Quarter 1 - financial statement for 2020

TABLE OF CONTENT Pages

Corporate information i

Consolidated financial highlighlights iv

Directors' report v

Certification pursuant to section 60(2) of investment Act No 29 of 2007 viii

Management comments and analysis ix

Report of the Audit and Compliance Committee xi

Statement of Directors' Responsibilities 1

Independent auditors report 2

Summary of significant accounting policies 7

Consolidated and separate statement of financial position 34

Cosolidated and separate statement of profit or loss and other comprehensive income 35

Statement of changes in equity - Group 36

Statement of changes in equity - Company 37

Consolidated and separate statement of cash flows 38

Notes to consolidated financial statements 39

Other national disclosures:

Statement of value added - Group 105

Statement of value added - Company 106

Financial summary - Group 107

Financial summary - Company 109

Incorporation Certificate - RC 167274 of 10 October, 1994

Nature of business

The principal activity of the Company is underwriting of Non-life insurance business while its subsidiary is engaged in the underwriting of Life and Non-life insurance businesses.

Directors:

Mr. Muhammad Sidi-Aliyu - Group Chairman

Mr. Omotola Talabi - Chairman, Finance, Investment and General Purpose Committee

Member, Enterprise Risk Management and Governance Committee

Ms Helen Emore - Chairman, Enterprise Risk Management and Governance Committee

Member, Finance, Investment and General Purpose Committee

Prince Sam Turoti - Member, Enterprise Risk Management and Governance Committee

Member, Finance, Investment and General Purpose Committee Mr. Bayo Fakorede - Ag. Group Managing Director/CEO

Mr. Tayo Ajibulu - Executive Director (Management Services) Mr. Sakiru Oyefeso - Director

Registered Office/Head Office

209, Herbert Macaulay Way, Ebute-Metta, Sabo, Yaba, Lagos State.

Tel: (234) 01 - 7741181, 7740571, 4758852 - 3 Fax: 013425466

E-mail: info@stacoplc.com Website: https://www.stacoplc.com

Group Secretary

Jackson, Etti & Edu

3-5, Sinari Daranijo Street, Off Ajose Adeogun Street, Victoria Island, Lagos State.

Legal Adviser

Tokunbo Orimobi & Co.

Plot 1963B, Buraimoh Kenku Street, Off Oyin Jolayemi Street,

Victoria Island, Lagos State.

Lagos Control Office

292F, Ajose Adeogun Street, Victoria Island, Lagos Branch Manager: Mr. Shogo Mojeed

Tel No: 017410184

Mobile No: 08023187896

i

Ibadan Branch

49, Ring Road, by Ajeigbe B/Stop, Ibadan, Oyo State. Branch Manager: Mr. Oyekan Adesina

Mobile No: 08033448216

Ilorin Branch

170, Ibrahim Taiwo Road, Ilorin, Kwara State. Branch Manager: Taiwo Ayanbadejo

Mobile No: 08037222882

Akure Branch

1st Floor, BOI House (left wing), Opp. Olam Nig. Ltd, Ado/Owo Road, Alagbaka, Akure, Ondo State.

Branch Manager: Mr. Ayedogbon Olanipekun Mobile Nos: 08035746695

Abuja Branch

118, Aminu Kano Crescent, Wuse, Abuja. Regional Head: Mr. Joseph Adebayo Mobile Nos: 08033454504

Port Harcourt Branch

31, King Perekule Street, G.R.A. Phase II, Port Harcourt, Rivers State. Branch Head: Mr Idowu Osikoya

Mobile No: OB037323770

Warri Branch

255, Effurun/Sapele Road, Efurun, Delta State. Branch Manager: Mr Mene Otubu

Mobile No: 08033247681, 07029954959

Bankers

First Bank of Nigeria Ltd Wema Bank Plc Ecobank Plc

Access Bank Plc

United Bank for Africa Plc Zenith Bank Plc

Auditors

PKF Professional Services

PKF House, 205A, Ikorodu Road, Obanikoro, Lagos State.

Office Tel: +234 9030001351

https://www.pkf-ng.com

Registrar

Coronation Registrars Limited Lagos Tel: 012272570

Email:info@coronationregistrars.com

Reinsurers

African Reinsurance Corporation Continental Reinsurance Plc WAICA Reinsurance Pool Nigeria Reinsurance Corporation

Actuary

Logic Professional Services

Rear Wing, 4th Floor, Oshopey Plaza, 17/19, Allen Avenue, Ikeja, Lagos State.

Investors /Shareholders Relations: Amos Olalere (Mobile 08027574933) Tayo Ajibulu (Mobile 08023154582)

Group Company

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Directors are pleased to submit their report together with the audited financial statements of Staco Insurance Plc ("the Company") and its subsidiary (''the Group) for the year ended 31 December 2020.

Legal form and Principal activities

The Company, Staco Insurance Plc (formerly known as Standard Trust Assurance Plc) was incorporated on October 10, 1991 as a public limited liability company with incorporation No. RC 167274. The compamy acquired Alpha Insurance Plc and commenced non-life insurance business on 1st October, 1994 having been duly licensed by National Insurance Commission (NAICOM) with certificate of registration No. RIC-038.

The Company changed its name to Staco Insurance Plc by special resolution on the 30th of October, 2006 following the merger of Standard Trust Assurance Plc and Summit Insurance Company Limited as a result of the directive by NAICOM on the increase in share Capital of insurance companies in Nigeria. The company became listed on The Nigerian Stock Exchange on 25th June, 2007.

The Company has one subsidiary called Staco Sierra Leone. The subsidiary has been disposed during the year.

Principal activities

The Group is principally engaged in providing non-life and life insurance businesses.

Operating results

The following is a summary of the Group

operating results for the year ended 31 December 2020:

Group Company

Directors and their interests

The Directors' interests in the issued share capital of the Company as recorded in the register of members and as advised by the Company's registrars for the purposes of Sections 275 and 276 of the Companies and Allied Matters Act, Cap C20, LFN 2004 and the listing requirements of the Nigerian Stock Exchange in units are as follows:

31 December 2020

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

31 December 2019

Directors' interest in contracts

In accordance with Section 277 of the Companies and Allied Matters Act, Cap C20 LFN, 2004 none of the Directors has notified the Company of any declarable interests in contracts or proposed contracts with the Company.

Retiring Directors

In accordance with Section 259 of Companies and Allied Matters Act, Cap C20 LFN, 2004, Ms Helen Emore and Mr Tola Talabi will retire by rotation and being eligible, they offer themselves for re-election.

Major Shareholding

The called-up and fully paid-up shares of the Company were beneficially held as follows at 31 December 2020:

According to the register of members, no shareholder other than the ones mentioned above held more than 5% of the issued share capital of the Company as at 31 December 2020.

Donations and charitable gifts

The Company identifies with the aspiration of the community as well as the environment within which it operates and therefore makes charitable donations for community development activities. However, there was no donation during the year (31 Dec 2019: Nil).

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 OECEMBER 2020

Emp]oymant of disabled persona

Th6 Company's recruitment and staff development policie9 and pracuces are non-discriminap›ry.

Employee Involvement and training

, The Company ensures lhat employees are informed of matters concerning lhem through format and informal fora with an appropriate two-way faedbac8 mechanism. In accordance with the Company's policy of continuous development, in-house training is provided on various aspects of ths organisation. In addition, employees are nominated to attend both local and international courses and workshops which are complemented by on-the-job trainings.

Heahh, safety at work and welfare of employaea

Heall and safety regulations are in force wilhin the Company's premises and employees are aware of existing regulations. The Company give6 priority to the health and safety of rts employees by ensuring tha{ health and safety procedures ara subslantally complied with and mainta ned in its da'iIy operations.

Acquisition of own shares

ThB COm and did not purchase any of i*s own shares during the yaar.

Research and development

The Company is on a continous basis carrying out research into Insurance Products and Services.

Inv9stmant in subsidiary

Consistent wilh its expansion program, Ihe Company set up a subsidiary in the preceding years. Below is the name and the percentage of holdings in the subsidairy:

Name Staco's '/+ Holding

StaCo SigrFa Leone 60.*'« Set up hlowever, lhe subsidiary has been disposed during the year. See note J4.6 for details.

Consolidated financial statements

ExCept for the comparative discIosures,no consolidation was done during the year because the subsidiary has been disposed.

The financial statements of Staco Sierra Leone was not consolidated with thosa of tha Company.See note

14.6 for details.

Related party Tranaactiona

There were no material regaled party transactions amongst the members of the Company except for the

folk¥d/ing transactions thaf have been carried out at arm's length:

I) CFS Financial Services Limited:The company Granted loBns to the related company.

iii) Staco Cooperative: The company staff contributions

iil) Staco lnauranca Company (Sterra Leone) Limited: The company Granted loans to the subsidiary and the loan has been fully paid up.

Post bzgance sheet events

There were no post-balance sheet events that could have a matgrial effact on the financial position of the Company as ar 31 December 2020 and tha profil attributable la equity holders on mat date other than as disclosed in tha financial statements.

Auditors

PKF Professional Services have indicated thair willingness to continue in office in accordance with section 357(2) of the Companies and Allied Matters Act, Cap C2D, LFN 2004. A resolution will be proposed authorising the Directors to determine their remuneration.

By order of the

FRC/2D25/PRO/NBA/002/877226

Dated: 13 June 2025

sTACO lNsuea+icE PLC

CONSOLIDATED FlNANCiaL szAzEuexzs FOR THE YEAR ENDED 31 DECEMBER 2029

CERTIFICATION PURSUANT TO 8ECTtON 60(2) of IKVESTMENT AND SECURITIES ACT NO. ZS of 2007

9

We the undersigned hereby certify tha following with regard to our statements for the year ended 31 December Z020 that:

1. We have reviewed the report:

2. To the best of our knowledge, the report does not contaln:

   1. Any untrua statement ofa matetiBl fact, or

   2. Omit to stata a mBteriel fact, which would maks the consolidated and separate financta/ statements misleading in the light of circumstances under which such statements were made;

3. To the best of our knowledge, the consolidated and separate financial statements and other financial information included in the report are faifty present In ate material respects the financial condition and results of operation of the Group as of, and for the periods presented n the reporL

4. We,

1. Ara responsible for establishing and maintaining internal controls

2. Have designed such internal controls to ensure that material information relating to the Company and its consoTidaied substdiary are made known to such officers by others within those entries particularly dun"ng tha period in which the perjodJc reports ara being prepared;

3. Have evaluated the effestivenass of lhe Group's internal controls as of date within 90 days prior to the report: (/v} Have presented in the report our conclusions aboul the ePectiveness of our internal controls basad on our eva]tiat‹on as of that date:

{e) We have disclosed to the auditors of the Company and Finance, Tnvsslment and General-Purpose Commikee:

1. At1 significant deficiencies in Ihe design or operation of internal controls lhat would adversely affect the Group's and the Company's ability to record, process, summarize and report financial data and have identified for the company's auditors any material weal‹ness in internal controls. and

fii} Any fraud, ¥rhefher or not matsnal, that ›nvoveS management or other employees who have significant role in the Company's internal controls:

(I) We have ›dent feed jn the report whether or not thare were significant changes in internal cOntros or other factors that could significantly affeCt internal controls subsequent to the date of Qur evaluation, 'nctuding any corrective actions with r gard to significBnt deficiencies and material weaknesses.

r. Jide Om are

hlef Flnanclal Officer FRC/2013/lCAN/00000002180

Oafed: 13 June 2025

Ag. Managing Director FRCJ2013/CItN/00000004089

Oated: 13 June 2d25

In order to give an insight into our structure, strategy, and mode of operation, we have outlined this MC & A at 31 December 2020. It should be read in conjunction with the audited financial statements of Staco insurance Plc and its subsidiary . All figures are in thousands of Nigerian Naira except otherwise stated.

Nature of business

The Staco Group is made up of Staco Insurance Plc (''the Company) and its subsidiary in Sierra Leone. The principal activity of the Company is the underwriting of Non-life insurance businesse . The Company's portfolio cuts across Nigeria's public and private sectors covering Oil and Gas, Engineering/Construction, Manufacturing, Trade, Aviation, Marine, etc. The Company is also developing its micro insurance arm.

Business objective and strategy

The Company is registered and incorporated in Nigeria while its subsidiary is registered and incorporated in Sierra Leone. The Company provides non-life insurance services to both retail and corporate clients all over Nigeria. The Company aims to rank among the highly rated insurance companies in Nigeria by the year 2026. To achieve this, it is the company's wish to strengthen service delivery through the deployment of modern Information Technology techniques and branch/agency network expansion. Intensification of direct and indirect marketing activities by awareness creation amongst others will also contribute to the achievement of target.

Quality policy statement

Staco Insurance Plc is committed to delivering insurance and financial services of superior quality, surpassing customers expectations and ensuring strict compliance with regulatory and statutory requirements. We continually improve the effectiveness of our quality management system in line with Global Credit Rating Company Rate- 2009 (A-).

We establish measurable goals and objectives at departmental levels which we review as the need arises ensuring timely and effective implementation of company strategy.

1. Performance indicators

   Operating results, cash flow and financial position.

   Group Company

   	2020 ₦'000		2019 ₦'000	Change %		2020 ₦'000	2019 ₦'000	Change %
   Gross written premium	-		3,315,048	(1.00)		682,410	2,393,682	(0.71)
   Net premium earned	-		3,316,397	(1.00)		227,006	2,488,721	(0.91)
   Underwriting results	-		1,801,327	(1.00)		(123,201)	1,247,454	(1.10)
   Investment income Operating and administrative	-		156,694	(1.00)		134,371	112,582	0.19
   expenses	-		(1,836,197)	(1.00)		(896,759)	(1,572,177)	(0.43)
   Loss before tax	-		(909,914)	(1.00)		(936,581)	(1,405,212)	(0.33)
   Loss per share (k)	-		(11)	(1.00)		(9)	(15)	(0.39)

   There was a decrease of 71% in gross written premium for the company in 2020 in comparison with 2019 due to decline in performance in the reporting period while no movement in the group due to no consolidation carried out in the year as a result of disposal of investment in subsidiary.

   ix

   CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 MANAGEMENT'S COMMENTS AND ANALYSIS (MC & A)

   The decrease in performance also had significant effect on the net premium income decreasing from

   ₦2,488,721,000 (2019) to ₦227,006,000 (2020) for the company.

   The Company's underwriting results decreased to ₦123,201,000 (2020) from ₦1,247,545,000 (2019).

   The Company's investment income increased from ₦112,582,000 (2019) to ₦134,371,000 (2020) representing an increase of 19%.

   The Company's operating expenses summed up to ₦896 million (2020) and ₦1.57 billion (2019).

   At the reporting date, the Company had ₦428.83 million in the cash and cash equivalents, including short-

   term deposits of ₦14.08 million with maturity of not more than three months.

2. Liquidity, capital resources and risk factors

   At 31 December 2020, the Company had a negative ₦8.99 billion (2019 : negative ₦11.99 billion) in net cash reserves. The Company's cash investment is in accordance with its investment policy and complies with the regulatory requirements. The company's investment strategy is influenced by a focus on highly liquid financial instruments such as term deposit, equity and debt instruments. At the end of December 2020, the Company had approximately ₦ Nil million (2019 : 794.14) invested in fixed income and ₦ Nil (2019 : N180.19) million in equity instruments.

3. Forward-looking statements

   This MC&A contains expectations, estimates, forecasts, projections and targets which the group should attain provided all other factors end up being equal. Experience has however shown that projections, expectations, etc. are subject to risks and uncertainties that result in actual achievements being different from projections. This is buttressed by the use of words like "anticipate", "believe", "estimate", "expect", "may", "plan", "project", "should", "will", or the adverse variants of such which appear within the body of this document.

   Without prejudice to the group, such projections, expectations, estimates, forecasts and targets reflect management's current belief and are based on available information which are subject to risks and uncertainties as identified. Therefore the eventual action and/or outcome could differ materially/immaterially from those expressed or implied.

   The forward-looking statements, which are subject to change after 31 December, 2020 reflect the group's expectations as at the time the Board of Directors approved this document. No obligation is undertaken by the group to update this document publicly or to review the forward looking statements unless required by law.

   
   
   
   
   CONSOLIOATEO FINANCIAL, STATES/IENTS FOR THE YEAR ENDED 31 DECEMBER 2020
   
   
   
   

   REPORT OF THE AUDIT AND COMPMANCE COMMITTEE IX RESPECT OF THE 2019 AUDFFED ACCOLI

   
   
   

   To the Members of Staco Insurance Plc

   
   
   
   
   

   In compliance with the provision of section 359(3) to 6' of the Companies and Allied Matters Act (Cap C20) Laws of the Federation of Nigeria 2004, the Committee considered the Audited Financial Statements for the year ended 31 December 2020 together with the Management Control Report from the Auditors and the

   Group's and the COITIQBD}/'B T0ggOf'i8B8 IO thIB fB{¥Ort at ita meeting held on 13 June 2026.

   
   
   

   In our opinion, the soape and plarining of the.audit for the yaar anded 31 December 2020 were adequate.

   After due consideration, the commi8ee accepted the report of the auditors that the conaoidated financial statements ware in accordance with ethical practice, International Financial Reporting Standards (IFRSa), Companies and Allied mattars act CAP C20 LFN 2004, Nigerian Insurance Act and Financial Reporting Gouncil and give a true and fair view of the state of the Group's and the Company's financial affairs.

   The Committee reviewed management'e responses to the Auditor's findings in respect of Ma B«ment matters both the Auditors and our members ara satisfied with management's responses thereto. On the review of insider/related party transactiona, the Committee was satisfied with the'ir status.

   The Committee therefore rac mmended that tha audited financial statements of the Gompany for tñe yer ended 31 December 2020 together"with audited consolidated financial statements of the comparative year and the Auditor's report thereon be presented for adoption at the Annual Oeneral Meeting.

   
   
   

   The Committee also approved the provlsion made in he financial statements together with consoiidated financial satements of the comparétive period in relation to the remuneration of the auditors.

   
   
   

   Dated: 13 June 2026

   IYlembers of the Audit and Compliance Committee are:-

   Mr. M.O. Kasslm Chairman - Shafeholdera' Representative

   Mr. E. Rewane - Member - Shareholders' Representative Mr. Olusegun Alimson - Member - Non Executive Director

   Mr. Omotofa Talabi - Member - Non Executive Director

   STATEMENT OF DIRECTORS' RESPOFI8IBILtTIES IN RELATION TO. THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMEMTS FOR THE YEAR ENDEO 31 DECEMBER 2020

   The Companies and Allied Matters Act. CAP C20, Laws of the Federation of Nigeria, 2004, requires the Directors to spare financial statements for aach financial year that give a true and fair view of the state of financial affairs of the company st the end of the year and of its prom o‹ less and other comprehensive income. The resqonsibllltles menude assuring that tha Group and the Company:

   1. keeps proper accounti o records that disck›sa, with reasonable accuracy, the financial position of the company and comply with the raquirements of the companies ano aNed matters act. CAP C2O. Laws of the Federation of Nigeria, 2004;

   2. establishes .adequate. internet controls to safeguard its aaset and to prevent and detect fraud and other irregularities; and

   3. prepares its consoildated financial statements using.suitable accounting policies supported by reasonable and prudentjudgmenta and estimates, and are consistengy applied.

The Directors accept responsibility for the annual financial statements together with tha comparative consol‹datad and saparata financial statements, which has been prepared using appropriate accounting potties supported by raasonBble and prudent judgment and estimates, in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board; in compliance with Financial Fteporting Council of Nigeria Act No. 6, 2011 and In the mannar required by the. Companies end Allied Matters Act. CAP C20, Laws of the Federation of Nigeria, 2004.

The Directors are of the opinion that the financial statements together with the comparative consolidated and separate financial stalemeots give a true and fBir vkrn/ of the state of the financial affairs of the Group and the Company and of its profit for the year ended 31 December 1020. the Director further accept responsibility for the mañteoarice of accounting rewards that may 6e relied upon in the preparation of the financial statements together with.the comparative consolidated and separate financial statements, as well as adequate systems of internal financial control.

going concam for at least twalva months from the date of this atatament.

Nothing has come to the attention of the Directors Jo indicate .that the Group and the Company will not remain a

him. Bayo Fzñtorade

kg. Managing Director

FRC/2013/Clihl/00000004099

Dated: 1.3 June 2025

Hr. Muhammad Sidi Aliyu Chairman FRCf2D20/003/00000021442

Dated: 13 June 2825

"C PKF

Independent Auditor's Raport

To the Shareholders of Staco Insurance Plc

Opinion

PKF Professional Sersfces PKF House

205A lkorodu Road, Obanikoro, Lagos, Nigeria.

P.O Box 2047, Marina, Lagos.

+234 (0) 90 3000 135J

info@pkf-ng.com https://www.pkf-ng.com

We have audited the consolidated end separate finenca1 statemant9 of Staco Insurance Plc ("the Company") and its subsidiary ('the Group"), which comprises the consolidated and separate statement of financial position at 31 December 2D20, the consolidated and separate statement of profit or loss and other comprehensive income, consolidated and separate statement of changes in equity and consolidated and separate statement of cash ftows for the year ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated and separate financial statements present falñy, in all material respects, the consolidated and separate financial position of the Group at 31 December 2020, and its financial performance and its cash flows for the year than ended in accordance with International Financial RapOrt1^B Standards (IFRSs) and with the requirements of the Financial Reporting Coundl of Nigeria AQ, No 6, 2011, Companies and Allied Matters Act, Cap C20, LFN 2004, the Insurance Act, Cap i 17, LFN 2003 and relevant policy guidelines issued ay the National Insurance Commission {MAICOM}.

Basis for Opinion

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 consolidated and separate Financial Statemems section of our report. We are independent of the Group in accordance with the international Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated and separate financial stsiemeots in Nigeria, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained i9 sufficient and appropriate to provide a basis for our opin1on.

Emphasis of matter

Material Unceftalnty Related to Going Concern

We draw your attention to the following notes in the consolidated financial statements:

1. hlote 46.b. which indicates that, as of 31 December 2020, the Company had deficiencies in asset cover (Hypothecetion of assets) for Policy Holders fund and shareholders fund for General Business of N2.89 billion (2D19: N2.46 billion) and N6.11 bilion ( 209: N5.33 billion) respectively.

2. Note 5.j. which indicates that, as of 81 December 2020, the company had a negative solvency margin of I•t9.81 billion (2019 R8.99 billion) whiCf was below the minimum requirement of N3 billion for a general

insurance business by R12.814 billion (2o›,g rim .was billion).

These conditions as set forlh in the notes mentioned ebove, indicate the existence of a material uncertainty that may cast signifcant doubt on the company's ability to continue as a going concern.

The note also explains the Directors' remedial plans which formed the basis for preparing the /iñanciaI statements using accounting policies applicable to going concern.

Our opinion is not modified in respect of this matter.

Tfie folk›wIng summarises twoiv tfie matter was addressed in fhe audit:

• We checked adverse market conditions, trends and events and also performed other risk assessment procedures to identify any adverse events or conditions.

• We asked management whether they have identified any events or conditions that may cast significant doubts on the company's ability to continue as a going concern.

2

OfRces In: Abuja, Nano

PartnerS/PdMerequivalent: TA Akande (Managing), NA Abdus-Sala4m, OO Ogundeyin, BO Adejayan, AA Agboola. ED Akintola, II AremU, EA Akapo, fiA Akande, SO Olaakun

PKF Professional Services is a member of PKF Global, the network of member firms of PEF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility Or liability for the actions or inactions of any individual

member or correspondent firm(s).

We reviewed all court .caaes against the Group in order to obtain reasonable assurance that no litigation threatens the going concern of the Group either by.suppliers, government, customers employees aggrieved third parties or shareholder of the Group.

We reviewed minutes of board meetings held for all the quarters in the reporting period to aaaass any issues that could border.on regulatory or legal challenges as It relates to the.going conoom of the Group.

We obtained asaurance from management that significant accounting and reporting judgments are supported by a degree of rigor and analysis appropriate to the circumstances of the Group.

Xey audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements of the curreM peñod. These matters were addressed in the

.context of our audit of the. conaotidated and separate financial .statements as a whole, and in farming our opinion thereon, and we do not provide a separate opinion on tñese matters.

Dtfier Infomtation

The directors are responsible for the Other information. The other information comprises the Chairman's statement, Directors' Report; Audit Committee's Report, Corporate Governance Report and Company Secreta/s report whiCh is expected to be mada availaDla to uB after that date. Th6 Other information doas not inoude the consolidated and separate financial statements and our auditors report thereon.

Our opinion on the consolidated and separate financial statements doas not cover the other information and we do not and will not exprass any fwd of assurance confusion thereon.

In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other informal on and, in doing so, consider whether the obier inforrriation is m8teriaI)y inconsistent with the consoiida1ed and separate finanaal statements or our Mowledga obtained In the audit, or otherwise appeared to so materially misatated.

If, based on the work we have performgd on the other information that we obtained prior to the date of this auditor's report, we condude that there is a matenal misstatement of this other information, we are required to report thst fact. ¥ie have nothing to report in this regard.

ResponsibiiNaa of the Directors and those charged with Governance for the conaolidatad and separate flnancia) atataments

The Diredors are responsible for the preparation and féir presentation of the consolidated and separate financial statements in accordance with International Financial Reporting Standards tlFRSs) and with the raqMiroments of the Financial Reporting Council of Nigeria Act, ND 6, 2011, Companies and Allied Matters Act, Oap C2O, LFN 2004 , the Insurance Act, Cap 1 17, LFN 2003 and relevant policy guidslinas issued by the National Ineuranca Commission (NAICOM) and for such internal control aa tha Diredors determine is neoesaary to enable the preparation of consolidated and separate financial Statements that are free from material misstatement, whether due to frBud or error.

In preparing the consolidated and aeparaze finandal statements, the Diractors are responsible for asaeasing the Group's ability to Continue as a going concern, disdoaing, as applicable, matters related to going concern and using the going concern basis of accounting unless the DireQors either intend to liquidate the Group or to cease operations, or have no raaliatic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting proceas.

Auditor's reaponaibilltiec for'the audit of the consolidated end separate financial statements

Our objact ves are to nbtain rassonable assurance about whether the consolidated and separate financial statements as a whole are free from. material misstatement, whether due to fraud or error, and to issue an auditors report that indudes our opinion. Reasonable Bssurance iS B high. level of assurance, but is not a guarantee that an audit conducted in aocordanca with iSAs will BlWfi§B.detact a material misstatement when it exists. Misstatements can arise from Faud or error and are considered material if, individually or in the aggragata, they could reasonably be expected to influence the economic decisions of users taken on the basis of'mesa consolidated and separate.financial statements.

As part of an audit in accordance wrth lSAa, we exercise professional judgment and maintain professional skepocism throughout the audiL We also:

• Identified and assessed the fisys ol material misstatement of the consolidatad and separate financial statamants, whether due to fraud or .enor, designed and performed audit procedures responsive to those risks, and obtain aud t evidence that is sufMient and appropriate to provide B bdBls for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher lhan for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

• Obtained an understanding of Imernal control relevant to the audit in order to design audit procedures that are appropnate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

  
  
  

• Evaluated .the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

  
  
  

• Concluded on the appropriateness of the. dtrector's use of the going concern basis of accounting and baaed on the audit evidence obtained, whether a material uncertainty exiss related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we .conctude that a material uncenainty exiats, we ara reguirad to idraw attention in our auditor's report to the related di8closure9 in the consolidated financial statements or, if such disclosures are Inadequate, to modify our opinion. Our COflCIUSiOfB are baaed on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cau6e the Group to cease to continue as a going .concern.

• Evaluated the overall presentation, structure and conte"nt of the consolidated and separate financial statements, induding the diccloaures, and whether the oonsolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtained sufficient appropriate aud* evidenoe regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated and separate financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responBiblb for our audit opinion.

We communicated with the Audit Committee regarding, amonp other matters, the planned scope and tming of the audit and significant audit findings, including any significant deficiencies in internal control that we idansfy during our audit.

Nb alco providad the Audit Committee with a statement that we have. complied Cth relevant ethical requirements regarding independence, and to communicaa mem all wiaianships and other matters that may reasonably be thought to bear on our independence, and where applicable, rebted safeguards.

From the madere cornmunicatad witft the Audit Committee, we determine fhose ma«era that were of most significance in the audit of the consolidated financial statemems of the current year and are therefore the Itey audit maders. We describe these ma«ers in our auditor's report unless law or regulation precludes pubiic disclosure about the mattar or when, in extiarnely rare circumstances, we determine that a matter should not be communicated in our raport because the adverse consequences of doing so would reasonably be expected to ouMelgh the public interest benef4s of.such communication.

Report on other legal and regulatory requirements

Compliance with the requirements of Schedule 6 cf the Companies and Allied Matters Act, Cap C20, LFN 20D4 and Section 28(2) of the Insurance Act Cap I17, LFN 2003.

In our opinion, proper books of account have been kept by the Company, so far as appears front our examination of those books and the Company's statement of financial position and statement of comprehensive income are in agraement with the books of accoun:.

Contraventions and Penalties

The Company paid fines and penalty in respect of contravention of the requirements of the National Insurance Commission and Securities and exchange Commission of Nigeria'8 Operational Guidel‹Yes during the year ended 31 December 2020. Details of penailty and fines paid are disclosed in Note 43 to the consolidated financ al statements

Benson 0 d yan, FCA

FRC/201 R /ICAN/004/00000002226

For: PKF PFO 6SBional Services Chartered Accountants FRC/2D23/COY/141906

Lagos, Nigeria

Dated: 13 June 2025

1. Reporting entity:

   The Company known as Staco Insurance Plc has a partly owned (60%) subsidiary known as Staco Insurance Company Limited in Sierra Leone, West Africa. The subsidiary was floated as a private limited liability company on 27th February, 2008 and is a composite insurance company engaged in the provision of life and non-life insurance cover to retail and corporate customers in Sierra Leone, West Africa. The Company has disposed its investment in Sierra Leone during the year.

   The Group is principally engaged in the provision of non-life and life insurance businesses.

   The issuance of these Group consolidated financial statement were authorised by the Board of Directors on

   13 June 2025.

   The principal activities of the Group is mainly the underwriting of non-life businesses insurance risks.

2. Going Concern

   The company's solvency margin is below the requirements of the Insurance Act CAP I17, LFN 2004. The Company reported a solvency margin deficit of N9.84 billion for the year ended 31 December, 2020 (2019 : N8.99 billion) which occurred as a result of the backing out or derecognition of the unsubstantiated balances.

   The Company's management has performed an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future.This conclusion is based on the Group Executive Management's plans aimed at returning the Group to profitability and a healthy financial position and would enhance the Company's Going Concern assumption consideration. These plans are as follows:

   • Further Capital Injection: Egerton Global Services plans to inject between N2-N3 billion into Staco within 120 days of receipt of agreed equity shares in Staco Insurance Plc. In addition, a further N5 billion is to be raised over the next 120 days to improve solvency margin and working capital.

   • Profitability and Investment attraction: Post the satisfaction of Staco's Daewoo-managed loan, and the current improvement in profitability, the Company is positioned to attract additional investment within 18 months+.

   • Debt repayment and equity swap: Loan acquisition and conversion: Egerton Global Services, the new Investor, agrees to Purchase the Company's convertible bond of JPY 902,000,000 zero coupon bond due 2029 liability owe to the Daewoo which form major liability of the company- Managed loan from the current bond holder representatives and convert it to equity. This will translate to a capital injection of on or about N10 billionn. This agrees with letter dated January 6th ,2025 from the board of directors of Staco Insurance Plc where Staco will transfer 80% of equity to Egerton Global Ltd in exchange for satisfaction of the Daewoo-managed loan. This is anticipated not later than July 30th 2025.

   • Grow the activities level: In anticipation of the funds to be injected into the business in the year (2025), the Management has put some strategies in place for a focused and rigorous marketing activities to improve the turnover and general activities level in order to return the Company to profitability and vaibility. In addition, the growth of market share based on reopening of energy sector subject to liability settlemeent and NAICOM reinstatement of oil & gas will further drive our expectations.

   • Expenditure management: The Company has made plans to reduce overhead and administrative expenditures and also put in place practical capital expenditure strategies to delay any form of capital expenditure, postpone major maintenance activities and for only critical assets that needed to be acquired will be by cash subject to availability of fund.

   • Process redesign: The management has reviewed the current business processes and has redesigned the processes with a view to improve performance metrics like cost management, quality service and also to reduce waste in order to increase profitability.

   The liquidity generated through the asset restructuring,expenditure management and capital raise will be applied to grow and manage the business profitably through aggressive marketing, service delivery, efficient internal control and investment activities to the satisfaction of all stakeholders. We believe that the above action plan will help reverse the current loss position to profitability in the near future. The going concern status of the business of Staco Insurance Plc. is therefore assured.

3. Basis of preparation

   These consolidated and separate financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB), IFRS interpretations committee and in compliance with the Financial Reporting Council Act, No 6 2011, the Companies and Allied Matters Act, Cap C20, LFN 2004, the Insurance Act 2003 and National Insurance Commission (NAICOM) Guidelines and Circulars.Additional requirements issued by national regulators have been included where appropriate., to the extent that they do not conflict with IFRS.

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

   1. Statement of compliance with IFRS

      These financial statements of the group have been prepared in accordance with International Financial Reporting Standards (IFRS), as published by the International Accounting Standards Board (IASB).

      These financial statements of the group comply with the requirement of the Companies and Allied Matters Act, 2020, Insurance Act of Nigeria, 2003, the Financial Reporting Council Act, 2011 and the Guidelines issued by the the National Insurance Commission to the extent that they are not in conflict with the International Financial Reporting Standards (IFRS).

      3.2 Basis of measurement

      The financial statements have been prepared under the historical cost convention as modified by the remeasurement of investment properties, available for sale investments and financial assets at fair value.

      3.3. Use of estimates and judgements

      The presentation of the group's consolidated financial statements requires management to make estimates and judgement that affect the reported amounts of assets and liabilities at the reporting date and the reported amount of income and expenses during the year ended. Management bases and evaluates its estimates and judgements on an ongoing basis. Management bases its estimates and judgements on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The following estimates and judgements are considered key significant judgements and estimates uncertainty in relation to the financial position and performance of the group.

      1. Functional and presentation currency

         Items included in the consolidated financial statements of each entity of the group are measured using the currency that best reflects the economic substance of the underlying events and circumstance relevant to that entity ("the functional currency").These consolidated financial statements are presented in Nigerian Naira (N), which is the Company's functional currency.The financial information has been rounded to the nearest thousand, except as otherwise indicated.

      2. 'Basis of consolidation

         The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (Subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

         The results of subsidiary set up, acquired or disposed off during the year are included in the consolidated statement of profit or loss from the effective date of acquisition or up to the effective date of disposal, as appropriate.

         Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, incomes and expenses have been eliminated on consolidation.

      3. Offs etting

      Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liability simultaneously. Income and expense are not offset in the income statement unless required or permitted by any accounting standard or interpretation, and as specifically disclosed in the accounting policies of the group.

4. Application of new and revised International Financial Reporting Standards (IFRS)

   The accounting policies adopted are consistent with those of the previous financial year despite the adoption of IFRS. For the preparation of these financial statements, the following new, revised or amended requirements are mandatory for the first time for the financial year beginning 1 January 2020.

   1. Summary of Standards and Interpretations effective for the firs t time

      1. IFRIC 23 - Uncertainty over Income Tax Treatments

         The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.

         Effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted.

      2. IFRS 9 - Financial instruments

      IFRS 9 introduces a new approach for classification and measurement of financial instruments, a more forward looking Impairment methodology and a new general hedge accounting requirement.

      Classification and Measurement

      IFRS 9 requires financial assets to be classified into one of three measurement categories: fair value through profit or loss, fair value through other comprehensive income and amortised cost. Financial assets will be measured at amortised cost if they are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and their contractual cash flows represent solely payments of principal and interest.

      Financial assets will be measured at fair value through other comprehensive income if they are held within a business model whose objective is achieved by collecting both contractual cash flows and selling financial assets and their contractual cash flows represent solely payments of principal and interest.

      Financial assets not meeting either of these two business models; and all equity instruments (unless designated at inception to fair value through other comprehensive income); and all derivatives are measured at fair value through profit or loss. An entity may, at initial recognition,designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch. The Group has undertaken an assessment to determine the potential impact of changes in classification and measurement of financial assets. Our assessment revealed that the adoption of IFRS 9 is unlikely to result in significant changes to existing asset measurement bases. IFRS 9 retains most of the existing requirements for financial liabilities. However, for financial liabilities designated at fair value through profit or loss, gains or losses attributable to changes in own credit risk shall be presented in Other

      IFRS 9 retains most of the existing requirements for financial liabilities. However, for financial liabilities designated at fair value through profit or loss, gains or losses attributable to changes in own credit risk shall be presented in Other Comprehensive Income.

      The hedge accounting requirements in IFR S 9 are optional. If certain eligibility and qualification criteria are met, hedge accounting allows an entity to reflect risk management activities in the financial statements by matching gains or losses on financial hedging instruments with losses or gains. The amendments had no material effect on the Group's Financial Statements.

      Impairment Methodology

      The IFRS 9 impairment model will be applicable to all financial assets at amortised cost, debt instruments measured at fair value through other comprehensive income, lease receivables, loan commitments and financial guarantees not measured at fair value through profit or loss.

      IFRS 9 replaces the existing 'incurred loss' impairment approach with an Expected Credit Loss ('ECL') model, resulting in earlier recognition of credit losses compared with IAS 39. Expected credit losses are the unbiased probability weighted average credit losses determined by evaluating a range of possible outcomes and future economic conditions. The ECL model has three stages.

      Entities are required to recognise a 12 month expected loss allowance on initial recognition (stage 1) and a lifetime expected loss allowance when there has been a significant increase in credit risk since initial recognition (stage 2). Stage 3 requires objective evidence that an asset is credit-impaired, which is similar to the guidance on incurred losses in IAS 39.

      The requirement to recognise lifetime ECL for assets which have experienced a significant increase in credit risk since origination, but which are not credit impaired, does not exist under IAS 39. The assessment of whether an asset is in stage 1 or 2 considers the relative change in the probability of default occurring over the expected life of the instrument, not the change in the amount of expected credit losses. Reasonable and supportable forward looking information will also be used in determining the stage allocation. In general, assets more than 30 days past due, but not credit impaired, will be classed as stage 2.

      IFRS 9 requires the use of more forward looking information including reasonable and supportable forecasts of future economic conditions. Reporting entities will be required to develop the capability to model a number of economic scenarios and capture the impact on credit losses to ensure the overall ECL represents a reasonable distribution of economic outcomes.

      Appropriate governance and oversight needs to be established around the process.

      An assessment of the ECL in the Group's balance sheet reflects an increase in the provisions for credit losses. However, this increase does not have a significant impact on regulatory capital and invariably the Capital adequacy due to the Group's strong earnings and retention capacity over the years.

      The Group conducted an initial predominance assessment and having met the criteria for exemption, the Board opted for temporary exemption option (deferral approach). The result of the predominance assessment using 2015 financial report as stated in IFRS 4 amended 2016 section 20D of the standard is stated below:

      The carrying amount of its liabilities arising from insurance contracts and insurance connected liabilities for the group sum up to Nil billion as at 31 Dec 2020 (31 Dec 2019 : N4.83 billion), Company N4.52 billion (31 Dec 2019: 4.14 billion) which is greater than 60 per cent of the total carrying amount of all its liabilities as at 31 Dec 2020 and 31 Dec 2019 respectively.

      The Company is registered with C.A.C. to carryout insurance activities and its activities are predominantly connected with insurance contracts.

      Predominance Assessment

      Using 2015 Financial Report

      Group Company

      Admissible for Admissible for

      Insurance Liabilities	Carrying amount	predominance test	Carrying amount	predominance test
      	N'000	N'000	N'000	N'000
      Insurance contract liabilities	5,541,750	5,541,750	5,335,335	5,335,335
      Financial liabilities	2,128,187	-	2,124,405	-
      Trade payables	94,230	94,230	2,085	2,085
      Bank overdraft	69,252	-	69,252	-
      Other payables and accruals	98,143	-	67,190	-
      Deferred tax liabilities	102,615	-	98,050	-
      Employee benefit liability	1,306	-	-	-
      Current tax liability	66,772	66,772	32,374	32,374
      Deposit for shares	1,475,000 -		1,475,000		-
      	9,577,255 5,702,752		9,203,691		5,369,794
      Predominance ratio	60%				58%

      Given a score of 60% for the Group(Parent: 58%), we assessed whether the Group engages in a significant activity unconnected with insurance. Based on our assessment, we concluded that the Group does not engage in a significant activity unconnected with insurance since majority of the activities from which the Group earns income and incur expenses are insurance-related.

      The Group has elected to apply the temporary exemption from IFRS 9 (deferral approach) and qualifies for the temporary exemption based on the following;

      1. Its activities are predominantly connected with insurance contracts;

      2. As at 31 December 2015, which is the reporting date that immediately precedes 1 April 2016, the carrying amount of its liabilities arising from insurance contracts was =N=5.70 billion (Parent: =N=5.34 billion) which was 60% (Parent: 58%) of the total carrying amount of all its liabilities as at that date.

      3. The company's activities have remained the same and are predominantly connected with insurance contracts. The majority of the activities from which the Group earns income and incur expenses are insurance-related.

      The impact assessment of IFRS 9 on the Group's financial assets as December 31, 2017 which is the reporting date that immediately precedes January 1, 2018, , i.e. the effective implementation date of the standard and that of the year 2018 & 2019, after the deferral of IFRS 9, are stated below:

      Group

      2017 impact analysis on Financial Assets 2017 Group
      Financial Assets:	IAS 39 N'000		IFRS 9 N'000		Impact N'000
      At fair value through profit or loss	-		-		-
      Available for sale(FVOCI)	293,384		293,384		-
      Held to maturity(Amortised Cost)	429,634		386,671		42,963
      Loans and receivables (Amortised Cost)	118,140		106,326		11,814
      Trade receivables	347,200		312,480		34,720
      	1,188,358		1,098,861		89,497
      Company
      2017 impact analysis on Financial Assets 2017 Company
      Financial Assets:	IAS 39 N'000		IFRS 9 N'000		Impact N'000
      At fair value through profit or loss	-		-		-
      Available for sale(FVOCI)	264,889		264,889		-
      Held to maturity(Amortised Cost)	11,748		10,573		1,175
      Loans and receivables (Amortised Cost)	115,437		103,893		11,544
      Trade receivables	60,137		54,123		6,014
      	452,211		433,478		18,733
      Group
      2018 impact analysis on Financial Assets 2018 Group
      Financial Assets:	IAS 39 N'000		IFRS 9 N'000		Impact N'000
      At fair value through profit or loss	-		-		-
      Available for sale(FVOCI)	180,186		180,186		-
      Held to maturity(Amortised Cost)	196,920		76,345		120,575
      Loans and receivables (Amortised Cost)	67,939		10,789		57,150
      Trade receivables	223,026		223,026		-
      	668,071		490,346		177,725
      Company
      2018 impact analysis on Financial Assets 2018 Company
      Financial Assets:	IAS 39 N'000	IFRS 9 N'000		Impact N'000
      At fair value through profit or loss	-	-		-
      Available for sale(FVOCI)	115,139	115,139		-
      Held to maturity(Amortised Cost)	88,177	10,573		77,604
      Loans and receivables (Amortised Cost)	2,791	8,805		(6,014)
      Trade receivables	5,280	5,280		-
      	211,387	139,797		71,590

      Group

      2019 impact analysis on Financial Assets 2019 Group
      Financial Assets:	IAS 39 N'000		IFRS 9 N'000		Impact N'000
      At fair value through profit or loss		-		-		-
      Available for sale(FVOCI)	180,186			180,186		-
      Held to maturity(Amortised Cost)	196,920			194,950		1,970
      Loans and receivables (Amortised Cost)	67,939			67,260		679
      Trade receivables	223,026			223,026		-
      	668,071			665,422		2,649
      Company
      2019 impact analysis on Financial Assets Financial Assets:	IAS 39 N'000		2019 Company IFRS 9 N'000		Impact N'000
      At fair value through profit or loss	-		-		-
      Available for sale(FVOCI)	115,139		115,139		-
      Held to maturity(Amortised Cost)	88,177		87,295		882
      Loans and receivables (Amortised Cost)	2,791		2,763		28
      Trade receivables	5,280		5,280		-
      	211,387		210,477		910
      2020 impact analysis on Financial Assets 2020 Company
      Financial Assets:	IAS 39 N'000			IFRS 9 N'000		Impact N'000
      At fair value through profit or loss	-			-		-
      Available for sale(FVOCI)	8,429			8,429		-
      Held to maturity(Amortised Cost)	1,419			1,419		-
      Loans and receivables (Amortised Cost)	132,312			115,139		17,173
      Trade receivables	1,883			1,883		-
      	144,043			126,870		17,173
      Fair value disclosures

      Financial assets with contractual terms that give rise to cash flows that are solely payments of principal and interest:

      The group financial assets with contractual terms that give rise to cash flows that are solely payments of

      principal and interest on the principal amount outstanding are as follows:

      31 December

      	2020	2019
      	N'000	N'000
      Premium receivables	-	223,026
      Loans and receivables	-	67,939
      Other receivables net off prepayments	-	23,246
      Short term placement	-	529,285
      Investment securities: Treasury bills	-	116,221
      Bonds	-	80,699
      	-	1,040,416

      Financial assets with contractual terms that do not give rise to cash flows that are solely payments of principal and interest:

      These are financial assets that meets the definition of held for trading in line with IFRS 9; or that is managed

      and whose performance is evaluated on a fair value basis. These assets are as follows:

      31 December

      	2020 N'000	2019 N'000
      Quoted equity securities	-	65,047
      Unquoted equity securities	-	115,139
      	-	180,186

   2. Standards and interpretations issued/amended but not yet effective.

      At the date of authorisation of these financial statements the following standards, amendments to existing standards and interpretations were in issue, but not yet effective: This includes:

      1. IAS 1 - Presentation of Financial Statements

         IAS 1 "Presentation of Financial Statements" sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction.

         The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows.

         IAS 1 has been revised to incorporate a new definition of "material" and IAS 8 has been revised to refer to this new definition in IAS 1.

         The amendments are effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted.

      2. IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

         IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" is applied in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors. The standard requires compliance with any specific IFRS applying to a transaction, event or condition, and provides guidance on developing accounting policies for other items that result in relevant and reliable information.

         Changes in accounting policies and corrections of errors are generally retrospectively accounted for, whereas changes in accounting estimates are generally accounted for on a prospective basis.

         The amendment is effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted.

      3. IFRS 17 - Insurance Contracts

         IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity's financial position, financial performance and cash flows.

         The IASB tentatively decided to defer the effective date of IFRS 17, Insurance Contracts to annual periods beginning on or after January 1, 2022. The IASB also tentatively decided to defer the fixed expiry date for the temporary exemption to IFRS 9 in IFRS 4 by one year so that all insurance entities must apply IFRS 9 for annual periods on or after January 1, 2022.

         The Group is assessing the potential impact of the new standard which will be effective for annual reporting periods beginning on or after 1 January 2022.

         4.3 New standards, amendments and interpretations issued but without an effective date

         At the date of authorisation of these financial statements the following standards, amendments to existing standards and interpretations were in issue, but without an effective: This includes:

         Amendments to IFRS 10 and IAS 28 Consolidated Financial Statements and Investments in Associates and Joint Ventures

         Amends IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associ-ates and Joint

         Ventures (2011) to clarify the treatment of the sale or contribution of assets from an investor to its associate or joint venture, as follows:

         • Require full recognition in the investor's financial statements of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS 3 Business Combinations).

         • Require the partial recognition of gains and losses where the assets do not constitute a business, i.e. a gain or loss is recognized only to the extent of the unrelated investors' interests in that associate or joint venture.

         These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferring shares in a subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves.

      4. The following new or amended standards are not expected to have a s ignificant impact on the Group's consolidated financial statements

         4.4.4.1 Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) IFRS 14 Regulatory Deferral Accounts

         Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11).

         Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38). Equity Method in Separate Financial Statements (Amendments to IAS 27).

         Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS

         10 and IAS 28).

         Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28).

5. Significant accounting policies

Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified in any of the previous categories. The Company's investments in equity securities and certain debt securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on available-for-sale equity instruments are recognized in other comprehensive income and presented within equity in the fair value reserve. When an investment is derecognized, the cumulative gain or loss in other comprehensive income is transferred to profit or loss.