MULTI-TREX INTEGRATED FOODS PLC Lagos, …

1 MULTI-TREX INTEGRATED FOODS PLCL agos, NigeriaREPORT OF THE DIRECTORSANDAUDITED financial STATEMENTSFOR THE YEAR ENDED 30th APRIL 2013 MULTI-TREX INTEGRATED FOODS PLCREPORT OF THE DIRECTORS AND AUDITED financial STATEMENTSFOR THE YEAR ENDED 30th APRIL 2013 CONTENTSPAGEC orporate Information 3 Report of the Directors 4-10 Statement of Directors Responsibilities 11 Independent Auditors Report 12-13 Statement of Profit and Loss and Other Comprehensive Income 14 Statement of financial Position 15 Statement of changes in Equity 16 Statement of Cash Flows 17 Notes to the financial Statements 18-61 Value Added

2 Statement 62 Five-Year financial Summary 633 MULTI-TREX INTEGRATED FOODS PLCCORPORATE INFORMATIONFOR THE YEAR ENDED 30th APRIL 2013 BOARD OF DIRECTORSLate High Chief Bayo Akinnola, NPMA, MFR -Chairman(Deceased 20th March 2013)Mr. Segun Aina Vice ChairmanMr. Dimeji Owofemi, FCA Managing Director/Chief ExecutiveMr. Yusuf Isiaka Deputy Managing DirectorMrs Sade Bafunso ExecutiveMr. Machiel Leliefeld (Dutch) Executive (Resigned 30 April 2013)Engr. Waheed Olalekan Busari Non ExecutiveHon. Ajibola Ogunsiji Non ExecutiveMr. Adebayo Adeniyi Non Executive(Deceased 23rd January 2014)Mr.

3 Adelana Hastrup Non ExecutiveMr. Patrick Ilodianya Non Executive(Resigned 17 December 2012)REGISTERED OFFICEKm 29 Lagos Ibadan ExpresswayWarewa VillageOgun Registrars Limited213 Herbert Macaulay WaySabo, NUMBERRC370490 AUDITORSE rnst & Young(Chartered Accountants)2A Bayo Kuku RoadIkoyi, Lagos. BANKERSA ccess Bank PlcAfrican Export-Import Bank (AFREXIM)FBN (UK) LimitedFirst City Monument Bank PlcNigerian Export Import Bank (NEXIM)Skye Bank PlcZenith Bank Plc4 MULTI-TREX INTEGRATED FOODS PLCREPORT OF THE DIRECTORS TO THE MEMBERS OF MULTI-TREX INTEGRATED FOODS PLCFOR THE YEAR ENDED 30th APRIL 2013 The directors have the pleasure in presenting their report and the audited financial statements for yearended 30th April of directors responsibilitiesThe directors of MULTI-TREX INTEGRATED FOODS Plc are responsible for the preparation of the financialstatements for each financial year, which give a true and fair view of the state of affairs of theCompany and of the results of operations and cash flows for that year.

4 In preparing these financialstatements, the directors have selected suitable accounting policies and applied them consistently,made judgements and estimates that are reasonable and prudent and in accordance with InternationalFinancial Reporting Standards (IFRS), Companies and Allied Matters Act, CAP C20, Laws of theFederation of Nigeria, 2004 and the provisions of the financial Reporting Council of Nigeria, Act No 6, directors are responsible for ensuring that the company keeps proper accounting records thatdisclose with reasonable accuracy at any time the financial position of the Company. The directors arealso responsible for safeguarding the assets of the Company and taking reasonable steps for theprevention and detection of fraud and other activitiesMulti-Trex INTEGRATED FOODS Plc is engaged in processing of cocoa beans, exportation of industrialcocoa products as well as manufacturing and domestic marketing of cocoa-based consumer was no change in the principal activities of the in reporting frameworkFollowing the directives of the Regulator, the financial Reporting Council of Nigeria.

5 The Companychanged its accounting framework from the Nigerian Statements of Accounting Standard (SAS) to theInternational financial Reporting Standards (IFRS) in for the Year 2013 2012 N 000N 000 Turnover 1,434,686 3,264,637 ================Loss before taxation (2,979,055)(1,214,866)Taxation (40,727)(32,881) --------------- ----------------Loss for the year(3,019,782)(1,247,747)============== ====5 MULTI-TREX INTEGRATED FOODS PLCREPORT OF THE DIRECTORS TO THE MEMBERS OF MULTI-TREX INTEGRATED FOODS PLC - ContinuedFOR THE YEAR ENDED 30th APRIL 2013 DIVIDENDThe directors do not recommend the payment of any dividend in respect of the year ended 30th April2013 (30th April 2012: Nil).

6 FIXED ASSETSI nformation relating to changes in fixed assets during the period is given in Note 13 to the financialstatements. In the opinion of the directors, the market value of the company s properties is not lessthan the value shown in the Skye Bank Plc. s sudden decision to sell to AMCON of the company s Owings to thebank, AMCON, in the 2012/13 financial year considered the company s proposal and concluded theprocess of restructuring the loans bought by them. However, the Corporation was unable to accede to thecompany s request for working capital critically needed to employ reasonable capacity of the company snewly acquired state-of-the-art cocoa processing plant that is capable of processing up to 50,000mt ofcocoa beans the loan restructuring exercise, AMCON converted of the amount of the loans bought toEquity.

7 Also, the Corporation transferred to Preference Shares while retaining the balance as a nine-year Term above notwithstanding, the company s business was severely hampered by its inability to accessworking capital as a result of a Central Bank directive that, soon after the loan restructuring, prohibitedall Deposit Money Banks (DMBs) from extending new credit facilities to all companies who owe an initialdebt of N5b or above to AMCON. The company s several entreaties to CBN and AMCON on the matter didnot yield any fruit till the end of the year in , the delay in accessing working capital accounted mainly for the abysmally low capacityutilization level attained in the SOCIAL RESPONSIBILITYIn view of the current financial position of the Company, it was not possible to make appreciablefinancial commitment on corporate social responsibility during the period (30th April 2012: Nil).

8 HUMAN RESOURCES DEVELOPMENTE mployment of Physically Challenged PersonsThe company continued to maintain its policy of non-discrimination in considering applications foremployment and other industrial relations matters. The company, in its employment policy, offers equalopportunities to all candidates including the physically challenged and extends equal chance withoutdiscrimination to its employees with respect to prospects for career INTEGRATED FOODS PLCREPORT OF THE DIRECTORS TO THE MEMBERS OF MULTI-TREX INTEGRATED FOODS PLC - ContinuedFOR THE YEAR ENDED 30th APRIL 2013 Health, Safety and Welfare of WorkersThe company maintains canteen facilities for different categories of staff which have been upgraded toprovide workers with subsidized meals under a very hygienic company also places great emphasis on the safety of employees and the company s assets.

9 To thisend, regular firefighting drills and training are organized to acquaint members of staff with the effectivehandling of the various firefighting AND DEVELOPMENTThe company has adopted a new training policy that advocates training and re-training for allemployees. The company s training activities during the year cut across all categories of , induction training has been designed to benefit new employees such that it will assist them settleinto their roles conveniently. The newly introduced performance management system ensures thatgood performance is recognized and adequately rewarded while non performance is appropriatelysanctioned.

10 The system is designed to assist employees develop and apply their innate skills andproficiency in the discharge of their assigned OF DIRECTORSThe names of the directors who held office during the period and at the date of this report are as follows:Late High Chief Bayo Akinnola, NPMA, MFR -Chairman (Deceased 20th March 2013)Mr. Segun Aina-Vice ChairmanMr. Dimeji Owofemi, FCA-Managing Director/Chief ExecutiveMr. Yusuf Isiaka-Deputy Managing DirectorMrs Sade Bafunso-ExecutiveMr. Machiel Leliefeld(Dutch)-Executive (Resigned 30th April 2013)Engr. Waheed Olalekan Busari-Non ExecutiveHon. Ajibola Ogunsiji-Non ExecutiveMr.