austin laz & co plc - nigerian stock exchange€¦ · i corporate information directors...

CORPORATE INFORMATION

REPORT OF THE DIRECTOR

DIRECTOR RESPONSIBILITY

REPORT OF THE AUDITORS

STATEMENT OF ACCOUNTING POLICIES

STATEMENT OF FINANCIAL POSITION

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENT

NOTES TO THE ACCOUNTS

THREE-YEAR FINANCIAL SUMMARY

C ONTENTS

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ii - vi

vii

viii - ix

x

1

2

3

4

AUSTIN LAZ & CO PLCFor the year ended 31st December, 2015

5 - 7

8

i

CORPORATE INFORMATION

DIRECTORS

PROF.PAT UTOMI – CHAIRMAN

DR. A. L. ASIMONYE – VICE CHAIRMAN/CEO

BENIN CITY,

EDO STATE.

BANKERS

UNION BANK PLC,

FIRST BANK OF NIGERIA PLC.

ACCESS BANK PLC.

BARR. (MRS.) C. O, ASIMONYE– DIRECTOR

BARR. IFEANYI OFOR – DIRECTOR

ENGR. CHARLES ODITA – DIRECTOR

DR. OGUIKE TEMPE – DIRECTOR

HEAD OFFICE ADDRESS

KM 8, SAPELE ROAD

138, NEW LAGOS ROAD,

BENIN CITY.

COMPANY SECRETARY

IFEANYI OFOR & ASSOCIATES,

UNITED BANK FOR AFRICA PLC.

ZENITH BANK OF NIGERIA PLC.

AUDITORS

MESSRS VICTOR OLATUNJI & CO.

(CHARTERED ACCOUNTANTS)

WARRI,

DELTA STATE


PRINCIPAL ACTIVITIES

RESULT FOR THE YEAR

The summary of business transactions for the year ended 31st

December, 2015:-

2015 2014

=N= =N=

(58,499) (158,439)

Taxation (593) (603)

(59,092) (158,942)

Profit/(Loss) Brought Forward 25,176 184,118

(33,916) 25,176

DIVIDEND

The Directors do not recommend payment of any dividend to members.

Profit After Taxation

Profit Carried Forward

The board of directors has pleasure in submitting to member their report together with financial

statement of the company for the year ended 31 December 2015

DIRECTORS REPOR FOR THE YEAR ENDED 31 DECEMBER 2015

1 INCORPORATION &LEGAL STATUS OF THE COMPANY

REPORT OF THE DIRECTORS

The Directors have the pleasure to present their report on the affairs of the company for the year

ended 31st December, 2015.

The principal activities of the company during the year were manufacture of Austin Lazarus Ice Block

Machines and Aluminum Long Spam Roofing Sheet.

Profit/(Loss)Before Taxation

The company was incorporated as privately owned company in 1982 and was converted to a public

company in 2011 quoted on the stock exchange in 2012. The company is domiciled in Nigeria and its

shares are listed on the Nigeria Stock Exchange (NSE).

The company started as pioneer manufacturer of ICE machine. Because of growth opportunities in

the company’s region, it diversified into other division which include: Thermoplastic Industry for the

production of coolers and other plastic products, Aluminium factory for the corrugation of long span

Alumimum roofing sheets (2005), manufacturing of both domestic and industrial use currently

about 1,079,860 shares are held by about 370 Nigerians.

PRINCIPAL ACTIVITIES

The principal activities of the company are the manufacturing and sale of Building materials, and

thermoplastics products.


iii

2015 2014

N’000 N’000

261055 615,730

33742 9697

(58499) (158439)

(593) (603)

_____________

(59092) (158942)

25176 184118

(33916) 25,176

YEAR

1982

2003

2004

2005

2006

2007

2008

2008

2010

2015

1,500,000 NIGERIA

1,000,000 NIGERIA

100,000 NIGERIA DIRECTOR

8,000,000 NIGERIA

100,000 NIGERIA544,874,000 NIGERIA M.D

16,240,000 NIGERIA DIRECTOR

Turnover

Gross Profit

(Loss)/Profit before Tax

Tax

2 Business Review and future Development

3 Operating Results

DETAILS OF SHARE CAPITAL HISTORY AND SHARE HOLDING ANALYSIS

Continuator No5

SHARE CAPITAL HISTORY

Profit/(loss) for the Year

Profit Carried Forward

4 Dividend

In respect of the financial performance of the company in recent years, no dividend is being

recommended by the Directors. The Directors are making serious efforts to infect capital returns

into the company which will enhance financial capability of company

5 Share Capital History.

Details of the authorized and issued share capital are set on below.

ISSUED &FULLY PAID-AUTHORIZED (N)

CUMULATIVE

50,000

50,000

50,000

CONSIDERATION

CASH

-

-

INCREASE CUMULATIVE

50,000 50,000

- 50.000

- 50,000

- 50,000

19,950,00 20,000,000

-

CASH

-

50,000

20,000,000

20,000,000

DESINATION

CHIRMAN

NATIONALITY

DIRECTOR

- 20,000,000

587,550,000 607,550,00

142,450,000 750,000,000

- 750,000,000

DIRECTOR INTEREST IN SHARE

The interest of director, direct and indirect, in the share of the company as recorded in the register

of directors shareholding or as notifies by them for purpose of section 275 and 276 of the company

and allied matter act, cap c20 LFN 2004 is as follows.

BONUS

-

BONUS

485,930,000

485,930,000

539,930,000

DIRECTORBar.Obiageli C. Asimonye

DIRECTORDr. Oguike Temple

Dr. Austin Asimonye

Engr. Charles Odita

Prof. Pat Utomi

Mr Emmanuel Ugboh

Bar.Ifeanyi Ofor

iv

2014

No of

Shareholding%

287 0.02

50 0.01

13 0.01

5 0.01

2 0.02

1 0.01

1 0.09

2 0.51

5,000,001-10,000,000 3 2.29

10,000,001-50,000,000 0 -

6 97.03

370 100

1,000,000

8,000,000

DIRECTORS INTEREST IN SHARES.

1,500,000

2015

Prof. Pat Utomi 1500,00

1,000,000Mr Emmanuel Ugboh

Bar.Ifeanyi Ofor

Bar.Obiageli C. Asimonye

100,000

544,874,000 544,874,000

Dr. Oguike Temple

Dr. Austin Asimonye

100,000

800,000

100000

100,000

SHARE HOLDING ANALYSIS

Number of Holding

1-1,000

1,001-5,000

5,001-10,000

10,001-50,000

16,240,00016,240,000Engr. Charles Odita

The interest of directors, direct and indirect in the share of the company as recorded in the register

of directors’ shareholding or as notifies by them for purpose of section 275 and 276 of the company

and allied matter act, cap c20 LFN 2004 is as follows.

SHARE HOLDING RAGE ANALYSIS

In Annual Report Change to: Substantial Interest in Shares

5,500,000

24,681

-

1,047,860,000

1,079,860,000

Above 50,000,000

Units of Shares

173,380

119,920

92,700

82,700

200,000

150,000

1,000,000

50,001-100,000

100,001-500,000

500,001-1,000,000

1,00.001-5,000,000

Unibake Ltd

Resort Securities Ltd

100,000,000

100,000,000

Substantial Shareholders Interest

On the record of the Register of members as at December 31st 2015, the following: Shareholders Numbers of Shares

Arin Labs Int’l Ltd 100,000,000

v

-

-

-

-

Director

Director

Shareholder

Shareholder

Donations & Charitable Contributions

Despite the economic situation of the country in recent times, the company was able to identify

with the aspiration of the Community and Charitable Contributions to the time of one Million three

hundred and Fifty eight Naira only (1,358,000,000).

The finance and general purpose assist the board of Directors in performing its guidance and

oversight functions effectively and efficiently by specifically determining its financial and operation

priorities, making recommendation regarding the company dividend policy and evaluating the long

term productivity of the company’s operations.

The committee is chaired by Mr. Emmanuel Ugboh.

The committee is chaired by Rev.Dr. Israel Ogbechie.

The members of the committee are:

Engr. Charles Odita

Mr Emmanuel Ugboh

Barr. Mrs. C.O. Asimonye

Engr. Ojogbo

Mrs Scholar Osemena

Director

The Audit committee was established in compliance with section 359(3) of the CAMA, which requires every

listed company to have an Audit committee. In accordance with section 359(3) and (4) of the CAMA, the audit

committee is made up of six members, three non- executive directors and three shareholders of the company.

The members of the Audit Committee are not required to be independent. The Audit Committee members

meet at least three times a year and the meetings are attended by the appropriate executives of the company

including the Group Chief Finance officer and the Head Internal Control and Audit.

The duties of the committee include keeping under reviews the scope and results of the external audit, as well

as the independence and objectivity of the Auditors. The committee also keeps under review internal financial

controls, compliance with laws and regulations and the safeguarding of the assets and the adequacy of the

plan of the internal audit and review its audit report.

The Members of the committee are

Dr. I. C. Oguike

Dr. Austin Asimonye

AUDIT COMMITTEE

Incompliance with section 38(2) of the companies Allied Matters Act.2004 the company deduct

make any donation or gift to any political party, political association or for any political purpose

during the year.

BOARD COMMITTEES

As at the date of this report, the company has in place the following board committees;

FINANCIAL AND GENERAL PURPOSE COMMITTEE

vi

We do not discourage against disabled person in the company.

Health and Safety

All efforts are geared towards proving a safe and conducive working environment for employees, to this end,

there is a written health and safety policy supported by system and procedures for ensuring that safe working

practices are complied with in the performance of all company functions. In the event of accident or accident

occurring at the work place, there are adequate provision for medical care in our agent clinic which are well

stocked and competently managed by qualified medical personnel. Furthermore, all employee of the company

are provided for free medical care.

AUDITORS

In accordance with section 357 (2) of the Companies and Allied Matters Act of 1990, Messrs Victor Olatunji &

Co. (Chartered Accountants) having expressed their willingness may continue in office as the

Company’s Auditor

Contractual Arrangements

Policy on payment of suppliers

Property, Plant & Equipment

Human Resources

Employment of Disabled Person

The company recognize human capital as one of the most critical factors. The Board has created a favourable

work environment that encourages innovation and meritocracy and relations with employees have continued

to improve significantly.

The company’s business operation utilize many suppliers and arrangements are in place to ensure that the

business is not totally reliant on a single supplier for key materials or components.

It is the policy of the company to agree terms of payment prior to commencing business with a supplier and to

abide by those terms on the timely submission of satisfactory invoices

Information relating to changes in the company property, plant and equipment is given in Note 16 to the

consolidated and separate financial statement in the value show in the consolidated and separate financial

statement.

For the year ended 31st December, 2015

AUSTIN LAZ & CO PLC

vii

AUSTIN LAZ & CO PLC

For the year ended 31st December, 2015

STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31ST

DECEMBER, 2015

%

1. BASIS OF PREPARATION

4. DEPRECIATION

Depreciation is calculated to write-off the cost of Fixed Assets over their expected useful

Land and Building 2

Plant and Machinery 10

The following is a summary of the significant accounting policies adopted by the company in the

These financial statements, for the year ended 31st December, 2015, are prepared in accordance

2. TURNOVER

Turnover represents the value of goods and services sold to third party during the year.

3. FIXED ASSETS

Fixed Assets are stated at deemed cost less depreciation.

Stocks are stated at the lower of cost or estimated fair value.

6. TRADE RECEIVABLES

Trade receivables are stated at their face value.

Motor Vehicles 10

Furniture and Fittings and Equipment 10

5. INVENTORIES


1

ASSETS NOTES

NON CURRENT ASSESTS

PROPERTY, PLANT AND EQUIPMENT 1

OTHER INTANGIBLE ASSETS

TOTAL NON-CURRENT ASSETS

CURRENT ASSETS

INVENTORIES 2

TRADE RECEIVABLES 3

CASH AND CASH EQUIVALENTS 4

TOTAL CURRENT ASSETS

TOTAL ASSETS

EQUITY AND LIABILITIES

SHARE CAPITAL 5

CAPITAL RESERVES 6

RETAINED EARNINGS

TOTAL EQUITY

NON CURRENT LIABILITIES

LONG TERM BORROWINGS

TOTAL NON CURRENT LIABILITIES

CURRENT LIABILITIES

TRADE PAYABLES 7

SHORT TERM PROVISIONS 8

TOTAL CURRENT LIABILITIES

TOTAL EQUITY & LIABILITIES

------------------------------------ )

) DIRECTORS

------------------------------------- )

The Accompanying Notes Form Integral Part Of These Accounts

486,110

1,867,988

539,930

1,224,776

{33,916}

1,730,790

495,973

2,041,290

539,930

1,789,882

119,655

158,050

328,273

9,650

AUSTIN LAZ AND COMPANY PLCSTATEMENT OF FINANCIAL POSITION

AS AT 31ST DECEMBER 2015

1,224,776

25,176

2015

N'000

2014

N'000

1,214,712

167,166

1,381,878

239,866

242,004

4,240

1,378,151

167,166

1,545,317

119,655

16,235

1,308

17,543

1,867,988

207,320

207,320

38,770

5,318

44,088

2,041,290

2

2015 2014

NOTES N'000 N'000

TURNOVER 9 261,055 615,730

COST OF SALES 10 {227,313} {606,033}

GROSS PROFIT 33,742 9,697

DISTRIBUTION EXPENSES 11 {14,852} {38,150}

ADMINISTRATIVE EXPENSES 12 {74,984} {92,181}

FINANCE COSTS 13 {2,405} {37,805}

PROFIT/(OSS) BEFORE TAX {58,499} {158,439}

INCOME TAX EXPENSE 14 {593} {603}

PROFIT/(LOSS) FOR THE YEAR FROM CONTINUING OPERATIONS {59,092} {158,942}

LOSS FOR THE YEAR FROM DISCONTINUED OPERATIONS - -

PROFIT/(LOSS) FOR THE YEAR {59,092} {158,942}

PROFIT ATTRIBUTABLE TO:

OWNERS OF THE COMPANY {59,092} {158,942}

{59,092} {158,942}

PROFIT/(LOSS) FOR THE YEAR {59,092} {158,942}

OTHER COMPREHENSIVE INCOME - -

{59,092} {158,942}

TOTAL COMPREHENSIVE INCOME FOR THE YEAR {59,092} {158,942}

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

OWNERS OF THE COMPANY {59,092} {158,942}

{59,092} {158,942}

AUSTIN LAZ AND COMPANY PLCSTATEMENT OF COMPREHENSIVE INCOME

AS AT 31ST DECEMBER 2015

3

SHARE RETAINED CAPITAL TOTAL

CAPITAL PROFIT RESERVE EQUITY

N'000 N'000 N'000 N'000

BALANCE AS AT 1/1/2014 539,930 184,118 1,224,776 1,941,261

CHANGE IN ACCOUNTING POLICIES

RESTATED BALANCES 539,930 184,118 1,224,776 1,948,824

CHANGE IN EQUITY FOR 2014

DIVIDENDS

TOTAL COMPREHENSIVE INCOME FOR 2014 {158,942} {158,942}

BALANCE AS AT 31/1/2014 539,930 25,176 1,224,776 1,789,882

CHANGES IN EQUITY FOR 2015

ISSUE OF SHARE CAPITAL

DIVIDENDS

TOTAL COMPREHENSIVE INCOME FOR 2015 {59,092} {59,092}

TRANSFER TO RETAINED EARNINGS

BALANCE AS 31 DECEMBER 2015 539,930 {33,916} 1,224,776 1,730,790

AUSTIN LAZ AND COMPANY PLCSTATEMENT OF CHANGE IN EQUITY

FOR THE YEAR ENDED 31ST DECEMBER 2015

4

2015 2014

CASH FLOWS FROM OPERATING ACTIVITIES N'000 N'000

PROFIT FOR THE YEAR {59,092} {158,942}

ADJUSTMENT FOR:

DEPRECIATION 163,439 163,439

104,347 4,497

CHANGE IN INVENTORIES {81,816} 415,680

CHANGE IN TRADE RECEIVABLES 86,269 {234,092}

CHANGE IN PAYABLES {22,535} 4,285

CHANGE IN PROVISIONS {4,010} {73,877}

{22,092} 111,996

NET CASH FROM OPERATING ACTIVITIES 82,255 116,493

CASH FLOWS FROM INVESTING ACTIVITIES:

ADJUSTMENT - -

ACQUISITION OF INTANGIBLE ASSETS - -

- -

82,255 116,493

CASH FLOWS FROM FINANCING ACTIVITIES:

LONG TERM BORROWINGS {87,665} {109,193}

NET CASH AND CASH EQUIVALENTS {5,410} 7,300

OPENING CASH AND CASH EQUIVALENTS B/F 9,650 2,350

4,240 9,650

AUSTIN LAZ AND COMPANY PLCSTATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31ST DECEMBER, 2015

5

NOTES

1 FIXED ASSETS SCHEDULE

LAND & PLANT MOTOR FURN, FIT. TOTAL

BUILDING & MACHI. VEHICES & EQUIP.

N'000 N'000 N'000 N'000 N'000

COST 929,825 1,448,430 12,000 5,468 2,395,723

DEPRECIATION AS AT 01/01/2015 {103,211} {896,893} {12,000} {5,468}{1,017,572}

CHARGE FOR THE YEAR {18,596} {144,843} - - {163,439}

DEPRECIATION AS AT 31/12/2015 {121,807}{1,041,736} {12,000} {5,468}{1,181,011}

IMPAIRMENT LOSS - - - - -

CARRYING AMOUNT 808,018 406,694 - - 1,214,712

2015 2014

2 INVENTORIES N'000 N'000

FINISHED GOODS 82,501 94,010

RAW MATERIAS 22,365 38,575

WORk-IN-PROGRESS 135,000 25,465

239,866 158,050

3 TRADE RECEIVABES

TRADE DEBTORS 242,004 295,593

OTHER DEBTORS - 32,680

242,004 328,273

4 CASH AND BANK BALANCES

CASH IN HAND 39 -

CASH AT BANK 4,201 9,650

4,240 9,650

5 SHARE CAPITAL

AUTHORIZED

1,500,000 Ordinary Shares of 50K Each. 750,000 750,000

ISSUED AND FULLY PAID

1,079,860 Ordinary Shares of 50K Each. 539,930 539,930

6 RESERVES

CAPITAL RESERVE 1,224,776 1,224,776

AUSTIN LAZ AND COMPANY PLCNOTES ON THE ACCOUNTS


6

2015 2014

7 TRADE PAYABLES N'000 N'000

TRADE CREDITORS 16,235 38,770

8 SHORT TERM PROVISIONS

TAXATION 593 603

AUDIT FEE 500 500

ACCRUED SALARIES & WAGES 215 4,215

1,308 5,318

9 TURNOVER

ALUMINIUM SECTIONDIVISION 112,370 289,595

ICE PLANT SECTIONDIVISION 148,685 189,145

THERMOPLASTIC DIVISION 136,990

261,055 615,730

10 COST OF SALES

PRODUCTION COST:-

OPENING RAW MATERIALS 38,575 110,145

SEMI-FINISHED GOODS 25,465 -

ADD: PURCHASES 129,150 77,250

CARRIAGE INWARDS 300 171

193,490 187,566

LESS: CLOSING RAW MATERIALS {22,365} {38,575}

171,125 148,991

ADD FACTORY OVERHEADS:

FACTORY/MANUFACTURING EXPENSES 6,125 20,255

MACHINE MAINTENANCE - 11,274

LIGHT AND GENERATOR EXPENSES - 35,045

PRODUCTION SALARIES & WAGES 3,235 9,770

DEPRECIATION OF PLANT & MACHINERY 144,844 144,843

ADD: OPENING WORK -IN-PROGRESS 25,465 248,900

LESS: CLOSING WORK-IN-PROGRESS {135,000} {25,465}

TOTAL PRODUCTION COST 215,794 600,613

OPENING FINISHED GOODS 94,010 99,320

ADD: PURCHASES 10 110

309,814 700,043

LESS: COSING FINISHED GOODS {82,501} {94,010}

COST OF GOODS SOLD 227,313 606,033



7

2015 2014

11 DISTRIBUTION EXPENSES N'000 N'000

TRANSPORT AND TRAVELLING 1,576 2,232

CARRIAGE OUTWARD 1,564 2,185

ADVERTISEMENT AND PUBLICITY 1,908 3,515

SALARIES, WAGES/SALES COMMISSION 5,074 11,904

INSTALLATION EXPENSES 1,181 4,575

DISCOUNT ALLOWED 3,470 13,438

PUBLIC RELATIONS 52 196

ENTERTAINMENT 27 105

14,852 38,150

12 ADMINISTRATIVE EXPENSES

DIRECTORS EXPENSES 2,995 3,899

SALARIES AND WAGES 6,366 9,250

PRINTING AND STATIONERY 210 850

TELEPHONE AND POSTAGES 1,596 2,330

RENT AND RATES 2,950 3,730

MEDICAL EXPENSES 1,840 2,116

ELECTRICITY 5,834 7,167

ENTERTAINMENT AND PUBLIC RELATION 150 601

AUDIT AND ACCOUNTANCY FEE 300 300

GENERATOR RUNNIN G EXPENSES 3,855 4,982

MOTOR VEHICES MAINTENANCE 3,952 4,505

SECURITY EXPENSES 1,359 1,500

EDUCATION AND TRAINING 2,290 3,900

MISCELLANEOUS EXPENSES 2,140 2,505

ADMIN EXPENSES 146 573

MAINTENANCE OF OFFICE EQUIPMENT 2,267 2,610

DONATIONS AND CHARITY 1,358 1,402

COMPUTER/INTERNET SERVICES 3 5

SANITATION AND CLEANING EXPENSES 552 620

GOVERNMENT LEVIES AND RATES 3,230 5,200

EQUIPMENT REPAIRS AND MAINTENANCE 2,218 3,200

NEWSPAPER AND PERIODICALS 1,190 1,525

LEGAL AND PROFESSIONAL FEES 300 300

FUE, OI AND DIESEL 6,542 7,592

DEPRECIATION 18,596 18,596

FORKLIFT EXPENSES 1,425 1,668

LOCAL TRANSPORT 1,320 1,255

74,984 92,181

13 FINANCE COST N'000 N'000

Bank charges deducted by the company's bankers

for handling their financial transactions. 2,405 38,770

14 INCOME TAX EXPENSE

The amount represents income tax provision based on

the profit for the year. 593 603



8

STATEMENT OF FINANCIAL POSITION 2015 2014 2013

ASSETS =N= =N= =N=

PROPERTY, PLANT AND EQUIPMENT 1,214,712 1,378,151 1,541,590

OTHER INTANGIBLE ASSETS 167,166 167,166 167,166

TOTAL NON-CURRENT ASSETS 1,381,878 1,545,317 1,708,756

CURRENT ASSETS

INVENTORIES 239,866 158,050 573,730

TRADE RECEIVABLES 242,004 328,273 94,181

CASH AND CASH EQUIVALENTS 4,240 9,650 2,350

TOTAL CURRENT ASSETS 486,110 495,973 670,261

TOTAL ASSETS 1,867,988 2,041,290 2,379,017

EQUITY AND LIABILITIES

SHARE CAPITAL 539,930 539,930 539,930

CAPITAL RESERVES 1,224,776 1,224,776 1,224,776

RETAINED EARNINGS {33,916} 25,176 184,118

TOTAL EQUITY 1,730,790 1,789,882 1,948,824

NON CURRENT LIABILITIES

LONG TERM BORROWINGS 119,655 207,320 316,513

CURRENT LIABILITIES

TRADE PAYABLES 16,235 38,770 34,485

SHORT TERM PROVISIONS 1,308 5,318 79,195

TOTAL CURRENT LIABILITIES 17,543 44,088 113,680

TOTAL EQUITY & LIABILITIES 1,867,988 2,041,290 2,379,017

STATEMENT OF COMPREHENSIVE INCOME

TURNOVER 261,055 615,730 667,332

COST OF SALES {227,313} {606,033} {521,847}

GROSS PROFIT 33,742 9,697 145,485

PROFIT/(LOSS) BEFORE TAX {58,499} {158,439} 18,965

PROFIT/(LOSS) AFTER TAX {59,092} {158,942} 7,563

PROFIT/(LOSS) ATTRIBUTABLE TO OWNERS OF

THE COMPANY {59,092} {158,942} 7,563

AUSTIN LAZ AND COMPANY PLCTHREE-YEAR FINANCIAL SUMMARY


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