Year end financial statement for 2024

SECURE ELECTRONIC TECHNOLOGY PLC (RC 372333)

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

SECURE ELECTRONIC TECHNOLOGY PLC UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

C o n t e n t s

Corporate Governance

Statement of Accounting Policies

Certification Pursuant to Section 60(2) of ISA 2007 Statement of Financial Position

Statement of Comprehensive Income

Statement of Change in Equity

Statement of Cash flow

Notes on the Financial Statements

Detail Statement of Comprehensive Income

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

CORPORATE GOVENANCE

Introduction

Secure Electronic Technology Plc is committed to the highest standards of corporate governance in all its activities. It recognises that good corporate governance is fundamental to earning and retaining the confidence of its stakeholders. The company therefore conducts its business with integrity and pays due regard to the legitimate interest of its stakeholders. In line with the code of best practice in corporate governance, the board have established the following committees:

Board of Directors

The Board comprises thirteen members which include the chairman, eleven non executive directors and One Executive Director. The Board is responsible to assess the overall direction and strategy of the business and ensuring accountability of the organisation to its investors. It ensures that the activities of the company are at all times executed within the applicable and regulatory framework.

Audit Committee

In accordance with section 404(3) of the Companies and Allied Matters Act 2020, members of the audit committee comprise two directors and three shareholders. It is chaired by non executive director. The audit committee assists the board of directors in monitoring the integrity of the financial statements. The committee in the conduct of its affairs reviews the overall risk management and control system of the company.

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

STATEMENT OF ACCOUNTING POLICIES

A summary of the principal accounting policies, all of which have been consistently applied throughout the current and preceding years, is set out below:

Basis for the Preparation of Accounts

These financial statements of the company have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB) and in conformity with the Financial Reporting Council (FRC) of Nigeria Act 2011 and the companies & Allied Matters Act 2020. These Financial Statements are prepared in accordance with the going concern principle under the historical cost basis other than financial assets designated as fair value through profit or loss and held for trading instruments, which are measured at fair value.

Turnover

Turnover represents the value of Lottery tickets and gaming products.

Property, Plant and Equipment

1. Property, Plant and Equipment are stated at cost less accumulated depreciation. Cost Includes expenditure that is directly attributable to the acquisition of the asset.

1. The costs of the day-to-day servicing of Property, Plant and Equipment are recognized in the Statement of Comprehensive Income as incurred.

1. On disposal of previously revalue Property, Plant and Equipment, an amount equal to the revaluation surplus attributable to that asset is transferred from revaluation reserve to revenue reserve

IV. Property, Plant and Equipment being constructed or developed for future use are disclosed as assets in progress.

1. Gains or losses on the disposal of Property, Plant and Equipment are determined by reference to their carrying values and are included in the Statement of Comprehensive Income.

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

Depreciation of Property, Plant and Equipment

Depreciation is calculated to write off the cost or valuation of Assets on a straight-line basis over the estimated useful lives of the assets concerned. 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 earlier of the date that the asset is derecognised or classified as held for sale in accordance with IFRS 5 Non-Current Assets Held for Sale and discontinued operations. The estimated useful lives for the assets and principal annual rates used for this purpose are as follows:

Write Down

If there are indications of impairment in value for tangible fixed assets the recoverable amount will be estimated for the fixed assets to calculate possible write down.

The recoverable amount of an asset or cash generating unit is the higher of its fair value less costs to sell and its value in use. In assessing the value in used the estimated future cash flows are discounted to the present value by means of a discount rate before tax that reflects the current market assessments of the time value of money and risk that is specific to the asset. If the recoverable amount for a fixed asset or cash generating unit is estimated to be lower than the carrying value, the carrying value of the fixed asset will be reduced to the recoverable amount. If impairment in value subsequently reverses, the carrying value of the fixed asset will be increased to the revised estimate of the recoverable amount, but limited to the value that would be the carrying value if the fixed asset had not been written down in an earlier year.

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

Recognition and Measurement

Purchases and sales of investments are recognised on the trade date, which is the date on which the company commits to purchase or sell the asset. Financial assets are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Investments are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the company has transferred substantially all risks and rewards of ownership. Available for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.

Realised and unrealised gains and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the income statement in the period in which they arise.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined by the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity), but excludes borrowing costs. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses.

Receivables

Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the company will not be able to collect all the amounts due according to the original terms of receivables. Significant financial difficulties of the debtor, probability that debtor will enter bankruptcy and default or delinquency in payment (more than 30 days overdue), are the indicators that trade receivable is impaired. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the income statement within administrative costs. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against administrative costs in the income statement. The amount of the provision is the difference between the carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

Provisions, Contingent Liabilities and Contingent Assets Provisions are liabilities that are uncertain in timing or amount.

Provisions are recognised when: the company has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.

Provisions are normally made for restructuring costs and legal claims.

A 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 company has a present obligation as a result of past but is not recognised because it is not likely that an outflow of resources will be required to settle the obligation; or the amount cannot be reliably estimated. Contingent liabilities normally comprise of legal claims under arbitration or court process in respect of which a liability is not likely to eventuate.

A contingent asset is a possible asset 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 company. A contingent asset is not recognised rather they are disclosed in the financial statements when they arise.

Retirement Benefits

The company operates a funded, Contributory Retirement Benefit Scheme. Contributions to the scheme, which are complaint with the Pension Reform Act 2014, are based on transport, housing and basic allowances in the ratio 8% by the employee and 10% by the employer. The company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to the employee service in the current and prior periods. The assets of all schemes are held in separate trustee administered funds, which are funded by contributions from both the company and employees. The company contributions to these schemes are recognised as employee benefit expense in the period to which they relate.

Payables

Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

Share capital

Ordinary shares are classified as equity. Share issue costs net of tax are charged to share premium account.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

Current and Deferred Income Tax

Income tax expense is the aggregate of the charge to the profit and loss account in respect of current income tax and deferred income tax.

Current income tax is the amount of income tax payable on the taxable profit for the year determined in accordance with the relevant tax legislation.

Education tax is provided at 3% of assessable profits of companies operating within Nigeria

Deferred income tax is provided in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. However, if the deferred income tax arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss, it is not accounted for. Current and deferred income tax is determined using tax rates and laws enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the company and it is probable that the temporary difference will not reverse in the foreseeable future

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost using the effective interest method; any differences between proceeds (net of Transaction costs) and the redemption value is recognised in the profit and loss account over the period of the borrowings, using the effective interest method.

Provisions

A provision is recognised if, as a result of a past event, the Company has present obligations (legal or constructive) that can be reliably estimated and it is probable that an outflow of economic benefits will be required to settle such obligation.

Provisions are reviewed at each balance sheet date and the level reflects the best estimate of the obligation. If there is a substantial time effect the obligation will be accounted for at the present value of future obligations.

Unclaimed Dividends

Unclaimed dividends are amounts payable to shareholders in respect of dividends previously declared which have remained unclaimed by the shareholder. In compliance with Section 429 of the Companies and Allied Matters Act 2020, unclaimed dividend after twelve (12) years are transferred to revenue reserves.

Segment Reporting

A segment is a distinguishable component of the Company that is engaged either in providing related products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and returns that are different from those of other segments.

Segment information is presented in respect of the Company's business and geographical segments, where applicable. The Company's primary format for segment reporting is based on geographical segments. The geographical segments are determined by management based on the Company's internal reporting structure

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

SECURE ELECTRONIC TECHNOLOGY PLC

UNAUDITED FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

Use of Accounting Estimates and Assumptions

The preparation of the financial accounts in accordance with IFRS requires that the management make assessments, estimates and assumptions that affect the application of accounting policies and the carrying amounts for assets and liabilities on the balance sheet date, as well as reported revenues and costs for the period. Accounting estimates are used to determine the reported amounts, expected life of tangible assets and taxes. Even though these estimates are based on the management's assessments and prior experience, current events and actions, the actual results may differ from these estimates. The estimates and assessment will be reviewed regularly and any change will be recorded.

Research and Development Cost

Research costs are recognised on a current basis. Research is an internal process that does not give rise to independent intangible assets that generate future economic benefits. Costs related to development activities will be recorded on the balance sheet if the product or process is technically and commercially feasible and the company has adequate resources to complete the development. Capitalised development costs are recorded on the balance sheet at historical cost, less any accumulated depreciation and write-downs. Capitalised development costs are depreciated by the linear method over the estimated useful life of the asset.

Financial Risk Management

Risk management is performed by a central finance department in accordance with guidelines approved by the Board of Directors. The Board of Directors lays down principles for general financial risk management, in addition to guidelines that cover specific financial risks.

Financial Assets

Classification

The company classifies its financial assets in the following categories at fair value through profit or loss, loans and receivables. The classification is dependent on the purpose for which the asset is acquired which is determined by management at time of purchase.

Financial Assets at Fair Value through Profit and Loss

This category has two sub-categories: financial assets held-for-trading and those designated at fair value through profit or loss at inception. Included in these sub-categories are the Company's investment into hedge and property funds, securities held as part of the Company's stock broking activities, and debt and equity instruments held by the hedge funds.