Quarter 1 - financial statement for 2026

Contents

Statement of Comprehensive Income 3 Statement of Financial Position 4

Statement of Changes in Equity 5

Statement of Cash Flow 6

Notes to the Financial Statements 7

Free Float Computation 10

Statement of Profit or loss and other Comprehensive Income For period ended 30 June

The Financial Statements was approved by the Board of Directors on 24 July 2025 and signed on their behalf by:

Alhaji Hassan Bala Ojeile Cordelia (Mrs)

Managing Director Finance Director

(FRC/2016/PRO/DIR/003/00000015071) (FRC /2013/PRO/ICAN/001/00000002038)

LEARN AFRICA PLC

STATEMENT OF CHANGES OF EQUITY FOR PERIOD ENDED 30 JUNE 2025

LEARN AFRICA PLC

NOTES TO THE FINANCIAL STATEMENTS

1. Revenue

   These were sales from different depots and area offices.

   	2025 Q1 JUNE	2024 Q1 JUNE	2025 Q4 MARCH
   	N'000	N'000	N'000
   HEAD OFFICE	4,059	-	966,105
   NORTHERN ZONE	79,204	51,930	1,206,544
   EASTERN ZONE	107,214	28,503	1,018,719

   WESTERN ZONE 104,998 45,139 1,991,523

   295,475 125,572 5,182,891

   2. Property, Plant and Equipment	Leasehold	Leasehold	Plant &	Motor	Furniture and
   	Land	Building	Machinery	Vehicles	Fittings	Hardware	Total
   Cost/valuation	N'000	N'000	N'000	N'000	N'000	N'000	N'000
   At 1 April 2025	111,581	141,819	117,506	544,524	206,416	212,757	1,334,603
   Additions		-	-	42,300	9,000	6,298	57,598
   Disposals		-	-	(1,260)	-	(285)	(1,545)
   As at 30th June 2025	111,581	141,819	117,506	585,564	215,416	218,770	1,390,656
   Depreciation
   At 1st April 2025	-	70,694	90,125	339,150	171,525	146,959	818,453
   Charge for the year		735	1,310	22,931	1,762	7,431	34,169
   Disposals		-	-	(892)	-	(273)	(1,165)
   As at 30th June 2025	-	71,429	91,435	361,189	173,287	154,117	851,457
   Net book value
   As at 30th June 2025	111,581	70,390	26,071	224,375	42,129	64,653	539,199
   As at 31st March 2025	111,581	71,125	27,381	205,374	34,891	65,798	516,150

   3. Inventories	2025 JUNE	2025 MARCH
   	N'000	N'000
   Raw materials	163,681	4,181
   Work in progress	8,409	5,458
   Publications	3,051,168	2,985,267
   Consumables	1,305	1,305
   Goods in transit	390,351	199,375
   TOTAL	3,614,913	3,195,586

   4. Trade and other Receivables	2025	2025
   	JUNE	MARCH
   	N'000	N'000
   Trade receivables	739,436	858,374
   Less: impairment doubtful receivables	(615,467)	(602,703)
   Withholding tax recoverable	5,691	5,691
   Staff Salary Advance	450	105
   other receivable	-	1,170
   TOTAL	130,110	262,637

   5. Prepayments	2025 JUNE	2025 MARCH
   	N'000	N'000
   Current prepayments	93,332	48,464
   	93,332	48,464
   6. cash and cash equivalents	2025	2025
   	JUNE N'000	MARCH N'000
   Cash at bank and on hand	132,289	983,179
   Short-term deposit	315,962	244,489
   	448,251	1,227,668

   7.Trade and other payables	2025	2025
   	JUNE	MARCH
   	N'000	N'000
   Trade payables	185,187	304,290
   Royalties	609,875	589,044
   Withholding tax	40,632	29,335
   Accrued Expenses	142,454	134,693
   Other payables	90,872	116,972
   Unclaimed Dividend	185,315	185,315
   	1,254,335	1,359,649

   Free Float Computation

   Company Name: Learn Africa Plc.

   Board Listed: Main Board

   Year End: March

   Reporting Period: Period Ended 30 June 2025 Share Price at end of reporting period: N4.59(2024: N3.30 )

   Shareholding Structure/Free Float Status

   Description	30-Jun-25		30-Jun-24
   	Unit	Percentage	Unit	Percentage
   Issued Share Capital	771,450,000	100%	771,450,000	100%
   Substantial Shareholdings (5% and above)
   Iwerebon Emeke Felix (Chief )	109,538,916	14.20%	107,197,682	13.90%
   Mr Frederick Ijewere	49,230,316	6.38%	48,074,953	6.23%
   Ade-Ajayi Jacob Festus (Prof)	42,429,847	5.50%	42,429,847	5.50%
   Total Substantial Shareholdings	201,199,079	26.08%	197,702,482	25.63%
   Directors' Shareholdings (direct and indirect), excluding directors with substantial interests
   Hajia Binta Bakari (Indirect)	21,878,696	2.84%	21,878,696	2.84%
   Hajia Binta Bakari (direct)	140,365	0.02%	140,000	0.02%
   Alhaji Bala Salisu Hassan(Direct)	200,500	0.03%	200,500	0.03%
   Mr Gbolagunte Aiyedun(Direct)	200,000	0.03%	200,000	0.03%
   Mrs Cordelia Isioma Ojeile(Direct)	181,017	0.02%	181,017	0.02%
   Total Directors' Shareholdings	22,600,578	2.93%	22,600,213	2.93%
   Other Influential Shareholdings
   Ogundipe Phebean Ajibola	26,229,416	3.40%	26,229,416	3.40%
   Iwerebon-Onwukwe Margaret	21,285,210	2.76%	21,285,210	2.76%
   Estate of Adadevoh Babatunde Kwaku	20,571,908	2.67%	20,571,908	2.67%
   Staff Trust Scheme	17,858,938	2.31%	17,858,938	2.31%
   Iloeje Nwadilibe Paul	15,456,131	2.00%	15,456,131	2.00%
   Total Other Influential Shareholdings	101,401,603	13.14%	101,401,603	13.14%
   Free Float in Units and Percentage	446,248,740	57.85%	449,745,702	58.30%
   Free Float in Value	₦ 2,048,281,716.60		₦ 1,484,160,816.60

   Summary of significant accounting policies

   The following are the significant accounting policies applied by Learn Africa Plc in preparing its financial statements:

   1. Intangible assets

      Intangible assets include purchased computer software and software licenses with finite useful lives. Purchased software and software licenses are recognised as assets if there is sufficient certainty that future economic benefits associated with the item will flow to the entity.

      Computer software primarily comprises external costs and other directly attributable costs. Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets with finite lives are amortised over the useful economic life. The useful lives and residual values of these intangible assets are assessed and reviewed every year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives of 2 years is recognised in profit or loss as the expense category that is consistent with the function of the intangible assets. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised.

      1. Derecognition

An intangible asset shall be derecognised:

1. on disposal; or

2. when no future economic benefits are expected from its use or disposal.

The gain or loss arising from the derecognition of an intangible asset shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset. It shall be recognised in profit or loss when the asset is derecognised (unless IAS 17 requires otherwise on a sale and leaseback). Gains shall not be classified as revenue.

The disposal of an intangible asset may occur in a variety of ways (eg by sale, by entering into a finance lease, or by donation). In determining the date of disposal of such an asset, an entity applies the criteria in IAS 18 Revenue for recognising revenue from the sale of goods. IAS 17 applies to disposal by a sale and leaseback.

The consideration receivable on disposal of an intangible asset is recognised initially at its fair value. If payment for the intangible asset is deferred, the consideration received is recognised initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent is recognised as interest revenue in accordance with IAS 18 reflecting the effective yield on the receivable.

Amortisation of an intangible asset with a finite useful life does not cease when the intangible asset is no longer used, unless the asset has been fully depreciated or is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5.

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment loss. Cost comprises the cost of acquisition and costs directly related to the acquisition up until the time when the asset is available for use. In the case of assets of own construction, cost comprises direct and indirect costs attributable to the construction work, including salaries and wages, materials, components and work performed by subcontractors. Such cost also includes the cost of replacing part of the property, plant and equipment.

When significant parts of property, plant and equipment are required to be replaced at intervals, the Company recognized such parts as individual assets with specific useful lives and depreciates them accordingly.

Replacement or major inspection costs are capitalised when incurred and if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

The depreciation base is determined as cost less any residual value. Depreciation is charged on a straight-line basis over the estimated useful lives of the assets and begins when the assets are available for use.

The assets' residual values, and useful lives and method of depreciation are reviewed and adjusted, if

appropriate, at each financial year end and adjusted prospectively, if appropriate.

Impairment reviews are performed when there are indicators that the carrying value may not be recoverable. Impairment losses are recognised in the profit or loss as an expense.

The estimated useful lives of the major asset categories are:

Leasehold Land Nil

Buildings 50

Plant and machinery 10

Furniture, fittings and equipment 10

Motor Trucks 6

Motor Vehicle 4

Hardware 4

An item of property and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.

1. Earnings per share

   The company presents basic/ diluted earnings per share (EPS) data for its ordinary shares. Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year.

   Diluted earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding as at year of dilution.

2. Impairment of non-financial assets

   Property, plant and equipment and intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash-generating units (CGUs). The recoverable amount is the higher of an asset's fair value less costs to sell and value in use (being the present value of the expected future cash flows of the relevant asset or CGUs).

   An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

   Learn Africa evaluates impairment losses for potential reversals when events or circumstances may indicate such consideration is appropriate. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. Impairment losses and reversals are recognised in profit or loss.

3. Inventories

   Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location and conditions are accounted for as follows:

   1. Raw materials and Consumables:

      Purchase cost on a first in, first out basis.

   2. Goods-In-Transit, work-in-progress and finished goods

      Goods in transit are valued at invoice price together with other attributable charges.

      The cost of finished goods comprises suppliers' invoice prices and, where appropriate, freight, printing

      costs and other charges incurred to bring the materials to their location and condition.

      Cost of direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

      Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

4. Leases

   The company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

   1. Company as a lessee

      The company applies a single recognition and measurement approach for all leases. The company recognises lease liabilities (if any) to make lease payments and right-of-use-assets representing the right to use the underlying assets.

   2. Right-of-use assets

      The company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

      If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

      The right-of-use assets are also subject to impairment. Refer to the accounting policies on impairment of non-financial assets.

      The cost of a right-of-use asset also includes an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The lessee incurs the obligation for those costs either at the commencement date or as a consequence of having used the underlying asset during a particular period.

      The company's lease arrangements do not contain an obligation to dismantle and remove the underlying

      asset, restore the site on which it is located or restore the underlying asset to a specified condition.

   3. Lease liabilities

      At the commencement date of the lease, the Company recognises lease liabilities (if any) measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs.

      In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

      The company has concluded that its leases are only enforceable for the periods that payments have been made and has therefore not recognised any lease liabilities. This applies only to property leases.

   4. Company as a lessor

      Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

5. Financial instruments-initial recognition and subsequent measurement

   A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

   1. Financial assets
      1. Initial recognition and measurement

         Financial assets are classified, at initial recognition and subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

         The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under IFRS 15.

         The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. Refer to the accounting policies on Revenue from contracts with customers.

         In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

         The Company's business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

         Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

      2. Subsequent measurement

         For purposes of subsequent measurement, financial assets are classified in four categories:

         • Financial assets at amortised cost (debt instruments)

         • Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt

           instruments)

         • Financial assets designated at fair value through OCI with no recycling of cumulative gains

           and losses upon derecognition (equity instruments)

         • Financial assets at fair value through profit or loss

           The company's financial assets include financial assets at amortised cost.

      3. Financial assets at amortised cost (debt instruments)

         The Company measures financial assets at amortised cost if both of the following conditions are met:

         • The financial asset is held within a business model with the objective to hold financial assets in order to

           collect contractual cash flows; and

         • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

           payments of principal and interest on the principal amount outstanding;

           Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

           The company's financial assets at amortised cost includes trade receivables, staff loans, cash and cash

           equivalents.

      4. Derecognition

         A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:

         • The rights to receive cash flows from the asset have expired or

           The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

           When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

           Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

      5. Impairment of financial assets

         The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms (if any).

         ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

         For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment using the loss rate model.

         The company calculates ECLs based on three probability-weighted scenarios to measure the expected cash shortfalls, discounted at an approximation to the EIR. A cash shortfall is the difference between the cash flows that are due to an entity in accordance with the contract and the cash flows that the entity expects to receive.

         • PD The Probability of Default is an estimate of the likelihood of default over a given time horizon.

         • EAD The Exposure at Default is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise.

         • LGD The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that the Company would expect to receive, including from the realization of any collateral. It is usually expressed as a percentage of the EAD.

           When estimating the ECLs, the Company considers three scenarios (a base case, an upside, a downside. Each of these is associated with different PDs, EADs and LGDs. In its ECL models, the Company relies on a broad range of forward-looking information as economic inputs, such as:

         • GDP growth

         • Oil price

         • Exchange rate

         • Inflation rate

           7.1.6. Write-off

           Financial assets are written off either partially or in their entirety only when the Company has stopped pursuing the recovery. Suppose the amount to be written off is greater than the accumulated loss allowance. In that case, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to profit or loss.

           1. Financial Liabilities
           2. Initial recognition and measurement

              Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or payables, as appropriate.

              All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company's financial liabilities include trade and other payables and loans and borrowings.

           3. Subsequent measurement

              The measurement of financial liabilities depends on their classification, as described below:

           4. Financial liabilities at fair value through profit or loss

           Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.

           The company has not designated any financial liability as fair value through profit or loss.

6. Loans and borrowings

   After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

   Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in profit or loss.

   This category generally applies to interest-bearing loans and borrowings.

7. Trade and other payables

   Trade payables are stated at their original invoice value. The directors consider the carrying amount of trade and other payables to approximate their fair value.

   1. Derecognition

      A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the profit or loss.

      1. Offsetting

         Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

8. Cash and cash equivalents

   Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less in the statement of financial position.

   For the purpose of the statement cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

9. Taxation
   1. Current income tax

      Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date in Nigeria. Current income and education taxes assets and liabilities also include adjustments for tax expected to be payable or recoverable in respect of previous periods.

   2. Deferred tax

      Deferred tax is provided using the liability method in respect of temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

      Deferred tax liabilities are recognised for all taxable temporary differences, except:

      • When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

        Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses.

        Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

      • When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

      The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

      Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

      Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

      Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

10. Provisions

    Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.

    The expense relating to any provision is presented in profit or loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

    1. Warranty provisions

       Provisions for warranty-related costs are recognized when the product is sold or service provided to the customer. The initial determination of the extent of the warranty provision and recognition is based on historical experience and past trends. The initial estimate of warranty-related costs is revised annually.

    2. Contingent Liability

       Contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability.

       Contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefit is remote. A provision for the part of the obligation for which an outflow of resources embodying economic benefits is probable is recognized, except in the extremely rare circumstances where no reliable estimate can be made.

       Contingent liabilities are assessed continually to determine whether an outflow of economic benefit has become probable.

11. Revenue recognition

    The company is mainly engaged in publishing and distribution of educational materials for all levels of learning - Nursery, Primary, Secondary, and Tertiary.

    Revenue from contracts with customers is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The company has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods before transferring them to the customer.

    1. Sale of goods

       Revenue from good is recognised at a point in time or over time, depending on the manner in which control is transferred to the customer.

       The company recognises revenue from sale of goods at a point in time when control of the good is transferred to the customer, generally on the delivery of the goods. The company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated.

       The company has a written contract with the Universal Basic Education Commission (UBEC) to deliver books as specified in the contract. The company recognises revenue from this over time, using an output method to measure progress towards complete satisfaction of the sale, because the educational materials transferred to the customer does not create an inventory (asset) with alternative use and the Company have a right to payment for goods delivered. The revenue is recognised when the delivered goods are certified by the appropriate officials.

       In determining the transaction price for the service, the Company considers the existence of significant financing components (if any).

    2. Significant financing component