GOLDEN WEB COMPANY LIMITED

Transcription

1 GOLDEN WEB COMPANY LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER, 2011 PARKER ALLOTEY & CO. (CHARTERED ACCOUNTANTS) P. O. BOX CO 1088, Tema TELL: FAX: CELL:

2 TABLE OF CONTENTS PAGE CORPORATE INFORMATION 1 AUDITORS REPORT 2-3 REPORT OF DIRECTORS 4-5 BALANCE SHEET 6 INCOME STATEMENTS 7 NOTES TO THE ACCOUNTS 10-17

3 GOLDEN WEB COMPANY LIMITED CORPORATE INFORMATION DIRECTORS:- Mrs. Akosua M. Nelson-Cofie (Chairman) Thomas W. Bello Ebenezer Ato Barnes David Owusu Anokye Mr. Victor Walenkaki Prof. William Otoo Ellis EgblogbE Anglate Minka Premo & Co. SECRETARY:- P. O. Box 2464 Kumasi. ADDRESS:- P. O. Box AH 8529 Kumasi BANKERS:- Barclays Bank (Kumasi) Trust Bank (Kumasi) AUDITORS Parker Allotey & Co. Chartered Accountants P. O. Box Co. 1088, Tema. Tel: Fax: Cell:

4 REPORT OF DIRECTORS TO MEMBERS OF GOLDEN WEB COMPANY LIMITED. The Directors have the pleasure in submitting to the members of the company, their report together with the audited financial statement for the year ended 31 December, 2011 in accordance with the requirement of Section 132 of the Companies Code 1963 (Act 179) Principal Activities:- There was no change in the object of the company. Statement of Directors Responsibilities:- The directors are responsible for preparing the financial statements for each financial year. These statements give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that year. In preparing those financial statements, the directors are required to Select suitable accounting policies and then apply them consistently. Make judgments and estimates that are reasonable and prudent. State whether the applicable accounting standards have been followed. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for ensuring that the company keeps accounting records which disclose with reasonable accuracy the financial position of the company and which enables them to ensure that the financial statements complies with the Ghana Companies Act. They are responsible for taking such steps as reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities. The financial results of the company are set as follows:- The loss for the year before taxation ( 608,862) From which is deducted taxation and levies - Giving a net Loss after taxation of (608,862) To which must be added the balance brought Prior Year Adjustment (505,690) forward on the Income Surplus Account (1,659,840) Leaving a balance in the Income Surplus Account (2,774,392) 2

5 Dividend: The Directors do not recommend the payment of dividend. Auditors: In accordance with section 134(5) of the Companies Code, the Auditors, Messrs Parker Allotey & Co. will continue in office as Auditors of the company. On behalf of the board... Director Director. 3

6 REPORT OF THE AUDITORS TO THE MEMBERS OF GOLDEN WEB COMPANY LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER, Report on the Financial Statements We have audited the accompanying financial statements of Golden Web Company Limited which comprise the Balance Sheet as of December 31, 2011, Profit Loss Account, and a summary of significant accounting policies and other explanatory notes. Directors Responsibility for the Financial Statements The Directors are responsible for the preparation and fair presentation of these financial statements in accordance with the manner required by the Companies Code, 1963 (Act 179) This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standard 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 involve 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 of the risks of 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 presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 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 Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 4

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8 GOLDEN WEB COMPANY LIMITED INCOME STATEMENT FOR THE YEAR ENDED 31 ST DECEMBER, NOTES REVENUE 2 1,954,210 1,275,996 Cost of Sales 3 (1,854,067) (1,421,379) Gross Profit/Loss 100,143 (145,383) General & Administrative Expenses 4 (387,666) (291,772) (287,523) (437,155) Other Income - 46,617 LOSS BEFORE INTEREST&TAX (287,523) (390,538) Finance Charges (321,339) (138,093) LOSS BEFORE TAX (608,862) (528,631) INCOME TAX EXPENSES - - (608,862) (528,631) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 ST DECEMBER, 2011 STATED CAPITAL Balance 1 st January 830,975 (1,659,840) (1,131,209) Profit and Loss Account - (608,862) (528,631) Prior Year Adjustments - (505,690) - 830,975 (2,774,392) (1,659,840) 6

9 GOLDEN WEB LIMITED BALANCE SHEET AS AT 31 ST DECEMBER, 2011 NOTES ASSETS Non-Current Assets Property, Plant & Equipment 5 1,264,782 1,438,079 Security Deposit Leasing Facility 20,057 20,057 1,284,839 1,458,136 Current Assets Inventories 6 224, ,083 Accounts Receivable 155, ,804 Tax Credit 7 61,559 40,329 Cash & Cash Equivalents 8 9, , ,899 1,152,077 TOTAL ASSETS 1,735,738 2,610,213 EQUITY AND LIABILITIES Stated Capital 9 830, ,975 Revaluation Surplus 151, ,615 Income surplus. (2,774,392) (1,659,840) (1,791,802) (677,250) Non-Current Liabilities Bank Loan , ,787 EDIF Loan Account 1,609,701 1,420,356 Lease Afric , ,569 2,882,331 2,763,712 Current Liabilities Accounts Payable , ,673 Director s Current Account 50,000 50,000 Bank Overdraft 445, , , ,247 TOTAL LIABILITIES 3,527,540 3,287,463 TOTAL EQUITY AND LIABILITIES 1,735,738 2,610,213 7

10 GOLDEN WEB LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER, Cashflow from Operating Activities Operating Profit Before Finance Charges & Tax (287,523) (390,538) Adjustment for: Depreciation 218, ,069 Prior year adjustment Decrease/(Increase) in Inventories (505,690) 359,954 - (309,924) Decrease/(Increase) in Accounts Receivable (533) (154,804) (Decrease)/Increase in Accounts Payable (21,219) 19,825 Cash Generated from Trading Activities (236,780) (625,372) Finance Charge Paid (321,339) (138,093) Tax Paid (21,230) - Net Cashflow from Operating Activities (579,349) (763,465) Net Cashflow from Investing Activities Payments to Acquired Property, Plant and Equipment (45,564) (88,053) Cashflow from Financing Activities Net Increase in Loan 189,345 1,420,356 Loan From Director - Leasing Facility (70,096) 182,795 Leasing Security Deposit - - Net Cashflow from Financing Activities 119,249 1,603,151 Net (Decrease) in Cash and Cash Equivalents (505,664) 751,633 Cash and Cash Equivalents, Beginning of Year 69,783 (681,850) Cash and Cash Equivalents, End of Year (435,881) 69,783 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash and Cash Equivalent 9, ,861 Bank Overdraft (445,755) (303,078) 8 (435,881) 69,783

11 GOLDEN WEB LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, REPORTING ENTITY Golden Web Limited is a company registered and domiciled in Kumasi, Ghana and listed on the Stock Exchange. The company is authorized to process vegetable oilseeds into oils and oil cakes for sale locally and for exports. There was no change in its activities during the year. 2. BASIS OF PREPARATION a. Statement of Compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretation adopted by the International Accounting Standards Board. (IASB). The accounting policies set out below have been consistently applied to all periods presented in these financial statements b. Functional and Presentation Currency These financial statements are presented in Ghana Cedi, which is the Company's functional currency. All figures have been rounded to the nearest Ghana Cedi. c. Basis of Measurement These financial statements are prepared on the historical cost basis except for property, plant & equipment which is stated at fair value or revaluation amount. The resulting adjustment has been credited to equity. d. Use of Estimates and Judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only the period, or in the period of the revision and future periods, if the revision affects both current and future periods. 8

12 3. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set our below have been applied consistently to all periods presented in these financial statements. Management of Golden Web Limited considers the following as the most important accounting policies for the company. a. Revenue Revenue represents receipts from sales of the Company's products, which are processed vegetable oilseeds, in the normal course of the Company's business and it is stated net of value added tax. Sales are recognized when the risks and rewards to the products have been substantially transferred to the customer. b. Property, Plant and Equipment All property, plant & equipment are initially recorded at cost. Land and buildings and plant & machinery subsequently shown at market value based on valuation by external independent value s less subsequent depreciation. An increase in the carrying amount arising on valuation is credited to a capital surplus account. Decreases that offset previous increases of the same asset are charged against the capital surplus account; all others decreases as are charged to the income statement. Subsequent cost are included in the asset's carrying amount or are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits are associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Depreciation ion is calculated on a straight-line basis to write off the cost/fair value of property, and equipment over their estimated economic useful lives as follows: Land & Buildings 10% Plant & Machinery 10% Motor Vehicles 20% Office Furniture & Equipments 20% The assets residual values and useful lives are reviewed, and adjusted if appropriate, at balance sheet date. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the' carrying. Amount may not be recoverable. An asset s carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and value in use. Gains and loss on disposal are determined by comparing proceeds with carrying amount. These are treated in the income statement. 9

13 c. Financial Assets i Inventories Inventories of raw materials; and spare parts are valued at cost after making adequate provision for damaged and obsolete items. Costs comprise the cost of purchase and other incidental costs. Inventories of finished goods are valued at selling price. Trade Receivables Trade receivables are initially recognized at fair value and subsequently measured at amortized cost less any provision for impairment. A write off or provision for impairment is made on a case by case basis and when there is evidence that the amount due will not be fully recovered at the original cost. iii Cash and Cash Equivalents Cash and cash equivalent include cash in hand, deposits held at call with banks, and banker drafts. Bank overdrafts are shown separately under current liabilities on the balance sheet. iv Income Tax Current tax assets and liabilities for the current periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rate and tax laws used to compute the amount are those enacted or substantively enacted by the balance sheet date. Financial Liabilities d ii Trade Payables Trade payables are initially recognized at fair value and subsequently measured at amortized cost. Bank Borrowings Interest bearing loans and overdrafts are recovered at the amortized amount. Finance charges paid or payable on the borrowings are accounted for on an accrual basis in the income statement. iii Provision Provisions are recognized when a present legal or constructive obligation exists as a result of past events, where it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably measured. e. Borrowing Costs Borrowing costs directly attributable to the acquisition and installation of machinery Equipment are capitalised and included in the cost of the machinery & equipment. Capitalization ceases when installation of the machinery & equipment is completed and the machinery becomes operational. All other finance charges are payable on borrowings, including leasing and overdrafts facilities, are accounted for on an accrual basis in the income statement. 10

14 f. Foreign Currency Transactions in foreign currencies are translated into the functional currency of the Company at exchange rates at the dates of the transactions. Assets and liabilities denominated in foreign currencies at the reporting date are retranslated into the functional retranslation are recognized in the income statement. g. Post Balance Sheet Events Events subsequent to the balance sheet date are reflected only to the extent that they are related directly to the financial statements and the effect is materials. h. Contingent Liabilities Contingent liabilities are potential liabilities that arise from events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events which are not wholly within the control of the company. Provisions for liabilities are recorded when a loss is considered probable and can be reasonably estimated. The determination of whether or not a provision should be recorded for any potential liabilities is based on management s judgment. 11

15 REVENUE Local Sales 1,954,210 1,164,743 Export Sales - 111,253 1,954,210 1,275, COST OF SALES FINISHED GOODS Opening Stocks 121,663 85,750 Production Cost 1,789,682 1,457,292 1,911,345 1,543,043 Closing Stock (57,278) (121,663) 1,854,067 1,421,379 12

16 PRODUCTION ACCOUNT FOR THE YEAR ENDED 31 ST DECEMBER, RAW MATERIALS : Opening Stock 358,321 84,310 Purchases 917,252 1,261,862 Freight and Handling 107,894 67,414 1,383,467 1,413,486 Closing Stock (62,752) (358,321) 1,320,715 1,055,265 DIRECT EXPENSES: Depreciation - Machinery, 118, ,698 Production Wages 116,566 82,316 Electricity & Power 75,983 82,773 Diesel 39,478 - Production Overheads 36,726 20,582 Factory & Machinery Maintenance 21,385 55,014 Casual labour 33,892 23,462 Processing Fees 26,681 21,182 1,789,682 1,457,292 13

17 4. GENERAL & ADMINISTRATIVE EXPENSES Director s Remuneration 21,712 18,000 Salaries 69,749 60,428 Repair s Maintenance 4,836 5,518 Postage and Telecom 5,491 7,771 Rent and Rates 14,448 3,612 Printing and Stationery 19,033 2,557 SSNIT Contribution 18,364 9,505 Travelling & Transport 12,267 7,162 Marketing Expenses 16,928 6,605 Legal /Professional fees 6,096 6,201 Medical Expenses 2,864 4,969 Vehicle Running and Repairs 5,161 9,705 Audit Fees 7,000 6,000 Donation 843 1,387 General Admin. Expenses - 4,950 Depreciation 100,605 93,371 Insurance 2,653 5,910 Electricity & Water 2,057 1,399 Security Expenses 11,580 11,225 Business Promotion 3,060 5,720 Staff Welfare/ Training 12,670 5,090 Dues & subscription 8,079 4,436 AGM Expenses 2,722 4,541 Licenses / Permits 2,150 1,540 Miscellaneous Expenses 1,401 4,170 Accommodation 3,141 - Board Meeting Allowance 7,800 - Board Meeting Expenses 3,181 - Staff Training 1,800 - Clearing and Forwarding 1,883 - Fines and Penalties 18, , ,772

18 GOLDEN WEB LIMITED 5. SCHEDULE OF PROPERTY, PLANT & EQUIPMENT LAND & BUILDINGS PLANT & MOTOR FURNITURE MACHINERY VEHICLE EQUIPMENT TOTAL COST /FAIR VALUE Balance 1 st January ,781 1,166,980 78,094 32,657 2,132,512 Additions 26,770 15,580-3,214 45,564 Balance 31/12/ ,551 1,182,560 78,094 35,871 2,178,076 Balance 1/1/ , ,326 56,987 23, ,433 Charge for the year 88, ,256 5,276 7, ,861 Balance 31/12/ , ,582 62,263 30, ,294 NET BOOK VALUE 31: 12: , ,978 15,831 5,554 1,264,782 31/12/ , ,654 21,107 9,515 1,438,079 15

19 6. INVENTORIES Raw Materials 62, ,321 Finished Goods 57, ,663 Spare Parts 104, , , ,083 7 TAX CREDIT Balance B/Forward (40,329) (40,329) Income Tax Expense (21,230) - Payment - - (61,559) (40,329) 8 CASH& BANK BALANCES T.T.B Call Account 5, ,580 Bank Current Accounts 14 5,302 Foreign Currency Account 4,489 2,625 Cash in Hand , ,861 16

20 9. STATED CAPITAL NO. OF SHARES Authorized Shares Ordinary Shares at no par value 750,000,000 AMOUNT ISSUED FOR CASH Ordinary Shares 64,999, ,951 Prior year Adjustment 384 Transfer from Capital Surplus 15,000 64,999, ,975 There are no shares in Treasury and no call or installments unpaid on any shares. 10. BANK LOAN:- This represents Balance on the loan Account with the Barclays Bank of Ghana. 11. FINANCE LEASE: This represent amount owed to Leasafric Ghana at the end of the year 12. ACCOUNTS PAYABLE Trade Payables 15, ,630 Accrued Expenses 133,491 58, , ,673 17