Aluworks Limited Annual Return for 2015 Page 18

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Ethan Collins
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1 Report on the Financial Statements INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF We have audited the financial statements of Aluworks Limited, which comprise the statement of financial position at 31 December 2015, and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, as set out on pages 20 to 52. Directors Responsibility for the financial statement The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 1963 (Act 179), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 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 Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 control relevant to the entity s preparation of financial statements that give a true and fair view 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, these financial statements give a true and fair view of the financial position of Aluworks Limited at 31 December 2015, and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 1963 (Act 179). Aluworks Limited Annual Return for 2015 Page 18

2 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF - (CONT D) Emphasis of Matter We draw attention to the note 29 to the financial statements which indicates that the company incurred a net loss of GH 14,810,000 for the year ended 31 December 2015 and, as of that date, the company s current liabilities exceeded its current assets by GH 27,751,000. The note states that these conditions, along with other matters, indicate the existence of a material uncertainty which may cast significant doubt on the company s ability to continue as a going concern. Our opinion is not qualified in respect of this matter Report on Other Legal and Regulatory Requirements Compliance with the requirements of Section 133 of the Companies Act 1963, (Act 179) 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. In our opinion, proper books of account have been kept, and the statements of financial position and statement of comprehensive income are in agreement with the books of account. Aluworks Limited Annual Return for 2015 Page 19

3 STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER Note GH 000 GH 000 Assets Property, plant and equipment 6 113, ,470 Long term investments Total non-current assets 113, ,614 Inventory 10 16,454 16,263 Income tax assets 8 1,210 1,178 Trade and other receivables 11 5,315 4,570 Cash and cash equivalents ,204 Total current assets 23,198 25,215 - Total assets 136, ,829 ====== ===== Equity Share capital 17 31,650 31,650 Share deals Retained earnings (43,636) (28,826) Other reserves Revaluation surplus 58,273 58,297 Total equity 47,357 62,191 Non-current liabilities Medium-term loans 14 26,242 32,042 Deferred tax liabilities 9 12,024 11,445 Total non-current liabilities 38,266 43,487 Current liabilities Bank overdraft 13 12,109 9,279 Trade and other payables 19 23,680 21,479 Short-term loan 15 14,461 8,694 Dividend payable Total current liabilities 50,949 40,151 Total liabilities 89,215 83,638 ===== ===== Total liabilities and equity 136, ,829 ====== ===== The financial statements were approved by the Board of Directors on 2016 The notes on pages 23 to 51 are an integral part of these financial statements. Aluworks Limited Annual Return for 2015 Page 20

4 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER Note GH 000 GH 000 Revenue 20 78,665 76,845 Cost of sales (69,227) (65,335) Gross profit 9,438 11,510 Other income General and administrative expenses (9,813) (13,289) --- Results from operating activities before financing cost (149) (1,643) Net finance expense 24 (14,082) (3,339) Loss before income taxation 22 (14,231) (4,982) Income tax (expense)/credit 8 (579) 582 Loss for the year (14,810) (4,400) Other comprehensive income Total comprehensive income for the year (14,810) (4,400) ===== ===== Basic earnings per share (Ghana Cedis) 18 (0.0626) (0.0186) Diluted earnings per share (Ghana Cedis) 18 (0.0524) (0.0156) The notes on pages 24 to 52 are an integral part of these financial statements. Aluworks Limited Annual Return for 2015 Page 21

5 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015 Stated Share Other Revaluation Retained Total 2015 Capital Deals Reserves Surplus Earnings Equity GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Balance at 1 January , ,297 (28,826) 62,191 Total comprehensive income for the year Loss for the year (14,810) (14,810) Impairment of investments (24) - (24) Balance at 31 December , ,273 (43,636) 47,357 ======= === ==== ======= ======= ======= Stated Share Other Revaluation Retained Total 2014 Capital Deals Reserves Surplus Earnings Equity GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Balance at 1 January , ,297 (24,426) 66,591 Total comprehensive income for the year Loss for the year (4,400) (4,400) Balance at 31 December , ,297 (28,826) 62,191 ======= === ==== ======= ======= ======= The notes on pages 24 to 52 are an integral part of these financial statements. Aluworks Limited Annual Return for 2015 Page 22

6 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER GH 000 GH 000 Cash flows from operating activities Loss after taxation (14,810) (4,400) Adjustments for: Depreciation charges 4,099 2,489 Interest expense 14,082 3,339 Exchange loss 2,673 6,309 Profit on disposal of property, plant and equipment - (32) Taxation expense/ (credit) 579 (582) - 6,623 7,123 Change in inventories 3,786 (4,067) Change in trade and other receivables (405) 772 Change in trade and other payables (1,025) 9,572 Cash generated from operations 8,979 13,400 Interest paid (14,082) (3,339) Income taxes paid (32) (161) Net cash flow (used in)/ from operating activities (5,135) 9,900 Cash flows from investing activities Purchase of property, plant and equipment (860) (8,701) Proceeds from sale of property, plant and equipment Net cash flow used in investing activities (860) (8,650) Cash flows from financing activities Loan proceeds (Net) (33) (532) Net cash flow used in financing activities (33) (532) Net (decrease)/increase in cash and cash equivalents (6,028) 718 ==== == Analysis of changes in cash and cash equivalents during the year Balance at 1 January (6,075) (3,939) Net cash flow (6,028) 718 Effect of exchange translations on cash and cash equivalent 213 (2,854) - Balance at 31 December (11,890) (6,075) ===== ==== Analysis of balances of cash and cash equivalents as shown in the balance sheet Cash and bank balances 219 3,204 Bank overdraft (12,109) (9,279) (11,890) (6,075) ===== ==== The notes on pages 24 to 52 are an integral part of these financial statements. Aluworks Limited Annual Return for 2015 Page 23

Financial Statements

Financial Statements Report of the Independent Auditor to the Members of Enterprise Group Limited REPORT ON THE FINANCIAL STATEMENTS We have audited the financial statements of Enterprise Group Limited