1 2012. ANNUAL REPORT AND FINANCIAL STATEMENTS . Contents Investing in Africa Pages Notice of the ANNUAL general meeting 2. Directors, officers and administration 3. Board of directors 4-5. Corporate governance 6-7. Chairman's statement 8-9. Chief executive's statement 10-13. REPORT of the directors 14. Statement of directors' responsibilities 15. REPORT of the independent auditors 16. Consolidated statement of comprehensive income 17. Consolidated statement of FINANCIAL position 18. Company statement of FINANCIAL position 19. Consolidated statement of cash flows 20.
2 Consolidated statement of changes in equity 21-22. Company statement of changes in equity 23-24. Notes to the consolidated FINANCIAL STATEMENTS 25-64. Principal Shareholders and Distribution of Shareholding 65. Notes 66-67. Proxy Form 68. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 1. Notice of the ANNUAL General Meeting Investing in Africa NOTICE IS HEREBY GIVEN that an ANNUAL General Meeting of the Company will be held at Strathmore University Auditorium, Madaraka,Nairobi on Thursday 30th May, 2013 at to conduct the following business: AGENDA.
3 ORDINARY BUSINESS. 1. To read the notice convening the meeting and determine if a quorum is present;. 2. To receive, consider and if approved, adopt the Chairman's statement, reports of the Directors and Auditors and audited FINANCIAL STATEMENTS for year ended 31st December, 2012;. 3. To declare payment of a first and final Dividend recommended by the Board of Kshs per share for the year ended 31st December, 2012 to the shareholders in the Register of Members as at 2nd May, 2013;. 4. To elect Directors in accordance with the Company's Articles of Association.
4 In accordance with the Company's Articles of Association, Mr. Peter T. Kanyago and Kimotho retire by rotation from the office as Directors of the Company and, being eligible, offer themselves for re-election;. 5. To approve the Directors' Remuneration;. 6. To note that KPMG Kenya Certified Public Accountants having expressed willingness continue in office as the Auditors by virtue of section 159 (2) of the Companies' Act (Cap 486) and to authorise the Directors to fix their remuneration. SPECIAL BUSINESS. To consider and if approved, pass the following Special Resolution to amend the Company's Articles of Association: (i) That the Articles of Association of the Company be amended by adding a new Article to read as follows: UNCLAIMED FINANCIAL ASSETS ACT.
5 The Company may, if required by law, deliver or pay to any prescribed regulatory authority any unclaimed assets includ- ing but not limited to shares in the Company presumed to be abandoned or unclaimed in law and any dividends or inter- est thereon remaining unclaimed beyond prescribed statutory periods. Upon such delivery or payment, the unclaimed assets shall cease to remain owing by the Company and the Company shall no longer be responsible to the owner or holder of his or estate, for the relevant unclaimed assets.. BY ORDER OF THE BOARD.
6 Virginia Ndunge Secretary Box 61120. 00200 City Square Nairobi Date: 10th April, 2013. Note: A member entitled to attend is entitled to appoint a proxy to attend and vote on his/her behalf and such a proxy need not be a member of the Company. To be valid, proxy forms must be deposited at the Registered Office of the Company not less than 48. hours before the appointed time of the meeting. 2 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012. Directors, Officers and Administration Investing in Africa DIRECTORS.
7 Zephaniah Mbugua (Chairman). Joseph Karago Peter Kanyago Robin Kimotho Ngugi Kiuna Njeru Kirira Gachao Kiuna Carol Musyoka SECRETARY SHARE REGISTRARS Virginia Ndunge Cooperative Bank of Kenya Limited Emu Registrars Share Registration Services 3rd Floor, Suite 8, East wing 13th Floor, Cooperative Bank House The Greenhouse Haile Selassie Avenue Ngong Road Box 48231. Box 61120 00100 Nairobi GPO. 00200 Nairobi City Square BANKERS. National Industrial Credit Bank Limited Chase Bank Kenya Limited AUDITORS Box 44599 Riverside clause KPMG Kenya 00100 Nairobi GPO Junction of Ring Road Riverside 16th Floor, Lonrho House Westlands Standard Street Commercial Bank of Africa Limited PO Box 66015 - 00800.
8 Box 40612 Box 30437 Nairobi 00100 Nairobi GPO 00100 Nairobi GPO UBA Kenya Bank Limited Kenya Commercial Bank Limited Apollo Centre REGISTERED OFFICE Chase Bank 1st Floor Ring Road Emu Registrars Box 66015-00800 PO Box 34154. 3rd Floor, Suite 8, East wing Nairobi, Kenya 00100 Nairobi GPO. The Greenhouse Ngong Road Equity Bank Box 61120 Box 75104-00200, 00200 Nairobi City Square Nairobi, Kenya Standard Chartered Bank PRINCIPAL PLACE OF BUSINESS 48 Westlands Road, 7th Floor, Longonot Place Nairobi, Kenya Kijabe Street Box 30081 Box 42334 00100 Nairobi GPO.
9 00100 Nairobi GPO. Co-operative Bank of Kenya Limited Box 48231 ADVOCATES 00100 Nairobi GPO. Muthaura Mugambi Ayugi & Njonjo Advocates Standard Bank (Mauritius) Limited 4th floor, West Wing, Capitol Hill Square 6th Floor, Medine Mews Building Upperhill, Off Chyulu Road. La Chaussee Street Box 8418 Port Louis, Mauritius 00200 Nairobi City Square Nairobi Citi Bank NA. Box 30711. Kaplan & Stratton Advocates 00100 Nairobi GPO. 9th Floor, Williamson House Box 40111. 00100 Nairobi GPO. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 3.
10 Board of Directors Investing in Africa Mr. Zephaniah Gitau Mbugua, Chairman of the Board Mr. Mbugua is a graduate of Makerere University with a BSc in Chemistry and Mathematics. He is a successful serial entrepreneur, developing businesses and partnerships across Africa for the last 30 years. He is a founder member and Chief Executive Officer of Abcon Group of Companies, a leading distributor of industrial chemicals. He is also a director of Proctor & Allan EA Ltd, Real Insurance and Zeniki Investment Ltd. Dr. Gachao Kiuna, Chief Executive Officer and Managing Director Gachao joined Trans-Century from McKinsey & Company in Johannesburg, where he was a member of the Office Leadership Group leading McKinsey's Sub-Saharan Africa Practice.