AMANSIE WEST RURAL BANK LIMITED FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER, 2013 CONTENTS PAGE. Contents General Information...

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1 FINANCIAL STATEMENTS CONTENTS PAGE Contents General Information Report of the Directors & 4 Report of the Auditors & 6 Statement of Comprehensive Income Statement of Financial Position Statement of Equity Changes Cash Flow Statement Notes forming part of the Financial Statements Schedule to Statement of Comprehensive Income

2 FINANCIAL STATEMENTS GENERAL INFORMATION BOARD MEMBERS Isaac Otchere-Antwi (Esq) Nana Akora Kofi Donkor Mr. Ohene Baffour Kumah Mrs Grace Boakye Boateng Mr. Eric Owusu Adjei Mr. Bosiako Antwi- Donkor Mr. Matthew Fidellis Oppong- Mensah Mr. James Asafo Akowuah SECRETARY Mr. George Osei Mensah MANAGEMENT Mr. George Osei Mensah Mr. Mills Opoku Boateng Mr. Nelson Owusu Fordjour Mr. Frank Kankam Mr. Frederick Kyei Kwakye Mr. Paul Owusu Mr Felix Dinkyin Marfo Mr. J. A. Bossman Mrs Felicia Donkor Mr. Albert Adu- Gyamfi AUDITORS Richard Owusu-Afriyie Associates Chartered Accountants & Business Advisors P. O. Box AH 9139 Ahinsan - Kumasi SOLICITORS Mr. Sule Sambian George Sarpong Legal Services Kumasi BANKERS ARB Apex Bank Limited Cal Bank Ltd Ecobank REGISTERED OFFICE Head Office Building, Antoakrom POSTAL ADDRESS Amansie West Rural Bank Limited P.O.Box 348 Bekwai- Ashanti 2

3 REPORT OF THE DIRECTORS In accordance with the requirements of Section 132 of the Companies Act, 1963 (Act 179), the Board of Directors of Amansie West Rural Bank Limited, present their Annual Report on the State of Affairs of the Bank for the year ended 31st December, The Directors report as follows:- 1. Statement of Directors Responsibilities The Directors are responsible for the preparation of Financial Statements for each financial year which give a true and fair view of the state of affairs of the Bank and of the Profit or Loss and Cash flows for that period. In preparing these Financial Statements, the Directors have selected suitable accounting policies and then applied them consistently, made judgements and estimates that are reasonable and prudent and followed International Financial Reporting Standards (IFRS). The Directors are responsible for ensuring that the Bank keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the Bank. The Directors are responsible for safeguarding the assets of the Bank and take reasonable steps for the prevention and detection of fraud and other irregularities. 2. Financial Results The results of the year ended 31st December, 2013 showed an improvement in profitability as compared to the previous year Profit for the year ended 31st December before Tax is 1,496, ,623 from which is deducted - Taxation based on these accounts of (145,050) (92,205) giving a profit for the year after tax of 1,351, ,418 to which is added balance on the Income Surplus Account brought forward of 849, ,411 out of which is transferred to Statutory Reserve Fund required by Section 29 of the Banking Act 2004 (Act 673) (168,884) (103,056) and other Reserve Funds (189,150) (115,423) Reserve Funds utilized during the year 39,444 34,030 Dividend Paid (246,500) (98,889) 1,635, , Net Worth Position The Bank's Net Worth Position improved from GH 2,388,895 as at 1st January 2013 to GH 3,892,961 as at the end of There was an increase of GH 1,504,066 represnting 62.96% 3

4 REPORT OF THE DIRECTORS 4. Stated Capital The Bank's Stated Capital increased from 625,365 as at the end of the previous year to 862,815 recording an increase of 237,450 which represents 37.97%. This increase is principally due to sale of 2,374,500 Shares during the year at GH 0.10 per share which amounted to GH 237,450 representing 24.30% 5. Principal Activity There was no change in the principal activities of the bank which includes:- (a) To provide Current and Deposits Accounts for its Customers (b) To Provide Savings and Time Deposits Account for its Customers (c) To act as Agent of the other Financial Institutions in the Country (d) To accept securities for Safe-Custody (e) To Provide Finance for Small Scale Farmers, Merchants, Industrialists and Co-operatives of such farmers and Merchants and Industrialists Resident in the District of Amansie West (f) To engage in other Commercial or Industrial Enterprises in the locality. (g) To engage in domestic and foreign remmittance services to customers 6. Dividend The Directors recommend the payment of dividends of 337,768 (2012-GH 207,424.55). i.e. GHp 2.78 per Share on 12,145,628 Ordinary Shares (2012- GHp 2.10 per Share on 9,771,128) which qualified for dividends as per closure of register on 31/12/ Directors The Directors who held office during the year were as follows:- Name of Directors Isaac Otchere-Antwi (Esq) Chairman Nana Akora Kofi Donkor Vice Chairman Mr. George Osei Mensah Member / Secretary Mr. Ohene Baffour Kumah Member Mrs Grace Boakye Boateng Member Mr. Eric Owusu Adjei Member Mr. Bosiako Antwi- Donkor Member Mr. Matthew Fidellis Oppong- Mensah Member Mr. James Asafo Akowuah Member 8. Directors' Representation The Directors confirm that no matters have arisen since 31st December, 2013, which materially affect the financial statements as presented. 9. Accounts The results of the year are set out in the attached financial statements. 10 Auditors Messers Richard Owusu Afriyie Associates (Chartered Accountants) will continue in Office as Auditors of the Bank in accordance with Section 134 (5) of the Companies Code 1963 (Act 179)..... DIRECTOR DIRECTOR 4 ROAA CharteredAccountants and Business Consultants

5 ROAA CharteredAccountants and Business Consultants INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF Report on the Financial Statements We have audited the accompanying financial statements of Amansie West Rural Bank Limited, which comprise the Statement of Financial Position as of 31 st December 2013, Statements of Comprehensive Income, Changes in Equity and Cash Flows for the year then ended, and notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, as set out on pages 11 to 20. Directors Responsibility for the Financial Statements The bank s directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards (IFRS) and in the manner required by the Companies Act, 1963 (Act 179) and the Banking Act, 2004 (Act 673) as amended by the Banking (Amendment) Act, 2007 (Act 738). The responsibility includes: designing, implementing and maintaining internal controls 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 independent opinion on these financial statements based on our audit. We conducted our audit in accordance 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 judgement, 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 controls 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 controls. 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 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. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Amansie West Rural Bank Limited at 31 st December, 2013 and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and in the manner required by the Companies Act, 1963 (Act 179) and the Banking Act, 2004 (Act 673) as amended by the Banking (Amendment) Act, 2007 (Act 738). 5 ROAA Chartered Accountants and Business Consultants

6 ROAA Chartered Accountants and Business Consultants INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF Report on Other Legal and Regulatory Requirements. Compliance with the requirements of the Companies Act, 1963 (Act 179) The Companies Act, 1963 (Act 179) requires that in carrying out our audit, we consider and report to you on the following matters. We confirm that: i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit, ii) in our opinion proper books of account have been kept by the bank, so far as appears from our examination of those books, and iii) the Statements of Financial Position and Comprehensive Income of the bank are in agreement with the books of account. Compliance with the requirements of the Banking Act 2004 (Act 673) and the Banking (Amendment) Act 2007 (Act 738) The Banking Act 2004 (Act 673) Section 78(2) requires that we state certain matters in our report. We hereby state that: i) the accounts give a true and fair view of the state of affairs of the bank and its results for the year under review. ii) we were able to obtain all the information and explanation required for the efficient performance of our duties as auditors, iii) the bank s transactions are within its powers, and iv) the bank has complied with the provisions of the Banking Act, 2004 (Act 673) and the Banking (Amendment) Act 2007 (Act 738) Adoma Plaza Mbrom - Kumasi Signed by Richard Owusu-Afriyie (ICAG/P/1144) For and on behalf of Richard Owusu-Afriyie Associates (ICAG/F/2014/084) Chartered Accountants 6

7 STATEMENT OF COMPREHENSIVE INCOME (NOTES) Interest Income (7) 6,918,862 4,419,886 Interest Expense (8) (1,172,485) (958,077) Net Interest Income 5,746,377 3,461,809 Commissions and Fees (9) 774, ,329 Other Operating Income (10) 379, ,142 Total Income 6,900,316 4,491,280 Impairment charge on loans and advances (301,613) (207,840) Operating Expenses (11) (5,102,578) (3,400,817) Net Operating Profit Before Taxation 1,496, ,623 Taxation (12) (145,050) (92,205) Profit for the year 1,351, ,418 Other Comprehensive Income - - Total Comprehensive Income for the year 1,351, ,418 Basic & Diluted Earnings per Share (Cedi per Share)

8 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 (NOTES) ASSETS Cash and Balances with ARB Apex Bank (13) 3,456,824 2,352,338 Due from Other Banks (14) 235, ,855 Investments - (Short Term) (15) 15,511,816 14,893,755 Loans and Advances (16) 11,315,560 8,825,062 Other Assets Accounts (17) 4,335,964 3,384,715 Investments - (Long Term) (18) 99,183 99,183 Property & Equipment (19) 1,762,299 1,339,696 TOTAL ASSETS 36,716,980 31,117,604 LIABILITIES Deposits and Current Accounts (20) 27,306,489 25,924,024 Loans from Other Financial Institutions (21) 2,158, ,233 Interest Payable and Other Liabilities (22) 3,301,588 2,466,050 Current Corporate Tax Liabilities (12) 57,412 31,402 TOTAL LIABILITIES 32,824,019 28,728,709 SHAREHOLDERS FUNDS Stated Capital (23) 862, ,365 Statutory Reserve Fund (24) 888, ,791 Income Surplus (25) 1,635, ,491 Capital Surplus (26) 14,814 14,814 Development Fund (27) 180, ,141 Staff Fund (28) 311,092 77,293 TOTAL SHAREHOLDERS FUNDS 3,892,961 2,388,895 TOTAL SHAREHOLDERS FUNDS AND LIABILITIES 36,716,980 31,117,604 Approved by the Board on:.. DIRECTOR DIRECTOR 8

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10 CASH FLOW STATEMENT NET CASH INFLOWS FROM OPERATING ACTIVITIES Net Profit Before Taxation 1,496, ,623 Depreciation Charge 374, ,632 Profit on Disposal - (13,536) Funds Applied - (46,120) Profit before Changes in Working Capital 1,870,564 1,042,599 CHANGES IN OPERATING ASSETS AND LIABILITIES (Increase) /Decrease in Loans & Advances to Customers (2,490,497) (1,498,600) (Increase) /Decrease in Other Assets Accounts (951,249) (820,791) Increase /(Decrease) in Customers Deposits 1,382,466 5,490,825 Increase /(Decrease) in Interest Payable and Other Liabilities 835, , ,823 5,057,687 Tax Paid (119,040) (81,132) Net cash from /(used in) Operating Activities 527,783 4,976,555 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Property and Equipment (594,862) (423,398) Proceeds from Sale of Property and Equipment - 18,000 Increase in Capital Work -in-progress Expenditure (202,183) - Dividend Paid (246,500) (98,889) Net cash used in Investing Activities (1,043,545) (504,287) CASH FLOWS FROM FINANCING ACTIVITIES Issue of Shares 237,450 13,248 Increase /( Decrease) in Borrowed Funds 1,851,298 (263,609) Increase /( Decrease) in Staff Fund 162,044 - Redemption of Treasury bills and other eligible bills (618,062) (3,980,000) Net cash from Financing Activities 1,632,730 (4,230,361) Net Increase /(Decrease) in Cash and Cash Equivalents 1,116, ,907 Cash and Cash Equivalents at Start 2,575,193 2,333,286 Cash and Cash Equivalents at Close 3,692,158 2,575,193 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash and Balances with ARB Apex Bank 3,456,824 2,352,338 Balances with Other Banks 235, ,855 3,692,158 2,575,193 10

11 NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1. Reporting Entity Amansie West Rural Bank Limited is a public Company incorporated and domiciled in Ghana. The Registered office is located at Antoakrom, Ashanti. The Bank primarily is involved in rural banking. 2. Basis of Preparation The Financial Statements have been prepared under the historical cost convention as modified by the revaluation of property and equipment and in accordance with International Financial Reporting Standards (IFRS). 2.1 Statement of Compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Additional information required under the Companies Act, 1963, (ACT 179) and the Banking Act, 2004 (Act 673) as amended by the Banking (Amendment) Act, 2007 (Act 738) have been included, where appropriate. 2.2 Use of estimates and Judgement The preparation of financial statements in conformity with IFRS required management to make judgement, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under circumstances, the results of which form the basis of making the judgement 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. 3. Significant Accounting Policies 3.1 Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Bank and the revenue can be reliably measured. The following specific recognition criteria apply in revenue recognition. 3.2 Interest Income and Expenses Interest income and expenses are recognized in the comprehensive income statement for all interest bearing financial instruments including loans and advances as interest accrues using the effective interest rate method. The effective interest rate method is a method of calculating the amortized cost of a financial asset or liability and of allocating the interest income or interest expense. The effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the instrument to the net carrying amount of the financial asset or liability. 3.3Fees and Commission Fees and commission income and expenses that are an integral part to the effective interest rate on financial instruments are included in the measurement of the effective interest rate. Fees and commission relating to specific services are recognized as revenue when the related services are performed. 11

12 NOTES FORMING PART OF THE FINANCIAL STATEMENTS 3.4 Investments Investments are purchased with the intention of being held to maturity and they are stated at fair value. The discount is disclosed separately as interest income, whilst the unearned portion is stated in the accounts as a liability. Investment in securities redeemable at fixed dates are stated at cost and are adjusted to give effect to amortisation of premiums and discounts on purchase over the period of redemption on a straight line basis. 3.5 Interest on Loans and Advances Interest on Loans and Advances is accrued to Profits until such time as reasonable doubt exists with regard to its collectibility. 3.6 Impairment charge on loans and advances Loans and Advances are stated after the deductions of an amount which is considered adequate for impairment charge. 3.7 Loans and Advances Loans and advances to customers are accounted for at amortized cost using the effective interest method, except those which the Bank intends to sell in the short term and which are accounted for at fair value, with the gains and losses arising from changes in their fair value reflected in the statement of comprehensive income. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are integral part of the effective interest rate. Loans and Advances are initially recognized when cash is advanced to borrowers at fair value inclusive of transaction costs. Subsequent to initial recognition loans and advances to customers are stated on the statement of financial position at amortized cost using the effective interest method less impairement losses. 3.8 Taxation Taxation in the statement of comprehensive income comprises the current tax and deferred tax. Current tax is the expected to be payable under the internal Revenue Act, 2000, (Act 592 ) on the taxable profit for the year. Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts. Deferred tax liability is generally recognized for all taxable temporary differences while deferred tax assets are recognized to the extent that it is probable future taxable profit will be available against which deductible temporary differences can be utilized. 3.9 Provident Fund There is a defined Contribution Provident Fund Scheme for all employees. Employees contribute 5% of their basic salary to the fund whilst the bank contributes 7%. 12

13 NOTES FORMING PART OF THE FINANCIAL STATEMENTS 3.10 Property & Equipment and Depreciation The bank recognizes an item of property, plant and equipment as an asset when it is probable that future economic benefits will flow to it and the amount meets the materiality threshold set by the bank. Property, Plant and Equipment are stated at cost less accumulated depreciation and any impairment in value. Depreciation is provided on the depreciable amount of each component on a straight-line basis over the anticipated useful life of the assets. The depreciable amount related to each asset is determined as the difference between cost and the residual value of the. asset. The residual value is the estimated amount, net of disposable assets, that the bank would currently obtain from the disposable of an asset in similar age and condition, at the end of the useful life of the asset. The current annual depreciation rates for each class of property, plant and equipment are as follows : Office Furniture and Fittings 20% Building 5% Office Equipment 20% Motor Vehicles 33⅓% Computers 25% Agency Rented Building Renovation 5% 3.11 Cash and Cash equivalent For the purpose of cash flow statement, cash and cash equivalent include cash, non-restricted balances with Bank of Ghana, amounts due from banks and financial institutions and short term government securities maturing in three months or less from the date of acquisition Post statement of financial position events Events subsequent to the statement of financial position date are reflected in the financial statements only to the extent that they relate to the year under consideration and the effect material. 4. GROSS NON - PERFORMING LOANS RATIO The percentage of gross non - performing loans and advances to total credit portfolio (gross) was 21.30% ( %) 5. SOCIAL RESPONSIBILITY OBLIGATION The amount spent on fulfilling social responsibility obligation was 16,627 ( ,030) 6. COMMITMENTS AND CONTIGENCIES (a) Commitment - Banking Business The Bank enters into various Commitments in the normal course of banking. (b) Contigent Liabilities Contigent Liabilities at the year end were Nil ( Nil) (c) Commitments for Capital Expenditure Commitments for Capital Expenditure at the year end were Nil (2012- Nil) 13

14 NOTES FORMING PART OF THE FINANCIAL STATEMENTS INTEREST INCOME Interest on Loans and Advances 3,427,442 2,260,678 Interest on Investments 3,491,420 2,159,208 6,918,862 4,419, INTEREST EXPENSE Interest Paid on Savings 1,082, ,976 Interest on Borrowings 90,024 42,101 1,172, , COMMISSIONS AND FEES Commitment Fees 258, ,549 Commissions Received 516, , , , OTHER OPERATING INCOME Cheque Books & Other Stationery Income 6,568 - Sundry Income 324, ,142 Mida Grant 48, , , OPERATING EXPENSES Staff Cost 2,401,758 1,625,757 Occupancy Cost 302, ,842 General & Administrative Expenses 2,397,998 1,511,218 5,102,578 3,400,817 11a. STAFF COST Salaries and Wages 1,388, ,692 Social Security Contribution 182, ,536 Enterprise Fund Contribution 42,152 69,984 Medical Expenses 34,502 44,055 Staff Training Expenses 24,852 63,112 Annual Bonus 202, ,371 Gratuity 79, ,000 Other Staff Cost 41,504 29,826 Entertainment 12,788 5,691 Funeral Expenses ( Staff) 15,711 6,179 Clothing Allowance 376, ,311 2,401,758 1,625,757 11b. GENERAL & ADMINISTRATIVE EXPENSES: include Audit Fees 10,810 6,000 Depreciation 374, ,632 Directors' Emoluments 60,027 35,106 14

15 NOTES FORMING PART OF THE FINANCIAL STATEMENTS 12. CURRENT CORPORATE TAX LIABILITIES Year of Assessment Balance as at Jan 1 (Over)/Under Prov. In Prior Years Payments During the Year Provision for the Year Balance as at Dec ,329 - (81,132) 92,205 31, ,402 1,835 (119,040) 143,215 57, CASH & BALANCES WITH ARB APEX BANK Cash on Hand 1,216,804 1,051,092 Balances with ARB Apex Bank - Current 914,302 1,030,228-5% Apex Deposit 1,325, ,018 3,456,824 2,352, BALANCES WITH OTHER BANKS Ecobank 231,081 - Cal Bank 4, , , , INVESTMENTS (SHORT-TERM) These are made up of: Government Securities 15,511,816 13,793,755 Money Placements with Discount Houses - 1,100,000 15,511,816 14,893, LOANS AND ADVANCES (a) Analysis by type of Product Overdrafts 1,602,505 8,375,704 Loans 11,282,154 1,716,845 12,884,659 10,092,549 Less: Impairment charge (1,569,099) (1,267,486) 11,315,560 8,825,062 (b) Analysis by Business Segment Agriculture 244, ,649 Commercial 10,957,456 8,439,249 Trading 896, ,100 Others (Workers) 786, ,549 12,884,659 10,092,548 Less: Impairment charge (1,569,099) (1,267,486) 11,315,560 8,825,062 15

16 NOTES FORMING PART OF THE FINANCIAL STATEMENTS (c) Analysis by Type of Customer Individuals 11,282,154 8,838,594 Private Enterprise 1,602,505 1,253,954 12,884,659 10,092,548 Less: Impairment charge (1,569,099) (1,267,486) 11,315,560 8,825, OTHER ASSET ACCOUNTS Rent Prepaid 114, ,210 Insurance Prepaid 35,802 24,677 Inter Agency Balance 1,092, ,604 Office Account 2,688,407 1,743,980 Uncleared Effects Stationery Stock 313, ,872 Bills Payable 73,617 73,617 Interest in Arrears - 521,754 Debt Recovery 17,671-4,335,964 3,384, INVESTMENTS (LONG-TERM) This is made up of: Shares in ARB APEX Bank Ltd. 99,183 99,183 99,183 99,183 16

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18 NOTES FORMING PART OF THE FINANCIAL STATEMENTS DEPOSITS AND CURRENT ACCOUNTS (a) Analysis by Type of Deposits Current Accounts 5,783,419 5,509,711 Savings Accounts 15,318,155 14,860,459 Time Deposits 2,763,394 2,613,334 Susu Deposits 3,441,521 2,940,520 27,306,489 25,924,024 (b) Analysis by Type of Customer Individuals 16,227,398 17,627,488 Other Private Enterprise 7,637,570 5,356,016 Other Deposit Susu 3,441,521 2,940,520 27,306,489 25,924, LOANS FROM OTHER FINANCIAL INSTUTIONS ARB Apex Bank 1,574,569 - Speed Funding Facility 583, ,233 2,158, , INTEREST PAYABLE AND OTHER LIABILITIES Interest and Bills Payable 1,542,608 1,461,146 Sundry Creditors 1,206, ,904 Payment Orders 373,148 - Accrued Charges 10,810 6,000 Capital Grant 168,600-3,301,588 2,466, STATED CAPITAL Number Number i) Authorised Ordinary Shares of No Par Value 50,000,000,000 50,000,000,000 ii) Issued Prefrence Shares of No Par Value iii) Issued Ordinary Shares of No Par Value 12,145,628 9,771,128 iv) Proceeds Issued for Cash-Prefrence Shares v) Proceeds Issued for Cash-Ordinary Shares 862, , , ,365 vi) There is no unpaid Liability on any share and there is no share in Treasury 18

19 NOTES FORMING PART OF THE FINANCIAL STATEMENTS STATUTORY RESERVE FUND Balance at 1 January 719, ,735 Add: Transfer from Retained Profits 168, ,056 Balance as at 31 December 888, ,791 Under Section 29 of the Banking Act 2004 (Act 673) the Bank has transferred the prescribed portion of 25.0% of the net profit for the year to Statutory Reserve Fund. 25. INCOME SURPLUS Balance as at 1 January 849, ,411 Profit for the year 1,351, ,418 2,200,566 1,132,829 Transfers to: Statutory Reserve Fund (168,884) (103,056) Development Fund (94,575) (57,711) Staff Fund (94,575) (57,711) Dividend paid relating to prior year (246,500) (98,889) Funds utilized during the year 39,444 34,030 Balance as at 31st December Per Statement of Financial Position 1,635, , CAPITAL SURPLUS 14,814 14,814 This represents Bonus Share issue from ARB Apex Bank 27. Development Fund Balance at 1 January 102,141 78,460 Add: Transfer from Retained Profits 94,575 57,711 Less: Fund Applied (16,627) (34,030) Balance as at 31 December 180, , Staff Fund Balance Brought Forward 77,293 19,582 Add: Transfer from Retained Profits 94,575 57,711 Additions during the year from Salaries 115,921 - Gratuity Account 46, ,909 77,293 Less: Utilization during the year (22,817) - Balance as at 31 December 311,092 77, ACCOUNTS CLASSIFICATION The 2012 Accounts have been re-classified to conform to the 2013 presentation. 19

20 SCHEDULE TO STATEMENT OF COMPREHENSIVE INCOME STAFF COST Salaries and Wages 1,388, ,692 Social Security Contribution 182, ,536 Provident Fund Contribution 42,152 69,984 Medical Expenses 34,502 44,055 Staff Training Expenses 24,852 63,112 Annual Bonus 202, ,371 Gratuity 79, ,000 Other Staff Cost 41,504 29,826 Entertainment 12,788 5,691 Funerals & Staff Welfare 15,711 6,179 Staff Clothing Allowance 376, ,311 2,401,758 1,625,757 OCCUPANCY COST Repairs and Maintenance 39,962 57,544 Rent 30,435 56,075 Electricity and Water 79,551 54,754 Security Expenses 144,810 94,461 Bungalow Expenses 8,064 1, , ,842 GENERAL & ADMINISTRATION EXPENSES Travelling and Transport 234, ,160 Printing and Stationery 179,430 83,203 Hospitality to Guest & Protocol Expenses 100,908 31,460 Board Meeting Expenses 56,296 61,514 Specie Movement Expenses 12,385 11,754 Audit Fees 10,810 6,000 Audit Expenses 2,570 2,180 Insurance 34,313 31,359 Postages and Telecommunications 14,944 17,461 Depreciation 374, ,632 Motor Vehicle Running Expenses 211, ,711 Generating Plant 68,620 32,762 Directors Emoluments Sitting allowance 60,027 35,106 Legal Expenses 137,846 23,682 Newspapers, Subscriptions and Periodicals 20,365 12,242 Advertising and Publicity 54,146 20,856 Annual General Meeting Expenses 66,956 77,079 Donation 8,254 9,621 Office Expenses 175,617 87,610 Akuafo Cheques Expenses Debt Recovery Expense - 19,891 Computer Expenses 146,837 94,992 Susu Expenses 286, ,084 Motor Bike Expenses 3, Written Off Items 74,701 23,195 Misc Expenses 15,645 3,927 Cheque Clearing Expenses Cashiers Efficiency 1,535 5,034 Social Responsibility Cost 16,627 34,030 End of Service Benefit 22,817 - WHT Surcharge 6,147-2,397,998 1,511,218 TOTAL OPERATING EXPENSES 5,102,578 3,400,817 20