafts which we included in current liabilities.
Lmux btw&1Resoure& Lbifed
Fina~cialSta~ements-- 3 1 December 2008
Together with Directors' and Auditors' Reports
-
(g) Debtom
Debtors are stated net of provisions for doubtful debts.
(0
Finance leme
Leases on terms d which the Company assumes substantially all the risks and rewards of ownership
are classified as finance leases.At the beginning of the lease term, the leased asset is measured at an
amount equal to the fair value of the leased asset less the present value of an unguamnteed or
partially guamtd midual value which would accrue ta the lessor at the end of the tern of the
lease. Subsequent to initial recognition, the asset is accounted €or in accordance with the accounting
policy applicable to that asset. Minimum lease payments made under finance leases are apportioned
between the finance expense and reduction of the outstanding liability. The finace expense is
allocated to each period during the lease term so as to produce a constant periodic rate of interest on
the m a j n i n g balance of the liability.Contingent lease payments are accounted for by reversing the
minimum lease ppq@over th-e pgiaining t e v ~f the lease when the lease adjustment is
confumed.
OPWafhg I @ u s ~
Other leases are classified as operating leases and are not recogniscd on the Company's balance
sheet. Payments made under operating leases are recognised in the profit and loss account on a
stmight line b i s over the term of the lease. Lease incentives received are recognised as an integml
part of the total lease expense,over the term of the lease.
(i) Provbns
A provision is recogni~donly if, as a result of a past eveW, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic
bs8ra will be n q u W to settle ~hligatioh.
(k) Fixed Ass&
Fixed assets are stated at cost less accumulated depreciation. Depkciation is provided at rates
calculated to write off the cost, 1-s estimated residual value, of each property, plant and equipment
on a sh-aight-line h i s over its estimated useful life as follows:
Furniture and Fittings
Computer Bquipmeflt
Office equipment
-
Gains or losses on the disposal of fixed assets are included in the profit and loss account.
(1)
Investment in awmdted company
hvestmen! in associated company is stated at cost, except investment held for sale which is stated at
the lower of carrying amount and market value less ?!ling cost. provision is made for any
permrrnent diminution in the value of lhe investment.
Associates are those enterprises in which the Company bas significant influence, but no conk01 over
the financial and operating poIicies,
Lauur Iawrated R ~ o h tPk i i~
Financial Siuierrrents - 31 December 2008
Together with Direcrws ' and Auditors' Reporis
(m) Long term inveshents
Long term invaments are shown at cast less amounts written off and provisions made for
diminution in value. Provisions are made for permanent diminution in the value of investments.
(n) Impaimcat
The carrying values of the Company's assets are r e v k e d at each balance sheet data to determine
whether there is my indication of impairment. If any such indications exist, the assds recoverable
amount is estimated. An impairment loss is recagnised whenever the carrying value of an asset
exceeds its recovenble amount. Impairment tosses we recognised in the profit and loss account.
(0)
Segment reporting
A segment is a distinguishable component of the Company that is engaged either in providing related
products or services (business segment), or in providing products or services within a particular
economic environment (geographical segment), which is subject to risks and returns that are
different from those of other segments. Segment information is presented in respect of the
Company's business and geographical segments.
The Company's primary format for segment reporting is based on business segments. The business
segmcn ts are de temined based on the Company's management and intemal reporting structure.
Segment results, assets and liabilities include items d h t l y attributable to a segment as well as those
that can be allocated on a reasonable basis.
Len= lit-d
R m m x l2ki&d
~
--
Fknuttcial Statemenzs 31 W e m b w 3POg
Together.wlth Dlrsctors ' and Araditm.'s Re*
Profit and Laas Account
F w d A c ~ e u & d 3 1 ~ 2 ~
Notes
2008
W'OOO
2007
W'OOO
Revenue
Operating Expenses
operating loss
Other income
Interest income
Interest expense and similar charges
PROFIT BEFORE TAXATION
Taxation
PROFIT AFTER TAXATION
APPROPRIATION
Transfer to general reserve
Earnings per share (N)
--
The accounting policies on pages 7 to 9 and notes on pga 13 to 20 form an integral part of these financial
stMements.
L a w In&grmi?d R
--
a
w Umh4
Flnanclrrl Sl~tentents J I December 2008
Togorher.with D/wcrorx'srrd Atdimr!r Reports
Balance Sheet
As & 31 December 2008
Notes
-
2008
woo0
NON-CURRENT ASSETS:
Called up share capital not paid
Fixed assets
Investment held for sale
Long term investment
TOTAL NON-CURRENT ASSETS
CURRENT ASSETS:
Loan t o associated company
Debtors and other receivables
Cash at bank and ie 11a1ld
TOTAL CURRENT ASSETS
CURRENT LIABILITIES:
Short term loan
Bank overdraft:
Creditors and accruals
NET CURRENT ASSETS1 (LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
CAPITAL AND RESERVES
Share capital
G e n e d reserve
SHAREHOLDER'S FUNDS
OF THE BOARD OF DIRECTORS BY:
1
Directors
Approvd by the Board of Directors on
20I2
The accounting policie? on pages 7 to 9 and notes on pages 13 to 20 forin an i~ztegtalpart of these financial
statements.
Statement of Cash Flows
For theyeat e n h i 31 m b e r 2W8
'
CASH FLUWS FROM OPERATING
ACIWITIES:
Operating profit before working capital changes
Working capital changes
VAT paid
Net cash (outflow)/inflo~from operating activities
CASH EliOWS FROM XNVESTXXYG
ACTIWITJCS:
Purchase of fixed assets
Proceeds from disposal of investment
Purchase of investment
Interest received
Net cash inflow/(oudlow) from investing activities
CASE FLOWS FROM FINANCING
AcmvlTmS:
lntmst paid on short term loan
Short term lorn
Net cash (outflow)linflowfrom financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning ofyear
-
Cash and cash equivalents, end of year
The accounting policies on pages 7 to 9 and notes on pages 13 to 20 form an integral part of thest
financial statements.
Notes to the Financial Statements
FQPfkCyew ewrdca 31 7
1
r 2-
Revealle
No revenue was earned for the year ended 31 Decmtber 2008, as the C o n l p ~ ydid not provide service to
any customer during the year.
2
Oparatlngtxpeoses
Opemting expenses comprise:
Staff costs
Bank charges
Publicity and advertisement
Staff welfme and other bentfils
Depreciation
Profkional fees
O k operating expenses
Directols' emblumenis
Othwinwme
Other inoame comprises:
3
Brokerage commission
fnvestmtnt written off
Ga& on disposal of interest in associate (see (a) beIow)
(a)
During the year, the Company sold a porlion of its shareholdings in E m on thc floor of the
Nigerian Stock Excbange at various prices. An analysis of the gain on disposal of the Company's
intmst in Eterna during h e year is as follows:
*
.
4
Debenture loanLiabilities taken over from Eterna
Proceeds from disposal of interest in ass~ciate
Less:
Coa of shares disposed
Xotdlnfome
Intercst income comprise.^:
i n t m s l on lorn to t o m a (seeNote 13)
Inwest on f w d deposits
L e m u x I n M R e s w u d Li3&eB
FinanciaI Statements 3 1 December 2008
Together with Director3 ' and Auditor's Reports
--
5
Interest ~ ~ W I I I and
I G similar charges
Interest on debenture loan
Interest on short term loan (see Note 16)
6
Pmflt before Taxstion
Profit before taxation is stated after charging:
(a)
Staff costs
Depreciation
Auditor's mnunerar ion
(b)
Staff Costs and directors remuneration
i.
The average number of persons employed during the year was:
2008
Number
Management
ii.
1
l h e number of employees of the Company, other than directors, whose d u t i s were
wholly or mainly discharged in Nigeria, who received remuneration in excess of
N60,OW were in the following ranges:
2008
2Q07
Nurnbcr
Number
-
iii
7
2007
Number
1
I
Thedirectors of the Company received N50,000,000each as directors' fees during the
year: The total remuneration for directors for the year ended 3 1 Decmbzr 2008
amounted to N200,000,000(2007: Nil)
Taxation
Income taratinn
The Company is subject to corporate income tax under the Company I n m e Tax Act as amended to
date. No tax was charged during the year as tbe Company had no taxable income far the ycar.
~ m u btegrldea
x
Ra&
W d
31 December 2008
Together with Directors' and Auditor's Repom
Financiui Sbatemenls
8
-
General resrerve
The movement on this account during the year was as foflows:
Balance, beginning of year
Transfer f h m profit and loss account
Balance, end of year
9
Earnhagsperlars
Earnings per share is b e d on profit after taxation of W87,023,000 (2007: 34343,762,000) a d
200,000,000 (2007: 260,000,000) Ordinary shares in issue during the year.
10 Ffxed hwls
(a) The movement on thew accounts during the year was as follows:
Furniture &
Fiaitlgs
P1'000
COST:
Balance, beginnii of year
Additions
Balance, end of year
DEPRECIATION:
Balance, beginnmg of year
Charge for the year
Balance, end of year
NET BOOK VALUE:
End of y em
Beginning of year
(b) T h e Company had no capital commitmenls as at 3 1 December 2008 (2007: Nil).
2I
Inwstmemt held for s a h
(a) The movement on this amount during the year was as follows:
Bdanee, beginning of ym
Additionq duting the year
Disposals, d&
the year
Write-offs, during the yeat
Balance, end of year
Computer
Lmnx Inikgrabd Reson& W e d
--
Financial S f a / e m a ~ f s 31 December 2008
Together with Directors ' and Audifor's Reports
The sumrnaristd financial information for the associated company, Eterna Oil and Gas Plc for the year
ended 3 I December 2Q08is as follows:
Ownership - %
Current market value (W000)
Total assets (B1'000)
Total liabilities (W000)
Current assets (N000)
Current liabi litk s (l4'000)
~evenue(WOW)
Loss after taxation (N000)
The market value of the Company's investment in Eterna Oil and Gas PIC as at 31 December 2008 was
P15,079,57 1,000 (3 1 December 2007:813,132,406,000).Based on this, the directors are of the
opinion that the cost of the investment i s not higher than its market value.
12
Long term investment
(a) Long tern invmment represents the Company's 7% shareholding in MeNichols Consolidated PIC,
as an unquoted Company as at 3 I December 2008. The movement on this account during the year
was as follows:
13
-
Balance, begining of year
Additions, during the year
14,700
Balance, end of year
14,700
ban to srsochted company
On 1 0' March 2008, the Company advanced a loan of N275,000,000to Etema at an interest rate of 15%
per annurn for an iitial period of 6 months after which the maturity date was extended for another 8
months.
me movement on this account during the year was.as follows:
--
Balance, beginning of year
Loan advanced during the year
Interest capitalized
Repayments during the year
2008
woo0
275,000
42,83 9
3 17,839
14
Debton and other receivabk
Debtors and other ~eceivablescomprise:
Other debtors
Directors' current account (see Note 2 1(b))
Lcrrrue-B
W
d
Financial Stattments - 31 December 2 W
Togelher with Dimtors' ddarditorr'sR t p o r ~ ~ ~
'5
In 2007, Ihe Company obtaincd a short t m loan of W 255,000,000 from F i n b k Plc (formerly Fird
lnland Bank Plc) to fund the payment of the Company's share of the right issues in Eterna. The loan was
obtained in two tranches of W 200,000,000 and WS5,000,000 on 17 january 2007 and 13 Sepkrnber 2007
respectively at an inter& rate of 16% for s period of 18 months.
Movement on the loan account during the y a r is as follows:
Balance, beginning af year
Loan received during the year
Loan repayments during the year
Interest accrued duringthe year
Interest paid during the year
Balance, end ofyear
Bank overdraft represents the outstanding balance on the Company's overdrafi facility with Unity Bank
PIC(formerly Intercity Bank Pb). Under the terms of the fadIiv,the Company has a limit of M30 million
at an interest rate of 19% per mum. The facility expired on 30 November 2005, and the nutstanding
balance on account remained unpaid as at year end.
,
17
Cre'edftonand a
d
Creditom and accruals comprise:
Eterna current account (see Note 2 1(a))
Other payables
Directors' current account (seeMote 2 1 (b))
&her creditors and accruals
Authorised:
-
2Q0,000,000 ordinary shares of W1 .OO each
h m d , ulled-ap:
Balance, kginning of the year:Paid up share capital 1 74,84 1,000 (2007: 174,M 1,000)
ordinary shares of W 1.00 each
Unpaid share capital 25,159,000 (2007: 25,159,000)
ordinary shares of NI .OO &
~ntqmwd~-'-
--
Umited
Financial Statemen~s 31 k e t n b e r 2W8
Togerkr with Directors' ond A~~dltor's
Repor~s
19
Operaling profit before Working Capital Changes
Opemting profit before working capital changes comprise:
Profit before taxation
Less: Interat income
Add: Interest expense
Adjustment for nondash items:
-20
Depreciation
Gain on disposal of interest in associate
Investment written off
Working Cnpital Cblrnges
Working capital changes comprise:
(hcrease)ldecrease in ban to associated company
(hcrease)ldecreasein debtors and other receivables
(Decrease) / increase in ~ O T and
S accruals
21
Related Party Transactiona
(a) EternaOflandGasPk
Ii) Eterna Oil and Gas Plc (Eterna) is a related Company of Ltnux Integrated Resources Limited.
Mahmud Tukur and Ibrahh Dikko who are Directors of the Company also served on the b o d
of Etema. During the year, the Company provided ~ t & , with a short term loan of
M275,000,000 at 19% interest rate per m u m . The loan has an accumulated interest of
M2,839,385 and both amounts remained unpaid as at year end.
(ii) During the year, the Company made payments of #&2,335,600on behalf of Eterna for warking
capital purgoses. Eterna during the yew refunded an mount of $43,600,000. Amount due to
Eterna as atyear end was W2,3 19,000 (2007:W1,054,000)
(b) Directors' current account
Ibrahirn Boyi, one of the Company's directors received S50,000,000 during the year as directors
fees. The said amount was paid in full witRout deducting WHT as a result, the current account
has tiem charged with 10% of the total sum p i d which is NS,000,000. In prior year, the
remaining unpaid balance of the Directors share of the issued share capital of the company was
transferred to the Directors current account. The balance remained unpaid as at year end. The
mount due from him as at year end was 4422,059,077.
Mohammed Ahrned another director of the Co~npanyreceived a payment of 3445 1,000 being the
amount due to him also his account was charged with $45,000,000 being 10% WHT on the
N50,000,000 received by him during the year as Directors fees. The mount due from him as at
year end was WS,000,000.
Mahmud Tukur: a Company's director received a cash advance of $42,200,000 during the ytar. Also the
Director made payment of P14,000,000 during the year. he Directoh account was dso charged with
P15.000,WObeing 10% WHT on the N50,OQ0,000 received in the year Director's fees. The total amount
due fiom him as al year end was 441 1,600,000.
The receivable balance from the d i m o as
~ at 3 1 Dwwnber 2068 was M3,659,075 (2007: PIZS,008,M)O).
See Note ( 12).
(c) Ifitwghbal Procurement Engbeerhg S h w (IGPES)
The Company's working capital requirements was pady funded by IGPES, a company in which Mahmud
Tukur stnles as a Director, IGPES invoices Lcnux for the reimbursement of amounts incurred on its behalf
at cost. Expenses paid Ior by IGPES included rent, prvice charges, electricity and other utilities which
they subsequently billed to the Company.
During the yew, W1,87 1,138 was credited to IGPES being office and other utility costs due from the
C o m ~ yThe
. Company made a total payment ofP11,758,078 during the year on beha1iIGPES.The total
receivable from IGPES as at year end was N29,086 (2007: W142,lQd).
22
C.sh aad casb equivalents
For the pwpose of reporting cash flows cash and cash equivalents include cash on hand, cash balances with
b k , short term deposits with b a n k with original mamities of t h e months or less, and banlc overdrafts
which are inc1uded in current liabilities.
Cash at bank and in hand
Bank ovtrdraA
23
Poat Balmice See4 Event
There were no post hlmw sheet events which could have a mattrial effect on the Company as at 31
December2008 which have not been taken into mmmt in the prepamticm of these financial slaterneots.
24
Pate of approval of the hanelrl ~tatemwtn
These h c i h aatemts were approved on 30 April 2012 together with the financial statemtnts for the years
endad 3 1 Dacember 2004,2005,2006,2007 and 2009.
These financial statements should be rend in conjuction with the other Tmancial statemenu identified above.
25
%pentreporting
As at 3 1 December 2008, Nigeria is the Company's primary gtugraphical segment as all the Company's income
is derived in Nigeria Additionally, the Company was yet to earn revenue, as no contract was extculed during
the year. As such, thc directors are of the opinion that here is no additional inf~rmatimon its segment whicb
has not been reported.
Value Added Statement
Far L
e m mM3I December M M
Revenue
Brought in materials and s e r v i m
-
-
Imported
L d
Otha Income
Interest income
Vdue Added
To Employees:
-
Employees as wages and salaries and
end of service bencf~ts
To providers of capital:
Interest expense
-
To Government:
-
Government as taxes
Remind in the business:
-
For replacement of fixed assets
Toaugment~eg
Five- Year Fiiancial Summary
Itevenue
ProfiJ (loss) afker taxation
Prolit/ (loss) after taxation
h e i s mploysd:
Unpaid share capital
Fixed assets
investment in assdate
Long Term Investment
Net current assets/(liabilities)
Debenture loan
l k m c e d by:
Share wpital
Deposit fw shares
General reserve
Total capital and reserves
Earningd{loss) per shart (H)