AIRTEL STAFF COOPERATIVE MULTIPURPOSE SOCIETY LIMITED

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1 COOPERATIVE SOCIETY REGISTRATION NO: LSCS 9629 (Chartered Accountants) 18b, Olu Holloway Road, Ikoyi, Lagos. P.O. Box 55461, Falomo, Ikoyi, Lagos. Tel: , Fax: Website:

2 CONTENTS PAGE Management Committee and other Corporate Information 3 Result at a Glance 4 Statement of Management Committee Responsibilities 5 Report of the Independent Auditors 6 Statement of Accounting Policies 7 Balance Sheet 9 Income and Expenditure Account 10 Statement of Cash Flows 11 Notes to the Financial Statements 12 Statement of Value Added 19 Five year Financial Summary 20 2

3 CORPORATE INFORMATION Management Committee Members: Oloye Abiodun -President - 18 th Dec., 2015 Sarwi Rahaman -General Secretary - 18 th Dec., 2015 Uduak Prince-Ehiobu -Asst. Gen. Secretary Badeji Oladipupo -Treasurer - 18 th Dec., 2015 Olanrewaju Iyiola Jimi Akinsanya -Financial Secretary -Asst. Financial Secretary Office: Foreshore Estate Plot L2 Banana Island, Ikoyi, Lagos. Cooperative Society Registration No: LSCS 9629 Bankers: Stock Broker: Independent Auditors: Access Bank Plc First Bank of Nigeria Limited First City Monument Bank Plc Ecobank Nigeria Limited GT Bank Plc Zenith Bank Plc Lead Capital Limited Plot 281 Ajose Adeogun Street, Victoria Island, Lagos. SIAO (Chartered Accountants) 18b, Olu Holloway Road, Ikoyi, Lagos. 3

4 RESULT AT A GLANCE Difference Change '000 '000 '000 % Interest income from loans to member 156, ,417 7,964 5 Interest income from term placement 30,283 19,850 10, Gross income 195, ,849 10, Total expenditure 36,073 23,994 12, Net surplus 159, ,855 (1,882) (1) Dividend 110, ,000 (4,756) (4) Loans to members 1,365,317 1,449,783 (84,464) (6) Investment in capital markets 8,458 11,844 (3,386) (29) Placement in short term fund 353, , , Long term Investment 821, ,104 (140,090) (15) Net asset 2,432,213 2,476,610 (44,055) (2) Total asset 2,640,496 2,705,015 (64,601) (2) Members fund 2,071,642 2,153,835 (82,193) (4) Reserve fund 235, ,873 39, Education fund 13,213 11,347 1, General Reserve 112, ,011 (922) (1) Membership strength (14) (2) 4

5 STATEMENT OF MANAGEMENT COMMITTEE RESPONSIBILITIES The Cooperative Society Law Cap 15 of the Laws of Lagos State of Nigeria requires the management committee of the Cooperative to prepare the Cooperative s financial statements in respect of each financial year, which give a true and fair view of the state of affairs of the Cooperative as at the end of the year and of surplus or deficit generated by the Cooperative for the period ended on that date. This responsibility includes: a) Ensuring that the Cooperative keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Cooperative and comply with the requirements of the Cooperative Society Law; b) Designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; and c) Preparing the Cooperative s financial statements using suitable accounting policies supported by the reasonable and prudent judgments and estimates that are consistently applied. The Management committee accepts responsibility for the financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with Statements of Accounting Standards issued by the Financial Reporting Council of Nigeria and the requirements of the Cooperative Societies Law. The Management Committee is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Cooperative and of its surplus. The Management Committee further accepts responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements as well as adequate systems of internal financial control. Nothing has come to the attention of the management committee to indicate that the Cooperative will not remain a going concern for at least twelve months from the date of the statement Executive Member Executive Member Date Date. 5

6 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF AIRTEL STAFF COOPERATIVE MULTIPURPOSE SOCIETY LIMITED Report on the financial statements We have audited the accompanying financial statements of AIRTEL STAFF COOPERATIVE MULTIPURPOSE SOCIETY LIMITED as at 31 December, 2015, set out on pages 9 to 11 which have been prepared on the basis of the significant accounting policies on pages 7 to 8 and other explanatory notes on pages 12 to 18. Management Committee responsibility for the financial statements The Management Committee is responsible for the preparation and fair presentation of these financial statements in accordance with the relevant Statement of Accounting Standards issued by the Financial Reporting Council of Nigeria and the Cooperative Societies Law Cap 15 of the Laws of Lagos State of Nigeria 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. Auditors responsibility Our responsibility is to express an 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, plan and perform the audit to obtain reasonable assurance as to 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 auditors 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 auditors consider 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 management, 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 Cooperative has kept proper accounting records and the financial statements are in agreement with the records in all material respects and give in the prescribed manner, information required by the Cooperative Societies Law Cap 15 of the Laws of Lagos State of Nigeria The financial statements give a true and fair view of the financial position of AIRTEL STAFF COOPERATIVE MULTIPURPOSE SOCIETY LIMITED as at 31 December, 2015, and of its financial performance and its cash flows for the period then ended in accordance with the Statement of Accounting Standards issued by the Financial Reporting Council of Nigeria. Abiodun Ariyibi, FCA FRC/2014/1CAN/ For: SIAO (Chartered Accountants) Lagos, Nigeria Date:.. 6

7 STATEMENT OF ACCOUNTING POLICIES The following are the significant accounting policies adopted by the Cooperative in the preparation of its financial statements: 1. Basis of accounting The financial statements are prepared under the historical cost concept and in compliance with Statement of Accounting Standard (SAS) issued by the Financial Reporting Council of Nigeria. The preparation of the financial statements in conformity with generally accepted accounting principles require the use of estimates and assumption that affect the reported amounts of assets and liabilities and disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 2. Revenue Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced with estimated customer returns, rebates and other similar allowances. Revenue is recognized when the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the entity. 3. Property, plant and equipment All categories of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset carrying amount or recognized as a separate asset as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Cooperative and the cost of the item can be measured reliably. Depreciation is calculated to the write-off the cost of property, plant and equipment on a straightline basis over the estimated useful lives of the assets at the following annual rates. % Computer Software 33 1/3 Computer Equipment 33 1/3 Motor Bike 33 1/3 Gains or losses on the disposal of property, plant and equipment are included in the income and expenditure account. Depreciation is not calculated on property, plant and equipment until they are brought into use. 1

8 STATEMENT OF ACCOUNTING POLICIES (CONT D) 4. Investments Investments in fixed deposit and other placement are classified as short term investment and stated at face value. Unearned income is deferred and amortized as earned. Interest earned while holding short term securities is reported as interest income. Investments are classified as short term or long term investments. i. Short-term investments Debts and equity securities held for a period not exceeding one year are classified as short term investments. ii. Long term investments Investments intended to be held for over a period exceeding one year, which are either held to maturity or available for sale in response to needs for liquidity or changes in interest rates, exchange rates or equity prices are classified as long term investments iii. Valuation a) Quoted investments other than dated securities are stated at fair value. b) Unquoted investments are held as long-term and stated at cost less provision for diminution in values. c) Dated securities are stated at cost. Investments in subsidiaries are stated at cost and investment income is accounted for on accrual basis. 5. Receivables Receivables are stated after deduction of specific allowances for amounts considered doubtful of collection or recovery. 6. Loan to members Loan to members are stated after deduction of specific allowances for debts considered doubtful of recovery. 2

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