CONSOLIDATED HALLMARK INSURANCE PLC

Transcription

1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT PERIOD ENDED 30 June 2017 June June December June June December N N Assets Cash and cash equivalents 2. 1,352,617,032 3,321,073,120 1,836,824,537 1,171,761,318 2,887,900,486 1,587,501,284 Financial assets: - - -At fair value through profit or loss ,506, ,721, ,013, ,855, ,388, ,699,494 -Loans and receivables ,126, ,538, ,335, ,940,850 56,666, ,761,875 -Available for sale assets ,950,000 60,950,000 60,950,000 60,950,000 2,000,000 60,950,000 -Held to maturity 3.4 2,487,273, ,124,839 1,654,142,565 2,487,273, ,369,586 1,654,142,565 Deposit for shares ,000,000 50,250, ,000,000 Finance lease receivables ,627, ,873, ,290, Trade receivables ,692, ,397, ,091, ,692,700 98,228, ,091,091 Reinsurance assets 7. 1,301,794, ,913, ,323,978 1,301,794, ,767, ,323,978 Deferred acquisition cost ,579, ,525, ,579, ,579, ,135, ,579,067 Other receivables & prepayments ,649, ,247, ,968, ,407, ,988, ,530,118 Investment in subsidiaries ,000, ,000, ,000,000 Inventories ,360,467 3,920, Intangible Assets ,462,630 14,311,505 13,119,349 10,795,876-12,383,037 Investment properties ,882, ,123, ,882, ,221, ,460, ,221,395 Property and equipment ,169, ,805, ,022, ,950, ,697, ,328,726 Statutory deposits ,000, ,000, ,000, ,000, ,000, ,000,000 Total assets 8,760,331,064 7,739,964,579 7,442,464,370 8,654,222,078 6,897,853,589 7,392,512,630 Liabilities Insurance contract liabilities 14. 3,707,849,659 2,409,319,707 2,410,701,988 3,707,849,659 2,271,797,500 2,410,701,988 Trade payables ,275, ,568,098 87,511,062 65,275,507 76,363,582 87,511,062 Other payables and provision ,148, ,315, ,731, ,617, ,965, ,101,601 Retirement benefit obligations 17. 5,380,929 5,473, ,314 5,046,938-13,502 Income tax liabilities ,895, ,546, ,465, ,312, ,565, ,558,597 Deferred tax liabilities ,900, ,789, ,103, ,422,385 95,460, ,625,075 Total liabilities 4,358,449,797 3,273,012,981 3,039,663,660 4,312,524,322 2,754,152,294 3,025,511,825 Equity and reserves Issued and paid up share capital ,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000 Contingency reserve ,324,329,482 1,158,004,746 1,230,030,314 1,324,329, ,686,050 1,230,030,314 Statutory reserve ,552,665 7,950,303 9,279, Retained earnings ,999, ,996, ,491,009 17,368, ,015, ,970,491 Total equity and reserves 4,401,881,267 4,466,951,598 4,402,800,709 4,341,697,756 4,143,701,295 4,367,000,805 Total liabilities and equity and reserves 8,760,331,064 7,739,964,579 7,442,464,370 8,654,222,078 6,897,853,589 7,392,512,630 - The consolidated financial statements were approved by the Board of Directors on 20 July, 2017 Chief Andrew D. S. Odigie Eddie A. Efekoha Babatunde Daramola Vice Chairman Managing Director Chief Financial Officer FRC/2013/ICAN/ FRC/2013/CIIN/ FRC/2013/ICAN/ Page 1 of 30

2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME June June 31 December June June 31 December Notes Gross premium written 3,315,836,764 3,436,658,604 5,826,950,292 3,315,836,764 3,436,658,604 5,826,950,292 Gross premium income 23. 3,140,836,764 3,294,943,654 5,708,277,060 3,140,836,764 3,294,943,654 5,708,277,060 Reinsurance premium expenses 24. (1,040,408,400) (1,362,145,665) (2,199,995,287) (1,040,408,400) (1,362,145,665) (2,199,995,287) - - Net premium income 2,100,428,364 1,932,797,989 3,508,281,773 2,100,428,364 1,932,797,989 3,508,281,773 Fee and commission income ,465, ,370, ,707, ,465, ,370, ,707, Net underwriting income 2,314,894,121 2,078,168,909 3,711,989,442 2,314,894,121 2,078,168,909 3,711,989, Claims expenses 25a (1,929,193,108) (768,129,812) (1,730,652,330) (1,929,193,108) (768,129,812) (1,730,652,330) Claims recoveries from reinsurers 25b. 1,016,791, ,283, ,508,618 1,016,791, ,283, ,508,618 Claims incurred (912,401,354) (606,846,549) (1,387,143,712) (912,401,354) (606,846,549) (1,387,143,712) - - Underwriting expenses 26. (774,452,837) (657,281,801) (1,256,318,222) (774,452,837) (664,480,366) (1,271,473,425) - - Underwriting profit 628,039, ,040,559 1,068,527, ,039, ,841,995 1,053,372,305 Investment income ,371, ,156, ,982, ,564, ,156, ,982, Other operating income ,517, ,378, ,860,805 7,826,318 65,404, ,768,443 Impairment (charge)/write back 29. (4,211,216) - (9,310,327) (290,329) - 693,030 Net fair value gains on financial assets at fair value through profit or loss 30. (7,327,084) (16,160,071) (6,783,170) (7,327,084) (16,160,071) (6,783,170) Management expenses 31. (773,482,135) (671,073,695) (1,340,451,352) (742,808,669) (645,664,724) (1,281,059,193) Profit before taxation 246,908, ,342, ,133, ,004, ,578, ,974,108 Income tax expense 18.1 (127,827,841) (163,203,286) (173,145,284) (116,307,766) (156,566,299) (163,358,219) - - Profit after taxation 119,080, ,138, ,987,843 94,696, ,012, ,615, Total comprehensive income for the year 119,080, ,138, ,987,843 94,696, ,012, ,615, Profit attributable to: - - Equity holders of the parents' 119,080, ,138, ,987,843 94,696, ,012, ,615, Continency reserve (94,299,168) (99,222,743) (174,700,711) (94,299,168) (99,222,743) (171,248,311) 24,781,389-20,287, , ,789,283 27,367,577 Basic and diluted earnings per share (Kobo) Page 2 of 30

3 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT PERIOD ENDED 30 June 2017 The Issued share Contingency Statutory Retained capital reserves reserve earnings Total equity N At 1 January ,000,000,000 1,058,782,003 5,826, ,203,878 4,267,812,867 Changes in equity for 2016: Profit for the year Other comprehensive income for the year ,987, ,987,843 Total comprehensive income for the year ,987, ,987,843 Transactions with owners: Transfer to contigency reserves Transfer to statutory reserves - 171,248,311 3,452,400 (174,700,711) - Dividends declared during the year (60,000,000) (60,000,000) Non-controlling interest arising on business - combination Contribution by and to owners of the business - 171,248,311 3,452,400 (234,700,711) (60,000,000) At 31 December ,000,000,000 1,230,030,314 9,279, ,491,009 4,402,800,709 At 1 January ,000,000,000 1,230,030,314 9,279, ,491,009 4,402,800,709 Changes in equity for 2017: Profit for the year ,080, ,080,557 Other comprehensive income for the year Total comprehensive loss for the year ,080, ,080,557 Transactions with owners: Transfer within reserves - 94,299,168 3,273,279 (97,572,447) - Dividends relating to prior periods paid during the year Non-controlling interest arising on business combination (120,000,000) (120,000,000) Contribution by and to owners of the business - 94,299,168 3,273,279 (217,572,447) (120,000,000) At June ,000,000,000 1,324,329,482 12,552,665 64,999,120 4,401,881,267 Page 3 of 30

4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT PERIOD ENDED 30 June 2017 The Issued share Contigency Retained capital reserves earnings Total equity At 1 January ,000,000,000 1,058,782, ,295,943 4,229,077,946 Changes in equity for 2016: Profit for the year ,922, ,922,859 Other comprehensive income for the year Total comprehensive income for the year ,922, ,922,859 Transactions with owners: Transfer within reserves - 171,248,311 (171,248,311) - Dividends relating to prior periods paid during the year (60,000,000) (60,000,000) Contribution by and to owners of the business - 171,248,311 (231,248,311) (60,000,000) At 31 December ,000,000,000 1,230,030, ,970,491 4,367,000,805 At 1 January ,000,000,000 1,230,030, ,970,491 4,367,000,805 Changes in equity for 2017: Profit for the year ,696,951 94,696,951 Other comprehensive income for the year Total comprehensive income for the year ,696,951 94,696,951 Transactions with owners: Transfer within reserves - 94,299,168 (94,299,168) - Dividends relating to prior periods paid during the year (120,000,000) (120,000,000) Contribution by and to owners of the business - 94,299,168 (214,299,168) (120,000,000) At June ,000,000,000 1,324,329,482 17,368,274 4,341,697,756 Page 4 of 30

5 CONSOLIDATED STATEMENT OF CASH FLOWS AT PERIOD ENDED 30 June 2017 June 31 DECEMBER June 31 DECEMBER Notes Cash flows from operating activities Premium received from policy holders 2,886,048,216 5,700,840,079 2,886,048,216 5,700,840,079 Reinsurance receipts in respect of claims 25b. 180,100, ,127, ,100, ,127,939 Commission received ,465, ,772, ,465, ,772,393 Other operating receipts 7,826, ,604,224 7,826, ,768,443 Cash paid to and on behalf of employees 33. (295,121,908) (513,986,990) (284,277,482) (492,007,345) Reinsurance premium paid (962,786,045) (2,112,575,021) (962,786,045) (2,112,575,021) Claims paid 25a (807,045,436) (1,657,293,652) (807,045,436) (1,657,293,652) Underwriting expenses (774,452,837) (1,305,872,268) (774,452,837) (1,310,527,194) Other operating cash payments (430,640,278) (798,539,118) (416,172,287) (653,320,688) income tax paid 18.2 (74,990,758) (64,030,627) (63,716,065) (64,030,627) Net cash (used in)/ from operating activities (56,596,333) 155,046,960 (20,009,223) 125,754,328 Cash flows from investing activities Purchase of property and equipment 12.2 (30,382,050) (149,033,735) (30,382,050) (121,549,513) Fair value change and additions to investment properties (5,862,395) - (5,862,395) Increase in investment in subsidiaries (230,000,000) Proceeds from sale of property and equipment ,450,828 6,708,974 1,450,828 6,708,974 Purchase of financial assets 3. (1,279,021,640) (1,548,611,151) (916,613,850) (1,548,611,151) Proceeds from sale of financial assets 612,970, ,580, ,249, ,580,747 Dividend received 27. 2,572,882 4,585,551 2,572,882 29,585,551 Interest received ,798, ,673, ,991, ,673,820 Net cash from investing activities (307,611,172) (1,080,958,189) (275,730,743) (1,258,473,967) Cash flows from financing activities Dividend paid 21. (120,000,000) (60,000,000) (120,000,000) (60,000,000) Net cash used in financing activities (120,000,000) (60,000,000) (120,000,000) (60,000,000) Increase in cash and cash equivalents (484,207,505) (985,911,229) (415,739,966) (1,192,719,640) Cash and cash equivalents at Beginning 1,836,824,537 2,822,735,767 1,587,501,284 2,780,220,925 Cash and cash equivalent at End 2 1,352,617,032 1,836,824,537 1,171,761,318 1,587,501,284 The accompanying notes form an integral part of this statement of cash flows. Page 5 of 30

6 1. Corporate information 1.1 The The group comprises of Consolidated Hallmark Insurance Plc and its subsidiary - CHI Capital Limited. CHI Capital Limited also has two wholly owned subsidiaries, Grand Treasurers Limited and CHI Support Services. 1.2 The Consolidated Hallmark Insurance Plc (formerly Consolidated Risk Insurers Plc) was incorporated on 2 August The changed its name from Consolidated Risk Insurers Plc to Consolidated Hallmark Insurance Plc following its merger with Hallmark Assurance Plc and The Nigerian General Insurance Limited in line with the consolidation reform of NAICOM announced in Consolidated Hallmark Insurance Plc came into effect from 1 March Principal activities During the year under review, the engaged in general insurance business and maintained offices in major cities with Corporate headquarters at 266 Moshood Abiola way, Lagos. The principal activities of the subsidiaries are portfolio management, short term lending, equipment leasing and auto tracking services. June December June December 2. Cash and cash equivalents Cash in hand 2,949,126 3,045,944 2,949,126 3,045,944 Balance with banks 109,298, ,753,578 4,574, ,892,518 Call deposits 14,471,177 10,945,865 14,471,177 10,945,865 Fixed deposits (Note 2.1) 1,225,898,727 1,621,079,150 1,149,767,175 1,431,616,957 1,352,617,362 1,836,824,537 1,171,761,648 1,587,501,284 Impairment charge (Note 2.2) (330) - (330) - 1,352,617,032 1,836,824,537 1,171,761,318 1,587,501, The Fixed deposits have a short term maturity of days and the effect of discounting immaterial. 2.2 Impairment charge At 1 January Written off in the year Provision no longer required (Note 29) At June Financial assets At fair value through profit or loss (Note 3.1) 141,506, ,013, ,855, ,699,494 Loans and receivables measured at amortised cost (Note 3.2) 284,126, ,335, ,940, ,761,875 Available for sale (Note 3.3) 60,950,000 60,950,000 60,950,000 60,950,000 Held to maturity (Note 3.4) 2,487,273,245 1,654,142,565 2,487,273,245 1,654,142,565 2,973,856,817 2,122,441,443 2,865,019,501 2,090,553, At fair value through profit or loss At 1 January 170,013, ,785, ,699, ,256,659 Additions 337, , Disposals (21,517,004) (4,282,422) (21,517,004) (4,282,422) Transfers to cash and WHT receivables ,833, ,287, ,182, ,974,237 Fair value gains/(loss) (Note 30) (7,327,084) (150,274,743) (7,327,084) (150,274,743) At June ,506, ,013, ,855, ,699,494 Current 141,506, ,013, ,855, ,699,494 Non Current Financial assets at fair value through profit or loss of the group represents investment where there is a ready and liquid quoted market, which are acquired for the purpose of short-term trade, and where mark-to-market valuations are possible on every trading day. Assets under this category have been acquired by management with the intent of short term trading. Page 6 of 30

7 June December June December 3.2 Loans and receivables Staff loans 177,150, ,485, ,150, ,485,300 Loan issued to corporate individuals (Note 3.2.1) 106,976,130 33,850,489 4,790,169 8,276, ,126, ,335, ,940, ,761,875 Current 133,530, ,492,415 94,530, ,652,919 Non Current 150,595,852 95,843,374 87,410,608 68,108, Loan issued to corporate / individuals At 1 January 131,126, ,402, ,462, ,408,271 Addition 105,807, ,115, ,639,916 Repayment (31,957,645) (205,390,778) (3,486,407) (163,585,736) 204,976, ,126,947 97,976, ,462,451 Impairment on loans issued to corporate and individuals (Note 3.2.4) (98,000,630) (97,276,457) (93,185,875) (93,185,875) At the end 106,976,130 33,850,489 4,790,169 8,276, Analysis by performance: Performing (Note 3.2) 284,126, ,335, ,940, ,761,875 Non-performing (Note 3.2.1) 98,000,630 97,276,457 93,185,875 93,185, ,127, ,612, ,126, ,947, Analysis by maturity: Due within one year 133,530, ,517,416 94,530, ,852,920 Due within one - five years 158,596,483 8,596,483 90,596,483 8,596,483 Due after five years 90,000,000 2,498,348 90,000,000 2,498, ,127, ,612, ,126, ,947, Movement in impairment - loans and receivables : At 1 January 97,276,457 95,695,221 93,185,875 93,878,905 Addition (Note 29) 724,173 2,274, Provision no longer required - (693,030) - (693,030) At the end 98,000,630 97,276,457 93,185,875 93,185, Available for sale assets At 1 January 60,950,000 60,950,000 60,950,000 60,950,000 Addition Exchange gains Impairment on available for sale At the end 60,950,000 60,950,000 60,950,000 60,950,000 Current Non Current 60,950,000 60,950,000 60,950,000 60,950,000 Available for sale assets are the unquoted equity securities of the group and are measured at cost because their fair value could not be reliably measured. At period end there is no indication of impairment. Available for sale equities is analysed as follows: No. of shares Cost per unit Total Cost Planet Capital Limited (Formerly Strategy and Arbitrage Limited) 2,000,000 N1 2,000,000 Energy & Allied Insurance Pool Nigeria limited - 58,950,000 Page 7 of 30

8 June December June December 3.4 Held to maturity assets At 1 January 1,706,977, ,575,123 1,706,977, ,575,123 At initial recognition - additions 939,187,844 1,227,402, ,187,844 1,227,402,664 Value at maturity 2,646,165,631 1,706,977,787 2,646,165,631 1,706,977,787 Disposal (380,662,957) (170,307,420) (380,662,957) (170,307,420) Amortised interest (Note 27) 221,770, ,472, ,770, ,472,198 At the end 2,487,273,245 1,654,142,565 2,487,273,245 1,654,142, a) Held to maturity assets are analysed as follows: Debts securities Listed 2,487,273,245 1,654,142,565 2,487,273,245 1,654,142,565 Unlisted At the end 2,487,273,245 1,654,142,565 2,487,273,245 1,654,142,565 Current 221,770,571 1,027,712, ,770,571 1,027,712,519 Non-current 2,265,502, ,430,046 2,265,502, ,430,046 2,487,273,245 1,654,142,565 2,487,273,245 1,654,142,565 b) At the reporting date, no held to maturity assets were past due or impaired 15.25% NAHCO Bond series / ,619,475 13,990,993 11,619,475 13,990,993 FCMB NGN SERIES 2 BOND 2015/ ,089,041 51,109,589 51,089,041 51,109,589 FCMB NGN SERIES 2 BOND 2016/ ,293,151 51,016,096 55,293,151 51,016, % Lagos State Government Bond series / ,024,902 41,781,157 35,024,902 41,781,157 LAGOS STATE PROGRAMME 2 SERIES 2 FIXED RATE BOND ISSUANCE (2013/2020) - 99,300,908-99,300,908 Wemabank commercial paper 397,898, ,703, ,898, ,703,501 Omo 18.45% 24/08/2017 FG TREASURE BILL FCMB 174,997, ,545, ,997, ,545,821 Omo 18.45% 10/08/2017 FG TREASURE BILL FCMB 391,726, ,160, ,726, ,160,541 Omo 18.25% 27/07/2017 FG TREASURE BILL FCMB 197,305, ,225, ,305, ,225,644 Omo 18.25% 27/07/2017 FG TREASURE BILL CAPITAL EXPRESS 239,783, ,308, ,783, ,308,315 Omo 18.25% 18/01/2018 FG TREASURE BILL AIICO CAPITAL 154,762, ,762,314 - TREASURY BILLS 18.50% FEB AIICO CAPITAL LTD 376, ,697 - TREASURY BILLS 18.50% FEB AIICO CAPITAL LTD 32,724,532-32,724,532 - TREASURY BILLS % FEB FSDH MERCHANT BANK LIMITED 207,630, ,630,846 - TREASURY BILLS % FEB FSDH MERCHANT BANK LIMITED 225,601, ,601,720 - TREASURY BILLS % FEB FSDH MERCHANT BANK LIMITED 189,143, ,143,840 - TREASURY BILLS % FEB FSDH MERCHANT BANK LIMITED 67,783,604-67,783,604 - TREASURY BILLS 13.69% MARCH AIICO Capital Limited 36,964,191-36,964,191 - TREASURY BILLS 13.69% MARCH AIICO Capital Limited 17,547,236-17,547,236 - At the end 2,487,273,245 1,654,142,565 2,487,273,245 1,654,142, Deposit for shares ,000, ,000,000 This represents fund deposited by the company for additional shares in Chi Capital Limited. 5. Finance lease receivables At 1 January 178,954, ,031, Addition 232,964, ,678, Repayment (125,112,739) (141,477,667) - - Gross investment 286,806, ,232, Unearned income (50,565,284) (38,277,733) - - Net investment (Note 5.1) 236,241, ,954, Impairment on finance lease receivables (Note 5.2) (17,613,936) (16,664,352) - - At the end 218,627, ,290, Current 199,063, ,336, Non-current 37,177,526 30,618, Analysis by performance Performing 218,627, ,290, Non-performing 17,613,936 16,664, ,241, ,954, Analysis by maturity Due within one year 162,462,006 83,963,156 Due between one - five years 73,778,994 94,991, ,241, ,954, Movement in impairment - finance lease receivables: At 1 January 16,664,352 8,935, Charge for the year (Note 29) 949,584 7,729, At the end 17,613,936 16,664, Trade receivables Due from insurance companies 19,097,360 25,015,653 19,097,360 25,015,653 Due from insurance brokers and agents 260,595, ,075, ,595, ,075, ,692, ,091, ,692, ,091,091 Impairment allowance (Note 6.1) ,692, ,091, ,692, ,091,091 Current 279,692, ,091, ,692, ,091,091 Non-current Page 8 of 30

9 June 31 December June 31 December 6.1 Impairment allowance At 1 January Written off in the year Charge for the year (Note 29) At the end Basis of impairment An impairment rate is derived based on the likelihood that a premium debt will not be paid and will fall into default. The first assesses whether objective evidence of impairment exists individually for receivables that are individually significant and are impaired accordingly. If the company determines that no objective evidence of impairment exists for an individually assessed receivable, whether significant or not, it includes the receivable in a group of receivables with similar credit risk characteristics and collectively assesses them for impairment. The impairment rate is derived based on the historical collection rate of outstanding premium over three different periods and the average rate derived is applied to the carrying amounts at the reporting dates to determine impaired receivables. June 31 December June 31 December 7. Reinsurance assets Prepaid reinsurance (Note 7.1) 242,618, ,005, ,618, ,005,373 Reinsurers share of outstanding claims (Note 7.2) 1,059,175, ,318,605 1,059,175, ,318,605 At the end 1,301,794, ,323,978 1,301,794, ,323,978 Current 1,301,794, ,323,978 1,301,794, ,323,978 Non-current The assesses its reinsurance assets for impairment. If there is objective evidence that the reinsurance assets are impaired, the reduces the carrying amount of the reinsurance assets to its recoverable amount and recognizes that impairment loss in the income statement. The has a reinsurance agreement with African Reinsurance Corporation, and Continental Reinsurance Plc. Based on the financial position and performance during the period under review, they are solvent and had never defaulted on their obligations. Consequently, there are no indications of impairment as at the reporting date. June 31 December June 31 December 7.1 Prepaid reinsurance Fire 60,624,355 75,104,355 60,624,355 75,104,355 General accident 16,064,737 22,917,137 16,064,737 22,917,137 Motor 2,268,223 4,816,223 2,268,223 4,816,223 Marine 28,596,334 40,096,334 28,596,334 40,096,334 Bond 1,143,515 2,343,515 1,143,515 2,343,515 Engineering 5,874,020 7,376,020 5,874,020 7,376,020 Aviation 65,548,089 67,050,489 65,548,089 67,050,489 Oil & gas 62,499,300 78,301,300 62,499,300 78,301, ,618, ,005, ,618, ,005, Reinsurers share of outstanding claims Fire 746,015, ,789, ,015, ,789,565 General accident 32,255,190 29,210,186 32,255,190 29,210,186 Motor 11,247,203 6,247,203 11,247,203 6,247,203 Marine 14,524,937 45,000,355 14,524,937 45,000,355 Bond 757,097 63, ,097 63,428 Engineering 19,225,565 14,255,659 19,225,565 14,255,659 Aviation 229,803,834 6,406, ,803,834 6,406,334 Oil & gas 5,345,875 5,345,875 5,345,875 5,345,875 1,059,175, ,318,605 1,059,175, ,318, Reinsurance assets: Movement in prepaid reinsurance: At 1 January 298,005, ,975, ,005, ,975,490 Additions during the year (Note 24) 985,021,600 2,088,025, ,021,600 2,088,025,170 1,283,026,973 2,498,000,660 1,283,026,973 2,498,000,660 Amortization during the year (Note 24) (1,040,408,400) (2,199,995,287) (1,040,408,400) (2,199,995,287) At the end 242,618, ,005, ,618, ,005, Deferred acquisition cost At 1 January 229,579, ,525, ,579, ,525,298 Acquistion cost during the year 580,725, ,634, ,725, ,634,488 Less: Amortisation during the year (Note 26) (580,725,341) (804,580,719) (580,725,341) (804,580,719) At the end 229,579, ,579, ,579, ,579,067 Current 229,579, ,579, ,579, ,579,067 Non-current Deferred acquisition cost represent commissions on unearned premium relating to the unexpired risk. The movement in the deferred acquisition cost during the year is as shown above. Page 9 of 30

10 June December June December 8.1 Deferred acquisition cost analysis Fire 41,961,538 41,961,538 41,961,538 41,961,538 General accident 55,711,526 55,711,526 55,711,526 55,711,526 Motor 55,521,601 55,521,601 55,521,601 55,521,601 Marine 20,902,304 20,902,304 20,902,304 20,902,304 Bond 2,190,179 2,190,179 2,190,179 2,190,179 Engineering 9,634,091 9,634,091 9,634,091 9,634,091 Aviation 13,763,383 13,763,383 13,763,383 13,763,383 Oil & gas 29,894,445 29,894,445 29,894,445 29,894, ,579, ,579, ,579, ,579, Other receivables and prepayments Staff advances & prepayment 117,552,193 22,374, ,552,193 22,374,467 Account receivables 41,579,876 67,171,613 31,557,247 62,681,514 Intercompany Receivables ,780,652 40,051,485 Witholding tax credit 60,117,439 58,105,915 60,117,439 58,105,915 Prepayments (Note 9.1) 24,399,979 30,316,738 24,399,979 30,316, ,649, ,968, ,407, ,530,118 Impairment allowance (Note 29) ,649, ,968, ,407, ,530,118 Current 243,649, ,968, ,407, ,530,118 Non-current Prepayments Prepaid rent 18,848,080 28,284,485 18,848,080 28,284,485 Other prepayments 5,551,899 2,032,253 5,551,899 2,032,253 24,399,979 30,316,738 24,399,979 30,316,738 Current 24,399,979 30,316,738 24,399,979 30,316,738 Non-current Investment in subsidiaries CHI Capital (Note 10.1) ,000, ,000, CHI Capital Limited is a fully owned subsidiary of Consolidated Hallmark Insurance Plc. It carries on the business of consumer leasing. CHI Capital Limited acquired 100% interest in Grand Treasurers Limited, a CBN licensed finance company, in December 2010 with the purpose of carrying on financing activities. CHI Capital Limited also owns 100% interest in CHI Support Services Limited which is into the business of vehicle tracking. Condensed result of consolidated entities CHI PLC CHI CHI Elimination Capital Limited Microinsurance Total N 10.2 Condensed financial position Assets Cash and cash equivalents 1,171,761, ,333,318 55,522,396 1,352,617,032 Financial assets 2,865,019, ,837,316-2,973,856,817 Deposit for shares 180,000,000 - (180,000,000) - Finance lease receivables - 218,627, ,627,064 Trade receivables 279,692, ,692,700 Reinsurance assets 1,301,794, ,301,794,097 Deferred acquisition cost 229,579, ,579,067 Other receivables and prepayment 280,407,510 10,022,629 (46,780,652) 243,649,487 Investment in subsidiaries 300,000,000 - (300,000,000) - Investment properties 809,221,395 84,661, ,882,395 Inventories Intangible Assets 10,795, ,754 11,462,630 Property and equipment 925,950,614 29,219, ,169,775 Statutory deposits 300,000, ,000,000 Total assets 8,654,222, ,367,242 55,522,396 (526,780,652) 8,760,331,064 Liabilities Insurance contract liabilities 3,707,849, ,707,849,659 Trade payables 65,275, ,275,507 Provision and other payables 145,617, ,310,974 (226,780,652) 155,148,064 Staff retirement benefit 5,046, ,991-5,380,929 Tax liabilities 214,312,091 35,583, ,895,311 Deffered tax 174,422, , ,900,327 Share capital 3,000,000, ,000,000 50,000,000 (300,000,000) 3,000,000,000 Statutory reserve 1,324,329,482 12,552,665-1,336,882,147 Retained earnings 17,368,274 42,108,450 5,522,396 64,999,120 Total liabilities and equity 8,654,222, ,367,242 55,522,396 (526,780,652) 8,760,331,064 Page 10 of 30

11 10.2 Condensed result of consolidated entities CHI CHI PLC Capital Microinsurance Elimination Total N Condensed profit and loss Underwriting profit 628,039, ,039,930 Investment income 325,564, ,564,551 Other operating income 7,826,318 66,360,555 4,137,478-78,324,351 Total operating income 961,430,799 66,360,555 4,137,478-1,031,928,832 Impairment charge (290,329) (3,920,887) - (4,211,216) Net fair value gains/(losses) on financial assets at fair value through profit or loss (7,327,084) - - (7,327,084) Management expenses (742,808,669) (30,673,466) (773,482,135) Profit before taxation 211,004,717 31,766,202 4,137, ,908,397 Taxation (116,307,766) (11,520,075) - (127,827,841) Profit after taxation 94,696,951 20,246,127 4,137, ,080, Condensed result of consolidated entities CHI Condensed financial position Cash and cash equivalents 1,587,501, ,938,334 51,384,918 1,836,824,536 Financial assets 2,090,553,934 31,887,509-2,122,441,443 Deposit for shares 180,000,000 - (180,000,000) - Finance lease receivables - 162,290, ,290,265 Trade receivables 182,091, ,091,091 Reinsurance assets 546,323, ,323, ,579, ,579,067 Deferred acquisition costs 213,530,118 31,952,439 (67,513,825) 177,968,732 Other receivables and prepayment 300,000,000 - (300,000,000) - Investment in subsidiaries 809,221,395 84,661, ,882,395 Investment properties - 3,920,887-3,920,887 Property and equipment 12,383, ,312 13,119,349 Inventories 941,328,726 32,693, ,022,627 Statutory deposits 300,000, ,000,000 Total assets 7,392,512, ,080,647 51,384,918 (547,513,825) 7,442,464,370 Liabilities Insurance contract liabilities 2,426,766, ,426,766,048 Trade payables 87,511, ,511,062 Other payables and provision 179,037, ,143,292 (247,513,825) 163,667,008 Retirement benefit obligation 13, , ,314 Income tax liabilities 162,558,597 28,906, ,465,212 Deferred tax liabilities 169,625, , ,103,017 Share capital 3,000,000, ,000,000 50,000,000 (300,000,000) 3,000,000,000 Statutory reserve 1,230,030,314 9,279,386-1,239,309,700 Retained earnings 136,970,491 25,135,600 1,384, ,491,009 Total liabilities and equity 7,392,512, ,080,647 51,384,918 (547,513,825) 7,442,464, Condensed result of consolidated entities Condensed profit and loss Underwriting profit 806,841,995-7,198, ,040,560 Investment income 192,156, ,156,293 Other operating income 65,404,832 45,172,664 (7,198,565) 103,378,931 Total operating income 1,064,403,120 45,172,664-1,109,575,784 Impairment charge Net fair value gains on financial assets at fair value through profit or loss (16,160,071) - - (16,160,071) Management expenses (645,664,724) (25,408,969) (671,073,693) Profit before taxation 402,578,325 19,763, ,342,020 Taxation (156,566,299) (6,636,987) - (163,203,286) Profit after taxation 246,012,026 13,126, ,138,734 Page 11 of 30

12 June 31 December June 31 December 11. Inventories At 1 January 3,920,887 6,520,134 Auto track devices Used - (1,225,967) 3,920,887 5,294,167 Impairment allowance (Note 29) (3,920,887) (1,373,280) ,920, Intangible assets Cost At 1 January 23,074,700 22,265,000 21,337,500 21,337,500 Addition - 809, June 23,074,700 23,074,700 21,337,500 21,337,500 Accumulated amortization At 1 January 9,955,351 5,797,129 8,954,463 5,745,067 Addition 1,656,719 4,158,222 1,587,161 3,209,396 June 11,612,070 9,955,351 10,541,624 8,954,463 Carrying amount At End 11,462,630 13,119,349 10,795,876 12,383, Investment properties At 1 January 893,882, ,020, ,221, ,359,000 Addition - 5,862,395-5,862,395 Fair value change June 893,882, ,882, ,221, ,221,395 Investment properties Investment properties are made up of buildings and properties held by the company to earn rentals or for capital appreciation or both and are accounted for in line with International Accounting Standard (IAS) 40. Some of these properties retained the title of one of the legacy companies making up Consolidated Hallmark Insurance Plc. There is no dispute as to the title of Consolidated Hallmark Insurance Plc to these properties. However, in line with NAICOM requirement, provided below is the list of these properties and status of efforts to change their name to Consolidated Hallmark Insurance Plc. S/N TYPE OF ASSET ADDRESS 1 Building Plot A/5 Pocket Layout (Clerk Quarters) Owerri, Imo State. 2 Building 219, 220 and 221, Akukwe Street, Works Layout, Owerri, Imo State 3 Building No. 30, East Street, Rivers Layout Aba, Abia State. 4 Building Plot 33, Chief Ogbonda Layout, Rumuogba, Port Harcourt. 5 Land Plot 3, Sea Gate Estate, Phase 1, Lekki Peninsula, Eti-Osa. 6 Building Rivers State Housing Estate, Abuloma PH 7 Land Plot 14, 1(W) Road, First Avenue, Lugbe Estate, Abuja. 8 Shops Trade Fair Shopping Complex CHI Capital Limited Thomas Estate,Orile Ibama, Ajah, Lagos AMOUNT N 809,221,395 Total 893,882,395 CURRENT TITLE HOLDER 207,680,000 Consolidated Hallmark Insurance Plc. 240,270,000 Consolidated Hallmark Insurance Plc. 109,580,000 Consolidated Hallmark Insurance Plc. 130,314,000 Consolidated Hallmark Insurance Plc. 47,020,000 Consolidated Hallmark Insurance Plc. 48,012,395 Consolidated Hallmark Insurance Plc. 23,275,000 Hallmark Assurance Plc (Legacy ) 3,070,000 Consolidated Hallmark Insurance Plc. 84,661,000 CHI Capital Limited STATUS ON CHANGE OF TITLE Title over this property has been transferred to Consolidated Hallmark Insurance Plc. Title now changed from Hallmark Assurance Plc to the name of Consolidated Hallmark Insurance Plc. Title over this property has been transferred to Consolidated Hallmark Insurance Plc. Title over this property has been transferred to Consolidated Hallmark Insurance Plc. Title over this property has been transferred to Consolidated Hallmark Insurance Plc. Title over this property has been transferred to Consolidated Hallmark Insurance Plc. The made payments to the Federal Housing Authority during the year and is awaiting final approval from them. Already exist in the name of Consolidated Hallmark Insurance Plc. Already exist in the name of CHI Capital Limited Page 12 of 30

13 12.2 Property and equipment a The group Office Furniture & Motor Computer Land Building Equipment Fittings Vehicles Equipment Total N N N Costs At 1 January 286,099, ,339, ,370, ,714, ,230, ,960,444 1,675,714,897 Additions in the year ,000 5,138,050 19,377,250 4,925,750 30,382,050 Disposals in the year (7,780,000) - (7,780,000) June 286,099, ,339, ,311, ,852, ,827, ,886,194 1,698,316,947 Accumulated depreciation At 1 January ,326,721 72,538,148 97,720, ,268, ,838, ,692,271 Depreciation charge for the period - 5,319,315 3,950,145 3,242,507 29,856,662 3,694,600 46,063,229 Disposals in the period (4,378,740) (229,588) (4,608,328) June - 112,646,036 76,488, ,962, ,745, ,303, ,147,172 Accummulated impairment losses Carrying value June 286,099, ,693,686 25,822,909 22,889, ,081,802 22,582, ,169,775 At 1 January ,099, ,013,001 28,832,054 20,993, ,962,474 21,121, ,022,626 Some fixed assets were professionally re-valued as at 31 December 2006, by Messrs Adegboyega Sanusi & Co. on the basis of open market values. These values were incorporated in the books at that date. The surplus arising on the revaluation over the written down values was treated in the NGAAP financial statements as fixed assets revaluation reserve. However, in compliance with IFRS (i.e. IAS 16) the revalued amount was taken as deemed cost at transition date and the revaluation reserve was transferred to revenue reserve. During the year ended 31 December 2011, the landed property of CHI Capital Limited were professionally re-valued at N84 million by Messrs Adegboyega Sanusi & Co. Estate Surveyors & Valuers on the basis of open market value between a willing seller and buyer. The sum of N65,495,775 was then recognised as revaluation reserve in the financial statements. Page 13 of 30

14 Property and equipment 12.2a The group 2016 Office Furniture & Motor Computer Land Building Equipment Fittings Vehicles Equipment Total N N N Costs At 1 January 286,099, ,339,722 83,679, ,872, ,825, ,436,224 1,561,253,784 Additions in the year ,853,350 11,982, ,310,500 7,397, ,543,413 Disposals in the year - - (162,500) (1,141,000) (30,905,684) (1,873,116) (34,082,300) At 31 December ,099, ,339, ,370, ,714, ,230, ,960,444 1,675,714,897 Accumulated depreciation At 1 January - 96,570,538 66,185,219 93,249, ,919, ,279, ,204,440 Depreciation charge for the year - 10,756,183 6,505,796 5,611,689 59,216,084 6,415,528 88,505,280 Disposals in the year - - (152,866) (1,141,000) (27,867,611) (1,855,972) (31,017,449) At 31 December ,326,721 72,538,148 97,720, ,268, ,838, ,692,271 Accummulated impairment losses Carrying value At 31 December ,099, ,013,001 28,832,054 20,993, ,962,474 21,121, ,022,626 At 31 December ,099, ,769,184 17,494,133 14,623, ,906,131 20,156, ,049,344 Page 14 of 30

15 12.2b Property and equipment 2017 The company Office Furniture & Motor Computer Land Building Equipment Fittings Vehicles Equipment Total N N N Costs At 1 January 286,099, ,339, ,200, ,714, ,284, ,129,621 1,637,767,939 Additions 941,000 5,138,050 19,377,250 4,925,750 30,382,050 Disposals (7,780,000) (7,780,000) June 286,099, ,339, ,141, ,852, ,881, ,055,371 1,660,369,989 Accumulated depreciation At 1 January - 107,326,721 72,484,689 97,720, ,479, ,428, ,439,215 Depreciation charge for the period - 5,319,315 3,700,069 3,117,462 26,727,454 3,494,600 42,358,900 Disposals - (4,378,740) (4,378,740) June - 112,646,036 76,184, ,837, ,827, ,922, ,419,375 Carrying value June 286,099, ,693,686 25,956,623 23,014, ,053,617 21,132, ,950,614 At 31 December ,099, ,013,001 28,715,693 20,993, ,805,081 19,701, ,328,726 Some items of property and equipment were professionally re-valued as at 31 December 2006, by Messrs Adegboyega Sanusi & Co. on the basis of open market values. These values were incorporated in the books at that date. The surplus arising on the revaluation over the written down values was treated in the NGAAP financial statements as revaluation surplus. However, in compliance with IFRS (i.e IAS 16) the revalued amount was taken as deemed cost at transition date and the surplus on revaluation was transferred to retained earnings. Page 15 of 30

16 Property and equipment (Cont'd) 2016 The company Office Furniture & Motor Computer Land Building Equipment Fittings Vehicles Equipment Total N N N Costs At 1 January 286,099, ,339,722 83,564, ,872, ,710, ,661,473 1,549,249,208 Additions 17,798,350 11,982,227 84,945,000 6,823, ,549,513 Disposals - - (162,500) (1,141,000) (30,371,491) (1,355,789) (33,030,780) At 31 December ,099, ,339, ,200, ,714, ,284, ,129,620 1,637,767,941 Accumulated depreciation At 1 January - 96,570,538 66,155,857 93,249, ,402, ,946, ,324,856 Depreciation charge for the year - 10,756,183 6,481,698 5,611,689 56,944,100 6,837,787 86,631,457 Disposals - - (152,866) (1,141,000) (27,867,611) (1,355,621) (30,517,098) At 31 December ,326,721 72,484,689 97,720, ,479, ,428, ,439,215 Carrying value At 31 December ,099, ,013,001 28,715,689 20,993, ,805,087 19,701, ,328,726 At 31 December ,099, ,769,184 17,408,672 14,623, ,308,067 19,715, ,924,352 Page 16 of 30

17 13. Statutory deposits 300,000, ,000, ,000, ,000,000 This represents the amount deposited with the Central Bank of 14. Insurance contract liabilities Reserve for outstanding claims (Note 14.1) 2,091,057, ,909,480 2,091,057, ,909,480 Unearned premium reserve (Note 14.2) 1,616,792,508 1,441,792,508 1,616,792,508 1,441,792,508 3,707,849,659 2,410,701,988 3,707,849,659 2,410,701, Reserve for outstanding claims Outstanding Provision for Outstanding Provision for Claim IBNR Gross Reserve Claim IBNR Gross Reserve N N Fire 821,491, ,207, ,698, ,491, ,207, ,698,966 General accident 211,696,614 80,327, ,024, ,696,614 80,327, ,024,222 Motor 145,812, ,546, ,358, ,812, ,546, ,358,820 Marine 8,597,038 52,434,352 61,031,390 8,597,038 52,434,352 61,031,390 Bond 1,261,115 2,480,898 3,742,013 1,261,115 2,480,898 3,742,013 Engineering 18,159,855 9,586,420 27,746,275 18,159,855 9,586,420 27,746,275 Aviation 319,597,215 33,044, ,641, ,597,215 33,044, ,641,592 Oil & gas 5,875,221 47,938,652 53,813,873 5,875,221 47,938,652 53,813,873 1,532,491, ,565,904 2,091,057,151 1,532,491, ,565,904 2,091,057,151 Reserve for outstanding claims Outstanding Provision for Outstanding Provision for Claim IBNR Gross Reserve Claim IBNR Gross Reserve N N Fire 84,369, ,207, ,577,161 84,369, ,207, ,577,161 General accident 189,071,074 80,327, ,398, ,071,074 80,327, ,398,682 Motor 80,902, ,546, ,448,154 80,902, ,546, ,448,154 Marine 8,379,859 52,434,352 60,814,211 8,379,859 52,434,352 60,814,211 Bond 30,000 2,480,898 2,510,898 30,000 2,480,898 2,510,898 Engineering 25,120,925 9,586,420 34,707,345 25,120,925 9,586,420 34,707,345 Aviation 8,400,000 33,044,377 41,444,377 8,400,000 33,044,377 41,444,377 Oil & gas 14,070,000 47,938,652 62,008,652 14,070,000 47,938,652 62,008, ,343, ,565, ,909, ,343, ,565, ,909, Unearned premium reserve Fire 249,341, ,411, ,341, ,411,236 General accident 319,606, ,553, ,606, ,553,511 Motor 560,987, ,744, ,987, ,744,947 Marine 119,047, ,613, ,047, ,613,671 Oil & Gas 210,849, ,991, ,849, ,991,537 Engineering 64,316,378 58,263,594 64,316,378 58,263,594 Aviation 79,662,480 69,557,327 79,662,480 69,557,327 Bond 12,980,940 11,656,685 12,980,940 11,656,685 1,616,792,508 1,441,792,508 1,616,792,508 1,441,792, a Unearned Commission received Fire 941, , , ,301 General accident 661, , , ,870 Motor 652, , , ,800 Marine 1,617,958 1,617,958 1,617,958 1,617,958 Oil & Gas 7,428,580 7,428,580 7,428,580 7,428,580 Engineering Aviation 4,761,551 4,761,551 4,761,551 4,761,551 Bond ,064,061 16,064,060 16,064,061 16,064,060 Page 17 of 30

18 14.3 Funds representing insurance contract liabilities Balance with banks - 10,945,865-10,945,865 Fixed placement 1,057,674,030 1,341,626,500 1,057,674,030 1,341,626,500 Treasury bill & Bonds 2,487,273,245 1,179,635,507 2,487,273,245 1,179,635,507 Available for sale assets 60,950,000-60,950,000 - At fair value through profit or loss 134,855, ,855,406-3,740,752,681 2,532,207,872 3,740,752,681 2,532,207, Trade payables Due to insurance companies - 66,438,027-66,438,027 Due to reinsurance companies - local 65,275,507 21,073,035 65,275,507 21,073,035 Other trade payables ,275,507 87,511,062 65,275,507 87,511,062 Current 65,275,507 87,511,062 65,275,507 87,511,062 Non-current Other payables and provision Audit fees - 7,500,000-5,500,000 VAT payable 6,166,311 11,666,311 6,166,311 11,666,311 Witholding tax payable 1,231, ,340 1,231, ,340 Unclaimed dividend payable (Note 16.1) 81,904,931 72,747,541 81,904,931 72,747,541 Due to CHI Capital ,462,340 Accrued expenses - 23,933,656-23,933,656 Unearned Commission received 16,064,061 16,064,060 16,064,061 16,064,060 Sundry creditors 49,781,380 47,184,159 40,251,058 37,092, ,148, ,731, ,617, ,101,601 Current 155,148, ,731, ,617, ,101,601 Non-current Unclaimed dividend payable represents amount of dividend which shareholders are yet to collect from the company's registrars and which, in line with the relevant rules of the Securities and Exchange Commission, have been returned to the to be held in a separate investment trust account. The balance in the fund is N81,904,931 (made up of principal of N81,511,521. and accrued interest of N393,410). 17. Retirement benefit obligation Defined contribution pension plan At 1 January 151, ,444 13,502 4,430 Provision during the period (Note 33) 17,475,115 35,657,920 17,322,715 35,048,320 Payment during the period (12,245,500) (35,691,050) (12,289,279) (35,039,248) June 5,380, ,314 5,046,938 13,502 Page 18 of 30

19 18. Taxation 18.1 Income tax expense Income tax 123,030, ,944, ,510,456 94,757,836 Education tax 4,797,310 7,035,961 4,797,310 6,317,189 Under/(over)provision in previous year - 32,351,284-32,351, ,827, ,331, ,307, ,426,309 Deferred tax (Note 18.3) 4,797,310 29,813,749 4,797,310 29,931, ,625, ,145, ,105, ,358, The Nigerian Information Technology Development Agency (NITDA) Act was signed into law on 24 April Section 12(2a) of the Act demands that, 1% of profit before tax should be paid to the Nigerian Information Technology Development Agency. In line with the Act, the has provided for NITDA levy at the specified rate Current income tax liabilities At 1 January 191,465, ,730, ,558,597 93,162,912 Transfer from VAT and WHT payable 5,593,016-5,593,016 - Payments during the period (74,990,758) (72,478,265) (63,716,065) (64,030,625) 122,067,470 48,251, ,435,548 29,132,287 Charge for the period 127,827, ,213, ,307, ,426,309 June 249,895, ,465, ,312, ,558, Deferred tax liabilities At 1 January 170,103, ,289, ,625, ,693,165 Charge for the period (Note 18.1) 4,797,310 29,813,749 4,797,310 29,931,910 June 174,900, ,103, ,422, ,625,075 The has adopted the International Accounting Standards (IAS 12) on accounting for taxation, which is now computed using liability method Reconciliation of effective tax rate Profit after tax 119,080, ,987,843 94,696, ,922,859 Total income tax expense Income 123,030, ,944, ,510,456 94,757,836 Education 4,797,310 7,035,961 4,797,310 6,317,189 (Over)/under-provision - 32,351,284-32,351,284 Deferred tax (Note 18.3) 4,797,310 29,813,749 4,797,310 29,931, ,625, ,145, ,105, ,358,219 Profit for the period before excluding income tax 251,705, ,133, ,802, ,281,078 Effective tax rate 53% 47% 56% 45% Page 19 of 30

20 19. Share capital Authorised: 10 billion ordinary shares of 50k each 5,000,000,000 5,000,000,000 5,000,000,000 5,000,000, Issued and fully paid: 6 billion ordinary shares of 50k each June 3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000 The holder of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at meetings of the. 20. Other reserves Contingency reserve At 1 January 1,230,030,314 1,058,782,003 1,230,030,314 1,058,782,003 Transfer from income statement (Note 21) 94,299, ,248,311 94,299, ,248,311 June 1,324,329,482 1,230,030,314 1,324,329,482 1,230,030,314 In line with sections 21(1) and (2) and 22(16) of the Insurance Act 2003, Insurance companies in Nigeria are required to transfer to the statutory contingency reserve, the higher of 20% of net profits and 3% of total premium Statutory reserve At 1 January 9,279,386 5,826, Transfer from income statement (Note 21) 3,273,279 3,452, June 12,552,665 9,279, In line with Central Bank of Nigeria guideline, Finance companies in Nigeria are required to transfer a minimum of 15% of its profit before tax to statutory reserve until the reserve fund equals the Paid-up Capital and a minimum of 10% thereafter. This applies to Grand Treasurers Limited a sub-subsidiary within the group. 21. Retained earnings At 1 January 163,491, ,203, ,970, ,295,943 Dividend declared and paid in the year based on the previous year published accounts (120,000,000) (60,000,000) (120,000,000) (60,000,000) Transfer to contigency reserve (Note 20.1) (94,299,168) (171,248,311) (94,299,168) (171,248,311) Transfer from income statement 119,080, ,987,843 94,696, ,922,859 Transfer to statutory reserve (Note 20.2) (3,273,279) (3,452,400) - - June 64,999, ,491,009 17,368, ,970,491 Retained earnings are the carried forward recogni sed income net of expenses plus current period p rofit attributable to shareholders. 22. Profit before taxation Profit before taxation is stated after Depreciation of property and equipment 44,470,667 92,663,502 42,358,900 89,840,853 Auditors' remuneration (700) 7,500,000 (700) 5,500,000 Directors' remuneration: - Fees 5,037,500 5,250,000 5,037,500 5,250,000 Profit on disposal of property and equipment - (4,195,293) - (4,195,293) Foreign exchange (gains)/loss (5,617,562) (110,125,307) (5,617,562) (110,125,307) Page 20 of 30