MANAGEMENT REPORT AND ACCOUNTS FOR THE YEAR …...Management Report and Accounts C o n t e n t s Page Corporate Information 2 Result at a Glance 3 Report of the Directors 4-5 Report

CITITRUST HOLDINGS PLC

MANAGEMENT REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31ST DECEMBER 2019

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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019

Management Report and Accounts

C o n t e n t s Page

Corporate Information 2

Result at a Glance 3

Report of the Directors 4-5

Report of the Management 6

Statement of Financial Position 7

Income Statement 8

Statement of Changes in Equity 9

Statement of Cash Flows 10

Notes on the Accounts 11-17

Statement of Value Added 18

1

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Corporate Information

Registration No: - RC 1550836

Operating Address: - 43, Ademola Street,

Off Awolowo Way,

Ikoyi,

Lagos.

2

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Directors: - Ifiabor Ohio Akoudo

- Adefisan-Williams Adeyemi Adebayo

- Ogochukwu Temitope Kehinde

- Ajila Oluwaseun Bolanle

- Olaoye Oyelakin

- Thankappan Padman Praveen

- Alhaji Danladi Yaro

RESULT AT A GLANCEYear ended 31st December, 2019

Balance Sheet CHP Group

N N

Total Assets 3,697,974,074 16,209,126,197

Net Assets 610,733,733 1,686,879,961

Share Capital 500,000,000 500,000,000

Shareholders' Funds 610,733,733 1,686,879,961

No. of shares in issue(Units) 1,000,000,000 1,000,000,000

Profit and Loss Account:

Turnover 403,800,000 5,772,184,686

Profit Before Taxation 142,352,863 459,065,253

Taxation (31,619,130) (83,536,165)

Profit After Taxation 110,733,733 375,529,088

Per Share Data:

Earnings per share (Kobo) 11 38

Net assets per share (Kobo) 61 169

Total assets per share (Kobo) 370 1,621

3

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Report of the DirectorsYear ended 31st December, 2019

The directors submit their report together with the accounts for the year ended 31st December, 2019.

1 LEGAL STATUS

Cititrust Holdings PLC was incorporated under the Companies and Allied Matters Act, 1990 as a

Public Limited Company, on the 3rd January, 2019. The Shares is 100% Owned by Nigerians

and commenced business on January 7th, 2019. The Company carries on business as a

Holding Company.

CHP Group

2 OPERATING RESULTS N N

Turnover 403,800,000 5,772,184,686

The Profit for the year after taxation was 110,733,733 375,529,088

Profit brought forward - -

Profit carried forward 110,733,733 375,529,088

3 BOARD OF DIRECTORS

The directors that acted throughout the year. They are:

4 EMPLOYMENT AND EMPLOYEES

Employment of disabled persons

It is the policy of the company that there should be no discrimination in considering applications

for employment including those for disabled persons. As at 31st December, 2019, there was no

disabled person in the employment of the company.

Health, Safety & Welfare

Health and safety regulations are in force within the company's premises and employees are

aware of existing regulations. The company provides subsidy to all levels of employees for medical,

transportation, housing, etc.

Training

The company attaches great importance to training and manpower development as an investment

in people and thus in its future. The company therefore sponsored various manpower development

programmes for the staff during the year.

4

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- Ifiabor Ohio Akoudo

- Adefisan-Williams Adeyemi Adebayo

- Ogochukwu Temitope Kehinde- AjilaOluwaseun Bolanle- Olaoye Oyelakin- Thankappan Padman Praveen- Alhaji Danladi Yaro

Report of the Directors - (Cont'd)Year ended 31st December, 2019

Movements in fixed assets during the year are shown in note 1 on page 11.

7 POST BALANCE SHEET EVENTS

There are no post balance sheet events which could have any significant effects on the state

of affairs of the company as at 31st December, 2019 and for the year ended on that date

which have not been adequately provided for, in these financial statements.

8 DIRECTORS' RESPONSIBILITIES

In accordance with the provisions of Sections 334 and 335 of the Companies and Allied Matters

Act, 1990 the company's directors are responsible for the preparation of the financial statements

which give a true and fair view of the state of affairs of the company as at the end of the financial

year and of its profits and cash flows for that year and which comply with the provisions of the Act.

These responsibilities include:-

(i) ensuring that internal control procedures are instituted to safeguard assets and prevent

and detect fraud and other irregularities,

(ii) ensuring that proper accounting records are maintained,

(iii) ensuring that applicable accounting standards are followed,

(iv) ensuring that suitable accounting policies are used and consistently applied; and

(v) ensuring that the financial statements are prepared on the going concern basis unless

it is inappropriate to presume that the company will continue in business.

9 AUDITORS

Messrs. Logic Professional Services - Chartered Accountants have expressed their willingness to

continue in office, and will be reappointed in accordance with Section 357(2) of the Companies

and Allied Matters Act, 1990.

BY ORDER OF THE BOARD

SECRETARY

LAGOS,

NIGERIA. 5

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6 FIXED ASSETS ACQUISITION

5 SHAREHOLDING STRUCTURE

According to the register of members as at 31st December 2019, the following is the range analysis:

Report of the Management to the Members of

Cititrust Holdings PLC - Group

The management of Cititrust Holdings PLC - Groupare delighted to present the management accounts

as well as accounting policies adopted by the company in preparing the management account to the

stakeholders for the year ended 31st December 2019.

Responsibilities of Directors

The Management are responsible for the preparation of the financial statements which is prepared in line

with accounting policies and other regulatory requirement and pronouncement.

Basis of Opinion

The management account is drawn up in conformity with generally accepted accounting principles and the

accounting standards issued to date by the Nigerian Accounting Standards Board, are in agreement

with the books of account which have been properly kept. There are no matters that could have

material effect on going concern of the company or threatened the corporate existence of the organisation

or its Directors.

We prepared these financial statements using all the information and explanations which we considered

necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial

statements are free from material mis-statement, whether caused by fraud or other irregularities or errors.

In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the

financial statements.

Opinion

In our opinion, the financial statements give a true and fair view of the state of affairs of the Company

as at 31st December 2019 and of the profit and cash flow for the period ended on that date, and

comply with the requirements of the Companies and Allied Matters Act, 1990.

Director………………… Director………………….

6

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Statement of Financial PositionAs At 31st December, 2019 CHP Group

2019 2019

ASSETS Note N N

NON CURRENT ACCOUNTS

Property, Plant and Equipment 4 196,364,596 1,424,711,611

Investments 7 2,351,067,943 72,354,142

Intangible Assets 5 - 96,003,000

Statutory Deposits with CBN 6 - 110,516,636

Loans and Advances 8 - 4,502,550,677

2,547,432,539 6,206,136,064

CURRENT ASSETS

Inventory 9 - 2,245,186,741

Accounts Receivable 10 89,400,004 5,827,298,026

Cash and Cash Equivalents 11 1,061,141,531 1,930,505,366

1,150,541,535 10,002,990,133

TOTAL ASSETS 3,697,974,074 16,209,126,197

EQUITY & LIABILITIES

EQUITY

Share capital 14 500,000,000 500,000,000

Revenue Reserve 15 110,733,733 1,186,879,961

Shareholders' fund 610,733,733 1,686,879,961

CURRENT LIABILITIES Accounts Payable 12 689,481,494 5,225,392,579

Income Tax Payable 13 31,619,130 83,536,165

721,100,624 5,308,928,745

NON CURRENT LIABILITIES

Loans and Borrowings 17 2,366,139,717 3,900,190,151

Managed Funds 16 - 5,313,127,340

2,366,139,717 9,213,317,491

TOTAL EQUITY & LIABILITIES 3,697,974,074 16,209,126,197

The financial statements and notes on pages 7 to 17 were approved

by the Directors on ……...…………….... and signed on their behalf by:

DIRECTORS

7

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Income StatementYear ended 31st December, 2019

CHP Group

2019 2019

Note N N

Revenue 18 403,800,000 5,772,184,686

Direct Cost of Sales 19 (223,836,898) (4,991,474,795)

Gross Profit 179,963,102 780,709,891

Other Income 4,326,274 455,297,977

Operating expenses:

Loan Impairment Charges - (32,636,758)

Administration expenses 20 (29,592,459) (417,073,494)

Operating profit on ordinary business 154,696,917 786,297,616

Finance Cost 22 (12,344,054) (327,232,363)

Profit on ordinary activities before

taxation 23 142,352,863 459,065,253

Taxation provision 24 (31,619,130) (83,536,165)

Profit after taxation 110,733,733 375,529,088

Appropriation:

Retained profit transferred to

revenue reserve 110,733,733 375,529,088

Earnings per share of N0.50k 11 38

8

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Statement of Changes in EquityYear ended 31st December, 2019

CHP Share capital

Retained

Earnings Total equity

N N N

For the year ended 31 December 2019

As at 1 January 2019 - - -

Share Capital 500,000,000 - 500,000,000

Profit for the year - 110,733,733 110,733,733

Total comprehensive income

At 31 December 2019 500,000,000 110,733,733 610,733,733

GROUP Share capital

Retained

Earnings Total equity

N N N

For the year ended 31 December 2019

As at 1 January 2019 - 811,350,873 811,350,873

Share Capital 500,000,000 - 500,000,000

Profit for the year - 375,529,088 375,529,088

Total comprehensive income

At 31 December 2019 500,000,000 1,186,879,961 1,686,879,961

9

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Statement of Cash FlowsYear ended 31st December, 2019

CHP Group

2019 2019

Cash Flow From Operating Activities N N

Profit before taxation 142,352,863 459,065,253

Adjustments:

- Depreciations and Amortization 7,879,414 150,363,086

Operating Profit Before Working Capital Changes 150,232,277 609,428,339

- Inventory - (2,245,186,741)

- Increase in Accounts Receivable (89,400,004) (5,827,298,026)

- Increase in Accounts Payable 689,481,494 5,225,392,579

Cash Generated From Operations 750,313,767 (2,237,663,849)

- Tax paid - -

750,313,767 (2,237,663,849)

Cash Flow from Investing Activities

- Purchase of Fixed Assets (204,244,010) (1,575,074,697)

- Purchase of Intangible Assets - (96,003,000)

- Investments (2,351,067,943) (72,354,142)

- Loans and Borrowings - (3,691,199,803)

(2,555,311,953) (5,434,631,641)

Cash Flow From Financing Activities

- Share Capital 500,000,000 500,000,000

- Borrowings 2,366,139,717 3,900,190,151

- Managed Funds - 5,313,127,340

- Statutory Deposits with CBN - (110,516,636)

2,866,139,717 9,602,800,856

Net Increase in Cash and Cash Equivalent 1,061,141,531 1,930,505,366

Cash and Cash Equivalent at January - -

Cash and Cash Equivalent at December 1,061,141,531 1,930,505,366

Represented By:

Cash and bank balance 1,061,141,531 1,930,505,366

10

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Notes to the AccountYear ended 31st December, 2019

1 REPORTING ENTITYCititrust Holdings PLC ('CHP’) is a company domiciled in Nigeria. The Principal Activity of the

Company is to carry on business as a Holding Company.

2 BASIS OF PREPARATIONa. Statement of Compliance

The financial statements have been prepared in accordance with International Financial

Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

The financial statements comply with the Company and Allied Matters Act, and the

Financial Reporting Council of Nigeria Act, 2011.

b. Basis of Measurement

The financial statements have been prepared on the historical cost basis unless other-

wise stated.

c. Functional and Presentation Currency

These financial statements are presented in naira, which is the company’s functional

currency. Except as otherwise indicated, financial information presented in naira has

been rounded to the nearest thousand.

d. Use of Estimates and Judgements

The preparation of financial statements in conformity with IFRS requires management

to make judgments, estimates and assumptions that affect the application of policies and

reported amounts of assets and liabilities, income and expenses. The estimates and

associated assumptions are based on historical experience and various other factors that

are believed to be reasonable under the circumstances, the results of which form the

basis of making the judgments about carrying values of assets and liabilities that are not

readily apparent from other resources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognized in the year in which the estimate is revised and

in any future periods affected

3 SIGNIFICANT ACCOUNTING POLICIESThe Company has consistently applied the following accounting policies to all periods presented

in these consolidated and separate financial statements, unless otherwise stated

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The principal accounting policies adopted in the preparation of these financial statements are set

out below:

a. TURNOVER:

Turnover represents amount invoiced in respect of sales to third parties during the year, net of

sales commission.

b. INTANGIBLE ASSETS

lives. purchased of computer software and software licences are recognised as intangible assets

if there is sufficient certainty that future economic benefits associated with the item will flow to

the company. These assets are measured on initial recognition at cost which comprises external

costs and other directly attributable costs. Subsequently,computer software and software licences

are carried at cost less accumulated amortisation and accumulated impairment losses if any.

Amortisation is calculated using the straight-line method over 10 years. The amortisation period

of computer software and software licences is reviewed at least at the end of each reporting period.

c. PROPERTY, PLANT AND EQUIPMENTS

Assets Range of Years

Computers 5 years

Motor Vehicles 4 years

Plant & Machinery 5 years

Furnitures and Fiitings 5 years

Land 10 years

12

Intangible assets include purchased computer software and software licences with finite useful

All property, plant and equipment is shown at cost, less accummulated depreciation and impairment.

Cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent

costs are included in an asset’s carrying amount or recognised as a separate asset, as appropriate,

only when it is probable that future economic benefits associated with the item will flow to the

Company and the cost of the item can be measured reliably. All other repair and maintenance

expenditures are charged to the Income Statement during the financial period in which they are

incurred.

Depreciation is calculated using the straight-line method to reduce the cost of each asset to its

residual value over its useful life as follows:

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d. TRADE RECEIVABLES

e. TRADE AND OTHER PAYABLES

Trade and other payables are stated at cost.

f. CASH AND CASH EQUIVALENTS

g. CURRENT AND DEFERRED TAXATION

h. SHARE CAPITAL

Shares are classified as equity when there is no obligation to transfer cash or other assets.

13

Other receivables may be financial assets or non-financial assets. Financial assets are categorised as

loans and receivables and are initially measured at fair value and subsequently measured at amortised

cost. Non-financial assets are measured in respect to the applicable standards.

Cash and cash equivalents comprise cash in hand, current balances with banks and similar

institutions and highly liquid investments with maturities of three months or less when acquired. They

are readily convertible into known amounts of cash.

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the

extent that it relates to items recognized directly in equity or in OCI.

“Current tax” comprises the expected tax payable or receivable on the taxable income or loss for the

year and any adjustment to the tax payable or receivable in respect of previous years. It is measured

using tax rates enacted or substantively enacted at the reporting date.

Current tax also includes any tax arising from dividends.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets

and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Trade receivables are measured at fair value at the date of trade plus directly attributable transaction

costs on initial recognition and are subsequently measured at amortised cost using the effective

interest rate method due to the loan and receivable measurement category. Appropriate allowances for

estimated irrecoverable amounts are recognised in the statement of profit or loss when there is

objective evidence that the asset is impaired.

Subsequent recoveries of amounts previously provided for are credited to the statement of profit or loss

and other comprehensive income. Long-term receivables are discounted where the effect is material.

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4 PROPERTY, PLANT AND EQUIPMENT

Motor Furniture & Computer Land &

Vehicles Fittings Equipments Building Total

Cost/Valuation N N N N N

At 01/1/2019 - - - - -

Additions 15,000,000 2,940,000 3,140,745 183,163,265 204,244,010

At 31/12/2019 15,000,000 2,940,000 3,140,745 183,163,265 204,244,010

Depreciation:

At 01/1/2019 - - - - -

3,000,000 588,000 628,149 3,663,265 7,879,414

At 31/12/2019 3,000,000 588,000 628,149 3,663,265 7,879,414

Net Book Value:

At 31/12/2019 12,000,000 2,352,000 2,512,596 179,500,000 196,364,596

CHP Group

2019 2019

N N

5 INTANGIBLE ASSETS - 96,003,000

- 96,003,000

6 STATUTORY DEPOSIT WITH CBN - 110,516,636

- 110,516,636

7 INVESTMENTS

Treasury Bills - 1,790,729

Investment inFX Online - 5,400,000

Investment in Subsidiaries 2,351,067,943 -

Private Placement - 65,163,413

2,351,067,943 72,354,142

8 LOANS AND ADVANCES - 4,502,550,677

- 4,502,550,677

14

Charge for the

year

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Notes to the AccountYear ended 31st December, 2019 CHP Group

2019 2019

N N

9 INVENTORY - 2,245,186,741

- 2,245,186,741

10 ACCOUNTS RECEIVABLE

Trade Receivable 82,400,000 4,697,652,063

Other Receivables - 33,754,003

Prepayments 7,000,004 1,095,891,960

89,400,004 5,827,298,026

11 CASH AND CASH EQUIVALENT

Cash and Bank Balance 1,061,141,531 1,930,505,366

1,061,141,531 1,930,505,366

12 ACCOUNTS PAYABLE

Deposit from Customers - 528,527,550

Accurals & Other Payables 689,481,494 4,532,619,759

Payable to CHP - 164,245,270

689,481,494 5,225,392,579

13 INCOME TAX PAYABLETaxation (See Note 24) 31,619,130 83,536,165

31,619,130 83,536,165

14 SHARE CAPITAL

Authorised: 1,000,000,000 Ordinary shares of N0.50k each 500,000,000 500,000,000

Issued and Fully Paid Up: 500,000,000 500,000,000

15 REVENUE RESERVE

Balance brought forward - 811,350,873

Transfer from profit and loss account 110,733,733 375,529,088

Balance carried forward 110,733,733 1,186,879,961

16 DEPOSIT FOR SHARES - 5,313,127,340

17 LOANS AND BORROWINGS

Borrowings 2,366,139,717 3,900,190,151

2,366,139,717 3,900,190,151

15

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Notes on the Accounts - (Cont'd)

Year ended 31st December, 2019 CHP Group

2019 2019

N N

18 REVENUE

Invoiced Amounts to Clients 403,800,000 5,772,184,686

403,800,000 5,772,184,686

19 DIRECT COST OF SALES

Cost of Sales 223,836,898 4,991,474,795

223,836,898 4,991,474,795

20 ADMINISTRATION EXPENSES

Salaries and Wages 8,840,000 129,123,123

Fueling 588,300 4,633,082

Printing and Stationery 331,500 4,542,003

Telephone & Internet 682,500 10,192,007

Rent 1,000,000 12,500,000

Repairs and Maintenance 566,200 30,416,925

Cleaning 150,000 21,470,771

Electricity 184,000 23,260,003

Legal & Professional Expenses 3,750,000 10,000,000

Medical Expenses 600,000 1,487,500

Office Expenses 3,097,445 8,678,750

Transport and Travelling 1,923,100 10,406,245

Depreciation (See Note 21) 7,879,414 150,363,086

29,592,459 417,073,494

21 DEPRECIATION

Motor Vehicles 3,000,000 58,735,581

Furniture & Fittings 588,000 35,241,348

Computer Equipments 628,149 46,988,464

Land and Building 3,663,265 9,397,693

7,879,414 150,363,086

22 FINANCE COST

Bank Charges 513,355 2,365,950

Interest on Loan / Overdraft 11,830,699 324,866,413

12,344,054 327,232,363

16

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Notes on the Accounts - (Cont'd)

Year ended 31st December, 2019

CHP Group

2019 2019

N N

23 PROFIT BEFORE TAXATION

The profit for the year was arrived at

after charging:

- Depreciation 7,879,414 150,363,086

- Auditors' remuneration - -

24 TAXATION

.i Income Tax:

Balance brought forward - -

Provision for the year 28,614,484 77,286,705

28,614,484 77,286,705

Payment in the year

Balance carried forward 28,614,484 77,286,705

ii Education Tax:

Balance brought forward - -

Provision for the year 3,004,646 6,249,460

3,004,646 6,249,460

Payment in the year

Balance carried forward 3,004,646 6,249,460

(i) + (ii) 31,619,130 83,536,165

17

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Statement of Value AddedYear ended 31st December, 2019

N % N %

Turnover 403,800,000 5,772,184,686

Bought in Goods and Services (232,897,024) (4,708,766,811)

Value Added 170,902,976 100 1,063,417,875 100

Applied as Follows:

To Pay Employees:

- Salaries and wages 8,840,000 5 129,123,123 12

To Pay Government:

- Income tax 28,614,484 77,286,705

- Education tax 3,004,646 31,619,130 19 6,249,460 83,536,165 8

To Pay Providers of Capital:

- Interest Expense 11,830,699 7 324,866,413 31

To Provide for Maintenance of

Assets and Expansion:

- Depreciation 7,879,414 5 150,363,086 14

- 110,733,733 118,613,148 65 375,529,088 525,892,174 35

Value Added 170,902,976 100 1,063,417,875 100

Value added represents the additional wealth which the company has been able to create by its own

and its employee's efforts. The statement shows the allocation of that wealth between employees,

shareholders, government and that retained for future creation of more wealth.

18

CHP

2019

Retained Profit

GROUP

2019

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Documents

MANAGEMENT REPORT AND ACCOUNTS FOR THE YEAR …...Management Report and Accounts C o n t e n t s Page Corporate Information 2 Result at a Glance 3 Report of the Directors 4-5 Report