Quarter 5 - financial statement for 2024

Corporate Information 1

Result at a Glance 2

Report of the Directors 3

Statement of Directors' Responsibilities 7

Statement of Corporate Responsibility 8

Report of the Audit Committee 9

Management's Annual Assessment of, and Report on the Entity's Internal Control over 10

Financial Reporting

Certification of Management's Assessment on Internal Control over Financial Reporting 11

Independent Auditor's Report on Management's Assessment of Internal Control 13

over Financial Reporting

Independent Auditors' Report 15

Statement of Profit or Loss and other Comprehensive Income 19

Statement of Financial Position 20

Statement of Changes in Equity 21

Statement of Cash Flows 22

Notes to the Financial Statements 23

Value Added Statement 54

Five-Year Financial Summary 55

Dr. Segun Aina OFR - Chairman/Non -Executive

Mr. Yusuf Isiaka - Executive

Hon. Ajibola Ogunsiji - Non - Executive

Mr. Olu Abayomi Sanya - Non-Executive

Mr. Anthony Chisnall - Non-Executive

Dr. Teju Bolujoko - Non -Executive

Mrs. Moni Owofemi - Non-Executive Alhaji Murthada A. Adeniji - Non-Executive

Ogun State.

Lagos.

Kresta Laurel Complex (4thFloor), 376, Ikorodu Road,

Maryland, Lagos.

Off Akinwumi Street, Anifowose, Ikeja, Lagos.

Bankers: Access Bank Plc

Guaranty Trust Bank Plc

First City Monument Bank Plc Nigerian Export-Import Bank (NEXIM) Zenith International Bank Plc

Assets Management Corporation of Nigeria (AMCON) Lotus Bank Limited

The directors have the pleasure in presenting their report and the audited financial statements for the year ended 30 April 2024.

1. Statement of directors' responsibilities

   The directors of Multi-Trex Integrated Foods Plc are responsible for the preparation of the financial statements for each financial year, which give a true and fair view of the state of affairs of the Company and of the results of operations and cash flows for that year. In preparing these financial statements, the directors have selected suitable accounting policies and applied them consistently, made judgements and estimates that are reasonable and prudent and in accordance with International Financial Reporting Standards (IFRS), Companies and Allied Matters Act, 2020 and the provisions of the Financial Reporting Council of Nigeria, Act No 6, 2011.

   The directors are responsible for ensuring that the company keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company. The directors are also responsible for safeguarding the assets of the Company and taking reasonable steps for the prevention and detection of fraud and other irregularities.

2. Principal activities

   Multi-Trex Integrated Foods Plc is engaged in trading and processing of cocoa beans, exportation of industrial cocoa products as well as manufacturing and domestic marketing of cocoa-based consumer products.

3. Results for the Year 2024 2023

   N'000 N'000

   Turnover 1,199,665 5,468

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   Profit/(loss) before taxation 462,933 (1,098,332)

   Taxation (22,935) (112)

   Deferred Taxation 70,940 -

   Profit/(loss) for the year 510,938 (1,098,444)

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4. Dividend

   The directors do not recommend the payment of any dividend in respect of the year ended 30 April 2024 (30 April 2023: Nil) due to losses sustained over the years.

5. Property, plant & equipment

   Information relating to changes in property, plant and equipment during the period is given in Note 13 to the financial statements. In the opinion of the directors, the market value of the company's properties is not less than the value shown in the accounts.

6. AMCON Loan

   On 14 July 2022, AMCON agreed to a final settlement of an amount of, N9,903,000,000 (Nine Billion Nine Hundred and Three Million Naira only). The agreed settlement amount is to be repaid partly with FGN Promissory notes issued in favour of the Company that have been assigned to AMCON. The balance of N9.1b is to be repaid instalmentally by Messrs N-Foods Universal Concepts Ltd (NFUC) in exchange for a total of 70% of Company's ordinary shares.

7. Corporate Social Responsibility

   The company did not carry out any social responsibility in the year under review.

8. Human Resources, Training and Development

   There was no training and development during the year under review.

9. Board of Directors

   The names of the directors who held office during the period and at the date of this report are as follow:

   Dr. Segun Aina OFR - Chairman/Non -Executive

   Mr. Yusuf Isiaka - Executive

   Hon. Ajibola Ogunsiji - Non-Executive

   Mr. Olu Abayomi Sanya - Non-Executive

   Mr. Anthony Chisnall - Non-Executive

   Dr. Teju Bolujoko - Non-Executive

   Mrs. Moni Owofemi - Non-Executive Alhaji Murthada A. Adeniji - Non-Executive

10. Report on Corporate Governance

    The company is committed to ensuring that its businesses are conducted in line with generally accepted ethical standards and best practices. The Board is responsible for ensuring compliance with the relevant laws and the code of corporate governance in all spheres of its operations.

11. The Board of Directors, Composition, Appointment and Training

The Board of Multi-Trex Integrated Foods Plc is responsible for setting rules and operational standards that ensure that the company's business is conducted in line with good corporate practice and relevant legislations. In pursuit of this goal, the Board insists on adherence by the management to best practices and regularly requires and scrutinizes information on internal controls, risks exposures and general developments within the operating environment capable of impacting on the business. The Board ensures that credible and reliable accounting records are maintained which disclose at any time, the financial status of the company and ensures that the company's accounts comply with the Companies & Allied Matters Act 2020 and other enabling statutes. The Board also formulates policies for prevention and detection of fraud and other financial irregularities and for safeguarding the assets of the company.

During the financial year ended 30 April 2024, eight directors served as members of the Board which comprises seven (7) Non-Executive Directors and one (1) Executive Director. The procedure for Board appointment ensures that persons of impeccable character and diverse skills on corporate management are considered for appointment.

New Directors are given necessary secretarial support and information for effective participation at Board meetings.

Due to the coming onboard of N-Foods Universal Concept Limited, plans are ongoing to restructure the board with the aim of bringing onboard new members to replace those that will exit. The planned board restructuring will include bringing on board three independent directors in compliance with the relevant provision of CAMA 2020.

The responsibilities of the Board of Directors include the following, amongst others:

• Policy formulation and planning;

• Periodic review and evaluation of Management performance;

• Monitoring and enforcing effective internal control through appropriate committee;

• Risk management and preservation of company assets;

• Management of Share Capital;

• Determination and periodic review of appropriate organizational structure:

• Succession planning and the appointment, training, remuneration and replacement of board members and senior management;

• Overseeing the effectiveness and adequacy of Internal Control systems;

• Overseeing the maintenance of the company's communication and information dissemination policy;

• Performance appraisal and remuneration of board members and senior executives;

• Review of reports and recommendations of its committees;

• Maintaining healthy communication and interaction with shareholders; and

• Ensuring the integrity of financial reports.

The Board and its committees have continued to carry out their duties during the year.

The Board is responsible for maintaining a credible system of internal control to ensure the integrity and reliability of financial systems and corporate information. There exists an effective internal control function within the Company which gives reasonable assurance against any material misstatement or loss. The internal control systems are reviewed periodically to ensure continued relevance to the Company's business and prescribed standards. The company has a whistle blowing policy that allows employees to report any observed breach or fraudulent activities. Such reports are treated with utmost confidentiality and are acted upon swiftly and fairly.

In accordance with article 87 of the Company's articles of association, Mr. Olu Abayomi Sanya and Mr. Anthony Chisnall retire by rotation and being eligible, offer themselves for re-election.

The interests of directors who held office at the date of this report in the issued share capital of the Company as recorded in the Register of Directors' shareholding and/or as notified by them for the purpose of section 301 of the Companies and Allied Matters Act 2020 as follows:

P a g e | 13

Report on an assurance engagement performed by an independent practitioner to report on management's assessment of controls over financial reporting

In our opinion, nothing has come to our attention that the internal control procedures over financial reporting put in place by management of Multi-Trex Integrated Foods Plc (''the company'') are not adequate as of 30 April 2024, based on the SEC Guidance on Implementation of Section 60-63 of The Investments and Securities Act 2007 (now Sections 88-89 of the Investments and Securities Act 2025) issued by The Securities and Exchange Commission.

We have performed an assurance engagement on Multi-Trex Integrated Foods Plc's internal control over financial reporting as of 30 April, 2024 based on FRC Guidance on Assurance Engagement Report on Internal Control Over Financial Reporting (''the Guidance'') issued by the Financial Reporting Council of Nigeria. The company's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Assessment of, and Report on, Multi-Trex Integrated Foods Plc's Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the company's internal control over financial reporting based on our assurance engagement.

We conducted our assurance engagement in accordance with the Guidance, which requires that we plan and perform the assurance engagement and provide a limited assurance report on the entity's internal control over financial reporting based on our assurance engagement. As prescribed in the Guidance, the procedures we performed included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our engagement also included performing such other procedures as we considered necessary in the circumstances. We believe the procedures performed provide a basis for our report on the internal control put in place by management over financial reporting.

We have audited the financial statements of the Company, which comprise the statement of financial position as at 30 April 2024, the statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for the year the ended 30 April 2024, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give a true and fair view of the statement of financial position of Multi-Trex Integrated Foods Plc as at 30 April 2024, its financial performance and its cash flows for the year ended in accordance with the provisions of both the Companies and Allied Matters Act 2020 and the Financial Reporting Council of Nigeria (FRCN) Act No. 6 of 2011.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company within the meaning of International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) and have fulfilled our other responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The company's financial statements have been prepared using the going concern basis of accounting. The use of this basis of accounting is appropriate unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Management has not identified a material uncertainty that may cast significant doubt on the entity's ability to continue as a going concern, and accordingly none is disclosed in the financial statements. Based on our audit of the financial statements, we have also not identified such a material uncertainty. However, neither management nor the auditors can guarantee the company's ability to continue as a going concern.

Key audit matters are the matters that in our professional judgment were of the most significant in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

The key audit matters identified are applicable to the audit of the financial statements.

The Board of Directors are responsible for the preparation and fair presentation of these financial statements which are in compliance with the requirements of both the Financial Reporting Council of Nigeria Act, No. 6 of 2011 and the Companies and Allied Matters Act 2020. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatements, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISAs) issued by the International Federation of Accountants (IFAC). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

The accounting policies and notes on pages 23 to 52 form an integral part of these financial statements

The accounting policies and notes on pages 23 to 52 form an integral part of these financial statements

The accounting policies and notes on pages 23 to 52 form an integral part of these financial statements

1. Corporate information

   The company was incorporated on 30th November 1999 as a limited liability company in accordance with the provisions of the Companies and Allied Matters Act 1990. The company was converted to a Public Liability company on 2 October 2008 in accordance with the provisions of the Companies and Allied Matters Act 1990. The principal activity of the company continues to be the processing of cocoa beans, exportation of industrial cocoa products as well as manufacturing and domestic marketing of cocoa-based consumer products.

2. Accounting policies

   The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

   1. Basis of preparation

      These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), including International Accounting Standards (IAS) issued by the International Financial Reporting Interpretation Committee (IFRIC) and in accordance with the requirements of Financial Reporting Council of Nigeria (FRCN) Act No 6, 2011 and Companies and Allied Matters Act 2020.

      The financial statements have been prepared on the historical cost basis. These financial statements are presented in Nigerian Naira, which is the company's functional currency. All financial information presented in naira has been rounded to nearest thousand.

      Significant accounting judgments, estimates and assumptions

      The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

      The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

      The company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the company. Such changes are reflected in the assumptions when they occur.

      These estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of assumption, estimation, uncertainties and critical judgements in applying the accounting

      policies that have the most significant effect on the amount recognised in the financial statements include the following:

      Taxes

      Uncertainties exist with respect to the amount and timing of future taxable income. Given the complexity of existing contractual agreements, differences arising between the actual results and the assumptions made could necessitate future adjustment to tax income and expenses already recorded. The company establishes provisions based on reasonable estimates.

      Deferred taxes are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

      Further details of taxes are disclosed in Note 10.

      Accounts receivable

      The allowance for doubtful accounts involves management judgment and review of individual receivable balances based on an individual customer's prior payment record, current economic trends and analysis of historical bad debts of a similar type.

      Property, plant and equipment and intangible assets

      Estimates and assumptions are made to determine the depreciation and amortisation rates and useful lives of these assets at the end of the period.

   2. Summary of significant accounting policies

      The following are the significant accounting policies applied by Multi-Trex Integrated Foods Plc in preparing its financial statements:

      1. Property, plant and equipment

         Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses (if any). The cost of property, plant and equipment includes expenditure incurred during construction, delivery and modification. Other subsequent expenditure is capitalised only when it meets the recognition criteria. Where a substantial period of time is required to bring the asset to its intended use, attributable qualifying borrowing costs are capitalised and included in the cost of the relevant asset. The costs of day-to-day servicing of property and equipment are recognised in the income statement as incurred.

         Depreciation is charged to profit and loss on straight line basis to write down the cost of each assets to their residual values over the estimated useful lives of the various classes of asset.

         Leased assets are depreciated over the shorter of the lease term and their useful lives. Depreciation begins when an asset is available for use and ceases at the date that the asset is derecognised.

         The estimated unexpired useful lives for the current and corresponding periods based on revaluation done on 9 September 2021 are as follows:

         Leasehold improvements Over the shorter of the useful life of the items or lease period

         Landed property 88 years

         Factory & other building 40 years

         Plant and machineries 15 years

         Furniture, equipment & office equipment 5 years

         Motor vehicles - years

         Road network 40 years

         Warehouse 40 years

         Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted prospectively if appropriate.

         Impairment review is carried out when there is an indicator of impairment. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use and 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. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. Impairment losses on non-revalued assets are recognised in the income statement as an expense, while reversals of impairment losses are also stated in the income statement.

         An item of property, plant and equipment and any significant part initially recognised is derecognized upon disposal or when no 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 the income statement when the asset is derecognized.

      2. Biological assets

         Biological assets are measured initially and at each reporting date at fair value less expected costs to sell. Fair value may have an incremental effect on deferred tax liability, net assets and the level of volatility in net assets as fair value changes are measured at each reporting date and reported in profit and loss. However, where it is clearly demonstrated that there is no quoted price in an active market and other methods of fair value cannot be reasonably determined or are inappropriate, biological assets are measured at cost less accumulated depreciation and impairment losses. If circumstances change and fair value becomes reliably measurable, fair value less costs to sell is applied.

         Change in fair value of biological assets during a period is to be reported in net profit or loss.

         The company's biological assets fair value cannot be reliably measured on initial recognition of a biological asset, because there is no quoted price for cocoa trees in an active market. The biological assets mainly cocoa plantation are measured at its cost less any accumulated depreciation and any accumulated impairment losses.

         Biological assets are classified as immature plantations and mature plantations. Immature plantations are stated at cost, which consists mainly of the accumulated cost of land clearing, planting of seedlings, fertilizing, up keeping/maintaining the plantations, and allocations of indirect overhead costs up to the time the plantations become commercially productive and available for harvest. At maturity, mature plantations which are regarded as bearer plants are stated at deemed cost while depreciation commences when the biological assets become commercially productive and available for harvest.

         Depreciation is calculated on a straight-line basis, over the estimated useful lives of the assets as follows:

         Useful lives

         Biological assets 30 years

         The residual values, useful lives and methods of depreciation of biological assets are reviewed at each financial year end and adjusted prospectively, if appropriate.

      3. Agricultural produce

         Agricultural produce (the harvested product of the company's biological assets) from the entity's plantation (biological assets) should initially be measured at the fair value less costs to sell at the point of harvest. Agricultural produce comprises of harvested goods such as cocoa bean.

         Where an active market for cocoa bean cannot be ascertained, the recent transaction purchase price of the by-product should be used to compute the fair value of the agricultural produce.

         A gain or loss arising on initial recognition of agricultural produce (during harvesting) at fair value less costs to sell shall be included in profit or loss for the period in which it arises.

      4. Intangible assets

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

         Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. After initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses (if any).

         Subsequent expenditure on software assets is capitalised only when it increases the future economic benefit embodied in the specific asset to which it relates. All other expenditure is expensed as incurred.

         The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

         Depreciable amount is allocated on a systematic basis over its useful life using the straight-line basis in which charges for each period are recognised in the Profit or loss.

         Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. 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 is recognised in the statement of profit or loss as the expense category that is consistent with the function of the intangible assets.

      5. Taxation Current income tax

         Current income and education taxes liabilities and assets for the current and prior periods is measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted at the reporting date. Current income tax assets and liabilities also include adjustments for tax expected to be payable or recoverable in respect of previous periods.

         Current income and education taxes relating to items recognized directly in equity or other comprehensive income is recognized in equity or other comprehensive income and not in profit or loss.

         Deferred tax

         Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are recognized for all temporary differences, except:

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

         • In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

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

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

         • When the deferred tax asset relating to the deductible temporary differences 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. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interest in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

         • Where the deferred tax asset relating to the deductible temporary difference arise 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 utilized.

           Unrecognized deferred tax assets are reassessed at each reporting date and are recognized 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 tax rates that are expected to apply to the period when the asset is realized 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 recognized in correlation to the underlying transaction either in profit or loss, other comprehensive 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.

      6. Inventories

         Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

         Finished products and work-in-progress

         Finished products and work in progress are measured at manufacturing cost and takes into account the production stage reached. Costs include an appropriate share of direct production overhead based on normal operating capacity.

         Raw material, packaging material and spare parts

         Raw and packaging materials are measured at actual cost, comprising invoice price, duty, freight, and handling charges. Spare parts are valued at the lower of cost and net realisable value. Value reductions and usage of parts are charged to profit or loss. Spare parts that are acquired as part of an equipment purchase and only to be used in connection with this specific equipment are initially capitalised and depreciated as part of the equipment.

      7. Employee benefits Defined contribution plans

A defined contribution plan is a pension plan under which an entity pays fixed contributions into a separate entity. The company has no legal or constructive obligations to pay further contribution if the fund does not hold sufficient assets to pay all employees the benefits relating to employees' service in the current and prior period.

For defined contribution plans, the Company pays contribution to publicly or privately administered pension fund administration (PFA) on a mandatory basis in line with Pension Act. The company has no further payment obligation once the contributions have been paid. The contributions are recognized as employee benefit expenses in profit or loss when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.