2010ANNUAL REPORT

Notice of Annual General Meeting .......................................... 04

Corporate Information ............................................................... 05

Chairman’s Statement ............................................................... 06

Managing Director’s Statement ................................................ 10

Profile: Board of Directors ........................................................ 13

Profile: Executive Committee ................................................... 15

Director’s Report ........................................................................16

Independent Auditor’s Report .................................................. 18

Profit and Loss Account ............................................................21

Balance Sheet ............................................................................ 22

Statement of Changes in Equity .............................................. 23

Cash Flow Statement ................................................................ 24

Notes to the Financial Statements .......................................... 25

Proxy Form ................................................................................. 31

C o n t e n t s

Notice of Annual General Meeting .......................................... 04

Corporate Information ............................................................... 05

Chairman’s Statement ............................................................... 06

Managing Director’s Statement ................................................ 10

Profile: Board of Directors ........................................................ 13

Profile: Executive Committee ................................................... 15

Director’s Report ........................................................................16

Independent Auditor’s Report .................................................. 18

Profit and Loss Account ............................................................21

Balance Sheet ............................................................................ 22

Statement of Changes in Equity .............................................. 23

Cash Flow Statement ................................................................ 24

Notes to the Financial Statements .......................................... 25

Proxy Form ................................................................................. 31

C o n t e n t s

NOTICE IS HEREBY GIVEN that the 12th Annual General Meeting of EXIMGUARANTY

COMPANY (GHANA) LIMITED will be held at the BOARDROOM OF THE COMPANY, 27

NOI FETREKE STREET, ROMAN RIDGE AMBASSADORIAL ESTATES EXTENSION,

ACCRA ON Thursday 23rd June, 2011 at 11.00am to transact the following business:

1. To receive and consider the Audited Accounts for the year ended 31st

December 2010 together with the Reports of the Directors and Auditors

thereon.

2. To declare a dividend for the year ended 31st December, 2010.

3. To re-appoint Messrs. Pannell Kerr Forster as Auditors of the Company and to

authorize the Directors to fix the remuneration of the Auditors.

Dated this 30th day of May, 2011.

BY ORDER OF THE BOARD

PRISCILLA BUDU (MRS.)

SECRETARY

NOTE

A member of the Company entitled to attend and vote is entitled to appoint a proxy to

attend and vote instead of him. A proxy form is attached.

Notice of Annual General Meeting

04 EXIMGUARANTY 2010 ANNUALREPORT

DIRECTORS

SECRETARY

AUDITORS

SOLICITORS (EXTERNAL)

BANKERS

REGISTERED OFFICE

Chairman Mr. Felix Ntrakwah

Director Mr. Isaac Owusu-Hemeng-(resigned - 31/03/10)

Director Mr. Daniel K. Mensah

Director Mr. Sam M. Akrong

Director Mr. Asare-Boakye Yiadom (appointed-02/09/10)

Director Mr. Andrew Boye- Doe

Director Ms. Yvonne Quansah (appointed - 22/04/10)

Director Mr. George L. K. Apau

Director Mr. Dominic Donkor (resigned-08/01/2010)

Managing Director Mrs. Felicity Acquah

Mrs. Priscilla Budu

Pannell Kerr Forster

(Accountants and Business Advisers)

Valley View

P. O. Box GP 1219

Accra

Peasah-Boadu & Co.

P. O. Box CT 3523 Cantonment - Accra

Bank of Ghana

First Atlantic Merchant Bank Limited

The Trust Bank Limited

27 Noi Fetreke Street

Roman Ridge Ambassadorial

Estate Extention, Accra

Corporate Information

05EXIMGUARANTY 2010 ANNUALREPORT

NOTICE IS HEREBY GIVEN that the 12th Annual General Meeting of EXIMGUARANTY

COMPANY (GHANA) LIMITED will be held at the BOARDROOM OF THE COMPANY, 27

NOI FETREKE STREET, ROMAN RIDGE AMBASSADORIAL ESTATES EXTENSION,

ACCRA ON Thursday 23rd June, 2011 at 11.00am to transact the following business:

1. To receive and consider the Audited Accounts for the year ended 31st

December 2010 together with the Reports of the Directors and Auditors

thereon.

2. To declare a dividend for the year ended 31st December, 2010.

3. To re-appoint Messrs. Pannell Kerr Forster as Auditors of the Company and to

authorize the Directors to fix the remuneration of the Auditors.

Dated this 30th day of May, 2011.

BY ORDER OF THE BOARD

PRISCILLA BUDU (MRS.)

SECRETARY

NOTE

A member of the Company entitled to attend and vote is entitled to appoint a proxy to

attend and vote instead of him. A proxy form is attached.

Notice of Annual General Meeting

04 EXIMGUARANTY 2010 ANNUALREPORT

DIRECTORS

SECRETARY

AUDITORS

SOLICITORS (EXTERNAL)

BANKERS

REGISTERED OFFICE

Chairman Mr. Felix Ntrakwah

Director Mr. Isaac Owusu-Hemeng-(resigned - 31/03/10)

Director Mr. Daniel K. Mensah

Director Mr. Sam M. Akrong

Director Mr. Asare-Boakye Yiadom (appointed-02/09/10)

Director Mr. Andrew Boye- Doe

Director Ms. Yvonne Quansah (appointed - 22/04/10)

Director Mr. George L. K. Apau

Director Mr. Dominic Donkor (resigned-08/01/2010)

Managing Director Mrs. Felicity Acquah

Mrs. Priscilla Budu

Pannell Kerr Forster

(Accountants and Business Advisers)

Valley View

P. O. Box GP 1219

Accra

Peasah-Boadu & Co.

P. O. Box CT 3523 Cantonment - Accra

Bank of Ghana

First Atlantic Merchant Bank Limited

The Trust Bank Limited

27 Noi Fetreke Street

Roman Ridge Ambassadorial

Estate Extention, Accra

Corporate Information

05EXIMGUARANTY 2010 ANNUALREPORT

Chairman's Statement

06

INTRODUCTION

Distinguished Shareholders and Directors, I am pleased to welcome you warmly to the 12th Annual General Meeting of Eximguaranty Company (Ghana) Limited (Exim) for the year ended 31st December 2010.

Exim initiated its expansion strategy to reach the Ashanti, Brong Ahafo, Northern, Upper East and West Regions of the country in the year 2010. The Exim Brand was firmly established with the opening of the Kumasi Office. Operational systems and communication network systems were designed to strengthen our risk management procedures, and staff strength was enhanced to build quality growth processes of its Credit Guarantee Operations

A local area network (LAN) infrastructure was installed in Kumasi and the Company migrated onto the Microsoft office suite 2007.

THE GLOBAL ECONOMIC REVIEW

Global economic growth after the financial crisis in 2008/2009 began to pick up in the first half of the year 2010. However, given the uncertainty in Europe's financial markets, the weak US growth and employment prospects and slower than expected output growth in Asia, concerns have been raised over the sustainability of the global economic recovery. The year registered a slow pace in the recovery of the global economy. Solid growth was registered in emerging markets such as India and China and developing economies while the advanced economies exhibited weak growth levels.

OVERVIEW OF THE GHANAIAN ECONOMY

The government upon assumption of office in 2009 focused on the attainment of macroeconomic stability as a key goal in its modern budget presented in March 2009. Inflation showed a downward trend to register a percentage of 8.8%

EXIMGUARANTY 2010 ANNUALREPORT 07

Chairman's Statement

at the end of 2010 compared with 15.97 per points to 27.6% over the same period. The 91- cent in December 2009. On the domestic front, day Treasury bill rate declined from 12.7% to available data from the Bank of Ghana 12.3% and the 182-day Treasury bill rate indicates a 25.4% increase in revenues and declined from 13.1% to 12.7%.grants. The country's financial and capital account increased to $1.9 billion on account of BANKING SECTOR DEVELOPMENTSincreased foreign direct investments (FDIs) and investments by non residents while The Banking sector continued to be well exports rose by 40% to $5.9 billion. These capitalised. Total assets of the industry grew to developments enhanced the nation's foreign GH¢16.0 billion. The volumes of deposits reserves and accounted for the marginal gains contributed to the growth in assets.registered by the local currency against the major core currencies. The Banking Industry's capital adequacy ratio

increased from 14.9% in December 2009 to ECONOMIC PERFORMANCE 19.5% in December 2010. Non Performing

Loans increased from 16.2% in 2009 to 18.3% Using the Composite Index of Economic in 2010.Activity (CIEA), according to the Bank of Ghana's Monetary Policy Committee The Monetary Policy Committee (MPC) of the statement, the CIEA declined by 6.3% during Bank of Ghana (BOG) in line with the decline in the first quarter, it then increased by 3.5% inflation revised its policy rate from 18% at the during the second quarter and then increased end of 2009 to 13.5% at the end of the year. further to 5.5% during the third quarter of the With this adjustment lending increased to year. The construction sector, household households and the private sectors.spending, external trade, tourism, domestic, manufacturing and industrial output recorded PERFORMANCE OF EXIMGUARANTY moderate growth in 2010. There were however, COMPANY (GHANA) LIMITED.weak conditions in the credit volumes achieved. Business and consumer sentiments Distinguished Shareholders, your Company improved. added substantial value to its business in year

2010 through the firm execution of outputs After a challenging first half of 2009, during specified in the work plan of 2010. Two more which the rippling effects of the global products were designed for adoption. Exim downturn in 2008, lower export revenues, extended its operations to the Northern sector increased government reduction in the of the country, encompassing five regions: the nation's reserves combined to send the Ashanti, Brong Ahafo, Northern, Upper East economy reeling, 2010 saw an improved and West regions, with an operational office turnaround in most of the economic indicators. positioned in Kumasi. Policy manuals were

drafted and approved by the Board to guide INTEREST RATES the business.

Market interest rates were broadly stable in Training was imparted to all management staff year 2010. The average base and lending on the new operational guidelines developed rates of the Deposit Money Banks (DMBs) to ensure smooth conduct of business and declined by 93 basis points to 26.2 % while minimise threats to the business conduct.average lending rates declined by 87 basis

EXIMGUARANTY 2010 ANNUALREPORT

Chairman's Statement

06

INTRODUCTION

Distinguished Shareholders and Directors, I am pleased to welcome you warmly to the 12th Annual General Meeting of Eximguaranty Company (Ghana) Limited (Exim) for the year ended 31st December 2010.

Exim initiated its expansion strategy to reach the Ashanti, Brong Ahafo, Northern, Upper East and West Regions of the country in the year 2010. The Exim Brand was firmly established with the opening of the Kumasi Office. Operational systems and communication network systems were designed to strengthen our risk management procedures, and staff strength was enhanced to build quality growth processes of its Credit Guarantee Operations

A local area network (LAN) infrastructure was installed in Kumasi and the Company migrated onto the Microsoft office suite 2007.

THE GLOBAL ECONOMIC REVIEW

Global economic growth after the financial crisis in 2008/2009 began to pick up in the first half of the year 2010. However, given the uncertainty in Europe's financial markets, the weak US growth and employment prospects and slower than expected output growth in Asia, concerns have been raised over the sustainability of the global economic recovery. The year registered a slow pace in the recovery of the global economy. Solid growth was registered in emerging markets such as India and China and developing economies while the advanced economies exhibited weak growth levels.

OVERVIEW OF THE GHANAIAN ECONOMY

The government upon assumption of office in 2009 focused on the attainment of macroeconomic stability as a key goal in its modern budget presented in March 2009. Inflation showed a downward trend to register a percentage of 8.8%

EXIMGUARANTY 2010 ANNUALREPORT 07

Chairman's Statement

at the end of 2010 compared with 15.97 per points to 27.6% over the same period. The 91- cent in December 2009. On the domestic front, day Treasury bill rate declined from 12.7% to available data from the Bank of Ghana 12.3% and the 182-day Treasury bill rate indicates a 25.4% increase in revenues and declined from 13.1% to 12.7%.grants. The country's financial and capital account increased to $1.9 billion on account of BANKING SECTOR DEVELOPMENTSincreased foreign direct investments (FDIs) and investments by non residents while The Banking sector continued to be well exports rose by 40% to $5.9 billion. These capitalised. Total assets of the industry grew to developments enhanced the nation's foreign GH¢16.0 billion. The volumes of deposits reserves and accounted for the marginal gains contributed to the growth in assets.registered by the local currency against the major core currencies. The Banking Industry's capital adequacy ratio

increased from 14.9% in December 2009 to ECONOMIC PERFORMANCE 19.5% in December 2010. Non Performing

Loans increased from 16.2% in 2009 to 18.3% Using the Composite Index of Economic in 2010.Activity (CIEA), according to the Bank of Ghana's Monetary Policy Committee The Monetary Policy Committee (MPC) of the statement, the CIEA declined by 6.3% during Bank of Ghana (BOG) in line with the decline in the first quarter, it then increased by 3.5% inflation revised its policy rate from 18% at the during the second quarter and then increased end of 2009 to 13.5% at the end of the year. further to 5.5% during the third quarter of the With this adjustment lending increased to year. The construction sector, household households and the private sectors.spending, external trade, tourism, domestic, manufacturing and industrial output recorded PERFORMANCE OF EXIMGUARANTY moderate growth in 2010. There were however, COMPANY (GHANA) LIMITED.weak conditions in the credit volumes achieved. Business and consumer sentiments Distinguished Shareholders, your Company improved. added substantial value to its business in year

2010 through the firm execution of outputs After a challenging first half of 2009, during specified in the work plan of 2010. Two more which the rippling effects of the global products were designed for adoption. Exim downturn in 2008, lower export revenues, extended its operations to the Northern sector increased government reduction in the of the country, encompassing five regions: the nation's reserves combined to send the Ashanti, Brong Ahafo, Northern, Upper East economy reeling, 2010 saw an improved and West regions, with an operational office turnaround in most of the economic indicators. positioned in Kumasi. Policy manuals were

drafted and approved by the Board to guide INTEREST RATES the business.

Market interest rates were broadly stable in Training was imparted to all management staff year 2010. The average base and lending on the new operational guidelines developed rates of the Deposit Money Banks (DMBs) to ensure smooth conduct of business and declined by 93 basis points to 26.2 % while minimise threats to the business conduct.average lending rates declined by 87 basis

EXIMGUARANTY 2010 ANNUALREPORT

08

Chairman's Statement

The operationalisation of the NBFI act 2008, sectors of the economy.act 774 for Finance Houses was put into effect in 2010. Your company responded by ALLOCATION OF RESOURCESpreparing the Valuation and Information Memorandum reports in order to move for the During the year 2010, the Company allocated recapitalization of the Company to meet the a greater proportion of its resources to the Bank of Ghana minimum capital requirement. setting up of its Kumasi Office; branding of An extraordinary Shareholders meeting was Exim and recruitment of additional personnel conducted in December 2010 towards for the Kumasi Office and Head Office.meeting the requirement. The response from Shareholders was positive. CORPORATE SOCIAL RESPONSIBILITY

The Company initiated the next strategic plan Exim remains committed to providing of five years through a strategic planning assistance to communities on educational session held by management. The plan was and health related issues. Three institutions approved for implementation in December received support for educational needs; 2010. University of Ghana Medical School,

Progressive Road Contractors Association Operational fees increased by 89% from (PROCA) and St. Bernadette Soubirous GH¢929,416 in year 2009 to GH¢1,755,447 in School. Five institutions also received support 2010. on health concerns; these include the

Akuapim Community Foundation, Kayayo Profit before tax of GH¢664,806 was achieved. Project in the Northern Region, Komfo Anokye There was a provision for tax of GH¢ 228,672 Teaching Hospital and Luv FM/KATH Blood and for National Stabilisation Levy of donation campaign.GH¢33,240. The closing balance on the Income Surplus Account after transfer to CORPORATE GOVERNANCEGuarantee Fund of GH¢60,434 and the transfer to Mandatory Reserve Fund of I am pleased to report that the Board and its GH¢201,447 was GH¢494,771 Sub-Board Committee performed creditably in

the year. A Board Policy Manual was instituted SHAREHOLDERS' FUNDS and Board assessment was undertaken by all

Directors.Shareholders' funds remain at GH¢13,222,957 inclusive of the augmented fund of EDIF. The Credit Committee met regularly on

underwriting, project monitoring visits, claims All Shareholders have confirmed the purchase incidence, provisioning and credit guarantee of additional allotment of shares. A total inflow risk administration reports. The Audit/Finance of GH¢6,000,000 is expected in 2011 to add on Committee met on quarterly management to the Shareholders' Fund. The Company is reports; audit reports; Banking Supervision seeking additional augmentation of the Inspection and product pricing. The Ad Hoc Guarantee Fund and preference shares in Legal Committee reviewed formats of legal order to increase its operational capacity to agreements periodically. The conduct of the support access to credit for Small and Medium Board has promoted the effective control and Sized Enterprises in the export and productive direction of the Company.

EXIMGUARANTY 2010 ANNUALREPORT 09

Chairman's Statement

is the intention of the Company to participate in MEMBERSHIP OF AADFI various fora that focus on enhancing the

international competitiveness of local industry The Company's membership of the Association and encourage greater investment of of African Development Finance Institutions has resources in the productive sectors of the promoted Exim's compliance to the Prudential country. Standard Guidelines and Rating System for African Development Banks and Financial It is anticipated that Government will augment Institutions. Out of 45 institutions rated in Africa in the Guarantee Fund of the Company to enable year 2009, Exim placed 10th in compliance on it support its programmes on business financial; operational and governance issues. diversification, creation of employment,

promotion of Joint Ventures and other OUR RECOGNITION AND par tnersh ips and adopt ion of new COLLABORATION technologies.

Exim continues to play an active role in the broad ACKNOWLEDGEMENT strategy of Ghana's economic development in order to enhance growth in the export industry On behalf of the Board, I wish to express my and private sector. It collaborates with Export sincere appreciation to all our customers for Development and Investment Fund to build the their support and loyalty; to Directors for the Guarantee Fund and facilitate access to credit hard work and invaluable contributions that for exporters. have sustained the Company in its efforts over The Company continues to nurture good the years and to Management and staff of the relations with all Banks and other Financial Company for their commitment to duty and Institutions, Contract Awarding Agencies, hard work.Government Ministries, Departments and Agencies in order to create appreciation of the Finally, I wish to thank Shareholders for their impact of Exim's work on the economy. support to inject additional capital into Exim's

operations and I also thank God for bringing The Company maintained its membership of the the Company this far. Association of Ghana Industries as well as its membership of the Chartered Institute of Bankers. We serve on the Guarantee Committee of GARI, ....................................................

Felix Ntrakwahthe Guarantee Fund for West Africa, Lome.

Chairman.THE YEAR AHEAD

Exim will initiate the implementation of its next five year business plan with an entry into the Trustee business on pension funds and prepare to launch Exim's business in Takoradi.A workshop for Banks to review business procedure is scheduled for the year ahead and it

EXIMGUARANTY 2010 ANNUALREPORT

08

Chairman's Statement

The operationalisation of the NBFI act 2008, sectors of the economy.act 774 for Finance Houses was put into effect in 2010. Your company responded by ALLOCATION OF RESOURCESpreparing the Valuation and Information Memorandum reports in order to move for the During the year 2010, the Company allocated recapitalization of the Company to meet the a greater proportion of its resources to the Bank of Ghana minimum capital requirement. setting up of its Kumasi Office; branding of An extraordinary Shareholders meeting was Exim and recruitment of additional personnel conducted in December 2010 towards for the Kumasi Office and Head Office.meeting the requirement. The response from Shareholders was positive. CORPORATE SOCIAL RESPONSIBILITY

The Company initiated the next strategic plan Exim remains committed to providing of five years through a strategic planning assistance to communities on educational session held by management. The plan was and health related issues. Three institutions approved for implementation in December received support for educational needs; 2010. University of Ghana Medical School,

Progressive Road Contractors Association Operational fees increased by 89% from (PROCA) and St. Bernadette Soubirous GH¢929,416 in year 2009 to GH¢1,755,447 in School. Five institutions also received support 2010. on health concerns; these include the

Akuapim Community Foundation, Kayayo Profit before tax of GH¢664,806 was achieved. Project in the Northern Region, Komfo Anokye There was a provision for tax of GH¢ 228,672 Teaching Hospital and Luv FM/KATH Blood and for National Stabilisation Levy of donation campaign.GH¢33,240. The closing balance on the Income Surplus Account after transfer to CORPORATE GOVERNANCEGuarantee Fund of GH¢60,434 and the transfer to Mandatory Reserve Fund of I am pleased to report that the Board and its GH¢201,447 was GH¢494,771 Sub-Board Committee performed creditably in

the year. A Board Policy Manual was instituted SHAREHOLDERS' FUNDS and Board assessment was undertaken by all

Directors.Shareholders' funds remain at GH¢13,222,957 inclusive of the augmented fund of EDIF. The Credit Committee met regularly on

underwriting, project monitoring visits, claims All Shareholders have confirmed the purchase incidence, provisioning and credit guarantee of additional allotment of shares. A total inflow risk administration reports. The Audit/Finance of GH¢6,000,000 is expected in 2011 to add on Committee met on quarterly management to the Shareholders' Fund. The Company is reports; audit reports; Banking Supervision seeking additional augmentation of the Inspection and product pricing. The Ad Hoc Guarantee Fund and preference shares in Legal Committee reviewed formats of legal order to increase its operational capacity to agreements periodically. The conduct of the support access to credit for Small and Medium Board has promoted the effective control and Sized Enterprises in the export and productive direction of the Company.

EXIMGUARANTY 2010 ANNUALREPORT 09

Chairman's Statement

is the intention of the Company to participate in MEMBERSHIP OF AADFI various fora that focus on enhancing the

international competitiveness of local industry The Company's membership of the Association and encourage greater investment of of African Development Finance Institutions has resources in the productive sectors of the promoted Exim's compliance to the Prudential country. Standard Guidelines and Rating System for African Development Banks and Financial It is anticipated that Government will augment Institutions. Out of 45 institutions rated in Africa in the Guarantee Fund of the Company to enable year 2009, Exim placed 10th in compliance on it support its programmes on business financial; operational and governance issues. diversification, creation of employment,

promotion of Joint Ventures and other OUR RECOGNITION AND par tnersh ips and adopt ion of new COLLABORATION technologies.

Exim continues to play an active role in the broad ACKNOWLEDGEMENT strategy of Ghana's economic development in order to enhance growth in the export industry On behalf of the Board, I wish to express my and private sector. It collaborates with Export sincere appreciation to all our customers for Development and Investment Fund to build the their support and loyalty; to Directors for the Guarantee Fund and facilitate access to credit hard work and invaluable contributions that for exporters. have sustained the Company in its efforts over The Company continues to nurture good the years and to Management and staff of the relations with all Banks and other Financial Company for their commitment to duty and Institutions, Contract Awarding Agencies, hard work.Government Ministries, Departments and Agencies in order to create appreciation of the Finally, I wish to thank Shareholders for their impact of Exim's work on the economy. support to inject additional capital into Exim's

operations and I also thank God for bringing The Company maintained its membership of the the Company this far. Association of Ghana Industries as well as its membership of the Chartered Institute of Bankers. We serve on the Guarantee Committee of GARI, ....................................................

Felix Ntrakwahthe Guarantee Fund for West Africa, Lome.

Chairman.THE YEAR AHEAD

Exim will initiate the implementation of its next five year business plan with an entry into the Trustee business on pension funds and prepare to launch Exim's business in Takoradi.A workshop for Banks to review business procedure is scheduled for the year ahead and it

EXIMGUARANTY 2010 ANNUALREPORT

Managing Director's Statement

10

INTRODUCTION

It is with great pleasure that I welcome Shareholders and Directors to today's Annual General Meeting. The Company achieved the much expected output of expanding its business operations into other regions. A Regional Office was opened in Kumasi to serve the Northern sector of the country.

The Exim Brand was launched with the opening of the office. The mode of service delivery; brand colours; logo; business concept and the character of Exim's business were reflected in flyers, brochures, billboards and directional signs installed within the locational areas.

Extensive outreach programmes to reach our clients, partners and customers preceded the opening. The challenge was in the design of workflow systems, communication flow charts and other procedural guidelines.

BANKING AND F INANCIAL SERVICES OVERVIEW

The Banking and Financial Services industry continue to be competitive and highly characterized by retail products. Activities in term lending has shown declining tendencies over the years. The Bank of Ghana credit conditions survey conducted in November 2010 however revealed that Small and Medium Enterprises' access to credit and long term credit increased for the first time in 2010. This development assisted in the improvement of overall credit conditions in the fourth quarter of 2010.

EXIMGUARANTY 2010 ANNUALREPORT 11

Managing Director's Statement

exposure limits within well defined target sectors and products.

BUSINESS REVIEW Management continues to apply strict adherence to risk compliance issues.

The year 2010 registered the highest ratio of operational fees to total income over the Monthly and quarterly reports on Credit past 17 years representing 57% of total Guarantee administrative systems proved income. Operational fees also increased beneficial.by 93% over that of 2009.This occurred due to the adoption of more aggressive GUARANTEE FUNDselling approaches with Financial Institutions and other Contract Awarding The Company's Guarantee Fund was Agencies. An operational capacity level of augmented substantially by the EDIF Fund 70% was achieved as measured against and it is envisaged that the partnership the 52% of the previous year. Guarantees with EDIF is nurtured to have greater issued were concentrated in the export; impact on the Export and Agricultural construction; agriculture and services sectors of the economy.sectors.

MARKETING RESEARCH AND Administrative Expenses increased by PRODUCT DEVELOPMENT60% as a result of increase in staff strength. The charge for unexpired The creation of the unit resulted in further guarantees increased to GH¢245,909 due exposing the business mandate of the to the volumes of Credit Guarantees Company to the financial services industry furnished. An approximate value of GH¢50 as well as the private sector generally.million in guarantees were provided to the Small and Medium Enterprises in the The unit initiated other collaborations with Export, Services and Productive sectors of newly licensed banks, the Banking the economy. An operating profit of College; Chartered Institute of Marketing GH¢664,806 was achieved and a net profit and other Contract Awarding Agencies. after tax of GH¢402,894 was realised. The Exim Brand was carefully applied in all

transactional activities.CREDIT RISK ASSESSMENT

COLLATERAL REGISTRYCredit risk assessment reports in the year addressed all relevant areas; market; Exim signed on to the Collateral Registry in management; financial; technical; Due 2010 and actively subscribed to the diligence and security. It added immense service consistently.value to the decisions made on credit guarantee appl icat ions. The r isk management strategy is to build quality

EXIMGUARANTY 2010 ANNUALREPORT

Managing Director's Statement

10

INTRODUCTION

It is with great pleasure that I welcome Shareholders and Directors to today's Annual General Meeting. The Company achieved the much expected output of expanding its business operations into other regions. A Regional Office was opened in Kumasi to serve the Northern sector of the country.

The Exim Brand was launched with the opening of the office. The mode of service delivery; brand colours; logo; business concept and the character of Exim's business were reflected in flyers, brochures, billboards and directional signs installed within the locational areas.

Extensive outreach programmes to reach our clients, partners and customers preceded the opening. The challenge was in the design of workflow systems, communication flow charts and other procedural guidelines.

BANKING AND F INANCIAL SERVICES OVERVIEW

The Banking and Financial Services industry continue to be competitive and highly characterized by retail products. Activities in term lending has shown declining tendencies over the years. The Bank of Ghana credit conditions survey conducted in November 2010 however revealed that Small and Medium Enterprises' access to credit and long term credit increased for the first time in 2010. This development assisted in the improvement of overall credit conditions in the fourth quarter of 2010.

EXIMGUARANTY 2010 ANNUALREPORT 11

Managing Director's Statement

exposure limits within well defined target sectors and products.

BUSINESS REVIEW Management continues to apply strict adherence to risk compliance issues.

The year 2010 registered the highest ratio of operational fees to total income over the Monthly and quarterly reports on Credit past 17 years representing 57% of total Guarantee administrative systems proved income. Operational fees also increased beneficial.by 93% over that of 2009.This occurred due to the adoption of more aggressive GUARANTEE FUNDselling approaches with Financial Institutions and other Contract Awarding The Company's Guarantee Fund was Agencies. An operational capacity level of augmented substantially by the EDIF Fund 70% was achieved as measured against and it is envisaged that the partnership the 52% of the previous year. Guarantees with EDIF is nurtured to have greater issued were concentrated in the export; impact on the Export and Agricultural construction; agriculture and services sectors of the economy.sectors.

MARKETING RESEARCH AND Administrative Expenses increased by PRODUCT DEVELOPMENT60% as a result of increase in staff strength. The charge for unexpired The creation of the unit resulted in further guarantees increased to GH¢245,909 due exposing the business mandate of the to the volumes of Credit Guarantees Company to the financial services industry furnished. An approximate value of GH¢50 as well as the private sector generally.million in guarantees were provided to the Small and Medium Enterprises in the The unit initiated other collaborations with Export, Services and Productive sectors of newly licensed banks, the Banking the economy. An operating profit of College; Chartered Institute of Marketing GH¢664,806 was achieved and a net profit and other Contract Awarding Agencies. after tax of GH¢402,894 was realised. The Exim Brand was carefully applied in all

transactional activities.CREDIT RISK ASSESSMENT

COLLATERAL REGISTRYCredit risk assessment reports in the year addressed all relevant areas; market; Exim signed on to the Collateral Registry in management; financial; technical; Due 2010 and actively subscribed to the diligence and security. It added immense service consistently.value to the decisions made on credit guarantee appl icat ions. The r isk management strategy is to build quality

EXIMGUARANTY 2010 ANNUALREPORT

12

Managing Director's Statement

EXIMGUARANTY 2010 ANNUALREPORT

BUSINESS CONTINUITY PLAN business turnaround standards.

The Company had its business and I deeply appreciate Senior Management's disaster recovery plan approved by the support and dedication in meeting targets Board of Directors. It provides guidelines set.to fully recover operations and ensure coordinated processes of restoring Our progress in 2010 has firmly positioned systems, data and infrastructure in times the Company as the prime credit of emergency. Guarantee Company for the Small and

Medium Enterprises engaged in export STAFF MOVEMENT services and productive sectors of the

economy. Our goal is to grow the business The Manager manning the Kumasi Office through more customer focused and has built credible experience in credit risk customer driven activities and strategies .assessment and business operations to manage the office efficiently. Three other We thank all stakeholders for partnering professional staff are supporting in the Exim's business and also thank sincerely areas of Operations, Finance and the Directors for thier strong commitment Marketing. The year’s revenue earnings in addressing Exim's needs and provided the needed encouragement for a challenges. well positioned regional office.

WAY FORWARD

The Company has developed the next five year directional path with the finalization of the strategic plan. It is envisaged that it will ............................................

Felicity Acquah (Mrs.)make an entry into the Pension Trustee Managing Director

business and also expand its operations into the Western and Central Regions of the Country.

ACKNOWLEDGEMENT

I express deepest appreciation to our cherished customers for their loyalty and dedication in subscribing to our business. I am grateful to all staff for the strong team spirit binding all activities and work processes of the Company; as well as commitment to living our core values and

13

Managing Director's Statement

EXIMGUARANTY 2010 ANNUALREPORT

Mr. Felix Ntrakwah is a senior member of the Ghana Bar, the Managing

Partner of the law firm, Ntrakwah & Co. and a member of the Chartered

Institute of Arbitrators, (UK). He is the Chairman of Financial Investment

Trust and a director of other companies including Mainstream

Reinsurance Company Limited. Mr. Ntrakwah has a number of

International Publications on corporate and other legal issues to his

credit.

Profile: Board of Directors

Asare-Boakye Yiadom is the Deputy Managing Director of The

Trust bank ltd. He is a seasoned, disciplined and distinguished

bank executive with over 27 years banking and finance exposure,

with enormous experience in risk management. He was

appointed to the Board in 2010

Daniel K. Mensah is the Chief Executive Officer of the Ghana

Association of Bankers. He was appointed to the Board of

Eximguaranty in 2004. He serves on a number of Boards

including Venture Capital Trust Fund, National Investment Bank

Limited and is the Chairman of Board of Directors, West African

Inter Bank Payment System.

Samuel M. Akrong is a Legal Practitioner. He is currently the Head

of the Corporate Law Department of the Social Security and

National Insurance Trust. He has served on the Board for over 8

years.

12

Managing Director's Statement

EXIMGUARANTY 2010 ANNUALREPORT

BUSINESS CONTINUITY PLAN business turnaround standards.

The Company had its business and I deeply appreciate Senior Management's disaster recovery plan approved by the support and dedication in meeting targets Board of Directors. It provides guidelines set.to fully recover operations and ensure coordinated processes of restoring Our progress in 2010 has firmly positioned systems, data and infrastructure in times the Company as the prime credit of emergency. Guarantee Company for the Small and

Medium Enterprises engaged in export STAFF MOVEMENT services and productive sectors of the

economy. Our goal is to grow the business The Manager manning the Kumasi Office through more customer focused and has built credible experience in credit risk customer driven activities and strategies .assessment and business operations to manage the office efficiently. Three other We thank all stakeholders for partnering professional staff are supporting in the Exim's business and also thank sincerely areas of Operations, Finance and the Directors for thier strong commitment Marketing. The year’s revenue earnings in addressing Exim's needs and provided the needed encouragement for a challenges. well positioned regional office.

WAY FORWARD

The Company has developed the next five year directional path with the finalization of the strategic plan. It is envisaged that it will ............................................

Felicity Acquah (Mrs.)make an entry into the Pension Trustee Managing Director

business and also expand its operations into the Western and Central Regions of the Country.

ACKNOWLEDGEMENT

I express deepest appreciation to our cherished customers for their loyalty and dedication in subscribing to our business. I am grateful to all staff for the strong team spirit binding all activities and work processes of the Company; as well as commitment to living our core values and

13

Managing Director's Statement

EXIMGUARANTY 2010 ANNUALREPORT

Mr. Felix Ntrakwah is a senior member of the Ghana Bar, the Managing

Partner of the law firm, Ntrakwah & Co. and a member of the Chartered

Institute of Arbitrators, (UK). He is the Chairman of Financial Investment

Trust and a director of other companies including Mainstream

Reinsurance Company Limited. Mr. Ntrakwah has a number of

International Publications on corporate and other legal issues to his

credit.

Profile: Board of Directors

Asare-Boakye Yiadom is the Deputy Managing Director of The

Trust bank ltd. He is a seasoned, disciplined and distinguished

bank executive with over 27 years banking and finance exposure,

with enormous experience in risk management. He was

appointed to the Board in 2010

Daniel K. Mensah is the Chief Executive Officer of the Ghana

Association of Bankers. He was appointed to the Board of

Eximguaranty in 2004. He serves on a number of Boards

including Venture Capital Trust Fund, National Investment Bank

Limited and is the Chairman of Board of Directors, West African

Inter Bank Payment System.

Samuel M. Akrong is a Legal Practitioner. He is currently the Head

of the Corporate Law Department of the Social Security and

National Insurance Trust. He has served on the Board for over 8

years.

14

Andrew Boye-Doe a lawyer by profession, specializing in international banking

and finance. He is an Assistant Director at the Bank of Ghana. He is a Director of

Export Finance Company, a member of the Board of Trustees of the Financial

Investment Trust (FIT). He is a fellow of the Society for Advanced Legal Studies,

London and the Chairman of the Legal and Institutional Issues Committee of the

West African Monetary Zone (WAMZ) as well as the Chairman of the Committee

of Experts of the WAMZ. He is a Research Fellow at the Center for

International Documentation on organized and Economic crimes and a

Resource Person of the Cambridge International Symposium, UK. Mr. Boye-

Doe is also a visiting lecturer in Banking and Finance Law, Commercial Law,

International Economic Law and Law and Practice of International Finance in

both local and foreign universities.

Ms. Yvonne Quansah is currently the Director of the financial

Sector division of the Ministry of Finance and Economic

Planning (MOFEP) in charge of the management of the financial

regulatory and stability issues in a Ghanaian and international

context in consultation with regulatory agencies. She also

advises on policies that will help foster strong, competitive and

sound financial markets and financial sector development in

Ghana. She was appointed to the Board in 2010.

Felicity Acquah (Mrs.) is the Managing Director of

Eximquaranty Company Ghana Limited. She has over 28 years

experience in the banking and financial services industry. She is a

certified trainer in Entrepreneurship as well as a Business

Development Advisor. She has acquired substantial Board room

experience over the years and currently serves on the executive

council of the Association of African Development Finance

Institutions (AADFI), Guarantee Fund for West Africa (GARI). She is a

fellow of the Chartered Institute of Bankers.

George L. K. Apau is an accountant by profession and a

member of the Institute of Chartered Accountants, Ghana. He is

the Chief Manager and Head of Internal Audit and Bank

Inspection Department with the National Investment Bank. He

was appointed to the Board of Eximguaranty in 2009.

EXIMGUARANTY 2010 ANNUALREPORT 15

Board of Directors

EXIMGUARANTY 2010 ANNUALREPORT

Profile: Executive Committee

Mr. Zac Bentum, General Manager, Finance and MIS

Zac is a fellow of ACCA and member of ICA (Ghana). He holds a BA

in Economics from the University of Ghana. Before joining

Eximguaranty, he worked with AGC (Anglogold Ashanti) as a finance

manager in charge of exploration activities and new business. He

has extensive international exposure in financial management,

accounting, auditing and system installation in MIS.

Mr. Nathan Kwaffo, Head of Operations

Nathan Kwaffo is an Associate Member of the Chartered Institute of

Management Accountants (ACMA) and a member of Institute of

Chartered Accountants (ICA) Ghana. He also holds a degree in

Economics obtained from the University of Ghana. Prior to joining

Exim, he worked with the National Investment Bank, J. S. Addo

Consultants and a number of Chartered Accounting firms.

Mrs. Priscilla Budu, Head, Legal/Admin./Company Secretariat

Priscilla Budu holds a LLB (Hons) degree from the University of Ghana

and a BL Law from the Ghana School of Law as well as an Executive

MBA in Human Resource Management from the University of Ghana.

She has over ten years of practice as a lawyer with six years of corporate

experience in a non-bank financial institution. Prior to joining

Eximguaranty, she was the Head of the Legal Department and Secretary

to the Board of Directors at ProCredit Savings and Loans Co. Ltd. She is a

member of the Ghana Bar Association.

Mrs. Felicity Acquah

The Managing Director previously worked with Agricultural Development Bank

and National Investment Bank as a Project and Financial Analyst. She also

worked with Merchant Bank as Head of Marketing; Research and Product

Development. She consulted for Women's World Banking as the Executive

Director and also worked as Director for Empretec Ghana Foundation, a

Business Development organisation formerly sponsored by the UNDP,

World Bank; DFID; Barclays Bank and the Government of Ghana. She

has a first degree in Economics and Law, a Post Graduate Diploma in

Project Management and an Executive MBA in Finance. She is a fellow

of the Chartered Institute of Bankers.

14

Andrew Boye-Doe a lawyer by profession, specializing in international banking

and finance. He is an Assistant Director at the Bank of Ghana. He is a Director of

Export Finance Company, a member of the Board of Trustees of the Financial

Investment Trust (FIT). He is a fellow of the Society for Advanced Legal Studies,

London and the Chairman of the Legal and Institutional Issues Committee of the

West African Monetary Zone (WAMZ) as well as the Chairman of the Committee

of Experts of the WAMZ. He is a Research Fellow at the Center for

International Documentation on organized and Economic crimes and a

Resource Person of the Cambridge International Symposium, UK. Mr. Boye-

Doe is also a visiting lecturer in Banking and Finance Law, Commercial Law,

International Economic Law and Law and Practice of International Finance in

both local and foreign universities.

Ms. Yvonne Quansah is currently the Director of the financial

Sector division of the Ministry of Finance and Economic

Planning (MOFEP) in charge of the management of the financial

regulatory and stability issues in a Ghanaian and international

context in consultation with regulatory agencies. She also

advises on policies that will help foster strong, competitive and

sound financial markets and financial sector development in

Ghana. She was appointed to the Board in 2010.

Felicity Acquah (Mrs.) is the Managing Director of

Eximquaranty Company Ghana Limited. She has over 28 years

experience in the banking and financial services industry. She is a

certified trainer in Entrepreneurship as well as a Business

Development Advisor. She has acquired substantial Board room

experience over the years and currently serves on the executive

council of the Association of African Development Finance

Institutions (AADFI), Guarantee Fund for West Africa (GARI). She is a

fellow of the Chartered Institute of Bankers.

George L. K. Apau is an accountant by profession and a

member of the Institute of Chartered Accountants, Ghana. He is

the Chief Manager and Head of Internal Audit and Bank

Inspection Department with the National Investment Bank. He

was appointed to the Board of Eximguaranty in 2009.

EXIMGUARANTY 2010 ANNUALREPORT 15

Board of Directors

EXIMGUARANTY 2010 ANNUALREPORT

Profile: Executive Committee

Mr. Zac Bentum, General Manager, Finance and MIS

Zac is a fellow of ACCA and member of ICA (Ghana). He holds a BA

in Economics from the University of Ghana. Before joining

Eximguaranty, he worked with AGC (Anglogold Ashanti) as a finance

manager in charge of exploration activities and new business. He

has extensive international exposure in financial management,

accounting, auditing and system installation in MIS.

Mr. Nathan Kwaffo, Head of Operations

Nathan Kwaffo is an Associate Member of the Chartered Institute of

Management Accountants (ACMA) and a member of Institute of

Chartered Accountants (ICA) Ghana. He also holds a degree in

Economics obtained from the University of Ghana. Prior to joining

Exim, he worked with the National Investment Bank, J. S. Addo

Consultants and a number of Chartered Accounting firms.

Mrs. Priscilla Budu, Head, Legal/Admin./Company Secretariat

Priscilla Budu holds a LLB (Hons) degree from the University of Ghana

and a BL Law from the Ghana School of Law as well as an Executive

MBA in Human Resource Management from the University of Ghana.

She has over ten years of practice as a lawyer with six years of corporate

experience in a non-bank financial institution. Prior to joining

Eximguaranty, she was the Head of the Legal Department and Secretary

to the Board of Directors at ProCredit Savings and Loans Co. Ltd. She is a

member of the Ghana Bar Association.

Mrs. Felicity Acquah

The Managing Director previously worked with Agricultural Development Bank

and National Investment Bank as a Project and Financial Analyst. She also

worked with Merchant Bank as Head of Marketing; Research and Product

Development. She consulted for Women's World Banking as the Executive

Director and also worked as Director for Empretec Ghana Foundation, a

Business Development organisation formerly sponsored by the UNDP,

World Bank; DFID; Barclays Bank and the Government of Ghana. She

has a first degree in Economics and Law, a Post Graduate Diploma in

Project Management and an Executive MBA in Finance. She is a fellow

of the Chartered Institute of Bankers.

16

Report of the Directors

1. In accordance with the requirements of Section 132 of the Companies Act, 1963(Act 179) we the

Board of Eximguaranty Company (Ghana) Limited, submit herewith the Annual Report on the state

of affairs of the company for the year ended 31 December 2010..

2010 2009

GH¢ GH¢

a. Income 3,092,551

b. Profit before Tax 664,806 789,513

c. From which is deducted the provision for the

estimated tax liability (228,672) (89,899)

d. and provision for National Fiscal Stabilization Levy (33,240) (19,738)

e. Leaving a Net Profit of 402,893 679,876

f. Which is to be added to the surplus brought forward

from the previous year 393,362 154,865

g. Making a total of 796,255 834,741

h. Dividend Paid of (39,604) 0

i. Transfer to Mandatory Reserve Fund (201,447) (339,398)

j. Transfer to Guarantee Fund (60,434) (101,981)

k. Leaving a net balance on the Income Surplus

Account of 494,771 393,362

carried to the Balance Sheet

The principal activity of the company during the year and in accordance with Section 2 of the

regulations of the company was to provide credit guarantee cover to financial institutions and

other credit awarding agencies to assist them in extending credit facilities to borrowers who may

have inadequate or no collateral.

2,337,818

2 PRINCIPAL ACTIVITIES

EXIMGUARANTY 2010 ANNUALREPORT

Year Ended 31 December 2010

17EXIMGUARANTY 2010 ANNUALREPORT

The company is licenced by the Bank of Ghana as a non-bank financial institution under the Non-

Bank Financial Institutions Act, 2008, Act 774.

The Directors who held office during the year were as follows :

Name Designation

Mr. Felix Ntrakwah Chairman

Mr. Daniel K. Mensah Non-Executive Director

Mr. Andrew Boye- Doe Non-Executive Director

Mr. Sam M. Akrong Non-Executive Director

Mr. George L. K. Apau Non-Executive Director

Ms. Yvonne Quansah Non-Executive Director

Mr. Asare - Boakye Yiadom Non-Executive Director

Mrs. Felicity Acquah Managing Director

The Directors do not hold any shares in the company.

The company's auditors, Pannell Kerr Forster, having qualified under Section 134(5) of the

Companies Act 1963 (Act 179) have proposed to continue in office.

The Directors confirm that no matters have arisen since 31 December 2010 which materially affect

the Accounts of the company for the year ended on that date.

……………………………. ………………………………

DIRECTOR DIRECTOR

th th Accra,5 May, 2011 Accra, 5 May, 2011

3 DIRECTORS

4 AUDITORS

5. OTHER MATTERS

Report of the Directors

16

Report of the Directors

1. In accordance with the requirements of Section 132 of the Companies Act, 1963(Act 179) we the

Board of Eximguaranty Company (Ghana) Limited, submit herewith the Annual Report on the state

of affairs of the company for the year ended 31 December 2010..

2010 2009

GH¢ GH¢

a. Income 3,092,551

b. Profit before Tax 664,806 789,513

c. From which is deducted the provision for the

estimated tax liability (228,672) (89,899)

d. and provision for National Fiscal Stabilization Levy (33,240) (19,738)

e. Leaving a Net Profit of 402,893 679,876

f. Which is to be added to the surplus brought forward

from the previous year 393,362 154,865

g. Making a total of 796,255 834,741

h. Dividend Paid of (39,604) 0

i. Transfer to Mandatory Reserve Fund (201,447) (339,398)

j. Transfer to Guarantee Fund (60,434) (101,981)

k. Leaving a net balance on the Income Surplus

Account of 494,771 393,362

carried to the Balance Sheet

The principal activity of the company during the year and in accordance with Section 2 of the

regulations of the company was to provide credit guarantee cover to financial institutions and

other credit awarding agencies to assist them in extending credit facilities to borrowers who may

have inadequate or no collateral.

2,337,818

2 PRINCIPAL ACTIVITIES

EXIMGUARANTY 2010 ANNUALREPORT

Year Ended 31 December 2010

17EXIMGUARANTY 2010 ANNUALREPORT

The company is licenced by the Bank of Ghana as a non-bank financial institution under the Non-

Bank Financial Institutions Act, 2008, Act 774.

The Directors who held office during the year were as follows :

Name Designation

Mr. Felix Ntrakwah Chairman

Mr. Daniel K. Mensah Non-Executive Director

Mr. Andrew Boye- Doe Non-Executive Director

Mr. Sam M. Akrong Non-Executive Director

Mr. George L. K. Apau Non-Executive Director

Ms. Yvonne Quansah Non-Executive Director

Mr. Asare - Boakye Yiadom Non-Executive Director

Mrs. Felicity Acquah Managing Director

The Directors do not hold any shares in the company.

The company's auditors, Pannell Kerr Forster, having qualified under Section 134(5) of the

Companies Act 1963 (Act 179) have proposed to continue in office.

The Directors confirm that no matters have arisen since 31 December 2010 which materially affect

the Accounts of the company for the year ended on that date.

……………………………. ………………………………

DIRECTOR DIRECTOR

th th Accra,5 May, 2011 Accra, 5 May, 2011

3 DIRECTORS

4 AUDITORS

5. OTHER MATTERS

Report of the Directors

18

Independent Auditor's Report INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXIMGUARANTY COMPANY

(GHANA) LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

Accountants &business advisers

Report on the Financial Statements Auditor's Responsibility

We have audited the accompanying Our responsibility is to express an opinion financial statements of Eximguaranty on these financial statements based on Company (Ghana) Limited which our audit. We conducted our audit in comprise the balance sheet as of accordance with International Standards December 31, 2010, and the profit and on Auditing. Those standards require that loss account, and cash flow statement for we comply with ethical requirements and the year then ended, and a summary of plan and perform the audit to obtain significant accounting policies and other reasonable assurance whether the explanatory notes. financial statements are free

from material misstatement.Directors' Responsibility for the Financial Statements An audit involves performing procedures

to obtain audit evidence about the The Directors are responsible for the amounts and disclosures in the financial preparation and fair presentation of these statements. The procedures selected financial statements in accordance with depend on the auditor's judgment, Ghana Accounting Standards and in the including the assessment of the risks of manner required by the Companies Code, material misstatement of the financial 1963 ( Act 179) and the Non-Bank statements, whether due to fraud or error. Financial Institution Act, 2008, Act 774. In making those risk assessments, the This responsibility includes: designing, auditor considers internal control relevant implementing and maintaining internal to the entity's preparation and fair control relevant to the preparation and fair presentation of the financial statements in presentation of financial statements that order to design audit procedures that are are free from material misstatement, appropriate in the circumstances, but not whether due to fraud or error; selecting for the purpose of expressing an opinion and applying appropriate accounting on the effectiveness of the entity's internal pol icies; and making accounting control. An audit also includes evaluating estimates that are reasonable in the the appropriateness of accounting circumstances. policies used and the reasonableness of

EXIMGUARANTY 2010 ANNUALREPORT 19EXIMGUARANTY 2010 ANNUALREPORT

Independent Auditor's Report

accounting estimates by Directors, as well as evaluating the overall presentation of I) We have obta ined a l l the the financial statements. information and explanations which to the

best of our knowledge and belief were necessary for the purpose of our audit.

We believe that the audit evidence we have ii) In our opinion proper books of obtained is sufficient and appropriate to accounts have been kept by the Company, provide a basis for our audit opinion. so far as appears from our examination of

those books, andOpinion

iii) The Company's balance sheet and In our opinion, the financial statements profit and loss account are in agreement give a true and fair view of the financial with the books of accounts.position of Eximguaranty Company (Ghana) Limited as of December 31, 2010 and of its financial performance and its cash flows for the year then ended in accordance with Ghana Accounting Standards and comply with the .....................................................Companies Code, 1963 (Act 179) and the Non-Bank Financial Institution Act, 2008, PANNELL KERR FORSTER Act 774. CHARTERED ACCOUNTANTS

Report on Other Legal and Regulatory Farrar AvenueRequirements Accra

The Companies Code, 1963, (Act 179) threquires that in carrying out our audit we 5 May, 2011

consider and report to you on the following matters. We confirm that:

18

Independent Auditor's Report INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXIMGUARANTY COMPANY

(GHANA) LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

Accountants &business advisers

Report on the Financial Statements Auditor's Responsibility

We have audited the accompanying Our responsibility is to express an opinion financial statements of Eximguaranty on these financial statements based on Company (Ghana) Limited which our audit. We conducted our audit in comprise the balance sheet as of accordance with International Standards December 31, 2010, and the profit and on Auditing. Those standards require that loss account, and cash flow statement for we comply with ethical requirements and the year then ended, and a summary of plan and perform the audit to obtain significant accounting policies and other reasonable assurance whether the explanatory notes. financial statements are free

from material misstatement.Directors' Responsibility for the Financial Statements An audit involves performing procedures

to obtain audit evidence about the The Directors are responsible for the amounts and disclosures in the financial preparation and fair presentation of these statements. The procedures selected financial statements in accordance with depend on the auditor's judgment, Ghana Accounting Standards and in the including the assessment of the risks of manner required by the Companies Code, material misstatement of the financial 1963 ( Act 179) and the Non-Bank statements, whether due to fraud or error. Financial Institution Act, 2008, Act 774. In making those risk assessments, the This responsibility includes: designing, auditor considers internal control relevant implementing and maintaining internal to the entity's preparation and fair control relevant to the preparation and fair presentation of the financial statements in presentation of financial statements that order to design audit procedures that are are free from material misstatement, appropriate in the circumstances, but not whether due to fraud or error; selecting for the purpose of expressing an opinion and applying appropriate accounting on the effectiveness of the entity's internal pol icies; and making accounting control. An audit also includes evaluating estimates that are reasonable in the the appropriateness of accounting circumstances. policies used and the reasonableness of

EXIMGUARANTY 2010 ANNUALREPORT 19EXIMGUARANTY 2010 ANNUALREPORT

Independent Auditor's Report

accounting estimates by Directors, as well as evaluating the overall presentation of I) We have obta ined a l l the the financial statements. information and explanations which to the

best of our knowledge and belief were necessary for the purpose of our audit.

We believe that the audit evidence we have ii) In our opinion proper books of obtained is sufficient and appropriate to accounts have been kept by the Company, provide a basis for our audit opinion. so far as appears from our examination of

those books, andOpinion

iii) The Company's balance sheet and In our opinion, the financial statements profit and loss account are in agreement give a true and fair view of the financial with the books of accounts.position of Eximguaranty Company (Ghana) Limited as of December 31, 2010 and of its financial performance and its cash flows for the year then ended in accordance with Ghana Accounting Standards and comply with the .....................................................Companies Code, 1963 (Act 179) and the Non-Bank Financial Institution Act, 2008, PANNELL KERR FORSTER Act 774. CHARTERED ACCOUNTANTS

Report on Other Legal and Regulatory Farrar AvenueRequirements Accra

The Companies Code, 1963, (Act 179) threquires that in carrying out our audit we 5 May, 2011

consider and report to you on the following matters. We confirm that:

20

2010 FINANCIAL REPORT

EXIMGUARANTY 2010 ANNUALREPORT 21EXIMGUARANTY 2010 ANNUALREPORT

2010 2009

Notes GH¢ GH¢

Income 2 3,092,551

Operating Expenses

Administrative Expenses 3 2,323,201 1,473,243

Charge for Unexpired Guarantees

and Contingencies 13 245,909 15,610

Interest Expense 4 175,449 298,047

2,744,559 1,786,900

Operating Profit 347,992 550,918

Other Income 5 316,814 238,595

Profit before Tax 664,806 789,513

Taxation 6c (228,672) (89,899)

National Fiscal Stabilization Levy 7 (33,240) (19,738)

Profit after Tax Transferred

to Income Surplus Account 402,894

Income Surplus Account

Balance at 1 January 393,362 154,865

Profit for the Year 402,894 679,876

796,256 834,741

Dividend 18 (39,604) 0

Transfer to Mandatory Reserve Fund 16 (201,447) (339,398)

Transfer to Guarantee Fund 17 (60,434) (101,981)

Balance at 31 December 494,771 393,362

2,337,818

679,876

YEAR ENDED 31 DECEMBER 2010

Profit and Loss AccountYEAR ENDED 31 DECEMBER 2010

20

2010 FINANCIAL REPORT

EXIMGUARANTY 2010 ANNUALREPORT 21EXIMGUARANTY 2010 ANNUALREPORT

2010 2009

Notes GH¢ GH¢

Income 2 3,092,551

Operating Expenses

Administrative Expenses 3 2,323,201 1,473,243

Charge for Unexpired Guarantees

and Contingencies 13 245,909 15,610

Interest Expense 4 175,449 298,047

2,744,559 1,786,900

Operating Profit 347,992 550,918

Other Income 5 316,814 238,595

Profit before Tax 664,806 789,513

Taxation 6c (228,672) (89,899)

National Fiscal Stabilization Levy 7 (33,240) (19,738)

Profit after Tax Transferred

to Income Surplus Account 402,894

Income Surplus Account

Balance at 1 January 393,362 154,865

Profit for the Year 402,894 679,876

796,256 834,741

Dividend 18 (39,604) 0

Transfer to Mandatory Reserve Fund 16 (201,447) (339,398)

Transfer to Guarantee Fund 17 (60,434) (101,981)

Balance at 31 December 494,771 393,362

2,337,818

679,876

YEAR ENDED 31 DECEMBER 2010

Profit and Loss AccountYEAR ENDED 31 DECEMBER 2010

2010 2009

Notes GH¢ GH¢

ASSETS

Bank and Cash Balances 8 402,814 206,419

Short Term Investments 9 11,475,584 6,197,278

Accounts Receivable 10 1,341,311 6 45,523

Deferred Taxation 6b 2 3,327 0

Property, Plant and Equipment 11 1,026,962 7 18,386

TOTAL ASSETS 14,269,998 7,767,606

LIABILITIES AND SHAREHOLDERS FUND

LIABILITIES

Accounts Payable 12 205,082 319,275

Provision on Guarantees 13 458,672 212,763

Taxation 6a 346,360 152,922

Deferred Taxation 6b 0 1,439

National Fiscal Stabilization Levy 7 36,927 3,687

TOTAL LIABILITIES 1,047,041 690,086

SHAREHOLDERS FUND

Stated Capital 15 1,116,903 1,116,903

Mandatory Reserve Fund 16 740,813 539,366

Guarantee Fund 17 10,870,470 5,027,889

Income Surplus 494,771 393,362

TOTAL SHAREHOLDERS FUND 13,222,957 7,077,520

TOTAL LIABILITIES AND SHAREHOLDERS FUND 14,269,998 7,767,606

thApproved by the Board on 5 May, 2011

.....……………………… ……………………….

Director Director

Balance SheetAS AT 31 DECEMBER 2010

22 EXIMGUARANTY 2010 ANNUALREPORT 23EXIMGUARANTY 2010 ANNUALREPORT

Stated Mandatory Guarantee Income

Capital Reserve Fund Surplus Total

Gh¢ Gh¢ Gh¢ Gh¢ Gh¢

2010

Balance at 1 January 2010 1,116,903 539,366 5,027,889 393,362 7 ,077,520

Transfer 0 201,447 60,434 (261,881) 0

Dividend 0 0 0 (39,604) (39,604)

Additional Grant 0 0 6,000,000 0 6,000,000

Net claims 0 0 (217,853) 0 (217,853)

Profit for the year 0 0

Balance at 31 December 2010 1,116,903 740,813 10,870,470 494,771 13,222,957

2009

Balance at 1 January 2009 1,116,903 199,968 5,605,061 154,865 7 ,076,797

Transfer 0 339,398 101,981 (441,379) 0

Additional Grant 0 0 0 0 0

Net claims 0 0 (679,153) 0 (679,153)

Profit for the year 0 0 0 679,876 679,876

Balance at 31 December 2009 1,116,903 539,366 5,027,899 393,392 7,077,520

0 402,894 402,894

Statement of Changes in EquityYEAR ENDED 31 DECEMBER 2010

2010 2009

Notes GH¢ GH¢

ASSETS

Bank and Cash Balances 8 402,814 206,419

Short Term Investments 9 11,475,584 6,197,278

Accounts Receivable 10 1,341,311 6 45,523

Deferred Taxation 6b 2 3,327 0

Property, Plant and Equipment 11 1,026,962 7 18,386

TOTAL ASSETS 14,269,998 7,767,606

LIABILITIES AND SHAREHOLDERS FUND

LIABILITIES

Accounts Payable 12 205,082 319,275

Provision on Guarantees 13 458,672 212,763

Taxation 6a 346,360 152,922

Deferred Taxation 6b 0 1,439

National Fiscal Stabilization Levy 7 36,927 3,687

TOTAL LIABILITIES 1,047,041 690,086

SHAREHOLDERS FUND

Stated Capital 15 1,116,903 1,116,903

Mandatory Reserve Fund 16 740,813 539,366

Guarantee Fund 17 10,870,470 5,027,889

Income Surplus 494,771 393,362

TOTAL SHAREHOLDERS FUND 13,222,957 7,077,520

TOTAL LIABILITIES AND SHAREHOLDERS FUND 14,269,998 7,767,606

thApproved by the Board on 5 May, 2011

.....……………………… ……………………….

Director Director

Balance SheetAS AT 31 DECEMBER 2010

22 EXIMGUARANTY 2010 ANNUALREPORT 23EXIMGUARANTY 2010 ANNUALREPORT

Stated Mandatory Guarantee Income

Capital Reserve Fund Surplus Total

Gh¢ Gh¢ Gh¢ Gh¢ Gh¢

2010

Balance at 1 January 2010 1,116,903 539,366 5,027,889 393,362 7 ,077,520

Transfer 0 201,447 60,434 (261,881) 0

Dividend 0 0 0 (39,604) (39,604)

Additional Grant 0 0 6,000,000 0 6,000,000

Net claims 0 0 (217,853) 0 (217,853)

Profit for the year 0 0

Balance at 31 December 2010 1,116,903 740,813 10,870,470 494,771 13,222,957

2009

Balance at 1 January 2009 1,116,903 199,968 5,605,061 154,865 7 ,076,797

Transfer 0 339,398 101,981 (441,379) 0

Additional Grant 0 0 0 0 0

Net claims 0 0 (679,153) 0 (679,153)

Profit for the year 0 0 0 679,876 679,876

Balance at 31 December 2009 1,116,903 539,366 5,027,899 393,392 7,077,520

0 402,894 402,894

Statement of Changes in EquityYEAR ENDED 31 DECEMBER 2010

2010 2009

GH¢ GH¢

NET CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before Taxation 664,806 789,513

Depreciation 213,251 133,755

Profit on Disposal of Fixed Assets (10,910) (6,825)

Increase in Provision on Guarantee 245,909 15,610

Interest Received (296,066) (206,825)

Interest Expense 175,449 298,047

Claims Paid (224,853) (680,301)

Claims Recovered 7,000 1,148

Increase in Accounts Receivable (695,789) (61,927)

Increase in Accounts Payable (114,193) 231,656

National Fiscal Stabilization Levy 0 ( 16,051)

Corporate Tax Paid (60,000) (30,000)

Net Cash flow from Operating Activities (95,396) 467,800

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant & Equipment (521,826) (313,603)

Proceeds from Sale of Property, Plant & Equipment 10,910 6,825

Interest Received 296,066 206,825

Net Cash flow from Investing Activities (214,850) (99,953)

CASH FLOWS FROM FINANCING ACTIVITIES

Edif Grant received 6,000,000 0

Dividend Paid (39,604) 0

Interest Paid (175,449) (298,047)

Net Cash flow from Financing Activities 5,784,947 (298,047)

Net Increase in Cash and Cash Equivalents 5,474,701 69,800

Cash and Cash Equivalents at 1 January 6,403,697 6,333,897

Cash and Cash Equivalent at 31 December 11,878,398 6,403,697

Cash and Cash Equivalents

Bank and Cash Balances 402,814 206,419

Short term Investments 11,475,584 6,197,278

11,878,398 6,403,697

Cash Flow StatementAS AT 31 DECEMBER 2010

24 EXIMGUARANTY 2010 ANNUALREPORT 25EXIMGUARANTY 2010 ANNUALREPORT

1. ACCOUNTING POLICIES Office Building 2%

The significant accounting policies adopted Motor Vehicle 25%

by the Company and which havebeen used Office Equipment 25%

in preparing these financial statements are Furniture & Fittings 25%

as follows : Plant and Machinery 5%

1.1 Basis of Accounting 1.5 Provisions

These financial statements have been Provision for Unexpired Guarantees is

prepared under the historical cost computed on a range of 0.5% - 1.5% of total

convention. outstanding guarantees at the year end.

Provision for Notice of Default is based on

1.2 Investments review of individual claims and provided at

Investments in securities redeemable at 50% of such claims.

fixed dates are stated at cost adjusted to

give effect to amortisation of premiums and 1.6 Dividend

discounts on purchase over the period to Dividend declared are treated as an

redemption on a straight line basis. appropriation in the year of approval, whilst

dividend proposed are disclosed as a note

1.3 Income Recognition and Claims to the financial statements.

Fees and Interest on investments are

accounted for on an accrual basis. 1.7 Deferred Tax

Operating Income is made up of Guarantee Provision is made for deferred tax using the

Fees, Interest on the Guarantee Fund and liability method on temporary differences.

income from managed funds. Claims are Deferred tax assets are recognised to the

paid as and when they are presented, and extent that there is reasonable certainty of

out of the Guarantee Fund. realisation.

1.8 Foreign Currencies

1.4 Depreciation Assets and Liabilities denominated in

Fixed Assets are stated at cost and foreign currencies are translated into cedis

depreciation is provided by fixed annual at the rate of exchange rulling at the year

rates applied to the original cost of these end. All differences arising from changes in

assets and calculated to reduce them to the exchange rate are dealt with through the

their net realisable value by the time they profit and loss account.

are written off from normal use.

The principal rates are :

Notes to the Financial StatementsYEAR ENDED 31 DECEMBER 2010

2010 2009

GH¢ GH¢

NET CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before Taxation 664,806 789,513

Depreciation 213,251 133,755

Profit on Disposal of Fixed Assets (10,910) (6,825)

Increase in Provision on Guarantee 245,909 15,610

Interest Received (296,066) (206,825)

Interest Expense 175,449 298,047

Claims Paid (224,853) (680,301)

Claims Recovered 7,000 1,148

Increase in Accounts Receivable (695,789) (61,927)

Increase in Accounts Payable (114,193) 231,656

National Fiscal Stabilization Levy 0 ( 16,051)

Corporate Tax Paid (60,000) (30,000)

Net Cash flow from Operating Activities (95,396) 467,800

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant & Equipment (521,826) (313,603)

Proceeds from Sale of Property, Plant & Equipment 10,910 6,825

Interest Received 296,066 206,825

Net Cash flow from Investing Activities (214,850) (99,953)

CASH FLOWS FROM FINANCING ACTIVITIES

Edif Grant received 6,000,000 0

Dividend Paid (39,604) 0

Interest Paid (175,449) (298,047)

Net Cash flow from Financing Activities 5,784,947 (298,047)

Net Increase in Cash and Cash Equivalents 5,474,701 69,800

Cash and Cash Equivalents at 1 January 6,403,697 6,333,897

Cash and Cash Equivalent at 31 December 11,878,398 6,403,697

Cash and Cash Equivalents

Bank and Cash Balances 402,814 206,419

Short term Investments 11,475,584 6,197,278

11,878,398 6,403,697

Cash Flow StatementAS AT 31 DECEMBER 2010

24 EXIMGUARANTY 2010 ANNUALREPORT 25EXIMGUARANTY 2010 ANNUALREPORT

1. ACCOUNTING POLICIES Office Building 2%

The significant accounting policies adopted Motor Vehicle 25%

by the Company and which havebeen used Office Equipment 25%

in preparing these financial statements are Furniture & Fittings 25%

as follows : Plant and Machinery 5%

1.1 Basis of Accounting 1.5 Provisions

These financial statements have been Provision for Unexpired Guarantees is

prepared under the historical cost computed on a range of 0.5% - 1.5% of total

convention. outstanding guarantees at the year end.

Provision for Notice of Default is based on

1.2 Investments review of individual claims and provided at

Investments in securities redeemable at 50% of such claims.

fixed dates are stated at cost adjusted to

give effect to amortisation of premiums and 1.6 Dividend

discounts on purchase over the period to Dividend declared are treated as an

redemption on a straight line basis. appropriation in the year of approval, whilst

dividend proposed are disclosed as a note

1.3 Income Recognition and Claims to the financial statements.

Fees and Interest on investments are

accounted for on an accrual basis. 1.7 Deferred Tax

Operating Income is made up of Guarantee Provision is made for deferred tax using the

Fees, Interest on the Guarantee Fund and liability method on temporary differences.

income from managed funds. Claims are Deferred tax assets are recognised to the

paid as and when they are presented, and extent that there is reasonable certainty of

out of the Guarantee Fund. realisation.

1.8 Foreign Currencies

1.4 Depreciation Assets and Liabilities denominated in

Fixed Assets are stated at cost and foreign currencies are translated into cedis

depreciation is provided by fixed annual at the rate of exchange rulling at the year

rates applied to the original cost of these end. All differences arising from changes in

assets and calculated to reduce them to the exchange rate are dealt with through the

their net realisable value by the time they profit and loss account.

are written off from normal use.

The principal rates are :

Notes to the Financial StatementsYEAR ENDED 31 DECEMBER 2010

Notes to the Financial StatementsYear ended 31December 2010

2010 2009

GH¢ GH¢

Guarantee Fees 1,700,667 929,416

Interest Income from Guarantee Fund Invested 1,337,104 1,408,402

Agency Fees 54,780 0

3,092,551 2,337,818

Directors' Remuneration 27,027 20,673

Auditors' Remuneration 30,360 25,350

Depreciation 213,251 113,755

Interest Charges on Pref. Shares 20,000 20,000

Interest Expense- EDIF 155,449 278,047

175,449 298,047

Income from Investment 296,066 206,825

Exchange Gain 2,564 1 7,525

Profit on Disposal of Fixed Assets 10,910 6,825

Others 7,274 7,420

316,814 238,595

2. INCOME

3. ADMINISTRATIVE EXPENSES include the following :

4. INTEREST EXPENSE

5. OTHER INCOME

6. TAXATION

a. Income Tax

Balance at Payments Provision Balance at

Year of 1 Jan. During the Year for the Year 31 Dec.

Assessment GH¢ GH¢ GH¢ GH¢

2003-2007 116,910 0 0 116,910

2008 21,389 0 0 21,389

2009 14,623 0 0 14,623

2010 0 (60,000) 253,438 193,438

152,922 (60,000) 253,438 346,360

26 EXIMGUARANTY 2010 ANNUALREPORT 27EXIMGUARANTY 2010 ANNUALREPORT

2010 2009

GH¢ GH¢

b Deferred Taxation

Balance at 1 January 1,439 ( 43,837)

Charge to P&L for the year (24,766) 4 5,276

Balance at 31 December (23,327) 1,439

c Taxation Expenses

Current Tax Provision 253,438 69,812

Deferred Tax (24,766) 45,276

(228,672) 115,088

Balance at Payments Provision Balance at

Year of 1 Jan. During the Year for the Year 31 Dec.

Assessment GH¢ GH¢ GH¢ GH¢

2009 3,687 0 0 3,687

2010 0 0 33,240 33,240

3,687 0 33,240 36,927

7. NATIONAL STABILIZATION LEVY

Notes to the Financial StatementsYear ended 31December 2010

8. BANK AND CASH BALANCES

9. SHORT TERM INVESTMENT

10. ACCOUNTS RECEIVABLE

Balances with Bank of Ghana 206,719 100,376

Balances with Other Banks 194,532 105,010

Cash on Hand 1,563 1,033

402,814 206,419

Treasury Bills 5,270,029 3,053,970

Fixed Deposit 6,205,555 3,143,308

11,475,584 6,197,278

The Guarantee Fund was invested in Short Term Investments.

Trade Debtors 508,455 110,995

Sundry Debtors 5,088 8,088

Staff Debtors 240,003 236,164

Prepayments 300,721 128,574

Accrued Interest 287,044 161,702

1,341,311 645,523

The maximum amount owed by staff did not at any time exceed GH¢240,003 (2009-GH¢236,164).

Prepayments represents the unexpired portion of certain expenditure spread on time basis.

Notes to the Financial StatementsYear ended 31December 2010

2010 2009

GH¢ GH¢

Guarantee Fees 1,700,667 929,416

Interest Income from Guarantee Fund Invested 1,337,104 1,408,402

Agency Fees 54,780 0

3,092,551 2,337,818

Directors' Remuneration 27,027 20,673

Auditors' Remuneration 30,360 25,350

Depreciation 213,251 113,755

Interest Charges on Pref. Shares 20,000 20,000

Interest Expense- EDIF 155,449 278,047

175,449 298,047

Income from Investment 296,066 206,825

Exchange Gain 2,564 1 7,525

Profit on Disposal of Fixed Assets 10,910 6,825

Others 7,274 7,420

316,814 238,595

2. INCOME

3. ADMINISTRATIVE EXPENSES include the following :

4. INTEREST EXPENSE

5. OTHER INCOME

6. TAXATION

a. Income Tax

Balance at Payments Provision Balance at

Year of 1 Jan. During the Year for the Year 31 Dec.

Assessment GH¢ GH¢ GH¢ GH¢

2003-2007 116,910 0 0 116,910

2008 21,389 0 0 21,389

2009 14,623 0 0 14,623

2010 0 (60,000) 253,438 193,438

152,922 (60,000) 253,438 346,360

26 EXIMGUARANTY 2010 ANNUALREPORT 27EXIMGUARANTY 2010 ANNUALREPORT

2010 2009

GH¢ GH¢

b Deferred Taxation

Balance at 1 January 1,439 ( 43,837)

Charge to P&L for the year (24,766) 4 5,276

Balance at 31 December (23,327) 1,439

c Taxation Expenses

Current Tax Provision 253,438 69,812

Deferred Tax (24,766) 45,276

(228,672) 115,088

Balance at Payments Provision Balance at

Year of 1 Jan. During the Year for the Year 31 Dec.

Assessment GH¢ GH¢ GH¢ GH¢

2009 3,687 0 0 3,687

2010 0 0 33,240 33,240

3,687 0 33,240 36,927

7. NATIONAL STABILIZATION LEVY

Notes to the Financial StatementsYear ended 31December 2010

8. BANK AND CASH BALANCES

9. SHORT TERM INVESTMENT

10. ACCOUNTS RECEIVABLE

Balances with Bank of Ghana 206,719 100,376

Balances with Other Banks 194,532 105,010

Cash on Hand 1,563 1,033

402,814 206,419

Treasury Bills 5,270,029 3,053,970

Fixed Deposit 6,205,555 3,143,308

11,475,584 6,197,278

The Guarantee Fund was invested in Short Term Investments.

Trade Debtors 508,455 110,995

Sundry Debtors 5,088 8,088

Staff Debtors 240,003 236,164

Prepayments 300,721 128,574

Accrued Interest 287,044 161,702

1,341,311 645,523

The maximum amount owed by staff did not at any time exceed GH¢240,003 (2009-GH¢236,164).

Prepayments represents the unexpired portion of certain expenditure spread on time basis.

Notes to the Financial StatementsYear ended 31December 2010

11. PROPERTY, PLANT AND EQUIPMENT

12 ACCOUNTS PAYABLE

13 PROVISION ON GUARANTEES

Office Motor Office Fixtures Plant &

Building Vehicle Equipment & Fittings Machinery Total

Cost GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Balance at 1 January 435,249 441,787 185,319 75,748 29,580 1,167,683

Additions 0 249,042 111,823 81,619 79,864 522,348

Disposal 0 ( 92,252) (15,026) 0 (550) (107,828)

Balance at 31 December 435,249 598,577 282,116 157,367 108,894 1,582,203

Depreciation

Balance at 1 January 41,117 217,632 124,132 60,585 5,831 449,297

Charge for the Year 8,612 112,753 58,578 27,846 5,461 213,250

Disposal 0 (92,252) (15,026) 0 28 (107,306)

Balance at 31 December 49,729 238,133 167,684 88,431 11,264 555,241

NET BOOK VALUE - 31/12/10 385,520 360,444 114,432 68,936 97,630 1,026,962

NET BOOK VALUE - 31/12/09 394,132 224,155 61,187 15,163 23,749 718,386

2010 2009

GH¢ GH¢

Sundry Creditors 1,547 1,293

Accruals 38,659 79,683

EDIF 139,999 194,000

Other Creditors 24,877 44,299

205,082 319,275

Balance at 1 January 212,763 197,153

Increase in provision for unexpired

Guarantees 245,909 15,160

Balance at 31 December 458,627 212,763

28 EXIMGUARANTY 2010 ANNUALREPORT 29EXIMGUARANTY 2010 ANNUALREPORT

GH¢ GH¢

There were contingent liabilities at the end of the financial

year in respect of :Unexpired Guarantees outstanding

Balance at 31 December 38,922,522 18,224,608

Number Number

Authorised

Ordinary Shares of no par value 10,000,000 10,000,000

2% Preference Shares 100 100

Issued

Ordinary Shares of no par value 1,100,000 1,100,000

2% Preference Shares 100 100

GH¢ GH¢

Issued and Fully Paid:

Proceeds of Issue for Cash - Ordinary Shares 116,903 116,903

Proceeds of Issue for Cash - Preference Shares 1,000,000 1,000,000

1,116,903 1,116,903

There are no shares in treasury and no unpaid liability on any share.

Balance at 1 January 539,366 119,968

Transfer from Income Surplus Account 201,447 339,398

Balance at 31 December 740,813 539,366

2010 2009

14. CONTINGENT LIABILITIES

15. STATED CAPITAL

16. MANDATORY RESERVE FUND

Notes to the Financial StatementsYear ended 31December 2010

Notes to the Financial StatementsYear ended 31December 2010

11. PROPERTY, PLANT AND EQUIPMENT

12 ACCOUNTS PAYABLE

13 PROVISION ON GUARANTEES

Office Motor Office Fixtures Plant &

Building Vehicle Equipment & Fittings Machinery Total

Cost GH¢ GH¢ GH¢ GH¢ GH¢ GH¢

Balance at 1 January 435,249 441,787 185,319 75,748 29,580 1,167,683

Additions 0 249,042 111,823 81,619 79,864 522,348

Disposal 0 ( 92,252) (15,026) 0 (550) (107,828)

Balance at 31 December 435,249 598,577 282,116 157,367 108,894 1,582,203

Depreciation

Balance at 1 January 41,117 217,632 124,132 60,585 5,831 449,297

Charge for the Year 8,612 112,753 58,578 27,846 5,461 213,250

Disposal 0 (92,252) (15,026) 0 28 (107,306)

Balance at 31 December 49,729 238,133 167,684 88,431 11,264 555,241

NET BOOK VALUE - 31/12/10 385,520 360,444 114,432 68,936 97,630 1,026,962

NET BOOK VALUE - 31/12/09 394,132 224,155 61,187 15,163 23,749 718,386

2010 2009

GH¢ GH¢

Sundry Creditors 1,547 1,293

Accruals 38,659 79,683

EDIF 139,999 194,000

Other Creditors 24,877 44,299

205,082 319,275

Balance at 1 January 212,763 197,153

Increase in provision for unexpired

Guarantees 245,909 15,160

Balance at 31 December 458,627 212,763

28 EXIMGUARANTY 2010 ANNUALREPORT 29EXIMGUARANTY 2010 ANNUALREPORT

GH¢ GH¢

There were contingent liabilities at the end of the financial

year in respect of :Unexpired Guarantees outstanding

Balance at 31 December 38,922,522 18,224,608

Number Number

Authorised

Ordinary Shares of no par value 10,000,000 10,000,000

2% Preference Shares 100 100

Issued

Ordinary Shares of no par value 1,100,000 1,100,000

2% Preference Shares 100 100

GH¢ GH¢

Issued and Fully Paid:

Proceeds of Issue for Cash - Ordinary Shares 116,903 116,903

Proceeds of Issue for Cash - Preference Shares 1,000,000 1,000,000

1,116,903 1,116,903

There are no shares in treasury and no unpaid liability on any share.

Balance at 1 January 539,366 119,968

Transfer from Income Surplus Account 201,447 339,398

Balance at 31 December 740,813 539,366

2010 2009

14. CONTINGENT LIABILITIES

15. STATED CAPITAL

16. MANDATORY RESERVE FUND

Notes to the Financial StatementsYear ended 31December 2010

Notes to the Financial StatementsYear ended 31December 2010

2010 2009¢

GH¢ GH¢

Balance at 1 January 5,027,889 5,605,061

Additions:

Edif Grant 6,000,000 0

Transfer from Income Surplus 60,434 101,981

Claims Recovered 7,000 1,148

11,095,323 5,782,062

Claims Paid (224,853) (680,301)

Balance at 31 December 10,870,470 5,027,889

Balance at 1 January 4 ,500,000 4,500,000

Additional Funds 6,000,000 0

Balance at 31 December 10,500,000 4,500,000

The directors have recommended a dividend of GH¢0.036 (2009: GH0.036) amounting

to GH¢39,604 (2009: GH39,604).

17. GUARANTEE FUND

17a.EDIF Long Term Deposit to augment

the Guarantee Fund

18. DIVIDEND

30 EXIMGUARANTY 2010 ANNUALREPORT 31EXIMGUARANTY 2010 ANNUALREPORT

I/We……………………………………….. of ……………………………………. being member/members

of the above-named company hereby appoint……………………of …………………………….…. or

failing him ……………………………………… of ………………………. as my /our proxy to vote for

me/us on my/our behalf at the annual general meeting of the company to be held on the

…………………… day of ………………………… 2011…………………….. and at any adjournment

thereof.

Please indicate with an 'X' in the spaces below how you wish your votes to be cast.

RESOLUTIONS

1. To receive and consider the accounts for the year ended 31st

December 2010 with Reports of the Directors and Auditors

thereon.

2. To declare dividend for the year end 31st December, 2010.

3. To re-appoint Messrs. Pannell Kerr Forster as Auditors of the

Company and to authorize the Directors to fix the remuneration

of the Auditors.

Signed this .......................... day of ..................... 20 .......................

Signature ……………………………………

________________________________________________________________________________________

IMPORTANT

A person attending the meeting should produce this form to obtain admission.

EXIMGUARANTY COMPANY GH. LTD

PROXY FORM

For Against

Notes to the Financial StatementsYear ended 31December 2010

2010 2009¢

GH¢ GH¢

Balance at 1 January 5,027,889 5,605,061

Additions:

Edif Grant 6,000,000 0

Transfer from Income Surplus 60,434 101,981

Claims Recovered 7,000 1,148

11,095,323 5,782,062

Claims Paid (224,853) (680,301)

Balance at 31 December 10,870,470 5,027,889

Balance at 1 January 4 ,500,000 4,500,000

Additional Funds 6,000,000 0

Balance at 31 December 10,500,000 4,500,000

The directors have recommended a dividend of GH¢0.036 (2009: GH0.036) amounting

to GH¢39,604 (2009: GH39,604).

17. GUARANTEE FUND

17a.EDIF Long Term Deposit to augment

the Guarantee Fund

18. DIVIDEND

30 EXIMGUARANTY 2010 ANNUALREPORT 31EXIMGUARANTY 2010 ANNUALREPORT

I/We……………………………………….. of ……………………………………. being member/members

of the above-named company hereby appoint……………………of …………………………….…. or

failing him ……………………………………… of ………………………. as my /our proxy to vote for

me/us on my/our behalf at the annual general meeting of the company to be held on the

…………………… day of ………………………… 2011…………………….. and at any adjournment

thereof.

Please indicate with an 'X' in the spaces below how you wish your votes to be cast.

RESOLUTIONS

1. To receive and consider the accounts for the year ended 31st

December 2010 with Reports of the Directors and Auditors

thereon.

2. To declare dividend for the year end 31st December, 2010.

3. To re-appoint Messrs. Pannell Kerr Forster as Auditors of the

Company and to authorize the Directors to fix the remuneration

of the Auditors.

Signed this .......................... day of ..................... 20 .......................

Signature ……………………………………

________________________________________________________________________________________

IMPORTANT

A person attending the meeting should produce this form to obtain admission.

EXIMGUARANTY COMPANY GH. LTD

PROXY FORM

For Against

Since inception, the company's operations have mainly covered the issuing of credit

guarantee and insurance cover to . . .

! Small and Medium Scale Enterprises (SMEs) with total assets, excluding land, not

exceeding US$2 million) and

! Micro or Owner operated Enterprises (MOEs) with total assets, excluding land, not

exceeding US$ 100,000).

Eximguaranty's products and services are listed below:

SMEs approach their banks and financial institutions for the following products and

services

1. Credit Guarantee covers for Financial Institutions in respect of credit extended to the

private sector particularly medium and micro enterprises

2. Credit Guarantee for refinance

3. Local Credit Line Guarantee for Micro Finance Institutions

4. Credit Guarantee for Micro- Mutual Groups or Associations.

5. Credit Syndication Guarantee

6. Group Credit Syndication Guarantee

PRODUCTS & SERVICES

33

7. Credit guarantee cover for pre and post-shipment export for the purpose of

purchasing raw materials, manufacturing, processing and packaging goods for

export within 80 days or as advance against export bills and import documents,

especially for processing commodities for re-export.

8. Machinery Credit Guarantee

9. Insurance cover for export proceeds against the occurrence of non-insurable risks

on non-traditional exports, subject to the fulfillment of contractual obligations within

the terms of the sale contract i.e. irrevocable letters of credit and documents against

payments and acceptance.

10. Bid bonds/ Tender Security

11. Advance Payment Guarantees

12. Advance Mobilization guarantees

13. Seed Fund Guarantee

14. Specialized Training and support services for SMEs

SMEs / Businesses contact Eximguaranty directly for

the following products and services

Products and Services

EXIMGUARANTY 2009 ANNUALREPORT32 EXIMGUARANTY 2009 ANNUALREPORT

Since inception, the company's operations have mainly covered the issuing of credit

guarantee and insurance cover to . . .

! Small and Medium Scale Enterprises (SMEs) with total assets, excluding land, not

exceeding US$2 million) and

! Micro or Owner operated Enterprises (MOEs) with total assets, excluding land, not

exceeding US$ 100,000).

Eximguaranty's products and services are listed below:

SMEs approach their banks and financial institutions for the following products and

services

1. Credit Guarantee covers for Financial Institutions in respect of credit extended to the

private sector particularly medium and micro enterprises

2. Credit Guarantee for refinance

3. Local Credit Line Guarantee for Micro Finance Institutions

4. Credit Guarantee for Micro- Mutual Groups or Associations.

5. Credit Syndication Guarantee

6. Group Credit Syndication Guarantee

PRODUCTS & SERVICES

33

7. Credit guarantee cover for pre and post-shipment export for the purpose of

purchasing raw materials, manufacturing, processing and packaging goods for

export within 80 days or as advance against export bills and import documents,

especially for processing commodities for re-export.

8. Machinery Credit Guarantee

9. Insurance cover for export proceeds against the occurrence of non-insurable risks

on non-traditional exports, subject to the fulfillment of contractual obligations within

the terms of the sale contract i.e. irrevocable letters of credit and documents against

payments and acceptance.

10. Bid bonds/ Tender Security

11. Advance Payment Guarantees

12. Advance Mobilization guarantees

13. Seed Fund Guarantee

14. Specialized Training and support services for SMEs

SMEs / Businesses contact Eximguaranty directly for

the following products and services

Products and Services

EXIMGUARANTY 2009 ANNUALREPORT32 EXIMGUARANTY 2009 ANNUALREPORT

+233-302 768763-4+233-302 768884

302