2020 PHARMA-DEKO PLC

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( GENERAL INFORMATION

Country of Incorporation and domicile Nigeria

Nature of business and principal activities Manufacturing. packaging and marketing of high
quality pharmaceutical and consumer products

Directors Mr. F.R.A. Williams (Jr)

Mr. Isola Olukayode
(Appointed Nov 12, 2020)

Mr. C.C. Chikeluba

Mr. KA Lawson

Chief J.O. Anylgbo

Mr. G.A. Alegieuno

Professor Herbert A.B Coker

Mr. E.A. Anaba

Registered office Plot c111 Okene Close.
Agbara Industrial Estate,
Agbara, Ogun Stale.
P.O.Box 1479.Apapa Lagos
E-mail : [email protected]

Secretary Unity Trustees Limited

1, Shagamu Avenue,
llupeju, Lagos.

Legal advisors CMef Rotlmi Williams• Chambers

1, Shagamu Avenue lllupeju. Lagos

P.O Box 3426, Marina, Lagos
Tet: 2715354-61, 2719634-7

7419142, 7349941

Website: www.frawilliams.com
Email: [email protected]

Auditors SiAO Partners

Chartered Accountants
18b, Olu Holloway, lkoyi, Lagos

Registrars& TransferOffice Apel Capital Regisl,a,s Umiled
8, AlhajiBashorunStreet, Off Norman WilliamsCre.soenl

South West lkoyi, Lagos
P.O. Box 2388, Marina, Lagos

Tel: 01-2932121, 07046126698
E-mail: Reglstars@ap<,l.com.ng

Bankers Access Bank Pie
Eoobank Nigeria Pie

First City Monument Bank Pie
Uniled Bank for Africa Pie

Union Bank of Nigeria Pfc
Fidelity Bank Pie.

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NOTICE OF MEETING J f,
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NOTICE IS HERESY GIVEN THAT THE 51"'Annua! General Meeting of Pharma-Oeko Plc\\•iU be held al Palm9rove

( House, No. 1, Shagsmv Avenue, llupeju, Lagos State on Thursda:y, 3 June 2021 al 12 noon lo transaa the following
businesses:
,• ORDINARYBUSINESS
1. To receive the Audited finanQOI Statements for the year ellcled 31 Deoembet2020. toge I.her with the Reports of·

lhe Oirecto,s,Audil Committee and lnclependeotAudlto,s !hereon.
2. ToeJed/re-elec;:t Dlrect0ts.
••3. Tore-appoint the lnd()pondeiJtAuditors.

ToautOOriz-0 lhe Directors tome lhe,effi\lner:atlon of ltleAudltors .
5. Todisclose the remuneration ofMana~rs of the Company.
6. Toe!ect members of theAudit Commit!ee.

NOTE:
1. PROXY
ln view of COVID-19 pandemic.. the restriction oo massgalh9{in,gs and in line with the GuideJloos issued by the Coc'porate

Affairs Commission on holding AGMs using proxies, atte.ndaoce al the AGM shall ont'y be by proxy, Consequently, a

member enlitle<:1 to auenr.1 and VQ,!e at lhe AGr,..1 i$ advised lo select from 1he vnderlisted proposed proxies to atlend and ,
vote in hislhe<stead:

a Mr. F.R.A, Wi111,ams-Chairn\an

:~b tv1r. 0.0. lsola-JAan.ag!l'M) OlrectOt
Mr. MatthewAkinlade-Sharehofder

g :rI EvangelistAnthonyOmojola - Shareholder

·.,-.c Mrs. samiat O<Junuga- ShatOf'lokjor

,d Mr,Arlyo 011.!Qbosun -SharehokJer

e fll'lrs. Bisi Bakare-Shareholder

I'A rxoxy (()(m Is anadlod to the Annual Report..AU lnstrllJTleots of proxy must be conlplc.ted and oeposhed with the Offloe of

'I orrthe Registrar of lhe Company, Apel Ca.pl!al &_irust Umltod at 8. Alhaji Bast1orun C,escent. No~n Willi.ams.. lkoy1,
Lagos o, via E4mailat [email protected] not l;)!erthan 48 hours before the time fixed forlhe meeting. The Company

has madearrange.ments to bear the cost of stamp duties on the instruments of proxy.

j 2. LIVESTR.EAMINGOFTHEAGM
I The AGM will be streamed live, This wm entlble sharel'lQldffl and other$ta.kehoklers wflowill not be attencfing physically
to fol:tow the prooeedtng:s, The hnk f.or the AG~! !Ne stream woolct be made avaSable at the Company's v1ebsite a1
r www.pha,m3dekoplc.com,

3.

,.'rhe
' purpose of updating the Reg.is-tar.
RegClsLtaO, SoUr MR0E1OnbFeRl'$EwGllfISbTeEclROAOONdDf!ToRmA1N7tShFdEaRyOoFt MBaOyO2K02S1 to 1.9th orday May 20'..!:1 bOthdates inelusive (01thO

4. AUDITCOMMITTEE
The Audi! Committee consists of 3 Shareholders and 3 DirectOfs. In aooordence with Section 359(5} of the Companies

' and Allied Matters Act (cap C20, Laws oi the FecSeration of Nigeria) 2020, any member of the Company may nominate a
Shareholder as a n1ember of tne Audit Committee by giving notioe In writing 10 1he Company Secretary at least 21 clays

befa<e theAonual GeQeral f\11eeting.

5. UNCLAIMED DIVIDEND and share cenmcatesthat have roma1ned unclaimOd. or are yot to be p,tescnted for
SharOhoiders wllh dividend warrants

payment or returned fDf validation are advised to oomplete the e4C!l\1Klend registration Of con!.:ld the office of the

Registrars, Apel Capital Registrars Un'lited. 8, Alhaji Ba:shorun, Off Norman Williams Street. lkoyi Of email

[email protected] to conflnn their dividend status.

6. RIGHTSOFSECURITIES'HOLDERSTOASKQUESTiONS
Securi1ies' Holders have a right to ask questions not only&t the Mffling, bu1 atso in wri1ing prior to the r..i1eetfng,and soch

questklns must be submitted to tne Company Secretary oo or before 27 May 202 l.

7. softEoLopEyCoTfRthOeN2I0C2A0NANnUnuAaLl RREe:PpoOrtRtsTon our website aoo sent to our stiart:holdcrs who have provided tholr emall
The

add,e-sses to the.Registrars. Shareholders wfloaf'9 interestedin roceivlng thesottoopyof lhe 2020Annual Report shouJd

request via email to: [email protected]

•. The date of this Notice is 12th May 2021 .
BY THE ORDEROF TiiE BOARD

' ~ .' .

• MICHAELC.M. OMINYI .'"l
FRC/2021/002/00000023271 '
' ,~., ~. fJ..t.·~~ FOR: UNITYTRUSTEESLIMITED

COMPANY SECRETARY
1, ShagamuAvenue, Uupeju, Lagos

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FINANCIAL HIGHLIGHTS

2020 2019 Difference Difference

N'OOO N'OOO N'OOO %
460,837
;f.. 484.57 (23,737) (5)
Revenue

,• Cost of Sales (404,963) (312,6171 92.346 29
(324.054) (276A6<ll 47,594 17
it (1,271) (52)
(1,152) (2,4231 46,323 16
~ Loss before taxation (325,206) (278,883)
Taxation
Loss after taxation

Issued Share Capital 108,466 108,46 '

Total Equity 986,267 1,311,474 (325,206) (24)

Total Non CurrentAssets 1,663,711 1.7e33,93 (70,222) (4)

Total Current Assets 353,345 463,46 (110,124) (23)

Total Assets 2.017,056 2,197,40 • (180,346) (8)

'·~ Total Non Current Liabilities 18.071 246.887. (228.816) t92)
58
TotalCurrent Liabilities 1,012,718 639:041 373,677

Total Equityand Liabilities 2,017,056 2,197,40 (180,346) (8)

CHAIRMAN'S STATEMENT

Olstinguishe<I sharehoklers. members of the Board of Oirecto,s.
representatives ot the Rogusa1ory authorities. tho Security and Exdlango
Commission (SEC), the Nigerian S.tock £i<changa (NSE) and lho Corparate
Affairs Commission (CAC), our audttor- SIAD Partnefs, invited guests,
observers. members or the press, ladies and gentlemen, I am (ielighted to

v,elcome you all to 51$1 Annual General tv1eet!ng (AGM), or our OOITI()&ny -

Pl'lanna~Deko Pie.

Considering the eflects of the COVID·19 pandernic. having this kind of
gathering virtually is the new normal; however,it g~ddens my heart to see so
many of you joining In from differen1 pans of the country and from other
coontties. Thank you fo,;oining us.

Let mQuso this opportunity to aµpn:io.at&the o-lfodsol all health workers aceoss
the country ~nd the globe et large in combating this COVID-19 pandemic, and

also acknowledge and commend the great ac:hievemen1 or scienlists Jo

formut.atlng vaccines within a stioct time agalns-1 the viM, While the woltd is. al
lhe cdQC of dofea1ing the virus, I lmpl0<e everyone to st!II take all laid down
guldotines- social dislancir-.g. handwastiiog etc.against the virus aod k&epsare.

Although, we have always b;1kenour Corporate Social Responsibility seriously, we dkl more In a time like this when the
world is fighling a oommon enemy· COVI0·19. To this end, t1u9eted donations of our newly Introduced Alcohol based
Hand Sanitizers,,"ACT ON .., weremade to various health Institutions across the country In supporting the ffght against the
COVI0-19 pandemic.

Prior to this, as you already know, one of our Pharmaceutkalbrands· Hexedene Mouthwash (effectiveIn the treatment of
sore lhro.at. which is one of ihe symptoms of COVI0-19) wonh millions of naira, were donated io various siete
governments across 1he country tn the fightagainst the COVI0· 19 pan(lemic.

Pharma-~ko Pk: stands unltod wi1h Nlg&da In the fig.ht &gal0$l lhe. Covkl-19 pando1nlc. We are taltjng actlon by
supporting those on the front Jines and within our communities, wt.He closelyobServing alf tho guidelioos against the virus
to ensure the safety of staff, clients, partners and the public, We will continue to play our role as a repotab!e and
respoll1ibleorganisation to the society from time lo1ime as me need arises,

Olstlngoished Ladies and Genllemoo, It is with gmal honour, that I pt'f.:sent to you tne Fln.anclaJ Repon: and Porlormaoce
Revla·«or our Company for the rinanda\ year ended 31st December 2020.

fv1eanwhile, before presenting. the fma.ncial report, t wouki lik;e to provide a brief revjew of the. opec-atfng economic
environment which impacted oo our performance as a Company In the yeac2020

OPERATING ECONOMIC ENVIRONMENT ,.

The Nigerian opecating eoonomlc envlronment Is going ttvovgh an unprececlenied crisis- we are fadng nol only health ·~
challenges but also security and economic chatleoges~ Some of vlhlch Impacted _grealty on our company's _performance
In 2020.

In 2020 the Nigeria Business envirocmentwas effecied greatly by3majorissues,low0ilPrioe, COVID-19 pandemloand
the#EndSARS pretest,

OU represeots more than 80% of N~eJla's exports, 30% of its b3nk,ng,sector credit.. and 50% of the overall govemmcnl
reveoce. With 100 dtop in oil pdces. there was-a dociine it1 90vo,ru'l'l&11t revenues whieh t,npaotOO g.foatlyoo th& avai!ability
of foreign e.xdlanga. The COVID-19 pandemic further deepened a very undesirable conditlonof the Nigerian Business
Environment· especially the effects of the Lockdown. Unfortuna\ely, while Nigeria was still batlfing,vith the pandemic::, lhe
#EnclSARS P-"otesl~ a protest by Nigerians a9alns1 police brutallty fvnherimpacted on the Nigerian operating economic
environment.

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CHAIRMAN'S STATEMENT CONT'D

All these factors consequently negatlv~lyaffected our oompany'$ perlormance and greally Impactedour operations..

HEALTH SECTOR
You wlll recall that the Federal Mlniate<of Health {F~1H) on 1st Ma.y 2018 issued a direcUw,c 10 the National Agency for
Fooo and Drug Adminls1ration and Control (NAfOAC) and Pharmacists Cooncil of N~eria (PCN) to suspend 1he
ptOducOon of 'Codeine Conialn!ng Cough Syrup•: suspend new license registration for lhc product: suspend 1hc
l&suanco of further lmp01t pormi1 for Cooeine PhO&phate: do an audit I.fail and recall all "COd&ine Containing Couoi,
Syrup·.

Ills worthyotnote lhatin collaboration with me Pnarmeceutlcal ~1aJlu1actuf(lfS Grou:p ol' tho ManufacturersAssociatlooot

Nlgaria {P~~G-fv1AN}, compensation was paid for the finished goods by the Federal Government of Nlgecian to the
affeded companies • we were one of-them. Efforts to get compensation for the Aqive Pharmaceutical Ingredients (API)
from1he Federal Governmentareshllongoing.

COMPANY REVJEW

Dear Shareholders, L.adi~ $ndGentlemen,

FlrsUy, I waru to say 1hat we recognize tne Importance of meeting sharehoklers' expectations and deUVertng a long..tetm

shal'$hOlder-veiue driven company Is ofparamount cooearn to t11o0 Board and tho Managcmenl

Consequently, the Company has refocused on strengU,enmg its position in the Pharmaceutical lndu.stry. We are

repositioning ow qvality pharmooeutkal product$ to command greater mefkel !!hares especially the Oral Health care

category, wh11st malting sure that theCoosumersegmentfs more producciveand profi1able.

In an, the Board of Directors and ~4anagemenf remain focused on our strategic inffiatives aimed st sustaining a long·ferm
growth of the Company. We shall continue to strive celenl1ess!y to improve the perlorrnance of ovrCon1pany and position
it as one or the leading Pharmooeutica1 Tnoustry in N,gerla,

:-.,t• I OPERATING RESULT

OiSllngulshed shareholders. our company recorded a turnover of N460.837 milllon which rS 5% sess than our achf.eved

~'-:-- l'umoverf0t2019with a lossotN325.206 Miiiion.

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FUND SOURCING

Al ptesent. we are ri:nanclng ouroperatlons,vlthlin11ows rrom ourmanufacturtngopera1ions and sales of our products. wllh

no borrowing.

,., However,inorder to eoooterate our Company's grow1h and quickty expand on our operations, we shall be considering

.. ExtemaJ Caplt&l ln;ectlon through favourable financing options that ere sustainable, This Is expected to yleld positive
i,,, reson as wecurrently have a heallhycred.i'.lstatus.

BUSINESS OUTLOOK

The Board ancl Management are reasonably confident that With lhe strateglc klltlatlves being introduced, oor oool!nued
Investment in out t>ra.ncJsand poop!& as ,voJ.I as with tho 1nj,ectlo11 et the Expected E.xlemal i:lifld!ng, we w!II be dotlvOOng
gro,lllh for lhe buslnessin the oonung y&Bls.

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~CHAIRMAN'S STATEMENT - CONT D

CORPORATE SOCIAL RESPONSIBILITY
Giving baek to thecommunttyhas ruways been &guiding principle of our company since 'Nestaned ceeraieos. Tneeetoee,
our interventions In lh& yoat under revtev, wore majO,ty tafQ(lled aga1.ns1 thEt COVl[).19 pandemic, Outing those
unpn?cedonled limes of COVIO 19, the Company has been activeiy contributing lo support vulnerable groop,s and
communities. other responsibilities were lo communities :aroundAgbara Industrial Estate.where our company is situated
and other notable lns.ti1utions by ,va,y of Product donatk>ns, Partne<ship, oontribt.Jtions ancS $pofl$()(511ips.

TRAJNINGANO DEVELOPMENT

Our Company continued In ihe Training and Oevek>pmenJ of ti:$ key Staff to ensure that the)' ere atwaya up to dale Wflh
Pna.rmaand ConsurnerJnstallattOOS and IMova1ive technology In our business sector.

ONIOENOS
The Board ofOi,~ors are not recommending the paymentot dl\liclends fortheye3fencled 31sl December. 2020.

CHANGES IN THE BOARD
Thereare noch~nses in1he Board,

CONCLUSION
Distinguished ladles a.nCI 9enuemen, even in 1he face of instabilities in the operating environment, your tn.1s1 and

coofleloooe ,n lhe company have been Ille vltaf fuel In our uostoppable joumey totne growth and Improvement of our
company: 1 (e&I humb.lOdto thankeacncoe oryou, ccstomers.f.lmployoos. partners, sha(ehOldors.suppllors.l&ndtlrsand
community at large for your continued support. Wedo not take this for granted.
Hopefvlty, I kJQk forv;ard to meeting you tece-rc-fece nex1 year under normal c:ircumstanoes. Until then. stay safeand well

FinallVrI thank you most slncerelyfocyour presence and kind attention.

1

F,RJ\ WILLIAMS

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COMPANY'S PROFILE

I . PHARMA-DEKO PLC. started in Nigeria In 1969 as Parke-Davis Company (US} operating a non-

I<'
trading branch in Nigeria to promote its wortd-wioe range of quaJity pharmaceutical products. In

December 1969. the company was incorporated under Nigerian law as Parl<e-Davis and Company
(Nig.} limited. Prior to this, the importation and distribution of the company products was done by
appointed agents. The new company took over all these functions upon Incorporation. Then In 197 4.
with the promulgation of the Nigerian Enterprise Promotion Decree ( 1972), 40o/o of the shares of the
company were sold to the Nigeria citizens and associations. The company operated under the name,

'·' Parke-Davis and Company (Nig.) limited until February 28, 1980, when th~ name was changed to

Phatma-Oeko Limited. Sequel to Its conversion from private to public company limited by shares, the
company is now known as Pharma-Oeko Pie. Pharma-Deko Pie is the first Pharmaceutical Company
in Nigeria to be ISO (International Standard Organisation) certified to produce Vltacee (brand of
Vitamin C} Drops/Syrups and Carbonated Soft Drinks

Our consistent level of quality and dedication to healthcare makes us one of the country's leading
producers of pharmaceutical and consumer healthcare products. Our popular brands Include but are
not limited lo Pharmadec (Syrup and Drops), Parkalin Cough Range. Anuproct, Salins t.lniment,
Revitone Blood Tonic and Anlasil brand of antacid. Others are Sans Cream Soda. De><tra Energy
Drink, Blackcurrant, Bien Flavoured Water range, MS Cota, Brett Mouthwash, Hexedene and many
other products emanating from our research and development laboratory. These products are
distributed nauon-wlde througha network ofMedical and Consumer Sales Representatives.

BOARD OF DIRECTORS ,~.. •-:..···,· J.

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DIRECTORS' PROFILE '

MR. FOLARIN R.A. WILLIAMS-CHAIRMAN j
Mr. Folarin Wiiiiams holds degrees in Chemical Engineering and law. He gradualed with a B.Sc.
••
,, (Hons.)ACGI in Chemical EngineeringfromIha ImperialCollege ofScience and TechnologyLondon
University in 1977. He also obtained a Master ofArts (Canlab) law from SelwynCollege Cambridge •
in 1983 and was called to the Nigerian Bar In 1984. He holds board appolnlments In a number of
companies within the pharmaceutical, information technology, k>gistics and oil-fields services •
industrialsectors. He Is currenily lhe Managing Partner of Chief Rotiml Williams' Chambers, a full·
service law firm in Nigeria. I

MR. OLUKAYODE!SOLA-MANAGING DIRECTOR(Ag.)
Mr. Isola gradualed from Obafemi Awolowo University lle-lfe wilh a bachelor's degree In Food

Science and Technology (1990). He obtained master's in food lechnology (1992) and Microbiology
(1997) from UniversilyofIbadan and ObafemlAwolowoUnivers,ly, respeclively.
He began his career as a lecturer al ObafemlAwolowo University between 1995 and 1996 before

joining lhe manufacturing industry in 1997.
He wotl<ed In Evans Medical Pie from 1997 lo 2005. He Joined Pharma-Deko Pie in 2006 as
Manufacturing Manager (Contract Manufacturing). He has since held various positions in lhe

company such as Production Manager, Consumer sector and General.Manager Operation in charge
ofspanning. planning, procurement, Logisticsand ProjectManagement.
Ha was appoinled the Managing Olrector ofPharma-DekoPie In January 2020.
He has attended courses in Manufacturing and Production operations, Logistics and Humans
resourcemanagement.

MR. GODWIN A. ALEGIEUNO-NON-EXECUTIVE DIRECTOR
Mr. Alegieuno is a Chartered Accountanl and an Insurance Practitioner. Ha is a fellow of lhe
CharteredAssociationof Certified Accountants, lnslltule or Chartered Accountants of Nigeria and

Chartered Insurer. He obtained an Ordinary National Diploma (ONO) in 1973 and a High National

Diploma In 1975 both lnAccounlancyfrom the College of Technology.Yaba. He atso obtained a Post
Graduate Oiploma in Finance from the University of Leicester. United Kingdom in 2003. He has vast

experience in Commerce, Industry and Insurance. He retired as the Managing Director or Lion of

Africa Insurance CompanyL.imited. Hajoinedthe Board ofPharrna-Oeko Pie in 1994.

MR. E. A. ANABA.-NON-EXECUTIVE DIRECTOR
He hoids an MBA (Banking & Finance) from Enugu Slate University and Advanced Management of
International Agreements & Joint Venturesfrom Universityof Lagos. He also obtained a B.Sc. (Hons)

in Management Studies from University of Calabar. He is a fellow, Chartered Institute of Bankers,
Associate, Institute or Capital Marl<et Registrars.Associate. Chartered Institute of Managementand

Associate, Chartered CertifiedAccountanls(ACCA).
He has worked in both public and private sectors with experience spanning over 20years and has
held board appolntmenl In many companies. His experience covers CorporateFinance, Investment

Management, ProjectFinance, Capital Matl<et and Money Mar1<el Services. He joined lhe Board of
DirectorsIn 2003 as an allemate director and was subsequentlyappoinled a directorin 2018.

•· CHIEF JOE 0. ANYIGBO- NON - EXECUTIVE DIRECTOR

)', Chief Anyigbo is an Engineer and businessman. He has over 30 years extensive experience in all

••f.1,· sectors of the Oil and Gas Industry. He Is a fellow of Nigerian Society of Chemical Engineers. a
memberofthe Board or Trusteesof NigeriaSociety ofChemical Engineersand a recipientof Nalional

Productivity Order or Merit Award. He relired In 2002 from Chevron Nigeria Limited as a Pioneer

Executive Director. Chief Anyigbo graduated with a B.Sc. (Hons.) in Chemlcal Engineering from

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DIRECTORS PROFILE CONT'D

,j Lafayette College, Pennsylvania. U.S.A. In 1967. He obtained Masters In Science from Carnegie- -•:
Mellon University in 1969 and a Masters degreain BusinessAdministration (MBA) from the University
) of Pittsburgh, U.S.A. 1971. He pined the Board ofDirectorsIn 2006. r'-

MR. COLLINS C. CHIKELUBA-NON-EXECUTIVE DIRECTOR I
Mr. Chiketuba is a Lawyer,businessman and philanthropist with business interest in Nigeria, Europe,
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, America and Asla. He graduated wilh e B.Sc. (Hons.) In Business Administration (Major In
Management Science and Minor in Marketing)from Fontbone University, St. Louis, U.S.A. in 1983. ·•-
Mr. Chiketuba obtained a Masters degree in Finance from the Webster University. USAin 1984 and a
Juris Doctoris from St. Louis University, School of Law. USA in 1987. He was called to the Nigerian •
Bar in 1988. His business interests span across various sectors of the economy including
Transportation, Insurance, 011 and Gas, Banking, Manufacturing and Real Estate. He holds Board ..
appointments in other companiessuch as SET Plcand Duport-Marine t.lrnited. f

PROFESSOR H.A.B. COKER-NON-EXECUTIVE DIRECTOR 1.
Professor Herbert A. B. Coker is a Professor of Pharmaceutical Chemistry in the Faculty of
Pharmacy, University of Lagos. He joined the then School of Pharmacy on 17th December 1984 as
Lecturer 1 and rose through the ranks to the post of Professor in October 1994. Professor Coker
teaches Undergraduates and Postgraduate courses and conducts research in Medical Chemistry,
Clinical Pharmacology of Drugs, Natural Products Sciences, Drug Design and Development,

.. Pharmaceuticals & Food Quality Assurance, Environmental Concerns and Clinical Pharmacy.
Professor Coker has published quite a number of research works and professional opinions, in
• I International (offshore)and National (onshore)Joumals. He also renders professional services to the
f Federal Government of Nigeria and Lagos State Government, as \Veilas to foreign establishments in

. • China, Indonesia, and India. He is a member or numerousprofessionalbodies and possessesabout
30 years experience in Pharmacy and health-related matters. Professor Coker had his early
education at Ladllak lnsUtute,Yaba (under the watchful eyes of the late Mrs. R!la Akaje-Macaulay;
nee Hamitlon), Lagos Baptist Academy, Ibadan Grammar School, Ahmadu Bello University,

', Strathclyde in Glasgow. United Kingdom. He was appointed to the Board of Directors of Pharma-
Deko to assist with the Product Quality Assurance Pharmaceutical Technology and New Products
Developmentamongst many other health relatedissues.

MR. KOLAPOA. LAWSON-NON-EXECUTIVE DIRECTOR
Mr. Kolapo Lawson is a CharteredAooountant and business tycoon. He graduated with B.Sc. (Hons.)

•• in Economics from the London School of Economics and Political Science in 1972. He joined the
International Accountancv Firm of Coopers and Lybrand, London (now part of PriceWaterHouse
Coopers) where he qualified as a Chartered Accountant in 1975. He is a fellow of the Institute of
Chartered Accountants (England & Wales) and Nigeria. He is the President of Lawson Corporation
and Chairman, Agbara Estates Limited and Chairman ofAcom Petroleum Pie. Mr. Kolapo Lawson
was the Chairman of Ecobank Transnational Incorporated and holds Board appointments in many
otner cornpanles. Hejoined the Boardof Directors in 1993.

REPORT OF THE DIRECTORS

I

The Oi,ec1ors present thel, report and audited Financial Sta.temenlsor lhe Company ror the year ended 31•
December20.20.

1. Legal Form
The Companywas inco,poratedas a private limited llabillly company In 1969 as PARKE-DAVIS& CO (NIG.)

1.: LTD. In 1980. lhe Company changed its name lo PHARMA·DEKO LIMITED, and in pursuance of the
Companiesand Allied MattersAct 2020,is now knownas PHARMA·DEKOPLCto date.

I 2. Principal ActivitiesandReviewof Business
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The company's principal activities fnctude the manufacturing, packaging and marketing of ht{lh-quality
pharmaceutical and consumer products. The consumer and pharmaceutical products share the same

r;: productionlines. and the company leverages on this to ensureefficiency and effectivenessill its production
process.
:',i\1J. The company is also engaged in the use of its facilities for manufacturingand packaging services for third
r,:•~, parties. e-

3. Operating results

1,,..1 The FederalGovernmentof Nfgeria (FGN) placed a ban on lhe Importationand saleof any pharmaceutical
productthat contains codeine phosphatelast year (2019). The ban affected the company'ssaJeof its flagship
product- ''ParkaJinCoughSyrup".

lmpactofCovld 19 I•
The pandemicseverely affected the company'soperallons from March lo August 2020. During this period,
there was nationwide economic shutdown and restrictionof movoment.As a resull of this, production and
dfstrlbutlonofgoods werehampered.

Beloware tooquantified impactsofCOVID-19on ihecompany.

1) The revenueof tt,e companydroppedby 40C)/owhen comparedwith the same periodin 2019.

2) Despite dropin revenue, the COf'l'lpany Incurred N28 Million on sala.ri&s and v,ages withoutgetting the
required produclivlly.

3) Addilionalcost of about N0.3Miiiion was incurredon staffbus lo convey thosethal cooId workremoiety
to the factoryand to get nose mask. hand sanitizersand infra-red thermometers.

4) Cumulatively,Pham1a-dekowasimpactedlo lhe lune ofopproxlmalelyN150 Miiiion.

Whlle the outbreak having Impacted almost au entities eitherdirectly or indirectly.ii nss directly affectedthe ,_
operatiOnsof the company especiallysince March2020whoo ,videspreadJockdownswas entoroedacrossthe i
world.
Despitetnesesetbacks.theDirectorsstill believethat the Going-concernof PharmaDekoPie is not threatened
by thi:s COVIO ·19 Pandemicbecauseofthe measuresalreadyput in place to keepthe oompanyon a Going-
concem tooling.

The result ofoperationsas atthe end ofthe Year2020 isas follows: 2020 2019

N'OOO N'OOO

>, Revenue 460.837 484,574

Cost ofsales (~d)__ (l12.§1Z) ••r

Loss before taxatioo (324,054) (276.460)

Taxation (1,152) !w.:iL

Loss aftertaxation (325,206)_(278,883)

Total comprehensive loss (325,206) (278,§fil)

.,. . . ; . ~...~#'(

REPORT OF THE DIRECTORS CONT'D, ,.

\____
4. Share capital

2020 2019

Authorised Number ofshares

Orolnary snares 300,000.000 300.000.000

I

2020 2019 2020 2019
N.·ooo N.'000
Issued Numberofsnares

• Ordinaryshares 108 466 108.466 216,931 596 216 931 596

Therehave been no changes to the authorisedor issued share capitalduring the yearunderreview.

5. Dividend
~ No divide,><! was proposedby the BoardorOire<:10rsl0tthe 2020 financialyear.

6. Directorate
In accordancewtth Section 385(2) or tile Companiesand Allied MattersAct (CAMA) 2020.tile directorsorthe
company•..,.hossrvedduring the year,wereas follows:

Directors Designation Natlonallty Changes

Mr.F.R.A. Willlams(Jr) Chairmon Non~executive Nigeria

Mr.Isola Olukayode ExecutlV'e N~eria AppointedNov 12, 2020
Non-executive Nigeria
, Mr. C.C. Chikeluba

Mr.K.A. Lawsoo Non-executive Nigeria

ChiefJ.O.Anyigbo Non-executive Nigeria

Mr.G.A.Afegieuno Non-executive Nigeria

ProfessorHert>ertABCoker Non-executive Nigeria
Non-e.xecutive Nigeria
,•• Mr.E.A. AJ1aba
Mr. F. R. A Williams (Jr.) and Prof. H. A 8. Cokerwi11 retire by rotatoi n from the Boardof Directorsat the s1•
••
,, Annual Generalf\1eotlngand beingeligibJe haveofferedthemselvesforre·olectionfeleclion.

CHANGES ON THE BOARD
Since the conclusionof the last Annual General Meeting, there have been no changes with respect to the
Board Members.

•.
1. Oirectors·interests in shares

As at December31, 2020,the Interestofthe OirectocsinU,e issued Share Capitalofthe companyas recorded i"~
in tile registerof shareholdersand/oras notified by them forthe purposesorSedion301 oftile Companiesand
AlliedMattersAct (CAMA)2020 are as Follows 1

Interests in shares 2020 2019 2020 2019 ~~i!
Directors Direci lndlrec1 Indirect r
15,194.440 Direct 57,393,000
Mr. F.R.A. Wiiiiams (Jr) 15,194,440 57.393,000 .
Mr. Isola Olukayode 10,000
Mr. C. C. Chikeluba 23.136,950 10,000 3.079.141 3.079.141 ti
Mr.K.A. Lawson 23,136,950
ChiefJ. 0. Anyigbo 300,000 • ,,,
Mr. G.A.Afegleuno 300,000
ProfessorHerbertA.B Coker 25.000,000
Mr.E.A.Anaba 500.000 25,000.000
500,000
150,000
150.000

64,291,390 64,291,390 7,000.100 7,000.100
67,472,241 67,472.241

q 8. Director'slnterostlncontracts

°'Ouring the financial year. a few COnlractswere entered Into whichdfreotors officersof the companyhad an

• interest aod \\ITiich affected lhe business of the company.The treosecuonswere howeverall cooducted at
arm'sfength,

t,',

[ REPORT OF THE DCRECTORS CONT'D

%OF %OF
SHARE HOLDER SHAREHOLDING

53~.ot=!=~ 0.4 t

0.92
l>1.· 3.14

11. Donations and Charity Gifts
There were no donations and and/or charitable gifts made during the year 2020;

12. Dividend
The Board does not recommendany payment of dividend.

13. Compliancewiththelaw
The Board ensures that management complied with all the laws relating to the businesses of lhe
company. The Board also ensures that Ule company co-operates with the relevant Statutory Agencies

while carrying out Its business. The Olrecto<S hereby confirm that the company complied fully with all the

requisite regulatory and legal requirements during the financial year.

14. CorporateGovernance
In Pharma-Deko Pie, our actions and ir.iteractions with our consumers, customers. employees,

government officials, suppliers, shareholde<S and other stakeholders reflect our values, beliefs and

principles.

Our business is largely self-regulated, and we pride ourselves as leading our peers in the industry and
Nigeria in this regard.In addition to self~regulation,we are committed to conductingbusiness in line with
bestpractice,in accordancewithapplicable laws and regulationsin Nigeria, in line with the requirements
of the Nigerian Stock Exchange as well as in compliance with the Code of Corporate Governance In

Nigeria.

The Coinpany's operations have always been guided by Ule principles or corporate governance, with the
objectiveofachieviog Improved corporateperformance,whilstenlisting adherence to the highest ethical
standards.

..:.. The core value of the Company'sabidinggovernance philosophyis Integrityin allitsoperations.

15. Employment of Disabled Persons

It is the policy of lhe Company to ensure that there is no discrimination In considering applications for
employment including those of physically challenged persons. The policy ensures that disadvantaged
persons are afforded.as faras is practicabte, identicaJ opportunitieswith other employe·es.There was no

,. such physically challenged person employed during the twelve months ended 31st December 2020.

~• ...._. . l"'<~-- ~•s ":,,~.~.;;;-;,11,~ . ,';'>"";:~-;t 11~.. ,,..,.•,oi·,,,~,S < 1~1}.... I : . \t ,, .•,./,;;:4kt.T,,•,• ~·

::.ft':t·I~ I,:} ' I, !-. z;v1"1' ,.. l.t' ..... /•;.( ] t\ •
'-'<'\, •

., ., l ,. .• ..

REPORT OF THE DlRECTORS CONT'D

'•

16. Health & Safety at Wor1<
The.Company places a high premium on the heallh. safetyand welfare of Its employees at place of work.
All efforis are geared towards providing a safe and conducive working environmentfor employees. Tothis
end, there is a health and safety policy supported by systems and procedures for ensuring that safe
\Vorking practices are follov,ed in the pertormance ofall Company functions. In addition, medical facilities
at specifiedfimits are providedto confirmedemployeesat the Company's·expense.

17. Company's Distribuotrs

SIN CUSTOMER

1 ADEDELOFF FRONTIERS LTD

2 ALH USMAN INVESTMENT
ALHAJI SHEHUAOAMU
i3
4 ARTEEE INDUSTRIES LTD (SPAR)

5 AYI

6 B & Y SAAD VENTURES LIMITED

7 BYSONS

8 DAVIDALABIKE

~9 DIVINE TREASURE FIELD LTD I!''
10 EMMY·NO GLOBAL MULTIVENTURES
')r"
• 11 F. R. WILLIAMS
12 FEDERAL MINISTRY OF HEALTH ,I

13 GONAKO INVESTMENT :~

14 GRAND SQUARE SUPERMARKET ~

15 GROCERYBA2AAR ft

.•• 16 IJEOMA ERNEST ODIDIKA 4¥
17 IK BEN PHARMACY
t 18 Jagamaster Dlstlllers Limited •I

19 MADIBAMARTLTD "l: .
\
20 Mahabub kassim
~
21 MRSTINAU&ASSOCIATELTD
··~i
22 NGOPATOPTMUM SERVICES

23 OBI·TONE VENTURES
a, 24
OBIEKEZIE PRUDENCE IFEYINWA

25 OKOBIZVENTURESLTD

f 26 ORILE -AGEGE GENERALHOSPITAL

27 OSCCARMORE UNIVERSAL SERVICE

28 PRICEPOINTE WHOLESALE CLUB

29 RAY CHOICE INVESTMENT

30 RON-LOLLVENTURES

31 Saukl Fish KofarGuga Kaslina Limited

32 SUFAYE .SAHMED ENT.

33 TRIPPLE G NUGWA

34 WORLD WIDE COMMERCIAL VENTURES LTD.

35 YINIKAWAENTERPRISESLTD.

18. Company's Suppliers

The company'smain overseas suppliersare: :~

1 HAUTEK INDUSTRIES CO.. LTD .

2. NANJING UNION PACK IMPORT & EXPORT CO.. LTO ~

r 3. TRAOENIGER IMPEX PVTLTO J.
• 4. YORK,JOHNSON CONTROL COMPANY
5. ZHANGJIAGANG MACHINE CO.. LTD ~'.

.."....~ ...·,..,.I~J."':t. ' ~~iw

r REPORT OF THE DfRECTORS CONT'D

The main Local Suppliers ere:

1. MANIPALINTERNATIONALPRESSLTD
BMSINTERN.RESOURCESLIMITED
v. 2.

3. BOC GASES NIGERIA PLC

4. SHONGAJ PACKAGING INDUSTRY LTD
DANGOTESUGAR REFINERY PLC
-1_, 5.

6. EURO GLOBAL FOODS & DISTILLERIES LTD

7. QUORUM PACKAGING LTD

8. MODEL MAINTENANCE SERVICES
9. CHRISJO INVESTMENT

10. NIPCOPLC

11. ORIENT GLOBALMANUFACTURING CO. LTO.
12. ROTOPRINT LIMITED

13. RT BRISCOE (NIGERIA)PLC

14. MMTA

15. TRISANIGERIALTD

16. FIYIQUEVENTURESLTD

• 17. WAHUM PACKAGINGLIMITED

19. Bo,ud of Directors
The Board Is responsib'9 for the ove<slgh1 of the business. loog.-tetm strategy and objectives, and the
'l ovetslght or the Company's risks while evaluating and dlreciing Implementation of Company controls and
procedures Including maintaining a sound system of Internal controls to safeguardshareholders'investments
and the Company's assets. There are currently four (4) regularty sche<juled Board meetings during each
financial year.

20. Composition of the Board of Directors and Procedure forBoardAppointments
The Boardcurrentlyconsistsofthe Chairman.6 Non-ExacutlveDirectors and 1 Execulive Dlrector.
All Oirect0ts are selected based on cen.aJn core competencies indudtn,g expecienco in ma1keting, generaJ
operations, strategy, law, human resources, technology, media or public celatloos. finance or accounting>
retaJI, consume, pr.oducts, international business/markets, logistics. product design, merchandising oc
experience as a Managing Director or Finance Director.In addition to having one or more of these core
competencies,candidates for appointmentas Directors are id8'1tified and considered based on knowledge,
experience, integrity,diversity,leadership, reputation,and ability to understand the Company's business.

21. Separation of the positions of Chairman and Managing Director
The positlons ot tile tr.ianagingOifectorand that ofthe Chairman ofthe Board are occupiedby different persons
and the Managing Dir-oc.toris responsible forimplementationofthe Company'sbusiness strategy and the day-
to-day managementofthe business.

22. Scheduleof MattersRe-servedforthe Board
The rotlowing are the mauers reserved for lho Board o!Dlrectorsor the Company:

I. Strategy and management
Input into the development of the k>ng·term objectives and overall commercial strategy for the
Company.
Oversight or the Company's operations.
Review of perfom,a.nce!n the 11ghtof the Company's strategy,objectives, busJness plans and budgets

and ansuclngthat any necessarycorrectiveactionIs takef\. . .'(
ExtenstOnof the Company's-activitiesintonew businessor geographicareas.
AnydectSiontocease to operateall orany materialpart ofthe Company'sbusiness. ~,I..'

11. Structureand capltal •'
Changes relating. to the Company's capital structure includfngreduction of capital, share issues

(exoeptunderemployeeshareplans-)andshare buybacks.

; Mejorchangesto Uie Company'scorporatestructure.
Changes 101he Company's managemeo1 and control structure.

Anychanges to the Company'slistingorIts statusasa publictylistedcompany.

l iii. Financiolreportingand controls
' ApptovalofptellmlnaryannouncementserInterimand finalresults.

Approvalofthe annuaJreportand accounts,fnciudl~ the oorporate governancestatement.

Approvalof the dividend policy.

,,' Declarationofthe interimdividend end recommendationor the fined dividend.
Approval or any slgnlfi<:an1 changes In accounting pollclesor prectlces.
1 Approvaloftreasurypollcles Including foreigncurrencyexposure.

• tv. Internal controls

• Ensuringmalntenancecl a sound system of fnlemalcontrol and riskmanagement lncludlng~
Receiving reports from the Finance and Risk Commldee and reviewfng the effectlve.oossof the

Company'sriskandcontrolprocessesto supportIts strategyand objectives.
Undertaking an annual assessmentof these processesthroughthe Finance and Risk Committee;and
Approvingan appropriatestatementforinclusionin the annualreport.

v. Contracts
Majorcapitalprojects.

Contractswhich are mateflalstrategicallyor by reason of slz.e,enteredby the Company in the ororn.ary

course of business, for example bank borrov,ings and acquisitions or disposals of fixed assets of

amountsabovethe thresholdreservedforExecutiveDirectors.
Contractsofthe Company(or anysubsidiary)not In the ordinary course ofbusiness,forexample loans

and repayment~:foreign currency transactionsand majoracqufsillonsotdlsposals ofamountsabove

the thresholdsresetv&d for Executive Directors underthe ScheduleofAuthorillesand Limits.
Major invesunentsincluding the acquisitionor disposalofinterestsof more than five (5) percentin the

voting shares ofany companyor the makingofanytakeoveroffer.

vi. Communication
ApprovaJ of resolulloosand oortespondlog documentation to be put forwardto sharehokfersal a
generalmetitlog.
Approval of all circulars and listing particulars (approval of routine documents such as periodic
circulars about scrip dNkfend procedures or exercise of conversion rights could be delegated to a
committee).
Approvalofpress reJeasesconcerningmatters decidedby the Soard.

vii. Board membership and otherappOlntments

, Changes to the structure. size and composition of th.e Board, rouov,ing recommendationsfrom the:
RemunerationCommittee.
Ensuring adequate succession planning for the Board and senior menagemenl 1oUO\v;ng

' f,11""'""··,-.,"':...,..•__.<..:·~-,,._....._,.•._·.c· _.,"''--'";.... _.i .... ,_..,,f't-.., -, ~

r REPORT OF THE DIRECTORS CONT'D •• "'.;r

recommendations from the RemunerationCommitte,e.
Appointmentsto the Board, followingrecommendationsby the Remuneration Committee.
Approval of appointment of the Chairman of the Board foU()l,ving recommendations by the

Remuneration Committee.
Appointment of Non-executive Ofrectorsincluding Independent Directors followingrecommendations

by the RemuooratlonCommittee.
Membershipand Chalm.,nshipofBoard Committees.
Conllnualioo in office orOirectors al the end oftheirterm ofoffice when they are due lo be re.elected by
shareholders atthe Annual GeneralMeetil,g and otherwise asapprop,iate.
Continuationinofficeof Non-executiveDirectors at any time.
Appointment or removal of the Company Secretary following recommendations by the Remuneration

Committee.
Appointment, reappointment or removal of the exter,-..al auditor to be put to shafeholders for approval,

ronowlng lho recommendation of the Finance and Risk Committee.
Appointments to Board ofsubsidiaries.

viii. Remuneration
Approval of the remune,aOon policy f0< the Directors, Company Secretary and other senlorexecutlves
rollowlng recommendations by the Remuneration Committee.
Approvalofthe remuneration of tho Non-exee<1tlve Director.;,sublectlo th,t Ar1iclesorAssociation and
shareholder approval as appr'Ol)rlate foUowlng recommenc.iatJons by the Remuneration Committee.

The introduction of new share incenlive pl.ans or major changes to existing plans, to be put to

shareholders for approval following recommendations by the Remuneration Committee.

Ix. Delegation of authority

ft The division of responslbtlitiesbelwe-en the Ohalrrnan and the ChierExecutive Oulcer, which should
be in ,vd1ing.
~
Approval of terms of reference of Board Committees.
r.j Receiving reports from Board Committees on. their activities.

'l x. Corporate Governance matters
.''(
Underta'9ng a formal and rigorousreview of its own performance, that of its Committees and individual

Directors .
Determining the independence of Directors.
Considefing Lhe balance of Interests between snarehotders, employees, customers and the
community.
Reviewof Iha Cornpany·s overallcorporategovernancearrangements.
Receiving reports on the views of the Company's shareholders,

23. Induction and Training
The Company has i" place a formal lnducti<>n program fornewty appointed Oirectors. As part of this induction,
each ne\v Director Is provided wllh core materials and asked 10 completea series of Introductory meeti~s to
become knowledgeable about the Company's business and familiar with the seniOr management team. Newly
appointed Oire<:tors are also conducted round lhe production faeillties or lhe Company to gain first-hand
knowledgeor lhe production prcx:ess and the emphasis placed on heallh and safety by the Company.
The Remuneration CommiUee oversees evolving a continuing education programme to ensure ex.is-ting
Directors staycurrentv,ith the Company's business and objectives as weu as relevant induslry informalion and
other external factors such as corporate governance requirements and best practices. As part of the
programme. Directors· are encouraged to periodicalty attend appropriate oontinuing educatioo seminars Of
programmes ,vhicllwould be beneficial to the Company and Uie Directors' service on the Board .

.· •

,,

REPORT OF THE DIRECTORS CONT'D

24. PerfonnanceEvaluation process
The Remuneration Committee oversees a rormal evaluation process to assess the composition and

i.• performanceof the Board,each Committee,and each individualdirectoron an annual basis. The assessment

, Is conducted to ensure the Board, Committees,and Individual members are effectiveand productiveand to

Identifyopportunitiesfor improvemenat tld skill setneeds.
As part of lhe process.each member completesa detailed and lhotough questlonnalre, and each mombe<

I also part1clpates in an oral lnt&rvle\v/conversatlon sessloo as a follow up to the comp£etion of the
questionnaires. Tho results are aggregated and summarized for discussion purposes: however.Individual
responsesare oot attributedto any memberand are keptconfidentialto ensure honestand candid feedbackis
recelved. The Remuneration Commlttoe reports annua!Jy to the full Board with result or the evaluation
ex.e.rcise.Directors will not be nominatedfor re-electionunlessit Is affirmativelydeterminedthat lhe Directori.s
substantiallycontributingto the overalleffectivenessofthe Board.
A summa,y or the 2019 Board Performance Eva1ua!lon Is 1ha1 the Board Is c0<11POsed or highly experienced

Individuals with diverse baCkgrounds and the Board Is effectively and efficiently dl.scharglng its overslghl

funclion$ of the Company'sbusiness strategy/plan as vlt;}II as Its other respcosjbhltles. The evatuaucn also
connrmed that the Directors are very committed10 the businessof the Cornpany.u was however noled that
there is room tor improvementIn the area of con1!:nuousdirector developrnenLThe recomrnendatloosof the
performance evaluation have been considered by the Board and are belr.g lmptemented as deemed
necessary,

25. AttendanceatBoardMeetings

c'• The Board held nine (9) meetings during·the 2020 financialyear. The following tabJe shows the membership
and attendanceof Directorsal Board meetingsduringthe 2020 financial year:
•• Totalno of
!..
-I

AWA-Absent wlthApol09y I NIA-NotApplicable

26. Board Committees
Asat the dateofthis report, the Companyhas in place,thefollowingBoard Commit.tees:
Remunetahon and Human Resources Boa,d Commlnee, Rnance and General..PurposeBoard Committee.
Science and TechnologyBoardComrnlneeand RJsk Management Committee,
The f~lowing table shows the membershipand attendanceofOlreetors at Board Committee meetingsduring
lhe 2020 financial year.

.

•$-

•,.'

p NIA-NotApplicoble

P-Presenl I AWA-AbsentwithApologyl

REPORT OF TAE DffiECTORS CONT'D

P-Pr-os.ont AWA-AbsentwithApology I NIA-NotAppllcablo

Each of the Committee'smeetings were attended by the Managing Director. Chief Finance Officerand the
Company's Soticitors. When the need arises. Other senior managernenlmembers are invited to bner the

Committeeon agenda items {elated to theirareasor responslbtlitles,

The Board was kept updated and informedat its regular quarterly meetings of the activitiesor the Committees

through the Reports of the meetings of the Committee and' verbal updates provided to lhe Board by the

Chairmanofthe Committeewhich is includedas a regularitem on the agendaofBoard meetings.

27. Audit Committee
The Company has a Stalutory Audit Committee set up in accOf'danee v,iu, the provisions of the Companies and
Allied Matters Act. ll comprises of a mix'lure of Non-ExecutiveDirectors and ordinary shareholdersele,cted at
the Annual GeneralMeeting. It e:vah,.1ates annually the independenceand performance of sxtemal auditors,
receivesthe interim and finalaudit presentationfrom the external auditorsa.ndreviewswith management and
the externalaudltol'Sthe annuaJaudited tlnan,c;iaJstatementsbeforeits submkssionlo the Board.
Ouring the year,the Committee approvedthe audit plan a}l(Isoopeof the externalauditorsfor the financial year
and reviewed quarterly and half yeartyfinancialresultsbefore presentationto the Board. The Committeealso
reviewed the critical aocounting policies. judgments and estimatesapplied ln lhe preparation of the financial
statements.
The Committee also received reports from managementon the accounting system and internal controls
framev,orkof the Company. Similarly, the Committeeteviewedreportson key risks affectingthe Company's
operations,the r6'atedcontrolsand assuranceprocessesdesigned to manageand mrtigate suchrisks.This is
in add1tion to receivingregutarupdateson the Company'scontrolsand governanceenvironment.
The Committeeconsideredthe proposedauditfeestructureforthe 2020 financialyear and madeappropriate
recommendationsto the Board.
T~.emen1bets of thestatu10l'yAudit Commlttee<furingtne 2020 Onanclal year are as follows:
Mr.·K.A. Saka. Mrs. O.T.Assan.Mr. O.S. Olugbemi, Mr.A.A.Aworeni(elected on 121h November2020). Oiief
C.C.Chikeluba, Mr.G.A.Alegieunoand Mr.E.A. Anaba,
The Committeemettwo (2) timesduring the year.The followingtable shows the attendanceofthe members of
the Committeeatthe meetings:

. SIN NAME OF MEMBERS 17/312020 I 15/1212020 TOTAL NOOF MEET!NGSATTENOEO
Mr. I<.A. ~...ka ?
.' 1. urc ,.. ,. A~~.,.- pI p.. .
1
.. ? ""- n c:: ,....,~09.(Ulli "" I p" ?

,' • Mr.A.A.Aworeni NIA 1

!~ 4.

5. ChlAfC.C. Chlk•I"'• p p '?'
p
~ a•- I':!. A • p
"N/A-NotAppllcablo
7 l1~ EA Ana"'..

"P-Prosont I AWA-AbsontwlthAJ)ologyI

Senior managementmembers are invited to brief the Committeeon agenda items related to !heir areas of
respoosibilities. The engagement partner of the external auditor, SIAO was also present wilh other key

., membersof his team.wheneverthe need arises•

... '.

~ REPORT OF THE DIRECTORS CONT'D t..

, 28 Codeof Bus.iness Conduct andCodeof Governancefor Directors
A.~a member of the society in \vhich \VS operate, we are not Just interested in befng the best performing
consumeopnarmaceuucalproducts Company.we are equally committed to our ambition to become the most
trustedand respectedbuslness in Nigeria. During the past y&ar.the economic and commercialenvironment
we have operated In has been 'o/ery volatile. It ls in times like this that complianceand ethics-growever more
Importantas peoplewantto trust theCompanybehind the brands theylove.

, The Company has a Code of Business Conduct (CoBC) which is based oa our purpose and values as an
organfsation.At the heart of our Code Is a culture of "Acting with Pets0nal Integrity" at all times as we engage
with Internal and extern.al stakeholders. The Cod& Is applicable to all employees, Dh'GciO<S and business
pattnarsof the Company.Our Codecovers salloot topics which Include heaUh, safetyand personal sectJrity,
bribery and eotruptlon,responsibledrinking, money laundeting,discrimination and human rights, Information
nlanagementand securily,quality, Insider ttading, conflict ofinterest, competilion, data privacy.relationships
with customers, supptlers and other buslness partners,extemal communicationsand social media amongst
others.
Weapply t~ principlesof faimess,integrity and transparency in au our business <Jealingsas entrenchedin our
CoBC and In line with international best practices. Training eoo communication programmes as well as
compliancemonitoring mech.anisms are In place to ensure that all retevara s1akehol<1ersremain a\vare orand
comply 11,ith the ptovlsionsoor urCodeand polictes.
We· also seek to create a culture ln which emp4oyees feel comfortable ralsl.ng concerns about potential
breachesof our Code°' policies. We create an enablingatmosphereand expect anyonewho oomes across a
breach to report it immed~lely, eitherthrough our confiderttlalwhistle blo\vlnghelpfine Speak Up, to their Line
~1anager.to a rnemberof the Controls, Compliance & Ethicsteam, the Human Resources oi Legat team. AU
allegations are taken seriously and those that require action are invest;gated. Our response lo proven
breach.esvaries commensuratelywith tile severityof U1ematter. and we monitorbreaches to identifytrendsor
oommonareas\vhere further actionmay be required.

29. Statementof Company·'sRisk ManagomontPolicios and Practices
The Boardof Directorshas lhe responStbllltyofensuring the mainteoanceofa sound systemof Internalcontrol
and Risk management which 1t does through its Fioanoe and Humao Resouroos Committee and Risk
Management Committee.In compliance with the requirementsor the Code ofCorpotateGovernance Issued
by the Securities and Exchange Commissionin 2011, Managementprovided assurance 10 the Boatd during
the financial year that lhe risk management control aod compliance systems in Pharma-Oeko Pie are
operatingefficiontlyand effectively.
On an annuat basis. we undertake a holistic risk assessment to identify top Internal and axlerl\al e.!Clsting or
,: emerging risks which are thereaner rankedbased on their likelihood of occurrence and thelr Impact to Iha
business. These rtsks are assigned to owners who are then tasked with ensurh)9 that robust risk. m.itjgalloo
plans ate In ptace to mitigatethese risks.

• 30. Employment Policies

~ The Company places considerabte value on the Involvement of its employees and maintains an effective
communicationwith all employeeswtlo, subject to practical considerations.are consultedon and involved In
decisions that affecttheir currentjobs or prospects.The Companyaccordingly holds regularstaff meetingsto
discuss the Company'sday-to-day operations,busmees focus and staff weHareissues.

r' 31. nrsctosureOf Renumeration ofManagers
Pu,suant to section 257 of lhe Companies and Allied Matlefs Act, (CAMA)CAP C20 LFN 2020 lhe
remunerationsof the managersare ouUinedbelow;

REPORT OF THE DIRECTORS CONT'D
.,

~(.

32. Training & Development

Training courses are gearedtowardsthe developmentalneedsor staff and the improvementIn theirskill.sets to

', face the tncreasfnq otialtenge required fOf better performance CH1 lheir jobs, The Company ensures that staff
receives oonlinuous on-the-job Iraining.

33. Auditors
The auditors. SlAO {Chartered Aocount.ants), having indicated their williogness, will continue in office in

accoroaoce wilh section401 (2) or lhe Companiesan<IAllied MallersAcl,(CAMA)CAPC20 LFN 2020.

•

~J-1 34. Socretary

The company secretary Is Unily Trustees Umite<I.

The annual report and fi.nancialstatementssetout on pages ~910 64 , which have been prepared on the going
conoem basis.wereapprovedbythe board of directors on 25th March, 2021, and were signed on its b~half.

I•

,,.I~ ByOrderoftn~eBoard

~!~-

Micha.el C.M. Ominyi
FRC/2021/002/00000023271
Unity Trustees Limited
(Company Sec,etary)
1, ShagamuAvenue llupeju.
Lagos.
25th March .•2021

I

'e(I·'»'' '

'j'

't:is7""'·tr: ~ECTORS'RES;ONSIBILITIES A~~ ~~PROVAL"'" ., .""' , ..,._,"'°,,.,
t1'
The dwectors are required In terms of the Companies and Allied Matters Act (CAI.IA) 2020 and the Aoanc,al Reponlr,g
Council Of Nigeria Act 2011,lo maintain adequate accounting records and are responsible forthe content end integrity of

tt'le financial statemenlS and related Onanclal lnforn,atlon tncluded Jn this report. It is their responsibllityto ensuro,that the \; ;

financial statements fairly present lhe state of affairs of the companyas at iheendof the financial year and the resultsof its i
ope1ations and cash flows for the period then endOO, In conr~n,lty with lntematlonal Fina.oclal Reporting StDindards. The
external13.uditorsareengag(?dto expressan independentopinionon thefinancialslatements. ,'1

The financial statements are prepared in aooordance \'Yilh lnternationatFinancialReporting Standards and are based ii.
upoo appropriate accounting poflcies ooosistet1Uy applied and supported by reasonable and. prudenl judgements and <
estimates. '

The directors acknowledge that theyare ultimately responsible for the system of internal financial control establi&hed by

Ulo companyand place considerable Importance on n1alntainlng a sttong oontfol envlrol\lllool. Toenable the dlreclOf'Sto

meet these rasponsibirtties. the board o{ directorssets standards for intemal oonl!of aimed at reducing the risk of error or

loss In a cost effective manner; The standards Include the proper delegation of responslbllltles wltl\in a ciear1y defined

frame>11ork, effective aooounting procedures and adequate segregation or dvt+es to ensure an acceptable level of risk.

These oontrots are mondored throug1,ou1 the co,npany and an employees are requited to malotatn me highest ethical

standards ln ensuring the company's business is-OOnducted in a manner that In ai, reasonable Qrcumstances is above

re.p(oach. Tho focuso( risk management in the company;son identifying. assossing, managing and monitoring all known

rorrn$oJris.k,a(:l"Ossthe company.While operating ris.kcannot be fully elfmin.ated. theo::11npanyenceevcersto minimi$e It

by ensuring that appfoprialo infrastructure. controls. systOOls and ethleal bohavlour ate appUOO and rnanagOd within

prede-lermined procedures a!ld constraints,

The dEreciora are of !be opinion, based on the informa1ion and explanations given by management, that !he system of
lntemal control provides reasonabk3 assurance that tho rrnandal moords may be rofiod on t01' the p(cparauon of the
financial statements. However, 3ny system of Internal financial conlrQI Ciln provide Q."llyreasonable, and not absolute.,
assurance aoalnst matru-lal mlss1atoment 0t scse,

The d1rectors have rovlewO<I tho company's cash flow rorecast tor tOO year to OGCembor 31, 2021 and. In llghl of this
review and the current fm~ci~pI osition, theyare satisfied tha1 the company has 01 h.ad eccess to edequete resources to
COf'ltlnuo In opera!ional oxlstenoe torthe foresooablo futu(tt.

Th-0 extornal audlt0<sa(e respons.ble tor lnOOpondenuy auditing and ,oportlng on tho oomp.any's ~,,ancial statomenlS.
The financial statements have been examined by the company's extemetauditors and their report is presented on pages
26to28.

Tho financial staiemcnts sot outon pages 29 to 64. whleh have been prepa.,edon the going concern basts, wemappro"'ed
by the board of directors on 25ltl March, 2021 and were signed on theitbehalfas indicated bek:l•,r.

Signed on behatf of the Board of Oire-ctors By:

Mr. Isola Olukayode •Mana.ging Director'',.
FRC/2021100ll00000022466

.~

...a~·....:;•~~~~./," ..... ~·~·............... ,.;;,·...,-··-,..., _..~~ ... ~,J;,o-~...
CERTIFICATION PURSUANT TO SECTION
60(2)0F INVESTMENT ANO SECURITIES l
ACT NO. 29 OF 2007

On behalf of the Directors, \Ve the unde1signed hereby certify the foUO\ving Ytith regards to our Audited
FinancialStatementsforthe year ended31 December2020 that

Wehave reviewedthe report:

Tothe bestofourknowledge.the report does notcontain;
o Any untrue statementof a material fact;or
:. Omit to statea materlalfact, which wculd make th& statements mlsleadlngl.n the llghtofclrcumstances
underwh.ch-such statementsweremade:

' To the best of our knO\viedge. the financial statement and other financial information included in this report

fair1ypresent in all materialrespectsthe financialcondition and resultsof operation of the companyas of,and
for the periods presentedin this report.

Wo:

[J are resoonsibteforestablishingand maintaining internal controls.
[' have designed such internal controls to ensure that material information relating to the Company is

made knowntoall officersduring the period in which the periodicreportsare bein.9prepared:
r have evaluated the effectlvenessofthe Company's fnte,natcontrolsas or date\vithln 90 days prior to

the report;
have presentedin the repon our COl\(:lusionsabou1 the effectivenessof our internalcontrols based on

our evalua1>0n as of that date;

We have disclosedto the auditors ofthe Company and AuditCommittee:
all significant deficienciesin the design or operationof Internalcontrolswhich wouldadverselyaffect
th& company'sability to record,process, summarize and report floaocial data and have ldentlfiOO for
thecon1p.any'sauditorsany materialweaknessIn internalcontrols,a,\d
any fraud, whether or not material. that involves managementorothere,nployeeswhO have s'9nifican1
,01e in the oompany's internaloontrois:

°'We have identified in the report whether not there were sfgnificantchanges in internal controlsor other

factors that oould significantly affect internalcontrolssubsequentto the date of our evaluation,including any
correctiveactionswith regardtosignificantdeficienciesand materialweaknesses.

.. Signed on behalfof the Board of Directors on 25th March, 20201 by: Director
00076-U
r

,I

I• Mr. Isola OluKay()(fe-Managlng Oirecto,•·

,.,., FRC/2021/003100000022466

.f

R·E~PORT OF AUD IT COMMITTEE ./~~-l

:Jr

In accordance with the provlsionso!Sec6on404{4) of the CompaniesandAllied MattersAct (CAMA) 2020v;e

confirm that we have reviewed the audit plan and scope, and the Ma.n.a-gement letter on the audit of the

accountsofthe Companyand the responses to the said Letter.

In out oplnloo. lhe plan and scope of~ audit ror the year ended 31 December,2020 were adequate.We have
reviewed the Ex1emalAudltots•findln9sand we are satisfied with the Manageme-ntresponsesthereon.

We also confirm that the accounting end reporting policies of the company are in accordancewith the legal
requirements and ethical practices.

Dated this 25th Marcil, 2021. - ~
I
- k~_ij_0,lq,

li AlhajiK. A. Saka
FRCl20151NIMI00000011491
Chairman AuditCommittee

Members r•I•·:

••• Alhaji. K.A. Saka • Chairman
Mr.C. C. Chikeluba
Mr.E.A.Anaba
Mr.G.A. Alegleuno
Mr.S.O.Olugbeml
Mr.A.A. Aworeni

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STATEMENT OF FINANCIAL POSITION

NQte{S) 0 9 .'
N.'000 N '000
+,
Assots 3 1,663,711 1,733.933
4 '
Non.Current Assets
Proi,erty.plant and equipment ,I .
Intangible assets
·~J
1.663,711 1.733.933
r»
Current Assets 5 174,102 293,330
Inventories 6 20,431 116.401
i rade atlOotherreceivables 7 50.404 47,575
Otherreceivables and Prepayments 8 108,408
Cash and cash equivalents 6,163
~H~
Total Assets l,QlZ,QS~ 463.469

Equity and llabllttles ~-l9L!!>~

Equity 9 108,466 108,466
SharecapitaI 10 380,009
Share premium 11 1,365.223 380.009
Revaluationreserves 1,365,223
Re1ained earnings {867 431) {542 225)

Liabilities 986,267 1.311 473

Non.Current LlablJltJes 12 228,816
Retirementbenefitobligation
Deferredtax 13 -1§.l!Zl 1a.oz1

18 071 246 887

Current Liabilities

Trade and otherpayab4es 14 23,044 40,853
Borrowings 15,000
Retirementbenefitobligation 15 13,336
Currenttax payable 12 200,261 123,450
Other Payables 16 124,602 459 7;!9
17 6~1 475 §3~.o~
Total Llabllltles 885,929
Total Equity and Llabllltles ...Ll>J,U.18 2.197.40i
1,030,789

2.017,0~6

The annual report.andfinancialstatementsand the notes on pages 12 to 64, wereapprovedby the boardof
directors on the 25th March, 2021 enewere signed on its be-halfby;

~---
Mr. Isola Olukayode • Managing Director
FRC/2021/003/00000022466 • Director
0000007613
... b

FunmJlay,oAd<l(I• thlol flnJU!dlil OIHCIH'
fqC/20ZOIICAHIOOQOIJ02·2.:IIJ9

The accountingpoticies on pages 33 to 45 and the noteson pages 46 to 62 form an integralpart ofthe annual
report and financialstatements.

~ ,....~·..-.-..--~~ ........ ~·~~...-.l...J.-.!.

[ STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME

Revenue Not1tls) N.'QOO N,'ooo
18 460,837 484,574
Costof sales 19 (~~~~!
Gross profit l~l2.§lZl
Otheroperating income 20 55,874
Otheroperating gains (losses) 21 4.556 171,957
Sellingand distribution expenses 22 90,668
Admlnistrative expenses 23 30
Operating (loss)/proflt 24 (67.359) 764
Finance costs 25 rn14,943l (87.837)
Loss beforetaxation (321,842) (444.~61)
Taxation 26 (269,009)
Loss for the year (2.212} (7,4~1)
(324,054) (276,460)
Other comprehensive Income {2 423)
Total comprehensive loss for the year (] 1:12) (278,883)
(325,206)
Earnings per share 1278,8831
(325,2061
Per share information 28 (129)
(149)
Basic (toss)/earningspershare(kobo)

Theaccounting policieson pages 33 to 45 and the notes on pages 46 to 62form an integral part of the
annual reportand financial statements.

'

STATEMENT OF CHANGE
IN EQUITY

' ShareCRpital Sh<tre R~vatuation Retained Total equity i
premium
Balance at January 11 2019 N,'000 reserve income N.'OQO ...!.:
N '000
I 108466 N:ooo N ·ooo ,.1.•,:.

Loss for the year 380009 1,3°65,223 (263,342) 159~ ~),

(278,883) (278,883)

Totael omprohonslvoLoslsot thoyear·---'-----~----~-{2-7=8.8=83)='--127•=8.88=3) ""

Totalcontributionsby and

: distributions to owners of company

i recognised directly In equity

Balanceat January11 2020 108,46§ 3§0,02i 1,36~,223 (542,225) 1,311,473
ms,2oe) (325.206)
Loss for the year (325,206)
(325,206)
,.I Total comprehensive Loss for the year

Balanceat O<lcembor31, 2020 108.466 380,009 1 365,223 (867,431) 986,267

•'•

No!e(s) 11

~
The accounting policieson pages 33 to45 and the notes on pages 46 to62 rorm an integral part of the annual repor1

and financiaJstatements.

' ,i

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STATEMENT OF CASH FLOWS

•('; Notels) 2020 2019
29 N.'000 N. '0-00
I!'
106,804 10, 162
~· Cash flows from operating activities !Z,4~1)
Cash generated from operations 1z.z1i1
Finance costs ____iQ;!.~92 2,711
Net cash from operating activities

Cash flows from Investing activities

~ Purchase ofproperty,plant and equipment 3 (713)

_I, {1,664) (35,000}
11.664} 135,000)
Cash flows from financing activities

'

.;r'.~ Loans and borrowings
Net cash from financing activtiies

Total cash movement for the year 8 102.215 (32,289)
Cash at the beginning of lheyear 6,163 37,688
Effectof exchange rate movement on cash balances 30
Total cashatendofthe year Z64
108,408
6,163

•

; I The a~.counting policies on pages 33to 45 and the notes on pages 46 to 62 forman integral part of the
} annual reportand financial statements .

..

',

''

ACCOUNTING POLICIES ·,

_/

Corporate information
TheCompanywas incorporatedas a private limited liabilitycompany in 1967 as PARK.E-DAVIS& CO

(NIG.) LTD. In 1980, the Companychangedits name to PHARMADEKO LIMITED, and in pursuance
oflheCompaniesandAlliedMattersAct2004, is nowknownas PHARMADEKO PLC. Theaddressof

' the companyis PlotC1/1 Okene Close,AgbaraIndustrial Estate, Agbara,Ogun Stale.

The company's principal activities include lhe manufacturing, packaging and marketing of high
quality pharmaceutical and consumer products.The consumer and pharmaceutical products share
the same productionlines and the company leverageson lhis to ensureefficiency and effect1veness

in Its production process.

,~. The companyIs also engaged In the use ofits facilities for manufacturingand packaging servicesfor
third parties.

1. Significantaccounting policies ,t,,.
The principal accounting policies applied in the preparationof these financial statementsare set out
below. 1·

1. 1 Basis of preparation
(a) Statementof Compliance
The financialstatementshave been preparedon the going concern basis in accordancewilh, and In
compliance wilh. International Financial Reporting Standards ("IFRS") and International Financial
Reporting Interpretations Committee("IFRIC") interpretations issued and effective at the time of
preparing these financial statementsand the CompaniesandAllied MattersAct(CAMA)2020.

(b) BasisofMeasurement il.f
f.The financial statements have been prepared on the historic cost basis. unless otherwise stated in

.. the accounting policies which follow. Historical cost is generally based on the fair value of the
considerationgiven In exchange forgoods and services.

(c) Functional and presentaUoncurrency

These financial statements are presented in Naira, which is the company's functional currency. All

financial informationpresented ln Naira has been rounded to the nearest thousand, except where
otherwise indicated.

Theseaccountingpoliciesareconsistent with the previousperiod.

1.2 Segmentalreporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating-decision maker.The chief operating decision-maker,who is responsible forallocating
resourcesand assessingperformanceor the operating segments. has been Identifiedas the finance

and generalpurpose committee that makes strategic decisions.

The basis of segmentalreporting has beenset out in note 1.16

1.3 Slgniflcantjudgements and sources ofestimation uncertainty

The preparationoffinancial statementsin confom,itywith IFRS requires management, from time to

time, to make judgements. estimates and assumptions that affect the application of policies and

reported amounts of assets, liabiliteis, income and expenses. These estimates and associated

assumptionsare based on experienceand various other factorsthat are believed to be reasonable

under the circumstances. Actual results may differ from these estimates. The estimates and

' under1ying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognisedin the period In which lheestimatesare revisedand in any future periods affected.

•••

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ACCOUNTING POLICIES CONT'D

1.3 Signlflcantjudgements and sources of estimation uncertainty (continued)
Critical judgements in applying accounting policies
The critical judgements made by management in applying accounting policies, apart from those

involving estimations. that have the most significant effect on the amounts recognised in the financial

statements, are outlined as follows:

Revenue recognition
In making their judgement, management considered the detailed criteria lot the recognition or
revenue set out In IFRS 15 and, In particular. whether the company had transferred control or the
goods to the customer. Following the detailed quantification or the company liability in respect or
rectification work, and the agreed limitation on the customer's ability to require Further work or to
require replacement of the goods. management are satisfied that control has been transferred and
that recognition of the revenue in the current year is appropriate, in conjunction with the recognition of

an appropriate warranty provision forthe rectification costs.

Key sources ofestlmation uncertainty

:"" Impairment of financial assets
The impairment provisions ror financial assets are based on assumptions about risk or default and
expected loss rates. The company uses judgement In making these assumptions and selecting the
Inputs to the impairment calculation, based on the company's past history, existing market conditions
as well as forward looking estimates at the end of each reporting perioo. For details of the key
assumptions and inputs used, refer to the individual notes addressing financial assets.

Allowance for slow moving, damaged and obsolete inventory

Management assesses whether inventory is impaired by comparing its cost to its estimated net

realisable vaJue. Where an impairment is necessary, inventory items are written down to net

realisable value. The write down Is included in cost of sales.

Fair value estimation
Observable mar1<et data is used as inputs to the extent that it Is available. Qualified external valuers

areconsulled for the determination of appropriate valuation techniques and inputs.
Information about the specific techniques and inputs of the various assets and liabilities is disclosed

In note and note. Impairment testing
The company reviews and tests the carrying value or assets when events or changes in

circumstances suggest that the carrying amount may not be recoverable. When such Indicators exist,

management determine the recoverable amount by performing value In use and fair value
calculations. These calculations require the use of estimates and assumptions. When it is not

possible to determine the recoverable amount for an Individual asset. management assesses the
recoverable amount for the cash generating unit to which the asset belongs.

Useful lives of property, plant and equipment
Management assess the appropriateness of the useful lives or property, plant and equipment al the
end of each reporting period. The useFul lives of motor vehicles, furniture and computer equipment
are determined based on company replacement policies for the various assets. Individual assets
within these dasses, which have a significant carrying amount are assessed separatelyto consider
whether replacement will be necessary outside of normal replacement parameters. The useful life of
manufacturing equipment is assessed annually based on factors including wear and tear,
technological obsolescence and usege requirements.

'i.! When the estimated useful Ille of an asset differs from previous estimates. the change Is applied
" prospectively In the determination oil he depreciation charge.

,f

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'

ACCOUNTING POLICIES CONT'D 1

\

1.3 Significant judgements and secreee of estimation uncertainty (continued)

Provisions
Provls10nsare inherently besedonassumplionsand estimates using the best Informationavailable.Additlo,,aJ
disciosure ofthese estimatesof provisions are included In note.

Coronavirus {COVI0·19) pandemic ,

Judgementhas been exercised In consideringClle Impacts thaC the Coronavirus (COVI0-19) pandemic has -~·''
had, or may have. on the companybased on known infom,ation.This considerationextendsto the nature of
r
rJ the products and services offered, customers,suppty chain, staffing and geographic regionsin which the
company operates. Other than as addrBs$edin specific notes,theredoes not currently appear to be elthera.ny ,'-'l.
Sjgnlficant impact upon the financial statemeots or any Signiflcant uncertalntles with respect to events Of'
conditions\vhich may impact the company unfavourablyas atthe reportingdateor subsequentlyas a result of ••
tbe Coronavlrus(COVID·19) pandemlc.
f
1.4 Property,plantan.dequlpment
Property,Plant and Equipmentare tangible assets that can span more than one accounting period. These ~.,

1 Items arestatedat theiroriginalcost or fairvaluelessaccumulateddepreciationand Impairmentlosses. •r
landaod Bujldingis measuredat fair value whichis determined everyM10 years. The fair value is detem,ined
~ by engagingthe servtcesofanextematprofessionavl aluer. ..•'j

f\ny increaseas a result of the revaluationof Land and Builcfingis recognJsedin othercomprehensiveIncome ff,
and accumulatedin Equity underthe heading of RevaluationSurplus. However,ttle increase is recognisedIn
,tT•
Profitor Loss to the extent thatII reversesa rev~luation decrease previouslyrecogt1isedIn Profitor Loss. If the
revaluation results to a dec,ease In the carrying amount ol Land and Building, the decrease is recognise<! in 1'1
profit°' k>ss.However,the decreaseis recognisedin OtherComprebensiveIncome to U,e extentofany credlt z,
41 balance exi.sting in the revaluationsurplus in respectof the asset Any revaluationsurplusremaining in Equity
on disposalofthe assetIs transferredto RetatnedEa,nlngs.

Plantand Machinery,Furnitureand Frttings.MotorVehiclesand ComputerEquipment are measuredat cost
TheInitial ccst of these assets comprises its purchase pnce and any oosts directly atlributable to bringing the
asset into operation.

The cspltallsec value or plant and maonlne<yacquired via financa tease Is also lndudedwithin Property, Plant
and Equipment.

The useful llvesofitems ofproperty,plantand equipmenthavebeen assessed as follows:

Jt•rn t>evrec::iatian method Averageuseful life
Straightfine 50
ii!ufldlngs 10
Plantand machinery Straightline 6.67
5
I Fumilureanduxtures Straight fine 3
Motorvehides Straightline
Computerequipment
Straightline

Landis not depreciated

~
The usefulfives and methodsof depreciationof the assetsarereviewedat each reportingperiodand adjusted
prospeclively If apl)(oprlate.

J Property,plantand equlpmeotis Initiallymeasured at cost. CostIncludes allofthe expenditurewhichis dlrecUy
attributable to the acquisition°' constructioo of the asset. including the capitalfsationof borrowing costs on
qual1fying assets and adjustmentsIn respoet of hedg-eaccountfng,whereappropriate.

.,.~! ~·~'.... ?.-,..:..:1ill,........ ..,.,...,..'-" ... ~,,_ ~ .....~ .......... -c1<.·... ,,_~,

ACCOUNTING POLICIES CONT'D,

1.4 Property,plantand equipment (continued)
Impairment Is measured as the difference between lhe carrying amount of an asset and its reoove<able
amount Recoverableamountof an asset is the higher of its fair value less cost to sell and its value in use.
lmpafm,ent Is tested forwhen there Jsa.nindicationofimpairmentsuch as:

Decline in the market valueofan asset;

Changes in the. techn0f09lcal, economic ot legal envlron.ment resultlog ln an adverse effect on our

activities;
Obsolescence or damageof assets:
Worseningperformanceof assets.

When there Cs an oti;ecllve.evidence orlmpalrmem, the loss.ls ceoognlsed in Profit or Lossexcept when there
h.as been s previous upwardrevaluationinwhich case the impairmentloss is recogniseddirectly in equity.
Gains.or losses arisi.ng on the disposal of Property, Piant and Equipment ate determined as the difference
beiweeo lhe disposal proceedsand the carrying amount of the assets and are recognised in Profil or Loss
\vithfn•otherincome'or'otherexpenses',

Asset In progressrep,osentsthe company's investmeot in plant and machinery and other assets. Transfers
are made from asset In progrMs to respective asset class upon lhe arrival and lnstatlatlon of such pmpetty,
plan! and equipments.

1.5 Fairvaluemeasuromont
When en asset or liability, financial or non-financial, is measured at fair value for recognition or dlsclosure
purposes.the fairvalue is based on the price that would be receivedto sell an asset or paid to transfer a liability
in an orderly transaction bet,vee.nmarket participants at the measurement date: and assumes that the
transaction wrn take place either: In lhe principal ma111.et: or In the abSenoe or a prlncipat market, In the most
advantageousmarket
Fair value Is measured using Ule assumptions lhat market participants would use wtten pdclng the asset or
liability, assuming they act In lheir economic best interests. For non·financiaJ assets. lhe fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
clrcumstancss and fot which suff'tctentdata are avaHable to measure fairvalue, are Used, maxinllslng lhe use
of relevantobsetvableinputsand minimising!he use ofunobservableInputs.
Assets and liabilities measured at fair value are classified into three levors. using a fairvalue hierarchy that
reflectsthe slgnlOcanoo ofthe inputs used In making the measurements. C&asslf,calionsare reviewed at each
reporting dale and transfers between 'evelS are determined based on s reassessmentof the lowest level or
input thatis significantto the fairvalue measurement.
For recurring and non·recurring fair value rneasurements, external valuers may be used when internal
expertiseis eithernot avaiJableorwhen the valuation is deemed to be significant.Externalvaluersare selected
based on market know1edgo and reputation. Where there Is a significant change in fairvalue of an asset or
liablllty rromcee period to another,an analysis ls undertaken, which lnefudes a vermcation or the major Inputs
applied in the latestvaluation and a comparison. •.vhere appUcable, with externalsourcesofdata.

1.6 Intangible assets
An lnta.ngible asset Is recognisedwhen:

it is probablethatthe expected future economicbenefits that are attributable to the asset \viii HO\Yto the
entity: and
the costofthe asset can bemeasured reliably.

lntangtbte assets arelnitlaUyrecognlsed at cost.

Expenditure on researen (or on the researchphase of an Internal project)Is recognised as an expense when it
is incurred.

An intangible asset arising from development (or from the development phase of an lntemal project} Is
recognisedwhen

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t(ACCOUNTING POLICIES CONT'D~

1.6 Intangibleassets(continued) .i'
It ls leOhnlcallyfeasible lo completethe assetso tha1 it will beavailable roruse or sale. 'f
there is an intention to completeand use or sell it.
there isanabllltytouse or sell It. "'
It will generateprobablefu1ureeconomicbenefits.
there are available technical, financialand other resources to complete the developmentand to use Of
sell the asset.

nsthe expenditureattributable tothe assetduring developmentcan be measured reliably.

Intangibleassets are carried atcostless any accumulatedamortisationand any impairmentlosses.

An intangibi&assetis regarded as havingan indefinite usefullife wtien, based on all relevant faclors.lhereis
no foreseeablelimlt to the period overwhk:h lhe assetis expected togenerate net cash inflows.Amortisationis
not providedfor these intangibleassets. but they are tested for impairmentannually and wheneverthere is an
indication that the asset may be·impaired. For all other intangible assets amortisationis providedon a straight

noo basisovertheir useful life.

The amortisationperiod and the amortisationmethodfor intangible assets are reviev1edeveryperiod..end.

Reassessing the useful life oran intanglble assetwith a finite userut 11reafter it was classified as indefinite is an
indicator thal lhe asset may be impaired. As a resull the asset Is tested for impairment and the remainlng
carrying amounti.s amortised overits useful life.

tnternauy generated brands, mastheads, publ1$hlngnnas, customer lists and nems simflar in substance are not
recognisedas intangible assets.

Amonisationis pcovided to write down the Intangible assets,on a straight tine basis, to th&lrresidual values as
renews:

Item Useful life
Computer-software 3years

1.7 Financial instruments -r,,
Flnancialinstrumentsheld by the companyare classified ln aocordancev,lthth& provisloos oflFRS 9 Financial

Instruments.
Broadly,the classificationposslbilities,which areadoptedby the company ,as applicable,areasfoUows;

Flnanciatassetswhk:hare equity instruments:

Mandatorilyat fa.Jrvalue through profitor loss; or
Designatedas at fair value throughothercomprehensiveincome. (This designationis not available to
equity instruments which are held for trading or which are contingent consideration in a business

combination).

Flnanciatassetswhich are debt instruments;

., Amortised cost. (This category applies only when the contractualterms of the Instrumentgive rise, on
specified dates, to cash Oows that are solely payments of prlnclpat and interest on principal, and where
lhe lns!rumenl Is held under a business model whose objective i$ met by holding the lnstrumen! to
collectconltactual cash flows); or

Fair value throughother comr,<ehenslve Income. (This category applies onty when the contractual
ionns of the Instrument give rtse.oo specified dales. ro cash nows Iher are solely payments of principal
and intereston principal, and wherethe ins11ument is held under a businessmodel whoseobjectiveis
achievedby both collectingcontractualcash flowsand selfing the instruments);or

Mandatorily al fair value through pronr 01 loss. (This classification automatically applies to all debt
Instruments whlch do not qualify as at amortised cost or at fair value through other comprehensive
income);or

O&slgnated at fair value through profit or IO$S. (This classincatlon option can only be applied when It
eliminatesor stgnificanlly reducesanacoountingmlsmatctt).

Derivativeswhich are not partofa hedging relatiooshfp~

-·

..:1,

1, •

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ACCOUNTING POLICIES - CONT'D

•('; Financial Instruments (continued)
Mandatorily at fairvalue throughprofitor loss.

Financial lfabilflies:
c Amortisedcost;or

r Mandatorily at fair value through profit or loss. (This applies to contingent oonsiderationin a

businesscombination or to liabilltieswhich are held fortrading): or
Designatedat lair value through profitor loss. (This dassilicaUonoptioncan be applied when it
eliminates or significantly reduces an accounting mlsmatch; the liability forms part of a group
or financial instruments managed one lair value basis: or It formspart ora contractcontaining
an embedded derivativeand the entire contract is designated as at fair value through profitor
loss).
~

I

Note 33 Financial instrumentsand risk. management presents lhe financial instruments tield by lhe
companybasedon theirspecificdasslfications.

All regular way purchases or sales of financial assets are recognised and derecognisedon a trade
date basis. Regular way purchases or sales are purchases or sales of financial assets that require
deliveryof assetswithin the time frame establishedby regulation oroonventionin lhe marketplace.

The specific accounting policiesfor the classification, recognition and measurement ofeach type of
financialinstrument held by the companyare presentedbelow:

Trade and other receivables

Classification
Trade and otherreceivables, excluding, when applicable, VAT and prepayments, are classified as

}'. •, financialassetssubsequently measuredat amortisedcost(note 6).
They have been classified in this manner because their contractual terms give rise. on specified
dates to cash flows that are solely payments of principal and intereston the principaloutstanding, and
the company'sbusinessmodel is tooollectthe contractual cash flows on trade and other receivables.

Recognition and measurement

Trade and other receivables are recognised when the company becomes a party to the contractual
provisionsof the receivables.They are measured, at initial recognition,at fair value plus transaction
costs, ifany.

.. They aresubsequenUymeasuredat amortisedcost•

',

The amortised cost is the amount recognised on the receivable initially, minus principal repayments,
plus cumulative amortisation CTnterest)using the effectiveInterest method of any differencebetween
the initiaJ amountand the maturity amount, adjusted forany loss allowance.