Quarter 5 financial statement for 2024

UNION DICON SALT PLC

STATEMENTS OF ACCOUNTS

FOR THE YEAR ENDED

31ST DECEMBER, 2024.

FELIX AKINYEYE & CO

(CHARTERED ACCOUNTANTS)

UNION DICON SALT PLC

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER, 2024

2023 =N='000

UNION DICON SALT PLC STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2024

ASSET

Property, Plant and Equipment Investment in subsidiary

Notes

2024 =N='000

14 15

2023 =N='000

47,461

- 47,461

45,728

- 45,728

CURRENT ASSET Other Receivables

Cash and Cash Equivalents

16 17

86,456 13,545 (72,911)

641,842 53,585

728,298

67,130

CURRENT LIABILITIES Trade and Other Payables Current Tax liabilities

NET CURRENT LIABILITIES

TOTAL ASSETS LESS CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Employee Benefit Liabilities Deferred Tax Liabilities

NET LIABILITIES

EQUITY

Share Capital Share Premium

Actuarial Valuation Reserve Revenue Reserve

TOTAL EQUITY

18 13 (iii)

2,046,564 85,957 2,132,521

(1,356,762)

19 (d) 13 (v)

60,002 60,002

11,413 11,413

71,415

(1,428,177)

20 (a) 20(b)

136,673 136,673

250,638 250,638

21 22

65,692 65,692

(1,881,180) (1,777,419)

(1,428,177) (1,324,416)

The financial statements were approved by the Board of Directors on , 13th April 2023 and signed on its behalf by:

(i) LT. General T.Y Danjuma (RTD), GCON

(ii) Florence S. Iroye

(iii) Charlse Nwonu

Chairman Ag. Managing Director

1,279,527 86,332 1,365,859

767,037

(1,253,001)

71,415

(1,324,416)

FRC/2013/IODN/00000003130

FRC/2021/002/00000023527

(375) FRC/2024/PRO/ICAN/004/859872

UNION DICON SALT PLC

NOTES TO THE FINANCIAL STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2024

14 Property, Plant and Equipment

• (a) None of the company's assets is held under lease

• (b) None of the company's assets is pledged as collateral for loan (C) No contractual commitment to acquire asset during the year.

• 1) Corporate information and principal activities

  Dicon Salt Limited and Union Salt Limited were incorporated as private limited liability companies on 11 October 1984 and 30 May 1991 respectively. The principal activity of the Company is the processing of crude salt. The issued share capital of the Company is held thus: 28% by Aims Limited, 19% by

  Its registered office is at Phase 2, NPA Kirikiri Lighter Terminal Apapa Lagos.

• 2) Basis of preparation

• a Statement of compliance

  The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in compliance with the requirements of the Companies and Allied Matters Act, 2020 and Financial Reporting Council of Nigeria Act No 6, 2011.

• b Basis of measurement

  The financial statements have been prepared under the historical cost concept except for certain financial instruments which were measured at fair

• c Functional and presentation currency

  The Company's functional and presentation currency is the Nigerian Naira. The financial statements are presented in Nigerian Naira and have been rounded up to the nearest thousand except where otherwise stated.

• d Use of estimates and judgement

  The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and judgments. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4.

• 3 New standards, interpretations and amendments

(a)

New standards, interpretations and amendments adopted from 1 January 2022

New standards effective for adoption in the annual financial statements for the year ended 31 December 2022 but had no significant effect or impact

(b)

In terms of International Financial Reporting Standards, the company is required to include in its financial statements disclosure about the future

At the date of authorisation of the financial statements of the Company for the year ended 31 December 2022, the following standards and

*All standards and interpretations will be adopted at their effective date (except for those standards and interpretations that are not applicable to the Entity).

• 4) Critical accounting estimates and judgements

  The Company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience as well as other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future,

• i) Legal proceedings

  The Company reviews outstanding legal cases following developments in the legal proceedings and at each reporting date, in order to assess the need for provisions and disclosures in its financial statements. Among the factors considered in making decisions on provisions are the nature of litigation, claim or assessment, the legal process and potential level of damages in the jurisdiction in which the litigation, claim or assessment has been brought, the progress of the case (including the progress after the date of the financial statements but before those statements are issued), the opinions or views of legal advisers, experience on similar cases and any decision of the Company's management as to how it will respond to the litigation, claim or assessment.

• ii) Income and deferred taxation

  The Company incurs corporate tax liability and recognises changes to deferred tax assets and deferred tax liabilities, all of which are based on management's interpretations of applicable laws and regulations. The quality of these estimates is highly dependent upon management's ability to properly apply at times a very complex sets of rules to recognise changes in applicable rules and in the case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry forward positions against future income taxes.

• iii) Impairment of property, plant and equipment and intangible assets

  The Company assesses assets or groups of assets for impairment annually or whenever events or changes in circumstances indicate that carrying amounts of those assets may not be recoverable. In assessing whether a write-down of the carrying amount of a potentially impaired asset is required, the asset's carrying amount is compared to the recoverable amount. Frequently, the recoverable amount of an asset proves to be the

  Company's estimated value in use.

  The estimated future cash flows applied are based on reasonable and supportable assumptions and represent management's best estimates of the range of economic conditions that will exist over the remaining useful life of the cash flow generating assets.

• iv) Estimates of useful lives and residual value

  The estimates of useful lives and residual values of property, plant and equipment impact the annual depreciation charge. The useful lives and residual values are based on management experience and the condition of the assets. Consideration is given to management's intended usage policy for the assets in the future and potential market prices of similar assets.

• 5) Summary of significant accounting policies

  The Company's accounting policies set out below have been applied consistently to all years presented in these financial statements.

• a) Foreign currency transactions

  In preparing the financial statements of the Company, transactions in currencies other than the entity's presentation currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions and any exchange differences arising are included in the income statement of the reporting period.

  Monetary items denominated in foreign currency are translated using the closing rate as at the reporting date. Non-monetary items measured at historical cost denominated in a foreign currency are translated with the exchange rate as at the date of initial recognition; non monetary items in a foreign currency that are measured at fair value are translated using the exchange rates at the date when the fair value was determined.

  Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at the reporting date exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income statement.

  All foreign exchange gains and losses recognised in the income statement are presented net in the Income statement within other operating income and operating expenses respectively. Foreign exchange gains and losses on other comprehensive income items are presented in other comprehensive income within the corresponding item.

• b) Revenue

  The Company supplies salt in the wholesale market. Sales are recognized when control of the goods has transferred, being when the goods are

  The goods is often sold with volume discounts based on aggregate sales value over a 12 months period. Revenue from these sales is recognized A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the

• c) Finance income and finance expense

  Interest income on short-term deposits is recognised by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset's net carrying

  Dividend income from investments is recognised in the income statement when the shareholder's right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company) and the amount of income can be measured reliably.

  Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the fair value of financial assets at fair value through profit or loss where the Company holds such financial assets and impairment losses recognised on financial assets ( other than

• d) Property, plant and equipment i) Recognition and measurement

  Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the assets. Items of property, plant and equipment under construction are disclosed as capital work in progress. The cost of construction recognised includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and borrowing costs on qualifying assets.

  ii) Subsequent costs

  The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is then derecognised. The costs of the day-to-day servicing and maintenance of an item of property, plant and equipment are recognised in the income statement during the period in which they are incurred.

  iii) Depreciation

  Depreciation is calculated on items of property, plant and equipment to write down the cost of each asset to its residual value over its estimated useful life. No depreciation is charged on items of property, plant and equipment until they are brought into use.

  The principal annual rates used for this purpose, which are consistent with those for the previous years, are as follows:

  Type of asset Building

  Plant and machinery Computer equipment Furniture and fittings

  % 2 10 25 20

  The assets depreciable methods, useful lives and residual values are reviewed annually and adjusted if necessary. The asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

  iv) Derecognition

  An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use. Any gains 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 within 'Other income or operating expenses' in the year that the asset is derecognised.

• e) Impairment of non-financial assets

  Non-financial assets other than inventories are reviewed at each reporting date for impairment or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which they have separately identifiable cash flows (cash-generating units).