may & baker nigeria plc 2013_hy

May & Baker Nig Plc RC. 558

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS30 JUNE 2013

MAY & BAKER NIGERIA PLC

FOR THE SIX MONTHS ENDED 30 JUNE 2013

JUNE DECEMBER JUNE2013 2012 2012

Note N'000 N'000 N'0005 2,864,363 5,668,449 2,426,847

(1,927,771) (3,598,756) (1,402,314)

Gross profit 936,592 2,069,693 1,024,533 7 1,923 11,960 4,327

(327,671) (1,260,231) (513,918) (282,544) (588,476) (255,664)

Operating profit 328,300 232,946 259,278 8 1,231 2,447 - 9 417 278,759 -

10 (277,854) (469,630) (218,860)

Profit before tax 52,094 44,522 40,418

Taxation 13 (16,670) 31,421 (12,934)

Profit for the period 11 27,484

Distribution, sales and marketing

Items that may be reclassified subsequently

35,424 75,943

UNAUDITED CONSOLIDA TED STATEMENT OF PROFIT OR LOSS A ND OTHER COMPREHENSIVE INCOM E

Investment income

Other comprehensive income (net of tax)

RevenueCost of sales

Other operating income

Administrative expenses

Other gains and lossesFinance costs

http://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22

Non-controlling interestOwners of the parent

Earnings per share 14Basic (kobo per share) 3.61 7.75 2.80 Diluted (kobo per share) 3.61 7.75 2.80


Unaudited Consolidated Statem ent of Financial PositionFor the six months ended June 2013

JUNE DECEMBE

R JUNE ASSETS 2013 2012 2012

Note N'000 N'000 N'000Non-current assetsIntangible assets 15 67,296 67,296 67,296 Property, plant and equipment 16 4,577,472 4,670,433 4,641,807 Deposit for investment 17 245,325 245,325 246,325

Total non-current assets 4,890,093 4,983,054 4,955,428

Current assetsInventories 18 1,452,936 1,313,857 1,090,999 Trade and other receivables 19 1,646,473 1,424,267 1,092,975 Cash and bank balances 20 115,349 237,418 79,014 Other assets 21 182,514 66,517 224,296 Asset held sale 44,293 Total current assets 3,397,272 3,086,352 2,487,284

Total assets 8,287,365 8,069,406 7,442,712

The results for the second quarter of 2013 shows growth for both revenue and profit before tax. Revenue grew by 18 percent while profit before tax grew by 29 percent. This was achieved despite the current security challenges in the country which significantly hampered products distribution to some parts of the country most especially the northern states. Also the depreciation of our Ultra modern factory in Ota

to profit or loss.

Gains / (losses) on property revaluation

Profit attributable to:

Gain or loss arising from available for sale financial assetsTotal items that may be reclassified to profit or loss subsequentlyTotal other comprehensive income(net of tax)


Current liabilitiesTrade and other payables 22 990,504 965,815 454,984 Current tax liabilities 13 27,534 39,866 60,292 Dividends 23 100,358 50,349 Borrowings 24 1,426,298 1,619,973 1,661,508 Other liabilities 25 106,746 145,597 89,041

Total current liabilities 2,651,440 2,771,251 2,316,174

Non-current liabilitiesBorrowings 24 2,336,796 2,039,602 1,610,000 Deferred tax liabilities 13 126,203 126,257 240,468 Other liabilities 25 95,523

Total non-current liabities 2,462,999 2,165,859 1,945,991

5,114,439 4,937,110 4,262,165

Equity26 490,000 490,000 490,000 27 1,626,094 1,626,094 1,626,094 28 1,056,832 1,016,202 1,064,453

Total equity 3,172,926 3,132,296 3,180,547

Total equity and liabilities 8,287,365 8,069,406 7,442,712

- - -


Unaudited Consolidated Statement Of Changes In EquityFor the six months ended June 2013

Share Capital

Share Premium Account

Retained Earnings

Total

N'000 N'000 N'000 N'000 490,000 1,626,094 1,021,408 3,137,502

- - - 35,424 35,424

- - - - Other comprehensive income forthe period

Equity attributable to equity holders of the Group

Balance at 1 January 2013

(Loss)/Profit for the period

Retained earnings

Total liabilities

Share capitalShare premium account


490,000 - 1,626,094 1,056,832 - 3,172,926

- - - - - - - -

- -


Unaudited Consolidated Statement Of Cash flow.For the six months ended 30 June 2012

June December June2013 2012 2012

Note N'000 N'000 N'000

2,462,643 5,080,229 2,147,566 (2,640,054) (5,240,426) (2,678,488)

(9,958) 0(18,889) (133,485) (84,964)

(206,258) (293,682) (615,886)

1,923 - 0417 5,703

1,231 2,247 Purchase of fixed assets (120,921) (417,828) (120,921)

(117,350) (409,878) (120,230)

(387) (98,000) (50,405) 136

292,503 3,659,281 1,271,428 (188,984) (2,195,505) (270,584) (121,606) (396,710) (218,860)

(18,474) 969,066 731,715

(342,082) 265,506 (4,666) (740,534) (1,006,040) (1,006,040)

Taxes paid

Proceeds from sale of fixed assets Proceed from contract manufacturing

Financing activities

Net cash used in investing activities

Interest received

Cash flows from Investing activities

Net cash used in operating activities

Value added tax Cash paid to suppliers and employeesCash received from customersCash from operating activities

Cash and cash equivalents at beginning of year

Net increase/(decrease) in cash and cashequivalents

Net cash (used in)/from financing activities

Interest paidLoans repaidTerm loans obtainedUnclaimed dividends returnedDividends paid

490,000 1,626,094 1,056,832 3,172,926 Balance at June 2012

Issue of share capitalDividends

Total comprehensive income for the period


(1,082,616) (740,534) (1,010,706)

Reconciliation of cash and bank balances to cash and cash equivalentsCash and bank balance 115,349 237,418 79,014 Bank overdrafts and commercial papers (1,197,965) (977,952) (1,089,720)

(1,082,616) (740,534) 1,010,706


Notes to the Unaudited Consolidated financial statem entsFor the six months ended June 2013

1.1 Description of business

1.2 Composition of Financial Statement

1.3 Accounting convention

2 ADOPTION OF NEW AND REVISED STANDARDS

2.1 Accounting standards and interpretations issued but not yet effective

IFRS 13 FAIR VALUE MEASUREMENT

IFRS 9 FINANCIAL INSTRUMENTS

MAY & BAKER NIGERIA PLC is involved in the manufacture, sale and distribution of human pharmaceuticals,human vaccines and consumer products.

This financial statement comprise the entity's statement of financial position as at 30 June 2013 and the notes to theaccount as at that date with comparative figures as at 30 June 2012 and December 2012

The financial statements have been prepared using the historical cost convention, as modified by the revaluation ofcertain items, as stated in the accounting policies.

Below are the new International Financial Reporting Standards and International Accounting Standards which havenot been early adopted by the company and that might affect future reporting periods, on the assumption that thecompany will continue with its current activities.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair valuemeasurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements), IFRS 13 is applicable to annual reporting periods beginning on or after 1 January 2013. An entitymay apply IFRS 13 to an earlier accounting period, but if doing so it must disclose the fact.

IFRS 9 introduces new requirements for classifying and measuring financial assets.At the IASB's July 2011 meeting, the IASB decided to postpone the mandatory application of IFRS 9 to annualperiods beginning on or after 1 January 2013 with early application still permitted

Cash and cash equivalents at 30 June2013


IFRS 12 DISCLOSURE OF INTERESTS IN OTHER ENTITIES



2 ADOPTION OF NEW AND REVISED STANDARDS (cont)

IAS 19: EMPLOYEE BENEFITS

2.2 Standards and Interpretations effective in the current year

IAS 1- Presentation of Financial Statements:

IAS 10- Events after the Reporting PeriodThe amendment results from the issue of IFRIC 17 - Distribution of Non-cash Assets to owners.

IAS 17 - LeasesThe amendment relates to the classification of leases of Land and buildings

IAS 12: Income Taxes

2.3 Early adoption of standards and interpretationsThe Company has not early adopted any standard.

3. Significant accounting policies

3.1 Statement of compliance

This standard, amended in June 2011 will affect Post-Employment Benefits and Termination Benefits projects and willenhance disclosures about defined benefit plans. It is efective January, 2013 but earlier application is permitted withdisclosures.

The following new and revised Standards and interpretations have been adopted in the current year and have primarilyaffected the disclosure in these financial statements

IAS 1 (2007) has introduced terminology changes (including revised titles for the Presentation of Financial Statements)and changes in the format and content of the financial statements.

IAS 12 has introduced a rebuttable presumption that an investment property will be recovered in its entirely through sale

The objective of IFRS 12 is to require the disclosure of information that enables users of financial statements toevaluate the nature of, and risks associated with, its interests in other entities the effects of those interests on itsfinancial position, financial performance and cash flows.

IFRS 12 is applicable to annual reporting periods beginning on or after 1 January 2013. Early application is permitted.


3.2 Foreign currency translation



3. Significant accounting policies

Business combinations

The consolidated financial statements incorporate the financial statements of the Company and entitiescontrolled by the Company (its subsidiary) made up to 31 December each year. Control is achieved wherethe Company has the power to govern the financial and operating policies of an investee entity so as toobtain benefits from its activities.The results of subsidiary acquired or disposed of during the year are included in the consolidated income

statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting

policies used into line with those used by the group. All intra-group transactions, balances, income and

expenses are eliminated on consolidation.

Acquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each

acquisition is measured at the aggregate of the fair values (at the date of exchange) of assets given,

liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the

acquiree. Acquisition-related costs are recognised in profit or loss as incurred.

Where a business combination is achieved in stages, the Group’s previously-held interests in the acquired

entity are re-measured to fair value at the acquisition date (i.e. the date the Group attains control) and the

resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree

prior to the acquisition date that have previously been recognised in other comprehensive income are

reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.

Basis of Consolidation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs).

The principal accounting policies adopted are set out below.

Foreign currency transactions are booked in the functional currency of the Company at the exchange rate ruling on the

date of transaction. Foreign currency monetary assets and liabilities are retranslated into the functional currency at rates

of exchange ruling at the balance sheet date. Exchange differences are included in the income statement. Non-monetary

items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date

when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign

currency are not retranslated.




3.3 Revenue from sale of goods

iii. the amount of revenue can be measured reliably;

v. the costs incurred or to be incurred in respect of the transaction can be measured reliably.

3.4 Expenditure

3.5 Intangible assetsIntangible assets acquired seperately

vi. the Company retains neither continuing managerial involvement to the degree usually associated with ownership noreffective control over the goods sold;

Expenditure is recognised in respect of goods and services received when supplied in accordance with contractualterms. Provision is made when an obligation exists for a future liability in respect of a past event and where the amountof the obligation can be reliably estimated. Manufacturing start-up costs between validation and the achievement ofnormal production are expensed as incurred. Advertising and promotion expenditure is charged to profit or loss asincurred. Shipment costs on inter-company transfers are charged to cost of sales; distribution costs on sales tocustomers are included in distributionexpenditure. Restructuring costs are recognised and provided for, whereappropriate, in respect of the direct expenditure of a business reorganisation where the plans are sufficiently detailed andwell advanced, and where appropriate communication to those affected has been undertaken.

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisationand accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives.The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of anychanges in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that areacquired separately are carried at cost less accumulated impairment losses.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimatedcustomer returns, rebates and other similar allowances.

Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all thefollowing conditions are satisfied:

i. the Company has transferred to the buyer the significant risks and rewards of ownership of the goods

ii. the Company retains neither continuing managerial involvement to the degree usually associated with ownership noreffective control over the goods sold;

iv. it is probable that the economic benefits associated with the transaction will flow to the Company; and

The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for

recognition under IFRS 3(2008) are recognised at their fair value at the acquisition date, except that:


Internally generated intangible assets - research and development expenditure



3.5

3.6 Legal and other dispute

An internally-generated intangible asset arising from development (or from the development phase of an internal project)

is recognised if, and only if, all of the following have been demonstrated:

• the ability to use or sell the intangible asset;• how the intangible asset will generate probable future economic benefits;• the availability of adequate technical, financial and other resources to complete the development and to use or sell theintangible asset; and• the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the

date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible

asset can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.

Intangible Assets ( continued)

Provision is made for the anticipated settlement costs of legal or other disputes against the Company where an outflowof resources is considered probable and a reliable estimate can be made of the likely outcome. In addition, provision ismade for legal or other expenses arising from claims received or other disputes. In respect of product liability claimsrelated to certain products, there is sufficient history of claims made and settlements to enable management to make areliable estimate of the provision required to cover un-asserted claims. The Company may become involved in legalproceedings, in respect of which it is not possible to make a reliable estimate of the expected financial effect, if any, thatcould result from ultimate resolution of the proceedings. In these cases, appropriate disclosure about such cases wouldbe included but no provision would be made. Costs associated with claims made by the Company against third parties

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulatedamortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

• the technical feasibility of completing the intangible asset so that it will be available for use or sale;• the intention to complete the intangible asset and use or sell it;

Expenditure on research activities is recognised as an expense in the period in which it is incurred.


3.7 Pensions and other post-employment benefits

Defined Contribution scheme

Defined Benefit Scheme



3.8 Property plant and equipment

If the construction phase of property, plant or equipment extends over a long period, the interest incurred on borrowedcapital up to the date of completion is capitalized as part of the cost of acquisition or construction in accordance withIAS 23 (Borrowing Costs).

Expenses for the repair of property, plant and equipment, such as on-going maintenance costs, are normally recognizedin income. The cost of acquisition or construction is capitalized if a repair (such as a complete overhaul of technicalequipment) will result in future economic benefits.

Property, plant and equipment is depreciated by the straight-line method, except where depreciation based on actualdepletion is more appropriate. Significant asset components with different useful lives are accounted for and depreciated

Property, plant and equipment is carried at the cost of acquisition or construction depreciated over its estimated usefullife. An impairment loss is recognized in addition if an asset’s recoverable amount falls below its carrying amount.

The cost of acquisition comprises the acquisition price plus ancillary and subsequent acquisition costs, less any

reduction received on the acquisition price. The cost of self-constructed property, plant and equipment comprises the

direct cost of materials, direct manufacturing expenses, and appropriate allocations of material and manufacturing

overheads. Where an obligation exists to dismantle or remove an asset or restore a site to its former condition at the end

of its useful life, the present value of the related future payments is capitalized along with the cost of acquisition or

construction upon completion and a corresponding liability is recognized.

The company operates a defined contribution based retirement benefit scheme for its staff, in accordance with thePension Reform Act of 2004 with employee and employer contributing 6% and 10% respectively. Payments to definedcontribution retirement benefit plans are recognised as an expense when employees have rendered service entitlingthem to the contributions.

In addition to the pension scheme, the company operates a gratuity scheme payable to employees that have served aminimum of five years of service.The benefits are calculated based on employees salary for each qualifying year. Thecompany discharges its obligation to employees once fund is remitted to the fund managers

are charged to the income statement as they are incurred.


Land and Buildings 33.33 yearsPlant, Machinery and Fittings 10-20 yearsOffice equipment and furniture 3-10 yearsTrucks & Motor vehicles 3-8 years

3.9 Leases

Company as lessor



3.9 Leases (continued)Company as lessee

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a

constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit

or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with

the company's general policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which

they are incurred.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where

another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are

consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they

Assets held under finance leases are initially recognised as assets of the company at their fair value at the inception ofthe lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor isincluded in the statement of financial position as a finance lease obligation.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial

direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased

asset and recognised on a straight-line basis over the lease term.

separately.The following depreciation periods, based on the estimated useful lives of the respective assets, are applied throughoutthe Company:

Useful lives

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards ofownership to the lessee. All other leases are classified as operating leases

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company's netinvestment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodicrate of return on the company's net investment outstanding in respect of the leases.


3.10 Impairment of non-current assets



3.10 Impairment of non-current assets (continued)If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the

carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is

recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the

impairment loss is treated as a revaluation decrease.When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is

increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed

the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-

generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the

relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current

market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash

flows have not been adjusted.

consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they

are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability.

The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where

another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are

consumed.

At the end of each reporting period, the company reviews the carrying amounts of its tangible and intangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any such indication

exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

When it is not possible to estimate the recoverable amount of an individual asset, the company estimates the

recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of

allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are

allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be

identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at

least annually, and whenever there is an indication that the asset may be impaired.


3.11 Financial Assets

Loans and receivables



The company's financial assets include:Cash and cash equivalents

Available for sale equity investments that do not have a quoted market price in an active market and whose fair value

cannot be reliably measured and derivatives that are linked to and must be settled by delivery of such unquoted equity

investments are measured at cost less any identified impairment losses at the end of each reporting period.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in anactive market. Loans and receivables (including [trade and other receivables, bank balances and cash, and others[describe]) are measured at amortised cost using the effective interest method, less any impairment.

Held to maturityInvestments with fixed or determinable payment and fixed maturity that the management has the intent and ability to

hold to maturity are classified as held to maturity and are initially measured at cost and at subsequent reporting dates

measured at amortized cost using the effective interest method less any impairment.

relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a

revaluation increase.

Other investments

Cash and cash equivalentsCash and cash equivalents comprise cash in hand, current balances with banks and similar institutions and highly liquidinvestments with maturities of three months or less when acquired. They are readily convertible into known amounts ofcash and are held at amortised cost.

Fixed deposits

Interest income is recognised by applying the effective interest rate, except for short-term receivables when therecognition of interest would be immaterial.

Available for sale

Fixed deposits

Fixed deposits, comprising principally funds held with banks and other financial institutions, are initially measured at fair

value, plus direct transaction costs, and are subsequently remeasured to amortised cost using the effective interest rate

method at each reporting date. Changes in carrying value are recognised in profit or loss.

Other investments

Dividends on available for sale equity instruments are recognised in profit or loss when the company's right to receive thedividends is established.


3.11 Financial assets (continued)

3.12 Impairment of financial assets

For all other financial assets, objective evidence of impairment could include:

• significant financial difficulty of the issuer or counterparty; or• breach of contract, such as a default or delinquency in interest or principal payments; or• it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or• the disappearance of an active market for that financial asset because of financial difficulties.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the

exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a

trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of

amounts previously written off are credited against the allowance account. Changes in the carrying amount of the

allowance account are recognised in profit or loss.

When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognised in other

Held for tradingInvestments that are acquired principally for the purpose of generating a profit from short term fluctuations in price are

classified as trading investments and included in current assets. These are initially measured at cost and at subsequent

reporting dates, these investments are remeasured at fair value. Realized and unrealized gains and losses arising from

changes in fair value are included in net profit or loss for the period in which they arise.

Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are

considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the

initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For available for sale equity investments, a significant or prolonged decline in the fair value of the security below its costis considered to be objective evidence of impairment.

For certain categories of financial assets, such as trade receivables, assets that are assessed not to be impaired

individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a

portfolio of receivables could include the company's past experience of collecting payments, an increase in the number

of delayed payments in the portfolio past the average credit period of 60 days, as well as observable changes in national

or local economic conditions that correlate with default on receivables.

For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference betweenthe asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset'soriginal effective interest rate.

For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's

carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return

for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.



Notes to the Consolidated financial statem entsFor the six months ended June 2013

3.12 Impairment of financial assets (continued)

3.13 Derecognition of financial assets

3.14 Financial liabilities

comprehensive income are reclassified to profit or loss in the period.

In respect of AFS equity securities, impairment losses previously recognised in profit or loss are not reversed through

profit or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income

and accumulated under the heading of investments revaluation reserve. In respect of AFS debt securities, impairment

losses are subsequently reversed through profit or loss if an increase in the fair value of the investment can be objectively

related to an event occurring after the recognition of the impairment loss.

The company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, orwhen it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.If the company neither transfers nor retains substantially all the risks and rewards of ownership and continues to controlthe transferred asset, the company recognises its retained interest in the asset and an associated liability for amounts itmay have to pay. If the company retains substantially all the risks and rewards of ownership of a transferred financialasset, the company continues to recognise the financial asset and also recognises a collateralised borrowing for theproceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum ofthe consideration received and receivable and the cumulative gain or loss that had been recognised in othercomprehensive income and accumulated in equity is recognised in profit or loss.

On derecognition of a financial asset other than in its entirety (e.g. when the company retains an option to repurchase

part of a transferred asset), the company allocates the previous carrying amount of the financial asset between the part it

continues to recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair

values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is

no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative

gain or loss allocated to it that had been recognised in other comprehensive income is recognised in profit or loss. A

cumulative gain or loss that had been recognised in other comprehensive income is allocated between the part that

continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those parts.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss

decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the

previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the

investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the

impairment not been recognised.


3.15 Trade payables



3.16

3.17

3.18

3.19The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged,

cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and the

BorrowingsAll borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings aresubsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and theamount due on redemption being recognised as a charge to the income statement over the period of the relevantborrowing.

Other receivables and liabilities Accrued items and other non-financial assets and liabilities are carried at amortized cost. They are amortized to income

by the straight-line method or according to performance of the underlying transaction.In accordance with IAS 20 (Accounting for Government Grants and Disclosure of Government Assistance), grants and

subsidies from third parties that serve to promote investment are reflected in the statement of financial position under

other liabilities and amortized to income over the useful lives of the respective assets.

Government grantsGovernment grants are not recognised until there is reasonable assurance that the company will comply with the

conditions attaching to them and that the grants will be received. The benefit of a government loan at a below-market

rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair

value of the loan based on prevailing market interest rates. Government grants relating to property, plant and equipment

are treated as deferred revenue and released to profit or loss over the expected useful lives of the assets concerned.

Financial liabilities are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest

expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash

payments (including all fees and points paid or received that form an integral part of the effective interest rate,

transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where

appropriate) a shorter period, to the net carrying amount on initial recognition.

Trade payables are held at amortised cost which equates to nominal value. Long-term payables are discounted wherethe effect is material.

Derecognition of financial liabilities


3.20 Inventories



3.21 Trade receivables

3.22 Taxation

3.23 Discounting

3.24 Noncurrent asset held for sale

4 Critical accounting judgements and key sources of estimation uncertainty

Trade receivables are carried at original invoice amount less any provisions for doubtful debts. Provisions are madewhere there is evidence of a risk of non-payment, taking into account ageing, previous experience and general economicconditions. When a trade receivable is determined to be uncollectable it is written off, firstly against any provisionavailable and then to the income statement. Subsequent recoveries of amounts previously provided for are credited tothe income statement. Long-term receivables are discounted where the effect is material.

Current tax is provided at the amounts expected to be paid applying tax rates that have been enacted or substantivelyenacted by the balance sheet date. Deferred tax is provided in full, using the liability method, on temporary differencesarising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred taxassets are recognised to the extent that it is probable that future taxable profits will be available against which thetemporary differences can be utilised. Deferred tax is provided using rates of tax that have been enacted or substantivelyenacted by the balance sheet date. Deferred tax liabilities and assets are not discounted.

Where the time effect of money is material, balances are discounted to current values using appropriate rates of interest.The unwinding of the discounts is recorded in finance income and finance costs.

Non-current assets are classified as assets held for sale and stated at the lower of carrying amount and fair value lesscosts to sell if their carrying value is to be recovered principally through a sale transaction rather than through continuinguse.

consideration paid and payable is recognised in profit or loss

In accordance with IAS 2 (Inventories), inventories encompass assets held for sale in the ordinary course of business

(finished goods and goods purchased for resale), in the process of production for such sale (work in process) or in the

form of materials or supplies to be consumed in the production process or in the rendering of services (raw materials and

supplies). Inventories are stated at the lower of cost and net realizable value. The net realizable value is the achievable

sale proceeds under normal business conditions less estimated cost to complete and selling expenses.





5 RevenueN'000 N'000 N'000

2,864,363 5,668,449 2,426,847

2,864,363 5,668,449 2,426,847

6 Segment information

N'000 N'000 N'000Parmaceuticals 2,085,486 4,589,847 1,884,614 Beverage 32,616 59,651 31,871 FoodS 746,261 1,018,951 510,362

2,864,363 5,668,449 2,426,847

Segment Profit

Parmaceuticals 845,835 1,915,490 912,437 Beverage 1,740 16,155 12,766 Foods 89,017 138,048 99,330

936,592 2,069,693 1,024,533

Other operating income 1,923 11,960 4,327

An analysis of the Group’s revenue is as follows:

Sale of Goods

Total revenue

Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment

performance focuses on both the types of goods or services delivered or provided and the market where the goods or services are

delivered or provided. The Group's reportable segments under IFRS 8 are therefore as follows.

These estimates would include allowances for doubtful debts, product re-calls, gratuity payable and bad stocks.

In the application of the Company’s accounting policies, the directors are required to make judgements, estimates andassumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Theestimates and associated assumptions are based on historical experience and other factors that are considered to berelevant. Actual results may differ from these estimates.


Investment Income 1,231 2,447 Other gains and losses 417 278,759 Selling, marketing and distribution costs (327,671) (1,260,231) (513,918) Central administration costs and directors' salaries (282,544) (588,476) (255,664) Finance costs (277,854) (469,630) (218,860)

(Loss)/Profit before tax 52,094 44,522 40,418



6 Segment Information (continued)

Geographical information

The Group operates in Lagos and West, East and North principal geographical areas The Group's revenue from continuing operations from external customers by location of operations.

N'000East 847,851 West 458,298 Lagos 1,019,713 North 538,501

2,864,363



JUNE DECEMBER JUNE2013 2012 2012

Revenue from External Customers

Segment revenue reported above represents revenue generated from external customers. There were no inter-segmentsales in the current year.The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 3.

Segment profit represents the gross profit earned by each segment without allocation of central administration costs and

directors' salaries, selling, marketing and distribution expenses, other operating income, finance costs and income tax

expense. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and

assessment of segment performance.


7 Other operating income N'000 N'000 N'000Profit on contract manufacturing 1,923 5,116 4,327 Sale of scraps - 6,844 -

1,923 11,960 4,327

8 Investment incomeRent received 540 200 - Interest received 691 2,247 -

1,231 2,447 -

9 Other gains and losses N'000 N'000 N'000Profit on disposal of property, plant and equipment 417 - Gain on fair Value 275,616 Foreing exchange gain 3,143

417 278,759 -

10 Finance cost N'000 N'000 N'000

Interest on bank overdrafts and loans 121,606 396,844 218,860 Interest on loans from related party 156,248 72,786

277,854 469,630 218,860

11 Profit for the year is attributed to : N'000 N'000 N'000

Owners of the bussiness 35,424 75,943 27,484

35,424 75,943 27,484 All profit is attributable to owners of the parent as all the subsidiaries are wholly owned



June December2013 2012

11b Profit for the year is attributable to: N'000 N'000Profit for the year from continuing operations has been arrived at after charging (crediting):

The interest income is earned on short term investments( fixed deposits) with various commercial banks in Nigeria. The

investments are not designated at fair value through profit or loss, rather they are carried at amortised cost.


Depreciation of Property, plant and equipment 219,414 421,483 Cost of inventories recognised as expense - 3,598,756 Gain/(loss) on disposal of property, plant and equipment (see note 9) - Auditor's remuneration - 12,600 Staff costs (see note 13) 265,354 561,417 Director's remuneration and fees

Fees 1,200 1,200 Salaries and allowance 26,695 70,658

Interest on loans and overdrafts (see note 10) 277,854 469,630

12 Staff costsThe aggregate employee remuneration is as follows:Salaries and wages 221,394 488,369 Staff pension and gratuity 43,960 73,048

265,354 561,417

12b Employees remunerated at higher rates

35 34 67 69 20 22 23 22

108 108 - -- - 52 47

- - 63 57

368 359

- - 63 57

368 359



June December12 Staff Cost (continued) 2013 2012

The average number of persons employed in the financial year are as follows Number NumberManagerial 48 17

650,001 - 700,000

700,000 and above

The number of employees excluding Directors in respect of emoluments excluding provident fund contributions andallowances

N

250,001 - 300,000

350,001 - 400,000400,001 - 450,000

Number of employees

650,001 - 700,000

450,001 - 500,000500,001 - 550,000550,001 - 600,000600,001 - 650,000

700,000 and above

300,001 - 350,000


Senior staff 190 193 Junior staff 118 149

356 359

13 TaxationIncome tax recognised in profit or loss N'000 N'000Income tax 15,628 23,552 Education tax 1,042 11,813 Capital gains tax - Deferred tax recognised in current year - (66,786)

16,670 (31,421)



13 Taxation (continued)

June December2013 2012

Current tax liabilities N'000 N'000

At 1 January 37,904 135,900 Charge for the year 16,670 34,680

54,574 170,580 (27,040) (132,676) 27,534 37,904

At 1 January 126,203 192,989 Charge for the year - (66,786)

126,203 126,203

Deferred tax liabilty

Recognised Acquisitions Closingin profit or or disposals balanceloss

N'000 N'000 N'000 N'0001-Jan-13

126,203 - - 126,203

The following are the major deferred tax asset/liabilities recognised by the company and movements thereon.

Opening balance

Property, plant & equipment

Paid during the yearAt Period End

At Period End

Deferred Taxation

The charge for taxation in these financial statements was based on the provisions of the Companies Income Tax Act,

CAP C21, LFN 2004 as amended and the Education Tax Act, CAPE 4, LFN 2004


ProvisionsDoubtful debts

126,203 - - 126,203 30-Jun-13

ProvisionsDoubtful debts

126,203 - - 126,203



13 Taxation (continued)

June December2013 2012N'000 N'000

Deferred tax liability 126,203 126,203

14 Earnings per share

June DecemberEarnings 2013 2012

N'000 N'00035,424 75,943

Number of shares980,000 980,000

The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

Earnings for the purpose of basic earnings per share being net

profit attributable to equity holders of the Company

Weighted average number of ordinary shares for the purpose of basic earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share are as follows.

Deferred revenue

Property, plant & equipment

Deferred revenueIntangible assets Finance leases

Finance leasesIntangible assets


Earnings per 50k share (kobo) - basic 3.61 27.52

980,000 980,000

Earnings per 50k share (kobo) - diluted 3.61 7.75


Notes to the Unaudited Consolidated financial statem entsFor the twelve months ended December 2012

15 Intangible assetsJune December June2013 2012 2012N'000 N'000 N'000

Trademark 67,296 67,296 67,296

16 Property, plant and equipment

Leasehold land and buildings

Plant, machinery and fittings

Office equipment

and furniture

Trucks & Motor

vehicles

Capital work in progress

Non Current Assets held for

Sale

Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000Cost At 1 January 2013 2,101,847 3,122,534 262,746 448,820 199,167 44,293 6,179,407 Additions 5,687 77,786 5,404 29,098 2,946 120,921 Disposals - (12,695) (8,750) (21,445) Reclassification 39,114 (39,114) - - At 31 June 2013 2,107,534 3,226,739 268,150 469,168 162,999 44,293 6,278,883

The trademark represents cost of acquisition of trademark of Thalazole, Sulphatriad and Thiazamide products from May and Bakerlimited, England by the company. No impairment loss has been recognised with respect to the the trade mark as the recoverableamount from the product exceeds the carrying value. There is increasing revenue generation from the products.

The trademark is considered to have an indefinite useful life given the strength and durability of the products and the level ofmarketing support. The products are in a relatively stable and profitable market sector and their size,diversification and market shareindicate that the risk of market-related factors causing a reduction in the life of the trademark is considered to be relatively low. TheCompany is not aware of any material legal, regulatory, contractual, competitive, economic or other factor which could limit theiruseful lives.

Accumulated depreciation andimpairment

Weighted average number of ordinary shares for the purpose of dilutive earnings per share


At 1 January 2013 140,147 897,112 178,045 266,691 - - 1,481,995 Charge for the year 2,056 198,875 5,432 26,000 - - 232,363 On disposals - (8,447) (2,250) (2,250) - - (12,947) Impairment loss - - - - - -

- - At 30 June 2013 142,203 1,087,540 181,227 290,441 - - 1,701,411

Carrying amountAt 30 June 2013 1,965,331 2,139,199 86,923 178,727 162,999 44,293 4,577,472



16 Property, plant and equipment

Impairment loss recognized during the year Nil

Assets pledged as security Nil

The following useful lives were used in the computation of depreciation charge during the yearRange

June December 2013 2012

Land and buildings 33.33 years 33.33 yearsPlant, machinery and fittings 10-20 years 10-20 yearsOffice equipment and furniture 3-10 years 3-10 yearsTrucks & Motor vehicles 3-8 years 3-8 years



June December June17 Deposits for investments 2013 2012 2012

N'000 N'000 N'000

Carrying amount 245,325 245,325 245,325


Impairment

18 InventoriesJune December June2013 2012 2012

N'000 N'000 N'000Raw materials 523,493 407,644 351,661 Work-in-progress 257,453 259,810 125,277 Finished goods 530,708 346,297 459,527 Spare parts 141,282 217,853 154,534 Goods in transit - 82,253 -

1,452,936 1,313,857 1,090,999

19 Trade and other receivablesJune December June

2013 2012 2012N'000 N'000 N'000

1,581,347 1,746,129 1,027,149 (322,723) (492,530) (180,556) 1,258,624 1,253,599 846,593

7,787 9,204 12,027 34,353 30,205 40,087 223,188 164,704 52,911 - 155,966 141,357 421,294 204,113 246,382 (33,445) (33,445) -

387,849 170,668 246,382

1,646,473 1,424,267 1,092,975

The average credit period taken on sales of goods is between 30 - 45 days. No interest is charged on the overdue

receivables. The company has recognises of 100% against all receivables over 360 days because historical experience

has been that receivables that are past due beyond 360 days are not likely recoverable. Allowances against doubtful

debts are recognised against trade receivables outstanding for more than 360 days based on estimated irrecoverable

amounts determined by reference to past default experience of the counterparty and an analysis of the counterparty’s

Other debtorAdvance payment to suppliers

Less: allowance for doubtful debt

Trade receivablesTrade and other receivables disclosed above are carried at cost less allowance for doubtful debts.

Total trade and other receivables

Trade receivables

Staff advance

Due from related companies(see note 30)

The amount above represents payments for the acquisition of interest in Bio vaccines Nigeria Limited, ajoint venture arrangement with the Federal Government of Nigeria for the production of vaccines inNigeria. The shares of Bio-vaccines Nigeria Limited are yet to be issued. The deposit is stated at cost.The directors are of the opinion that the carrying value of the investment is not lower than therecoverable amount.

Carrying amounts

Less: allowance for doubtful debts

Other receivablesStaff loans




19 Trade and other receivables (continued)


421,206 738,559 233,456 267,423 105,963 150,193 497,999 97,424

Total 1,258,624 1,253,599

Movement in the allowance for doubtful debts June December2012 2012N'000 N'000

492,530 180,556 311,974

- (169,807) - - - - -

322,723 492,530

Amounts recovered during the yearImpairment losses reversed

Balance at the end of the period

In determining the recoverability of a trade receivable the company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited

Foreign exchange translation gains and losses

Before accepting any new customer, the company uses an internal credit scoring system to assess the potential

customer’s credit quality and defines credit limits by customer. The internal credit scoring system are constantly

reviewed.

Trade receivables disclosed above include amounts (see below for aged analysis) which are past due at the reporting

date but against which the company has not recognised an allowance for doubtful receivables because there has not

been a significant change in credit quality and the amounts are still considered recoverable. The company does not hold

any collateral or other credit enhancements over these balances nor does it have a legal right of offset against any

amounts owed by the company to the counterparty. The average age of these receivables is 90 days.

Ageing of past due but not impaired receivables

0-30 days

Amounts written off during the year as uncollectible

91-360 days

31-60 days61-90 days

Balance at the beginning of the periodImpairment losses recognised

amounts determined by reference to past default experience of the counterparty and an analysis of the counterparty’s

current financial position.



60-90 days

- -

90-120 days

- -

120+ days - -

Total - -


Notes to the unaudited Consolidated financial statem entsFor the six months ended June 2013

June December June20 2013 2012 2012

N'000 N'000 N'000459 5,541 4,795

46,138 142,369 6,607 68,752 67,175 67,612

115,349 215,085 79,014

21 Other assets June December June2013 2012 2012

N'000 N'000 N'000Prepayments 65,501 9,859 66,396 Witholding tax recoverable 37,421 37,425 37,425 Deposit for letter of credit 79,592 33,109 120,475

182,514 80,393 224,296

Cash and bank balances

Cash in handCash at bankShort term deposits

The short term deposits above is in respect of the unclaimed dividend balance that has been invested in a demanddeposit account.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

due to the customer base being large and unrelated.

Included in the allowance for doubtful debts are individually impaired trade receivables with a balance of NIL due from

companies which have been placed in liquidation. The impairment recognised represents the difference between the

carrying amount of these trade receivable and the present value of the expected liquidation proceeds. The company does

not hold any collateral over these balances.

Ageing of impaired trade receivables


22 Trade and other payablesJune December June2013 2012 2012

N'000 N'000 N'000452,705 329,880 238,851

Other payables:Accruals 222,754 71,409 87,949 Customer advance payments 6,705 13,884 6,705 Social security 63,487 45,639 27,161 Other charges 62,789 39,586 43,595 Other liabilities - - Customer deposits - 42,339

42,315 55,207 139,749 50,723 990,504 597,944 454,984


Notes to the Unaudited Consolidated financial statem entsFor the six months ended June 2013Note 22 contInue June December22a 2013 2012

137,317 137,317 109,704 101,011 9,769 9,769 30,710 -

(7,337) (7,337) (14,067) (5,488) Interest cost 10,970

139,749 139,749 137,317 95,523

Provision for staff gratuityAt beginning of the periodCharge for the yearPayment during the year

Trade creditors

Gratuity ( see note 22a)

Deposit for letter of credit are the balances that are yet to be remitted to suppliers for imported products.

The directors consider that the carrying amount of trade payables approximates to their fair value.

Due to related companies(see note 30)

Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The

average credit period taken for trade purchases is 40 days. For most suppliers no interest is charged on the trade

payables from the date of the invoice. The company has financial risk management policies in place to ensure that all

payables are paid within the pre-agreed credit terms.



23Dividends N'000 N'000 N'000Balance at the beginning 100,745 100,618 100,618 Unclaimed returned during the year 127 136 Paid during the year (387) (50,405) Balance at end 100,358 100,745 50,349



24 Borrowings

June December June2013 2012 2012N'000 N'000 N'000

1,157,187 864,684 1,089,720 Commercial papers 40,778 113,268 - Term Loan - FCMB 32,389 36,806 1,000,000 CBN Intervention fund - Term loan 507,500 569,577 595,000 CBN Intervention fund - Overdraft 220,000 220,000 220,000 Term loan- Access bank - - Term loan- Bank of industry 95,360

- - Term loan- First Securities Discount House Ltd - 271,428 Term loan- Gtbank Plc 8,333 58,333 TY Holdings 1,796,907 1,796,907

3,763,094 3,659,575 3,271,508

Bank overdraft 1,157,187 864,684 1,089,720 Commercial papers and Bankers acceptance 40,778 113,268 - Term Loan - FCMB 13,093 100,000 CBN intervention fund- Term loan 79,412 35,000 CBN intervention fund- Overdraft 220,000 220,000 220,000 Term loan- Access bank - - Term loan- Bank of industry 95,360 Term loan- Ecobank - -

Borrowing at amortised costBank overdrafts

Total borrowings

Analysis of loan balance to current and non-current portion.

Term loan- Ecobank

The balance at year end represents the amount that are yet to be received by shareholders.


Term Loan - FSDH - 121,428 Term loan- Gtbank Plc 8,333 58,333 TY Holdings loan 271,183

1,426,298 1,619,973 1,661,508

CBN intervention fund- Term loan 507,500 490,165 560,000 Term loan- Bank of industry - - - Term loan- Access bank - -

- - Term Loan - FCMB 32,389 23,713 900,000 Term Loan - FSDH - 150,000 TY Holdings loan 1,796,907 1,525,724

All the borrowings were obtained in naira, the functional currency of the CompanyThe principal features of the Company's borrowings are described below:

(i)

(ii)



24(b)

(c)

(d)

Bank of Industry granted the company a medium term facility of N594.73 million on 18 May 2007 with initial drawdown

on 11 January 2009. The loan facility is for 5 year period (inclusive of one year moratorium and subsequently extended

by 9 months) to be disbursed towards the acquisition of ultra modern pharmaceutical equipment at interest rate of 10%

per annum payable monthly in arrears. The loan is repayable in 34 equal and consecutive instalments commencing from

31 January 2010 and is secured on bank guarantee from Guaranty Trust Bank Plc.

First City Monument Bank Plc: Obtained in March 2012 and repayable in 36 equal monthly instalment .

TY Holdings Facility First: The sum of N2 Billion was obtained in 2012 to finance existing loans and working capital

facilities.The facility was obtained from a related party.Interest is 11% per annum. The loan and accruing interest is to

The Bank Overdrafts and Commercial Papers are secured by a negative pledge on the Company's assets and theirinterest rate range from 16% and 19%. Bank overdrafts are repayable on demand.

2,336,796 2,039,602 1,610,000

The company has three principal bank loans:

Borrowings (continued)

Current Portion

Non-current Portion

Term loan- Ecobank


25 Other Liabilities June December June2013 2012 2012

N'000 N'000 N'000

Witholding tax payable 106,746 101,950 89,041 Provision for staff gratuity 101,011

106,746 202,961 89,041



26 Share capital June December June2013 2012 2012N'000 N'000 N'000

Authorised 1,000,000 1,000,000 1,000,000

0 0 0

1,000,000 1,000,000 1,000,000

490,000 490,000 490,000 -

490,000 490,000 490,000

490,000 490,000 490,000

27 Share premium account June December June2013 2012 2012N'000 N'000 N'000

Balance at 1 beginning 1,626,094 1,626,094 1,626,094 Expenses of issue of equity shares - -

Authorised, Issued and fully paid:980,000,000 ordinary shares of 50k each

At beginningIssued during the yearAt 30 June 2013

At BeginningIncrease in authorised share capital

At end2,000,000 ordinary shares at 50 kobo each

Issued and fully paid

facilities.The facility was obtained from a related party.Interest is 11% per annum. The loan and accruing interest is to

repaid over 36months period commencing 12 months after the date of disburement of the loan.


Bonus issue expense - - Balance at end 1,626,094 1,626,094 1,626,094



June December28 Retained earnings 2013 2012

N'000 N'000Balance at the beginning 1,021,408 1,037,126 Retained (Loss)/profit for the year 35,424 82,282 Dividend paid - (98,000) Bonus issue

Balance at end 1,056,832 1,021,408

N'000 N'000

18,803 18,803 18,803 18,803

29 Related party transactions

The Group is related to the following entities:Related parties ReasonsOsworth Nigeria Limited Wholly owned subsidiaryTydipacks Nigeria Limited Wholly owned subsidiaryServisure Nigeria Limited Wholly owned subsidiary



The IFRS adjustments are described below:

Prior year IFRS adjustment

Biovaccines Nigeria Limited is yet to commence commercial operations. Transactions on its behalf are mainly in respect of expenses incurred in maintaining its assets and personnel at its old site at Harvey Road, Yaba, Lagos. May & Baker Nigeria Plc therefore maintains an inter-company account with it for such transactions, including disbursements also made by Biovaccines Nigeria Limited on behalf of May & Baker Nigeria Plc. At the balance sheet date, the amount outstanding and due to Biovaccines Nigeria Limited was N42.3 million.

Loans measured at amortised cost instead of nominal value



June December June June December June2013 2012 2012 2013 2012 2012N'000 N'000 N'000 N'000 N'000 N'000

Osworth Nigeria Limited 136,275 123,047.0 126,045 - Biovaccines Nigeria Limited - - 42,315 45,041 50,723 Others - - - - - - Tydipacks Nigeria Limited 16,691 12,845 15,312 - - -

152,966 135,892 141,357 42,315 45,041 50,723


Remuneration of key management personnel


N'000 N'0001,200 1,200

26,694 70,658 27,894 71,858



30 Financial Instruments (continued)

Significant accounting policies

The remuneration of the directors, who are the key management personnel of the Company, is set out below in aggregatefor each of the categories specified in IAS 24 Related Party Disclosures.

Salaries and allowances

The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. Noprovisions have been made for doubtful debts in respect of the amounts owed by related parties.

Purchases were made at market price discounted to reflect the quantity of goods purchased and the relationshipsbetween the parties.

Amounts owed by related

parties

Amounts owed to related

parties

Transactions in which Osworth Nigeria Limited was involved have been consolidated with the group. The balance due to

Bio-vaccines Limited For the period ended June 2013 stood at N42,315 million (December 2012: 45,041 million)

Director's fees

Director's remuneration


Categories of financial instruments June December June2013 2012 2013N'000 N'000 N'000

Financial assets115,349 237,418 79,014

Trade and other receivables 1,643,473 1,424,267 1,092,975 1,758,822 1,661,685 1,171,989

Financial risk management objectives

Market risk



30 Financial InstrumentsCapital risk management

The company is not subject to any externally imposed capital requirements.

The capital structure of the company consists of debt, which includes the borrowings disclosed in note 24, cash andcash equivalents and equity attributable to owners of the Company, comprising issued capital, reserves and retainedearnings as disclosed in notes 26 to 28.

The company’s risk management committee reviews the capital structure on a semi-annual basis. As part of this review,the committee considers the cost of capital and the risks associated with each class of capital. The company has atarget gearing ratio of 50 per cent to 60 per cent determined as the proportion of net debt to equity. The Directors are

The company manages its capital to ensure that it will be able to continue as going concerns while maximising thereturn to stakeholders through the optimisation of its capital structure

The Company's exposure to variations in foreign exchange rate and interest rates are minimal and the Company is notexpected to be exposed to these risks at a higher than minimal level.

Cash and bank balances

The company’s Corporate Treasury function provides services to the business, co-ordinates foreign exchagetransactions, monitors and manages the financial risks relating to the operations of the company through internal riskreports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currencyrisk and interest rate risk ), credit risk and liquidity risk

Details of the significant accounting policies and methods adopted (including the criteria for recognition, the basis ofmeasurement and the bases for recognition of income and expenses) for each class of financial asset, financial liabilityand equity instrument are disclosed in note 3.




30 Financial Instruments (continued)Credit risk management

Liquidity risk managementUltimate responsibility for liquidity risk management rests with the board of directors, which has established an

appropriate liquidity risk management framework for the management of the company’s short-, medium- and long-term

target gearing ratio of 50 per cent to 60 per cent determined as the proportion of net debt to equity. The Directors aregiving serious consideration to more equity contribution in the nearest future.

The carrying amount of financial assets recorded in the financial statements, represents the company’s maximum

exposure to credit risk as no collateral or other credit enhancements are held.

The company does not hold any collateral or other credit enhancements to cover its credit risk.

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to thecompany. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficientcollateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The company transactswith entities that have good credit standing and the company uses other publicly available financial information and itsown trading records to rate its major customers. The company’s exposure and the credit ratings of its counterparties arecontinuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committeeannually.

Trade receivables consist of a large number of customers spread across various geographical zones in Nigeria. Ongoing

credit evaluation is performed on the financial condition of accounts receivable.

The company does not have any significant credit risk exposure to any single counterparty or any company of

counterparties having similar characteristics. The company defines counterparties as having similar characteristics if

they are related entities.




31 Substantial interest in sharesList of shareholding 5% and more:


Number % Number %

Lt- Gen T.Y Danjuma (Rtd)( TY Holdings) 238,928,169 24.38 238,928,169 24.38 Joseph Odumodu 57,742,156 5.89 57,742,156 5.89David Dankaro 56,023,695 5.72 56,023,695 5.72

32 Guarantees and other Financial Commitments

Charges on assets

Capital expenditureCapital expenditure authorised by the Dire tors but not contracted was nil ( June 2013: nil)

33 Contingent liabilities

34 Events after the reporting date

35The Company holds a weekly production planning where sales and production forecasts are reviewed in order to adjustprocurement ordering schedule so as to minimise the risk of expiring stocks. Also, potential debtors are criticallyevaluated ahead of approval of credit.

Strategy for preventing risk of materials and product obsolescense/ doubtful debts

appropriate liquidity risk management framework for the management of the company’s short-, medium- and long-term

funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate working

capital reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash

flows, and by matching the maturity profiles of financial assets and liabilities.

There were no contingent liabilities resulting from litigations at 30 June 2013. (December 2012 - NIL)

The Directors are of the opinion that there were no significant events after the balance sheet date which would have had

any material effect on the accounts which have not been adequately provided for or disclosed in the financial statement.

No individual shareholder other than as stated above held more than 5% of the issued share capital of the Company asat 30 June 2013

The bank loans and overdrafts are secured by a negative pledge on the Company's assets.

The Directors are of the opinion that all known liabilities and commitments have been taken into account in thepreparation of the financial statement.




36 Major suppliers

LocalDrugs & Healthcare LimitedNational Salt CompanyDangote Flour Mills PlcPrimal Nigeria LimitedChellaramsFolur Mills of Nigeria Plc.Presco Plc.

ForeignIPCA Laboratories Limited (india)Aurobindo Pharm Limited (indiaSurya Engineers (India)Caffry Sanders International Limited (UK)Belco Pharma ( India)

The Company is not related to any of its suppliers.

The Company's suppliers are both local and foreign. Some of the Companies major suppliers include:


may & baker nigeria plc 2013_hy

Investor Relations

cash equivalents cash

note cash

receivables cash

cash flows

customers cash

reconciliation of cash

operating activities

total n000