Nigerian Enamelware Plc.

RC 2T92

[Jnaudited Financial Statements

For the period ended 31st Oct 2016

CERTIFICATION PURSUANT TO SECTION 60(2) OF INVESTMENT ANDSECURITIES ACT NO. 29 OF 2OO7

We the undersigned herby certified the following with regards to our second quarterfinancial report for the quarter ended 3lst Oct 2016.

(a) We have reveiwed the report;(b) To the best of our knowledge, the report does not contain;

(l) Any untrue statement of a meterial fact, or(2) Omit to state a meterial fact, which would make the statement, misleading

In the light of circumstance under which such statements were made;

(c) To the best of our knowledge, the financial statements and other financialinformation included in the report fairly present in all material respects the

financial condition and results of the operation of the company as of, and forthe periods presented in the report.

(d) We(1) Are responsible for establishing and maintaining intemal controls.

(2) Have designed such internal controls to ensure that material informationrelating to the company and its consolidated subsidiary is made known to

such officers by others within those entities particularly during the period inwhich the periodic report are being perpared;

(3) Have evaluated the effectiveness of company's internal controls as ofdate within 90 prior days to the report;

(4) Have present in the report our conclusion about the effectivenness of otrintemal controls based on our evaluation as of that date.

(e) we have disclosed to the auditors of the company and audit committee;

(1) All significant deficiency in the design oioperation of intemal controls which

would adversely affect the companyb ability to record, process' summarize

and report financial data and have identified for the company's auditor any

material weakness in internal controls'

(2)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployee who have significant role in the company's internal controls'

(0 we have identified in the report whether or not there were significant changes in

internal controls or other factors thafs could significant affect internal controls

subsequent to the date of evaluation. Including any corrective actions with regard to

significant deficiencies and material weaknessess'

Managing Director

Nigerian Enamelware Plc

FRC/ 20 13 /IODN/0000000 s 0 3 s

Financial ControllerNigerian Enamelware Plc

FRC/ 20 13 /IODN/0000000 s 03 4

Nigerian Enamelware PLC RC2l92UNAUDITED FINANCIAL STATEMENT

AS AT 31 OCT 2016

Unaudited IFRS Unaudited IFRS IFRS IFRS

Note3ur0t2016

N'000

l,009,5gg

956,659l,29g,6gg

3,9602,259,306

31,6901,429,717

3ul0l20r5N'000

1,056,027

3 1,680

1,353,102

30t4t2016N'000

l,00g,5gg

3014t20r5N'000

1,056,027Non-current assets

Total non-current assets

Current assets

InventoriesTrade and other receivables

Other assets

Due from related companies

Cash and bank balancesTotal current assets

Total assets

EquityShare capitalRetained earningsTotal equity

Non-cu rrent liabilitiesDeferred TaxationStaff GratuityTotal Non-current liabilities

Current liabilitiesBorrowingsTrade and other payables

Other liabilitiesCurrent tax liabilitiesTotal current liabilities

Total liabilities

Total equity and liabilities

RevenueCost of Sales

Gross ProfitOther lncomeInvestment Income

Administrati ve expensesOperatiing ProfitFinancial costsProfit before taxationTaxation (Estimated)Profit after tax

Earning per share (Kobo)

I,009,599 1,056,027

967,7001,385,149

3,5 g5

2,356,434

3,268,995 3,412,461

--

#

I,009,599 1,056,027

946,522

3,019,995

439,3393,082,969

7,787

1,460,397 1,394,792

-:

3,530,094

4,539,693

3 1,690

l,37g,gg61,410,566

3,966,517

5,0221544

31,6901,273,9231,305,603

295,795

295,795

1,106,529

324,079

82,106

6 mths3Ur0t20t6

N'000

| ,419,957(1,217 ,033)

202,9235g,2gg

$g,l q7)

172,466( 100,566)

71,900(22,069)4g,g3l

79

35 5,83 8

355,838

1,251,975

397,6671,325

20,97 4

1,671,841

3,412,461

Unaudited IFRS6 mths

3ur0t20r5N'000

1,329,226

( l,105,490)222,746

21,564

( r o l,szi)142,794(72,970)69,914

(20,97 4)49,940

77

1,730,7941,020,442

82,106

2,867 ,17 5

495,272

53,416

295,795 3l 1,079

295,785 311,079

2,933,332 3,405,963

2,027,679 3,129,117 3,716,941

IFRS

5,022,544

IFRS12 mths

30t4t20r6N'000

2,795,190(2,363,17 l)

432,019115,424

(nz,zz+)37 5,llg

(lgg,l59)17 6,960(43,495)

133,47 5

211

l2mths30t4/20rs

N'000

2,609,296(2,lgg,524)

409,7 62

62,000

(zoo,t si)264,011

( l4l,870)l22,l4l(47,794)

7 4,357

ll7 _?'RUfbt[

%+$ffiffiSil

TABLE OF CONTENTS

CONTENT

Finacial Highlights

Profit and Loss Account

Balance Sheet

Cash Flow Statement

Staternent of Significant Accounting Policies

Notes to the Accounts

Statement of Value Added

Five-years Financial Summ ary

PAGE

I

2

3

4

5-6

7,- 10

11

l2

Nigerian Enamelware PLCRC 2192UNAUDITEDFINANCIALSTATEMENTFORTHE PERIOD ENDED 31 OCT 2016

FINANCIAL HIGHLIGHTSUnaudited IFRS

6 mthsll512016

to 31/1012016

IFRS IFRS

Revenue

Profit before Tax

Taxation (Estimate)

Profit after Tax

Shareholders' Funds

N'000

1,4r9,957

71,900

22,069

49,83 I

Unaudited IFRS

Unaudited IFRS

6 mthsll5l20r5

to 31/1012015

N'000

1,328,226

69,914

20,974

48,940

Unaudited IFRS

12 mthsu5l20r5

to 30/0412016

l2mthsll5l20l4

to 301412015

N'000

2,795,190

176,960

43,485

133,475

IFRS

N'000

2,608,286

l22,l4l

47,784

7 4,357

IFRS

3l11012016 3ur0l20rs

114601397 1,3841782 1,410,566 1,305,603

301412016 30l4l20rs

f*rrf|iff ?f{tlr v\Page I

Nigerian Enamelware PLCRC 2192UNAUDITED FINANCIAL STATEN{ENTFOR THE PERIOD ENDED 3T OCT 2016

PROFIT AND LOSS ACCOUNTUnaudited IFRS Unaudited IFRS IFRS IFRS

6 mthsu5t20r6

6 mthsU5t20t5

12 mthslts/2015

l2mthsu5t20t4

to 31/1012016 to 3lll0l20l5 to 30/0412016 to 301412015

Note N'000

l,4lg,g57

(1,217 ,033)

N'000

1,329,226

( 1,105,490)

N'000

2,795,190

(2,363,17l)

N'000

2,609,296

(2,199,524)

Revenue

Cost of Sales

Gross Profit

Other Incomes

Administration Expenses

Operating Profit

Financial Costs

Profit before Tax

Income Tax (Estimate)

Profit after Tax

202,923

58,299

(88,747)

222,746

21,564

(101 ,526)

432,019

115,424

(t72,324)

409,762

62,000

(206,7 5t)

172,466

( 100,566)

142,794

(72,970)

375,llg

( 1 98,1 59)

264,011

( t 4l,870)

7l,900

(22,069)

69,914

(20,974)

176,960

(43,485)

l22,l4l

(47,794)

49,931 48,940 133,475 74,357

Page 2

Nigerian Enamelware PLCRC 2192

UNAUDITED FINANCIAL STATEMENTFOR THE PERIOD ENDED 31 OCT 2016

BALANCE SHEET

Non-current assets

Property, plant and equipment

Total non-current assets

Current assets

Inventories

Trade and other receivables

Other assets

Due from related companiesCash and bank balance

Total current asstes

Total assets

EquityShare CapitalRetained earnings

Total equity

Non-current liabilitiesDeferred tax liabilities

Total non-current liabilities

Current liabilitesBorrowingsTrade and other payables

Other liabilitiesCurrent tax liabilities

Total current liabilities

Total liabilities

Total equity and liabilities

Unaudited IFRS Unaudited IFRS IFRS IFRS6 mths

U5t20l66 mths

U5/20r512 mthsU5t20t5

l2mthslt5t20r4

to 3l/1012016 to 3l/1012015 to 30/0412016 to 301412015

Note

5

12

l3

9

9

l0

N'000

1,009,599

N'000

1,056,027

N'000

1,009,589

N'000

1,056,027

6

7

8

I,009,599

956,658

I,2gg,6gg

3,960

1,056,027

967,700

1,385,149

3,585

1,009,589

439,339

3,082,969

7,797

1,056,027

946,522

3,01 9,995

21259,306

3,268,995

213561434

3,412,461

3,530,094 3,966,517

4,539,683 5,022,544

3 1,690

1,428,7173l ,680

I,353 ,102

3l,6901,378,886

3 I,6901,273,923

1l

1,460,397

295,795

11384,782

3 55,83 8

1,410,566

295,795

1,305,603

3 l l,07g

295,785 355,838 295,785 3l I,078

1,106,529

324,079

82,106

1,251,875

397,667

1,325

20,974

1,730,784

1,020,442

82,106

2,867 ,17 5

485,272

0

53,416

1,512,713 1,671,841

21027 16791,g0g,4gg

_ 3.269.995 3,412,461

2,933,332 3,405,963

3,t29Jl? 3Jr6g4r

4.539.693 5,022,544

Page 3

Nigerian Enamelware PLCRC 2192UNAUDITED FINANCIAL STATEMENTFOR THE PERIOD ENDED 31 OCT 2016Reconciliation of profit after taxation to net cashprovided by operative activities

Cashflow from operative activitiesCash receipt from customersCash paid to suppliers and employeesTax liabilities paidAdministrative expenses paidIncome to< paid

Net cash generated by operating activities

Cashflow from investing activitiesPurchase of fixed assets

Interest received from similar income

Cashflow from financing activitiesInterest paidDividend paid

Net cash generated by financing activities

Net increase / (decrease) in cash and cash equivalent

cash and cash equivalent at beginning of year

Cash and cash equivalent at end of year

REPRESENTED BY

Bank and cash balanceBank overdraft balance

Unaudited IFRS Unaudited IFRS6 mths

USt20r6to 3ll1012016

6 mthsU5t20r5

to 31/1012015

12 mthsU5t20t5

to 30/0412016

IFRSl2mthsU5t20t4

to 30/412015

IFRS

N'000

|,792,206( I ,01 5,054)

(56,159)

N'000

2,110,7 65(2,002,942)

(23,556) (l12,318) (47,81 I )

N'000 N'000

4,579,092 l,5gg,3g0(3,053,293) (3,052,37 5)

720,994-'

84,367 1,4t2,471

-

(1,501,796)

-

( 100,566) (166,91l) (239,78t)(28,512)

(212,477)(29,512)

(269,293)

-

(240,999\

-| ,144,17 g (l ,7 42,7 g5)

(2,867,175) (l,l 24,390)

( 1,102.569)

-

(1,249,290)

-

0.722.9971

-

(2,967,175)

-3,960 3,595(1,106,529) (1,251,97 5)( t.t 02.569) (l 24S2gU

4ffifSt* ",Q,q*,,t(

Page 4

Nigerian Enamelware PLCRC2192UNAUDITED FINAIICIAL STATEIVIENTFOR THE PERIOD ENDED 31 OCT 2016

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The followings are the principal accounting policies adopted by the company in the preparation of itsfinancial statements.

I Basis of accounting

The financial statements are prepared under the historical cost convention as modified by theinclusion of leashold land and buildings valuation,

2 Tumover

This represents the net invoices value of sales to third parties locally.

Fixed assets

These are stated ofcost or valuation less accumulated depreciation.

Depreciation

Depreciation of fixed assets is provided on the straight line basis to write off thecost or revalued amount over their anticipated usefut lives at the following annualrates:

Leasehold land and buildingPlant and machineryFurniture and equipmentMotor vehicles

Over the terms of lease

5%r0%33 U3%

Stock and work-in-progress

Raw materials are valued at the lower of cost and net realizedvalue. Finished goods and work-in-progress are valued at cost. Cost includes and appropriate proportion ofproduction overheads.

Page 5

Nigerian Enamelware PLCRC 2192

UNAUDITED FINANCIAL STATETI{ENTFOR THE PERIOD ENDED 3T OCT 2016

STATEIVIENT OF SIGNIFICANT ACCOUNTING POLICIES

l0

Debtors

Debtors are stated after deduction of specific provision for debts considered doubtful of collection.

Foreign currencies

Transactions in foreign currencies are recorded in Naira at the rates ofexchange ruling at the date ofthe transactions. Assets and liabilities in foreign currenoies are converted to Naira at the rate ofexchange ruling to the balance sheet date. Gains or losses arising therefrom are taken to the profitand loss account.

Taxation

Income tax is provided on taxable profit at the current rate.

Retirement benefits.

The company makes provisions for retirement benefit in accordance with the Pension Reform Act2004 with employer and employee contributingT.5yo each.In addition, the company makes provision for staffgratuity based on the length of service of eachStaffin accordance with the existing staff conditions of service.

Provisions

Provision is recognized when the company has a present obligation, whether legal or constructive, asa result of a past event for which it is probable that an outflow of resources embodying economicbenefits will be required to settle the obligation and a reliable estimate can be made of the amount ofthe obligation in accordance with SAS 23

Page 6

Nigerian Enamelware PLCRC 2192UNAUDITED FINANCIAL STATEMENTFOR THE PERIOD ENDED 3T OCT 2016

NOTES TO THE ACCOUNTSI THECOMPANY

l.l LegalformNigerian Enamelware Plc was incorporated in Nigeria on 2l May 1960 as a limited liability company.It went public on 28 Decemb er 1979 in compliance with the Indigenisation Decree of 1977 and wasgranted a listing on the Nigerian Stock Exchange. It adopted its present name of NigerianEnamelware Plc on 6 June l99l in compliance with Companies and Allied Matters Act, CAp C20,LPN 2004.

1.2 Principal activitiesNigerian Enamelware Plc is engaged in the manufacturing and marketing of enamelware, plasticproducts, galvanized buckets' Raw materials consisting of steel coils, chemicals, enamel and mouldsare obtained from both local and overseas suppliers.

2 TURNOVERTumover represents the total amount invoiced to customers for goods supplied and servicesrendered after deducting trade discount and commissions.

Unaudited IFRS Unaudited IFRS IFRS6 mths

to 3l/10/20166 mths 12 mths

to 3 l/1012015 to 30/0 4t\0t6

IFRSl2 mths

30t4t20rs

N'000

Enamelware products etc.

PROFIT BEFORE TAXATIONis arrived at after charging

Interest & similar charges

Ta>cationara .'l'axation is provided on taxable profit at current rate lestir@

N'000 N'000

11329,226 2,7g5rlg0 21609,2g6--

-72,970 I gg,l 59 l4l,g70

43,495 47,794-,-

100.566

22,069 20,974

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Nigerian Enamelware PLCRC 2192UNAUDITED FINANCIAL STATEMENTFOR THE PERIOD ENDED 3I OCT 2016

NOTES TO THE ACCOUNTS

6 STOCKS

Raw materialsWork-in-progress

Finished goods

Machinery spare partsConsumablesProvision for obsolete stocks

3r/10/2016 3t/t0/20rs 30/4/20r6 30/4/2015

37g,4ggl7g,g453gg,47g

15,g3;(7,100)

956,659

37 5,7 42202,120394,632

15,777

( 10,571)

, 96? J00

TRADE DBBTORSTrade debtors

StaffDebtorProvision for Doubtful debts

OTHER DEBTORS AND PREPAYMENTSPrepayments

Staff debtors

CREDITORS AND ACCRUALSTrade and other payablesOther liabilities

PROVISION FOR TAXATIONAt the beginning of the period / yearCharge for the period / yearPayment during period / year

Deferred TaxationDefened tax liabilitiesDeferred tax assets

I,2gg.6gg

-

1,395, l49

-

3,092,969

-

3.01 g.gg5

-

l,29g,65g30

1,385, I l g

303,082,939

303,019,955

40

324,079 1,020,442 495,272

r0

ll

Page 9

Nigerian Enamelware PLCRC 2192UNAUDITED FINANCIAL STATEII{ENTFOR THE PERIOD ENDED 31 OCT 2016

NOTES TO THE ACCOUNTS

12 SHARE CAPITALI Authorised

240,000,000 ordinary shares of 50k each

2 Issued and fully paid63,360,000 ordinary shares of 50k each

l3 Retained earningsAt the beginning of the periodProfit contributable to owners of the company

Dividend paid

At the end of the period

3U10/2016N'000

120,000

31,680

1,378,88649,831

3vt0l20t5N'000

120,000

31,680

1,273,92348,940

3014/20r6N'000

120,000

31,680

1,273,923133,47 5

(28,5t2)1,378,886

301412015

N'000

120,000

31,680

1,228,078

74,357(28,5t2)

lr273rg23lr428r7l7 1,353,102

14 HOLD COMPANY

The holding company I-Feng Limited incorporated in Hong Kong and holds 60% of the company's equity.

15 GURANTEE AND OTHER FINANCIAL COMMITMENTS

Retirement benefitsThe company provides a guarantee scheme for the benefit of its regular employees. These benefits are based

on the employees'years of service and the terminal salary. The contribution of the employer and the employeeto the retirment benefits scheme as required by the Pension Reform Act2004 is 7.5o/o and 7.SYo of respectively.

Financual CommitmentsThe Directors are of the opinion that all known liabilities and commitments which are relevant in assessing thestates ofaffairs ofthe company have been taken into consideration in the preparation oftheses accounts.

Charge on assets

The company's overdraft and acceptance facilities inclusive ofdocumentary credits are secured by a negativepledge.

Page l0

aa

Nigerian Enamelware PLCAnnual Report & Accounts 2016

Statement of Value Added

Sales

Other IncomeBought-in-materials and services

Distribution:Salaries, wages & social benefit

Interest expenses

Income tat

Deferred ta><

Depreciation

Retained Profit

Statement of Yalue,Added

49,931 6 48,940 6 133,47 5 16

3U1012016 %N'000

l,4lg,g5758,289

( I,080,404)397,842 100

%225,376 28

100,566 12

22,069 3

3llr0l20rs %N'000

1,328,226

21,564(284,e61)

364,829 100

o/o

222,045 27

72,870 9

20,974 3

30/4t2016N'000

2,795,190115,424

(2,0?1,405)

% 301412015 %N'000

2,608,28662,000

(1,,905?q7l )100 764,715 100

%444,090 54

198,1 59 24

43,485 5

%443,629 58

l4l ,870 19

58,421 8

46,438

7 4,357

6

l0397,842 49 364,829 45 819,209 100::: 764,715 100

Depreciation@/o

Statement of Value Added

Page 11

aa'

Nigerian Enamelware PLCRC 2192

UNAUDITED FINANCIAL STATEMENTFOR THE PERIOD ENDED 3T OCT 2016

ASSETSFixed Assets

Net Cunent Assets

Prov for Defened Ta<ation

Prov for Staff Gratuity

NET ASSETS

CAPITAL AND RESERVESShare Capital

Reserve for Bonus Issue

Revaluation Reserve

General Reserve

TurnoverProfit before to<ation

Taxation (Estimate)

Profit after taxation

Earnings (Kobo) - diluted

Net assets (Kobo)

1,009,589 1,056,027

7 46,593 684,593(295,785) (35 5,83 8)

00

BALANCE SHEET

30l4l20rsN'000

1,056,027560,654

(3 I 1,078)

301412013 301412012

N'000 N'000

1,146,921 1,195,378

372,557 290,389(335,540) (348,554)

00

3t l1012016

N'0003t lt0l20ts

N'0003014120t6

N'000

1,009,589696,762(295,785)

0 0

3014120t4N'000

1,102,465460,831(321,715)

0

11460,397 1,384,782

3 1,680 3 1,680

1,428,717 1,353,102

-

1,460,397 1,384,782

1,410,566 1,305,603 I,241,581 1,183,938 1,137,213

3 1,680 3 1,680 3 1,680 3 1,680 3 1,680

1,378,886 1,273,923 1,209,901 1,152,258 1,105,533

1,410,566 1,305,603 1,241,581 1,183,938 1,137,213

PROFIT AND LOSS ACCOUNT

3r/1012016N'000

1,419,95771,900

(22,069)49,831

3Ul0l20r5N'000

1,328,22669,914

(20,97 4)48,940

301412016

N'000

2,795,19017 6,960(43,485)

133,47 5

301412013

N'000

2,516,038117,678(43,708)

73,970

301412012

N'000

2,490,37696,216

(32,27 5)

63,941

301412015 301412014

N'000 N'000

2,608,286 2,569,7 5ll22,l4l 1 I 1,658

(47 ,784) (25,503)

7 4,357 86, I 5 5

6 mths

PER SHARE DATA12 mths 12 mths 12 nths

- 2ll lr7 135

2,226 2,061 I ,960

12 mths 12 mths

ll7 l0l1,869 1,795

77

2,186

Page 12