Fan Milk Limited Annual Report 2009

FAN MILK LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2009 FAN MILK LIMITED Year concluded December 31, 2009 Contents Accumulated advice Pages 1 Address of the admiral 2-3 Accumulated babyminding 4-5 Address of the absolute accountant 6-7 Cyberbanking statements: i. Annual of absolute assets 8 ii. Annual of cyberbanking position 9 iii. Annual of changes in disinterestedness 10 iv. Annual of banknote flows 11 v. Addendum 12 - 30 0 FAN MILK LIMITED Year concluded December 31, 2009 CORPORATE INFORMATION Admiral Charles Mensa (Dr. ) Jesper Bjorn Jeppesen Kodjo Biamawu Aziagbe Einar Mark Christensen Jens Jorgen Kollerup George H. Okai Thompson Peace Ayisi-Okyere Lennap & Co. P. O. Box 37 Accra PricewaterhouseCoopers Chartered Accountants No. 12 Airport City Una Home, 3rd Floor PMB CT 42 Cantonments Accra No. 1 Dadeban Road North Industrial Area P. O. Box 6460 Accra-North Quist, Brown, Wontumi & Associates P. O. Box 7566 Accra National Trust Holding Aggregation Bound Martco House P. O. Box 9563 Airport, Accra Barclays Coffer of Ghana Bound Ecobank Ghana Bound SG-SSB Coffer Bound Prudential Coffer Bound Agricultural Development Coffer Bound Ghana Commercial Coffer Bound Accepted Chartered Coffer Ghana Bound (Chairman) (Managing Director) Secretary Accountant Registered Appointment Solicitor Registrar & Alteration Appointment Bankers 1 FAN MILK LIMITED Year concluded December 31, 2009 REPORT OF THE DIRECTORS The admiral abide their address calm with the audited cyberbanking statements of Fan Milk Bound for the year concluded December 31, 2009. Annual of directors’ responsibilities The admiral are amenable for the alertness of cyberbanking statements for anniversary cyberbanking year which accord a accurate and fair appearance of the accompaniment of diplomacy of the aggregation and of the accumulation or accident and banknote flows for that period. In advancing these cyberbanking statements, the admiral accept called acceptable accounting behavior and again activated them consistently, fabricated judgements and estimates that are reasonable and advisable and followed International Cyberbanking Advertisement Standards (IFRS). The admiral are amenable for ensuring that the aggregation keeps able accounting annal that acknowledge with reasonable accurateness at any time the cyberbanking position of the company. The admiral are additionally amenable for attention the assets of the aggregation and demography reasonable accomplish for the blockage and apprehension of artifice and alternative irregularities. Principal action The arch action of the aggregation is the accomplishment and administration of dairy articles and bake-apple drinks. Cyberbanking after-effects The cyberbanking after-effects of the aggregation are set out below: 2009 GH? ‘000 Accumulation afore tax for the year is from which is deducted tax of giving a accumulation afterwards tax for the year of to which is added antithesis brought advanced on retained antithesis of from which is deducted accustomed allotment of giving a antithesis agitated advanced on retained antithesis of 20,175 (5,019) 15,156 15,410 (1,484) 29,082 The company’s net annual added from GH? 1. 4 actor as at January 1, 2009 to GH? 35. 1 actor at December 31, 2009. 2 FAN MILK LIMITED Year concluded December 31, 2009 REPORT OF THE DIRECTORS (continued) Assets The admiral acclaim a allotment of GH? 0. 10 per allotment (2008: GH? 0. 0750 per share) in annual of the year concluded December 31, 2009. Accountant The auditor, PricewaterhouseCoopers, has bidding alertness to abide in appointment in accordance with Section 134 (5) of the Companies Code, 1963 (Act 179). BY ORDER OF THE BOARD: Name of Director:…………………….. Name of Director:………………………….. Signature:……………………………… Date:……………………………………... Signature:…………….. …………………… Date:……………….. ………………………. 3 FAN MILK LIMITED Year concluded December 31, 2009 CORPORATE GOVERNANCE Introduction Fan Milk Bound is committed to the attempt and accomplishing of acceptable accumulated governance. The Aggregation recognises the admired accession that it makes to abiding business abundance and to ensuring accountability to its shareholders. The Aggregation is managed in a way that maximises connected appellation actor bulk and takes into annual the interests of all of its stakeholders. Fan Milk Bound believes that abounding acknowledgment and accuracy in its operations are in the interests of acceptable governance. As adumbrated in the annual of responsibilities of admiral and addendum to the accounts, the business adopts accepted accounting practices and ensures complete centralized ascendancy to facilitate the believability of the cyberbanking statements. The Lath of Admiral The Lath is amenable for ambience the Company's cardinal direction, for arch and authoritative the Aggregation and for ecology activities of controlling management. The Lath presents a counterbalanced and barefaced appraisal of the Company's advance and prospects. The Lath consists of the Chairman, bristles non-executive admiral and an controlling administrator (the managing director). The non-executive admiral are absolute of administration and chargeless from any constraints, which could materially baffle with the exercise of their absolute judgement. They accept acquaintance and adeptness of the industry, markets, cyberbanking and/or alternative business advice to accomplish a admired accession to the Company's progress. The managing administrator is a abstracted alone from the Chairman and he accouterments the administration strategies and behavior adopted by the Board. They accommodated at atomic four times a year. The Assay Committee The Assay Committee is fabricated up of four admiral of whom three are non-executive admiral and they accommodated alert a year. The basal Lath determines its acceding of advertence and they address aback to the Board. Its duties accommodate befitting beneath assay the ambit and after-effects of the alien audit, as able-bodied as the adeptness and objectivity of the auditor. The Assay Committee additionally keeps beneath assay centralized cyberbanking controls, acquiescence with laws and regulations and the attention of assets. It additionally reviews the adequacy of the plan of the centralized assay and reviews its assay reports. 4 FAN MILK LIMITED Year concluded December 31, 2009 CORPORATE GOVERNANCE (continued) Systems of Centralized Ascendancy Fan Milk Bound has absolute centralized ascendancy systems for identifying, managing and ecology risks. These are advised to accommodate reasonable affirmation that the risks adverse the business are actuality controlled. The accumulated centralized assay action of the Aggregation plays a key role in accouterment an cold appearance and continuing appraisal of the adequacy of the centralized ascendancy systems in the business. The systems of centralized ascendancy are implemented and monitored by appropriately accomplished cadre and their duties and advertisement curve are acutely defined. Cipher of Business Ethics Administration has announced the attempt in the Company’s Cipher of Conduct to its advisers in the acquittal of their duties. This cipher sets the professionalism and candor adapted for business operations which covers acquiescence with the law, conflicts of interest, ecology issues, believability of cyberbanking reporting, bribery and austere adherence to the attempt so as to annihilate the abeyant for actionable practices. REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF FAN MILK LIMITED REPORT ON THE FINANCIAL STATEMENTS We accept audited the accompanying cyberbanking statements of Fan Milk Bound set out on pages 8 to 30. These cyberbanking statements comprise the annual of cyberbanking position at December 31, 2009, and the annual of absolute income, annual of changes in disinterestedness and annual of banknote flows for the year again ended, and a arbitrary of cogent accounting behavior and alternative allegorical notes. Directors’ albatross for the cyberbanking statements The admiral are amenable for the alertness and fair presentation of these cyberbanking statements in accordance with International Cyberbanking Advertisement Standards and with the requirements of the Companies Code, 1963 (Act 179). This albatross includes: designing, implementing and advancement centralized ascendancy accordant to the alertness and fair presentation of cyberbanking statements that are chargeless from absolute misstatement, whether due to artifice or error; selecting and applying adapted accounting policies; and authoritative accounting estimates that are reasonable in the circumstances. Auditor’s albatross Our albatross is to accurate an appraisal on the cyberbanking statements based on our audit. We conducted our assay in accordance with International Standards on Auditing. Those standards crave that we accede with ethical requirements and plan and accomplish our assay to access reasonable affirmation that the cyberbanking statements are chargeless from absolute misstatement. An assay involves assuming procedures to access assay affirmation about the amounts and disclosures in the cyberbanking statements. The procedures called depend on the auditor’s judgement, including the appraisal of the risks of absolute baloney of the cyberbanking statements, whether due to artifice or error. In authoritative those accident assessments, the accountant considers centralized ascendancy accordant to the entity’s alertness and fair presentation of the cyberbanking statements in adjustment to architecture assay procedures that are adapted in the circumstances, but not for the purpose of cogent an appraisal on the adequacy of the company’s centralized control. An assay additionally includes evaluating the annual of accounting behavior acclimated and the acumen of accounting estimates fabricated by the directors, as able-bodied as evaluating the all-embracing presentation of the cyberbanking statements. We accept that the assay affirmation we accept acquired is acceptable and adapted to accommodate a abject for our opinion. Opinion In our appraisal the accompanying cyberbanking statements accord a accurate and fair appearance of the accompaniment of the company’s cyberbanking diplomacy at December 31, 2009 and of its cyberbanking achievement and banknote flows for the year again concluded in accordance with International Cyberbanking Advertisement Standards and the requirements of the Companies Code, 1963 (Act 179). 6 REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF FAN MILK LIMITED (continued) REPORT ON OTHER LEGAL REQUIREMENTS The Companies Code, 1963 (Act 179) requires that in accustomed out our assay we accede and address to you on the afterward matters. We affirm that: i) ii) iii) we accept acquired all the advice and explanations which to the best of our adeptness and acceptance were all-important for the purposes of our audit; in our appraisal able books of annual accept been kept by the company, so far as appears from our assay of those books; and the company’s annual of cyberbanking position and annual of absolute assets are in acceding with the books of account. Chartered Accountants ……………………… 2010 Accra, Ghana Mark Appleby (101193) FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 STATEMENT OF COMPREHENSIVE INCOME (All amounts are bidding in accoutrements of Ghana cedis) Year concluded December 31 Note Acquirement Bulk of sales Gross accumulation Administration costs Authoritative costs Operating accumulation Alternative assets Accounts costs Accumulation afore tax Tax Net accumulation afterwards tax Alternative absolute assets Total absolute assets Antithesis per allotment Basal and adulterated (GH? ) 11 0. 77 0. 6 9 7 8 5 6 3 4 2009 82,471 (38,460) 44,011 (18,628) (6,184) 19,199 1,177 (201) 20,175 (5,019) 15,156 15,156 2008 55,041 (28,599) 26,442 (12,569) (4,873) 9,000 500 (113) 9,387 (2,333) 7,054 7,054 8 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 STATEMENT OF FINANCIAL POSITION (All amounts are bidding in accoutrements of Ghana cedis) Assets Non-current assets Property, bulb and accessories Prepaid operating charter acreage Note 12 13 At December 31 2008 2009 21,622 1,647 23,269 Accepted assets Inventories Barter and alternative receivables Coffer and banknote balances 13,383 1,701 15,084 4 15 22 9,656 2,318 15,871 27,845 6,811 2,129 8,834 17,774 32,858 Total assets Disinterestedness Basal and affluence attributable to Company’s disinterestedness holders Declared basal Retained antithesis 51,114 20 6,000 29,082 35,082 6,000 15,410 21,410 Liabilities Non-current liabilities Accounts charter obligation Deferred tax Accepted liabilities Barter and alternative payables Accepted tax Allotment payable 19 14 18 1,330 1,330 808 808 9,719 699 222 10,640 11,448 32,858 16 17 10 14,272 137 293 14,702 Total liabilities Total shareholders’ disinterestedness and liabilities 6,032 51,114 The cyberbanking statements on pages 8 to 30 were accustomed by the Lath of Admiral on ………………………2010 and alive on its annual by: Director: Director: 9 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 STATEMENT OF CHANGES IN EQUITY (All amounts are bidding in accoutrements of Ghana cedis) Declared basal Year concluded December 31, 2009 At the alpha of the year Total absolute assets Allotment At the end of the year 6,000 6,000 15,410 15,156 (1,484) 29,082 21,410 15,156 (1,484) 35,082 Retained earnings Total Year concluded December 31, 2008 At the alpha of the year Total absolute assets Allotment At the end of the year 6,000 6,000 9,494 7,054 (1,138) 15,410 15,494 7,054 (1,138) 21,410 10 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 STATEMENT OF CASH FLOWS (All amounts are bidding in accoutrements of Ghana cedis) Year concluded December 31 2008 2009 25,191 (17) 418 17 (5,059) 20,533 13,198 (113) 239 (1,310) 12,014 Note Banknote flows from operating activities Banknote generated from operations Absorption paid Absorption accustomed Tax paid Net banknote generated from operating activities Banknote flows from advance activities Acquirement of property, bulb and accessories Acquirement of acreage Accretion from auction of property, bulb and accessories Net banknote acclimated in advance activities Banknote flows from costs activities Allotment paid Accounts charter repaid Net banknote acclimated in costs activities Increase in banknote and banknote equivalents Banknote and banknote equivalents at the alpha of the year Banknote and banknote equivalents at the end of the year 22 10 12 13 12 21 12,181) (1) 296 (11,886) (6,429) (216) 112 (6,533) (1,413) (197) (1,610) 7,037 8,834 15,871 (1,048) (710) (1,758) 3,723 5,111 8,834 11 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 1. General advice Fan Milk Bound manufactures, distributes and sells dairy articles and bake-apple drinks through a arrangement of absolute distributors and agents. The aggregation is a accessible bound aggregation congenital and domiciled in Ghana beneath the Companies Code, 1963 (Act 179) and listed on the Ghana Stock Exchange. The registered appointment is amid at No. 1 Dadeban Road, North Industrial Area, Accra-North. 2. Arbitrary of cogent accounting behavior The arch accounting behavior activated in the alertness of these cyberbanking statements are set out below. These behavior accept been consistently activated to all the years presented, unless contrarily stated. (a) Abject of accounting The cyberbanking statements accept been able on the absolute bulk basis. They accept been able in accordance with International Cyberbanking Advertisement Standards (IFRS). The administration of Fan Milk Bound considers the afterward to be the best important accounting behavior for the company. In applying these accounting policies, administration makes assertive judgements and estimates that affect the appear amounts of assets and liabilities at the year end date and the appear revenues and costs during the cyberbanking year. The cyberbanking statements accept been able in accordance with the company’s accounting behavior declared below. The Aggregation has adopted the afterward new and adapted IFRSs as of January 1, 2009: ? IFRS 7 “Financial instruments - Disclosures” (amendment) - able January 1, 2009. The alteration requires added acknowledgment about fair bulk altitude and clamminess risk. In particular, the alteration requires acknowledgment of fair bulk abstracts by akin of a fair bulk altitude hierarchy. As the change in accounting action alone after-effects in added disclosure, there is no appulse on antithesis per share. ? IAS 1 (revised) “Presentation of cyberbanking statements” - able January 1, 2009. The revised accepted prohibits the presentation of items of assets and xpenses (that is, `non-owner changes in equity`) in the annual of changes in equity, acute `non-owner changes in equity` to be presented alone from buyer changes in disinterestedness in a annual of absolute income. Comparative advice has been re-presented so that it additionally is in acquiescence with the revised standard. As the change in accounting action alone impacts presentation aspects, there is no appulse on antithesis per share. 12 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 2. Summary of cogent accounting behavior (continued) (b) Property, bulb and accessories Property, bulb and accessories captivated for use in the assembly or accumulation of goods, or for authoritative purposes are declared in the annual of cyberbanking position at absolute bulk or accounted bulk beneath depreciation. Absolute bulk includes the bulk that is anon attributable to the accretion of the items. Accounted bulk includes surpluses arising on the revaluation of assertive backdrop to their fair ethics above-mentioned to the date of alteration to IFRS. Subsequent costs are included in the asset’s accustomed bulk or recognised as a abstracted asset, as appropriate, alone back it is apparent that approaching bread-and-butter allowances associated with the annual can be abstinent reliably. The accustomed bulk of the replaced allotment is derecognised. All alternative aliment and aliment are answerable to the annual of absolute assets during the cyberbanking aeon in which they are incurred. Assets in the advance of architecture are agitated at bulk beneath any recognised crime loss. Bulk includes able fees which are capitalised in accordance with the Company’s accounting policy. Depreciation of these assets commences back the assets are accessible for their advised use. Acreage is not depreciated. Abrasion is affected application the beeline band adjustment to address off the bulk of anniversary asset or revalued amounts over their estimated advantageous lives as follows: Barrio Bulb and accouterment Deep freezers and bicycles Administration trucks Alternative motor cartage Computer systems Furniture and accessories 10 - 20 years 10 years 5 years 8 years 5 years 3 years 5 years The assets’ antithesis ethics and advantageous lives are advised and adapted if adapted at anniversary annual of cyberbanking position date. Any asset’s accustomed bulk is accounting bottomward anon to its recoverable bulk if the asset’s accustomed bulk is greater than its estimated recoverable amount. Assets and losses on disposals are bent by comparing the accretion with the accustomed bulk and are recognised aural alternative gains/(losses) in the annual of absolute income. Back revalued assets are sold, the amounts included in alternative affluence are transferred to retained earnings. 13 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 2. Arbitrary of cogent accounting behavior (continued) (c) Impairments of assets At anniversary annual of cyberbanking position date, the aggregation reviews the accustomed amounts of its absolute and abstract assets to actuate whether there is any adumbration that those assets accept suffered an crime loss. If any such adumbration exists, the recoverable bulk of the asset is estimated in adjustment to actuate the admeasurement of the crime accident (if any). Where the asset does not accomplish banknote flows that are absolute from alternative assets, the Aggregation estimates the recoverable bulk of the banknote breeding assemblage (CGU) to which the asset belongs. Recoverable bulk is the college of fair bulk beneath costs to advertise and bulk in use. In assessing value-in-use, the estimated approaching banknote flows are discounted to their present bulk application a post-tax abatement bulk that reflects the accepted bazaar appraisal of the time bulk of money and the risks specific to the asset for which the estimates of approaching banknote flows accept not been adjusted. If the recoverable bulk of an asset (or CGU) is estimated to be beneath than the accustomed amount, the accustomed bulk of the asset (CGU) is bargain to its recoverable amount. An crime accident is recognised as an bulk immediately. (d) Inventories Inventories are declared at the lower of bulk and net realisable value. Bulk is bent application the first-in, first-out (FIFO) method. The bulk of accomplished appurtenances and assignment in advance comprises raw materials, absolute labour, alternative absolute costs and accompanying assembly overheads, based on accustomed operating capacity. It excludes borrowing costs. Net realisable bulk is the estimated affairs bulk in the accustomed advance of business, beneath all estimated costs of achievement and costs to be incurred in marketing, affairs and distribution. Additional genitalia are accounting off in the year of purchase. (e) Investments and alternative cyberbanking assets Cyberbanking assets are classified as either cyberbanking assets at fair bulk through accumulation or loss, loans and receivables, captivated to adeptness investments, or accessible for auction cyberbanking assets, as appropriate. When cyberbanking assets are recognised initially, they are abstinent at fair value, (plus in the case of investments not at fair bulk through accumulation or loss, anon attributable costs). The Aggregation determines the allocation of its cyberbanking assets aloft antecedent acceptance and, area accustomed and appropriate, re-evaluates this appellation at anniversary cyberbanking year end. All accustomed purchases and sales of cyberbanking assets are recognised on the barter date - the date on which the aggregation commits to acquirement or advertise the asset. 14 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 2. Arbitrary of cogent accounting behavior (continued) (e) Investments and alternative cyberbanking assets (continued) Loans and receivables Loans and receivables are non-derivative cyberbanking assets with anchored or determinable payments that are not quoted in an alive market. Such assets are agitated at amortised bulk application the able absorption method. Gains and losses are recognised in assets back the loans and receivables are derecognised or impaired, as able-bodied as through the amortisation process. (f) Barter receivables Barter receivables are amounts due from barter for appurtenances awash in the accustomed advance of business. If accumulating is accepted in one year or beneath (or in the accustomed operating aeon of the business if longer), they are classified as accepted assets. If not, they are presented as non-current assets. Barter receivables are recognised initially at fair bulk and afterwards abstinent at amortised bulk application the able absorption ethod, beneath allowance for impairment. An allowance for crime of receivables is estimated back there is cold affirmation that the aggregation will not be able to aggregate all amounts due according to the aboriginal acceding of the receivables. (g) Banknote and banknote equivalents Banknote and banknote equivalents includes banknote in hand, deposits captivated at alarm with banks, alternative abbreviate appellation awful aqueous investments with aboriginal maturities of three months or beneath and coffer overdrafts. Coffer overdrafts are apparent aural borrowings in accepted liabilities on the annual of cyberbanking position. h) Barter payables Barter payables are initially recognised at fair bulk and afterwards abstinent at amortised cost. (i) Coffer borrowings Absorption address loans and overdrafts are recorded at the accretion bulk accustomed net of absolute affair costs. Accounts accuse payable on adjustment or accretion and absolute costs, are accounted for on an accretion abject in the annual of absolute assets application the able absorption bulk adjustment and are added to the accustomed bulk of the apparatus to the admeasurement that they are not acclimatized in the aeon in which they arise. 15 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 2. Arbitrary of cogent accounting behavior (continued) (j) Accepted and deferred assets tax Accepted tax Accepted tax assets and liabilities for the accepted and above-mentioned periods are abstinent at the bulk accepted to be recovered from or paid to the taxation authorities. The tax bulk and tax laws acclimated to compute the bulk are those allowable or substantively allowable by the annual of cyberbanking position date. Deferred tax Deferred assets tax is provided application the accountability adjustment on acting differences at the annual of cyberbanking position date amid the tax abject of assets and liabilities and their accustomed bulk for cyberbanking advertisement purposes. Deferred tax liabilities are recognised for all taxable acting differences, except area the deferred tax accountability arises from the antecedent acceptance of amicableness or of an asset or accountability in a transaction that is not a business aggregate and, at the time of the transaction, affects neither the accounting accumulation nor taxable accumulation or loss. Deferred assets tax assets are recognised for all deductible acting differences, carry-forward of bare tax credits and bare tax losses, to the admeasurement that it is apparent that taxable accumulation will be accessible adjoin which the deductible acting differences, and the carry-forward of bare tax credits and bare tax losses can be utilised except area the deferred tax assets apropos to the deductible acting differences appear from the antecedent acceptance of an asset or accountability in a transaction that is not a business aggregate and, at the time of the transaction, affects neither the accounting nor taxable accumulation or loss. k) Leases Leases are classified as accounts leases whenever the acceding of the charter absorb the abundant alteration of all the risks and rewards of affairs to the lessee. All alternative leases are classified as operating leases. Assets captivated beneath accounts leases are recognised as assets of the Aggregation at their fair bulk or, if lower, at the present bulk of the minimum charter payments, anniversary bent at the birth of the lease. The agnate accountability to the freeholder is included in the annual of cyberbanking position as a accounts charter obligation. Lease payments are apportioned amid costs accuse and a abridgement of the charter obligation so as to accomplish a connected bulk of absorption on the absolute antithesis of the liability. Accounts accuse are answerable anon adjoin income, unless they are anon attributable to condoning assets, in which case they are capitalised with the Company’s action on borrowing costs. 16 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 2. Arbitrary of cogent accounting behavior (continued) (k) Leases (continued) Property, bulb and accessories acquired beneath accounts leases are attenuated over the beneath of the advantageous activity of such assets or the charter period. Payments fabricated beneath operating leases are answerable to the annual of absolute assets on a beeline band abject over the aeon of the lease. l) Agent allowances Alimony obligation The Aggregation operates a authentic accession alimony plan (provident fund). A authentic accession plan is a alimony plan beneath which the Aggregation pays anchored contributions into a abstracted entity. The Aggregation has no acknowledged or able obligations to pay added contributions if the armamentarium does not authority acceptable assets to pay all advisers the allowances apropos to agent service. The contributions are recognised as agent annual bulk back they are due. m) Provisions Provisions are recognised back a present acknowledged or able obligation exists as a aftereffect of accomplished events, area it is added acceptable than not that an address of assets will be adapted to achieve the obligation and the bulk can be anxiously measured. (n) Acquirement acceptance Auction of appurtenances Sales are recognised back the risks and rewards of the articles accept been essentially transferred to the customer. Sales are apparent net of allotment and bulk added tax. o) Adopted currencies Affairs are recorded on antecedent acceptance in Ghana cedis, actuality the bill of the primary bread-and-butter ambiance in which the aggregation operates (the anatomic currency). Affairs in adopted currencies during the year are adapted into Ghana cedis at prevailing ante of barter cardinal at the transaction dates. Monetary assets and liabilities denominated in adopted currencies are translated into Ghana cedis at the ante of barter cardinal at the annual of cyberbanking position date. The constant assets and losses are dealt with in the annual of absolute income. 17 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 2. Arbitrary of cogent accounting behavior (continued) (p) Allotment Allotment broadcast to the company’s shareholders is recognised as a accountability in the cyberbanking statements in the aeon in which the assets are accustomed by the Company’s shareholders. q) Post annual of cyberbanking position contest Contest consecutive to the annual of cyberbanking position date are reflected alone to the admeasurement that they chronicle anon to the cyberbanking statements and the aftereffect is material. (r) Accidental liabilities Accidental liabilities are abeyant liabilities that appear from accomplished events, the actuality of which will be accepted alone on the accident or non-occurrence of one or added ambiguous approaching contest which are not wholly aural the ascendancy of the company. Provisions for liabilities are recorded back a accident is advised apparent and can be analytic estimated. The assurance of whether or not a accouterment should be recorded for any abeyant liabilities is based on management’s judgement. (s) Estimates Estimates are always evaluated and are based on absolute acquaintance and alternative factors, including expectations of approaching contest that are believed to be reasonable beneath the circumstances. Because of the inherent uncertainties in this appraisal process, absolute losses may be altered from the originally estimated provision. In addition, cogent estimates are complex in the assurance of accouterment accompanying to taxes and action risks. These estimates are accountable to change as new advice becomes accessible and changes consecutive to these estimates may decidedly affect approaching operating results. Accounting for property, bulb and equipment, and abstract assets involves the use of estimates for free the fair bulk at the accretion date. Furthermore, the accepted advantageous lives of these assets allegation be estimated. The assurance of the fair ethics of assets and liabilities, as able-bodied as of the advantageous lives of the assets is based on management’s judgement. (t) Articulation advertisement Operating segments are appear in a address constant with the centralized advertisement provided to the arch operating decision-maker. The arch operating decision-maker is amenable for the allocation of assets and assessing the achievement of the operation segments. 18 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 3. Acquirement Gross sales Bulk added tax Included in acquirement are consign sales of GH? 182,773 (2008: GH? Nil). 4. Bulk of sales Bulk of sales includes: Abrasion of branch barrio and bulb and accouterment Agents costs - Wages and salaries - Social aegis - Provident armamentarium 5. Administration costs Affairs and administration costs include: Abrasion of buildings, cartage and accouterment Agents costs - Wages and salaries - Social aegis - Provident armamentarium 6. Administrative costs Authoritative costs include: Abrasion of buildings, cartage and accouterment Agents costs - Wages and salaries - Social aegis - Provident armamentarium Auditor’s accomplishment Directors’ accomplishment Donations 346 1,457 105 41 33 529 55 244 813 75 29 26 357 4 1,902 2,249 186 69 1,646 1,695 141 54 1,534 3,187 240 85 1,094 2,292 180 65 2009 94,842 (12,371) 82,471 2008 63,297 (8,256) 55,041 Total cardinal of agents active by the aggregation in year was 407 (2008: 401). 7. Other assets Accumulation on auctioning of property, bulb and accessories (Note 12) Absorption on accepted accounts Auction of abandoned accoutrements and debris Provident armamentarium acquittance Rent assets Bad debts recovered Barter accretion 136 418 37 12 64 8 502 1,177 19 109 239 61 13 56 22 500 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 8. Accounts costs Absorption payable on coffer defalcation Absorption payable on accounts charter Absorption payable on agents accumulation Accounts costs on agents loans (Note 15) 2009 17 134 50 201 9. Income tax bulk 2009 Accepted tax (Note 17) Deferred tax (Note 18) 4,497 522 5,019 2008 2,009 324 2,333 2008 4 109 113 The allegation for the year can be accommodated to the accumulation per the annual of absolute assets as follows: 2009 2008 Accumulation afore tax Tax answerable at 25% (2008: 25%) Costs not deductible in free taxable accumulation Alternative differences Basal allowances brought advanced acclimated in 2008 Consign assets at altered tax bulk 20,175 5,044 14 (31) (8) 5,019 10. Dividend payable Antithesis at January 1 Allotment declared and accustomed (GH? 0. 0750 per share; 2008: GH? 0. 0575 per share) Allotment paid Antithesis at December 31 222 1,484 (1,413) 293 132 1,138 (1,048) 222 9,387 2,347 1 4 (19) 2,333 Acquittal of allotment is accountable to the answer of denial taxes at the adapted rate. Proposed allotment for approval at AGM (not recognised as a accountability as at December 31, 2009) amounted to GH? 1. 978 actor (GH? 0. 10 per share). 20 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 11. Antithesis per allotment Accumulation afterwards tax Cardinal of accustomed shares Basal and adulterated antithesis per allotment (GH? ) 2009 15,156 19,784,548 0. 77 2008 7,054 19,784,548 0. 36 There are no allotment options, abeyant rights issues or benefit issues, appropriately adulterated antithesis per allotment are the aforementioned as basal antithesis per share. 12. Property, bulb and accessories 2009 Barrio and anchorage Cost/deemed bulk At January 1, 2009 Additions Transfers Disposals At December 31, 2009 Accumulated abrasion At January 1, 2009 Allegation for the year Released on disposals At December 31, 2009 Net book bulk At December 31, 2009 2008 Barrio and anchorage Cost/deemed bulk At January 1, 2008 Additions Transfers Disposals At December 31, 2008 Accumulated abrasion At January 1, 2008 Allegation for the year Released on disposals At December 31, 2008 Net book bulk At December 31, 2008 2,829 125 3 (12) 2,945 1,069 154 (9) 1,214 1,731 Motor Bulb and cartage accouterment 4,301 1,921 (431) 5,791 3,036 783 (431) 3,388 2,403 14,501 3,312 427 (174) 18,066 7,850 2,047 (174) 9,723 8,343 Basal WIP 265 1,071 (430) 906 906 Total 21,896 6,429 (617) 27,708 11,955 2,984 (614) 14,325 13,383 2,945 353 296 3,594 1,214 236 1,450 2,144 Motor Bulb and cartage accouterment 5,791 4,602 72 (327) 10,138 3,388 1,159 (327) 4,220 5,918 18,066 5,740 78 (956) 22,928 9,723 2,387 (796) 11,314 11,614 Basal WIP 906 1,486 (446) 1,946 1,946 Total 27,708 12,181 (1,283) 38,606 14,325 3,782 (1,123) 16,984 21,622 Included in motor vehicles, bulb and accouterment are assets with a bulk of GH? 2. 3 actor (2008: GH? 2. 3 million) busy beneath a accounts lease. 21 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 12. Property, bulb and accessories (continued) 2009 Cost-capitalised accounts charter Accumulated abrasion Net book bulk Accumulation on auctioning of property, bulb and accessories Bulk of assets Accumulated abrasion Net book bulk Auction accretion Accumulation on auctioning 13. Prepaid operating lease-land Bulk At January 1 Additions At December 31 Accumulated amortisation At January 1 Allegation for the year At December 31 Net book bulk at December 31 14. Inventories Raw abstracts Accomplished appurtenances Assignment in advance Appurtenances in alteration Alternative stocks 1,888 984 61 6,557 166 9,656 1,692 772 46 4,214 87 6,811 1,283 (1,123) 160 (296) (136) 617 (614) 3 (112) (109) 2,295 (2,295) 2008 2,295 (2,101) 194 1,910 1 1,911 ,694 216 1,910 209 55 264 1,647 154 55 209 1,701 During the year the bulk of inventories answerable to the annual of absolute assets amounted to GH? 27. 7 actor (2008: GH? 21. 1 million). 22 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 15. Barter and alternative receivables Barter receivables Alternative receivables Amounts due from agents Prepayments 2009 717 1,362 151 88 2,318 2008 419 1,551 127 32 2,129 The best bulk of agents acknowledgment during the year did not beat GH? 0. 21 actor (2008: GH? 0. 14 million). Amounts due from agents are recoverable as follows: Not afterwards than 1 year Afterwards than 1 year and no afterwards than 5 years 2009 130 71 201 Approaching accounts costs Present bulk of amounts due from agents The present bulk of the amounts due from agents is breach as follows: Not afterwards than 1 year Afterwards than 1 year and no afterwards than 5 years 105 46 151 108 19 127 (50) 151 2008 108 19 127 127 The fair bulk of amounts due from agents is based on banknote flows discounted application a bulk based on borrowing bulk of 22. 53% (2008: Nil). The abatement bulk equals abject bulk bare adapted acclaim appraisement from the company’s bankers. The admiral accede that the accustomed bulk of barter and alternative receivables approximates to their fair value. 16. Trade and alternative payables Barter payables Alternative payables Accounts charter obligation (Note 19) Accruals 2009 8,199 5,861 212 14,272 17. Accepted tax As at January 1 Answerable to assets Payments As at December 31 23 2008 6,375 2,934 197 213 9,719 699 4,497 (5,059) 137 2,009 (1,310) 699 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 18. Deferred tax Deferred tax is affected in abounding on acting differences beneath the accountability adjustment application a tax bulk of 25% (2008: 25%). The allegation for the year relates to accelerated tax allowances on property, bulb and equipment. 008 2009 As at January 1 Answerable to assets As at December 31 19. Accounts charter obligation The Aggregation entered into a accounts charter acceding in 2006 for the charter of assertive motor vehicles, advance carts, bicycles and freezers. The basal bulk of these assets amounted to €753,070 and US$525,864. 91. The Aggregation has an advantage to acquirement the items afterwards the primary charter aeon for a application of 0. 25% of the basal on the assets. The charter obligation is as follows: Minimum charter payments: Not afterwards than 1 year Afterwards than 1 year and no afterwards than 5 years 2009 Approaching accounts accuse on accounts charter Present bulk of accounts charter liabilities 2008 212 212 (15) 197 808 522 1,330 484 324 808 The present bulk of the accounts charter liabilities is as follows: Not afterwards than 1 year (Note 16) Afterwards than 1 year and no afterwards than 5 years 197 197 24 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 20. Declared basal No. of shares Accretion 2009 2009 Authorised Accustomed shares of no par bulk Issued For banknote Capitalisation of surplus 40,000,000 No. of shares 2008 40,000,000 Accretion 2008 19,784,548 19,784,548 19 5,981 6,000 19,784,548 19,784,548 19 5,981 6,000 There is no contributed accountability on shares. There are no treasury shares. There are no calls or instalments unpaid. 21. Cash generated from operations Reconciliation of net accumulation afore tax to banknote generated from operations: 2009 Accumulation afore tax Abrasion Amortisation Absorption bulk Absorption assets Increase in inventories Increase in barter and alternative receivables Increase in barter and alternative payables Accumulation on auctioning of bulb and accessories Banknote generated from operations 20,175 3,782 55 201 (418) (2,845) (189) 4,566 (136) 25,191 2008 9,387 2,984 55 113 (239) (1,289) (536) 2,832 (109) 13,198 25 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 22. Banknote and banknote equivalents Banknote and banknote equivalents comprise banknote captivated and abbreviate appellation coffer deposits with an aboriginal adeptness of three months or less. The accustomed bulk of these assets approximates to their fair values. For the purpose of the annual of banknote flows, the year end banknote and banknote equivalents comprise the following: 2008 2009 Coffer and banknote balances Coffer overdrafts 15,871 15,871 8,834 8,834 At the annual of cyberbanking position date the Aggregation had an accustomed apart defalcation adeptness with bounded banks not beyond GH? 0. 5 actor (2008: GH? 0. 5 million). 23. Accompanying affair disclosures The Aggregation has a accompanying affair accord with a aloft actor and with its directors. The aloft actor Fan Milk International A/S owns 55. 449% shares in Fan Milk Limited. Emidan A/S and Fan Milk Togo are subsidiaries of Fan Milk International A/S and are accordingly entities accompanying through accepted control. In the accustomed advance of business, the Aggregation entered into the afterward affairs apparent below: (i) Acquirement of appurtenances Emidan A/S Fan Milk Togo (ii) Auction of appurtenances Fan Milk Togo Fan Milk Liberia (iii) Year end balances arising from acquirement of appurtenances Emidan A/S Fan Milk Togo 7,362 12 5,697 16 183 6 2009 23,602 28 2008 19,174 108 26 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 23. Accompanying affair disclosures (continued) (iv) Year end balances arising from auction of appurtenances Fan Milk Liberia (v) Abstruse abetment fees Fan Milk International (vi) Year end balances arising from abstruse abetment fees Fan Milk International Affairs with key administration cadre Key administration cadre are advised to be the directors. Remuneration Controlling administrator (short-term benefits) Non-executive admiral (short-term benefits) Key administration cadre accept no post-employment benefits. 24. Accidental liabilities There were no accidental liabilities at the annual of cyberbanking position date (2008: GH? Nil). 25. Cyberbanking accident administration Cyberbanking accident factors The Company’s activities betrayal it to a array of cyberbanking risks, including the furnishings of changes in adopted bill barter ante and absorption rates. The Company’s all-embracing accident administration programme focuses on the alternation of cyberbanking markets and seeks to minimise the abeyant adverse furnishings on its cyberbanking performance. Risk administration is agitated out by the administration of the aggregation beneath behavior accustomed by the lath of directors. Administration identifies, evaluates and hedges cyberbanking risks. 407 180 302 129 351 267 1,237 825 2009 56 2008 - 27 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 25. Cyberbanking accident administration (continued) Acuteness assay – bill accident The Aggregation seeks to abate its adopted bill acknowledgment through a action of matching, as far as possible, assets and liabilities denominated in adopted currencies. The Aggregation imports raw materials, additional genitalia and accessories from across and accordingly is apparent to adopted barter accident arising from Euro and USD exposures. Administration is amenable for minimising the aftereffect of the bill acknowledgment by affairs adopted currencies back ante are almost low and application them to achieve bills back due. The Aggregation hedges the bill accident application the convenance declared aloft in adjustment to abate bill accident as a aftereffect of changes in adopted barter rates. The company’s ambiguity action is able and movement in adopted barter ante would accept no absolute appulse on the Company’s result. Acuteness assay - absorption bulk accident The Company’s acknowledgment to the accident of changes in bazaar absorption ante relates primarily o the Company’s abiding obligations with a amphibian absorption rate. To administer this risk, the Company’s action is to arrangement for best absorption bulk borrowings back acceding offered are attractive. The acuteness assay for absorption bulk accident shows how changes in the fair bulk or approaching banknote flows of a cyberbanking apparatus will alter because of changes in bazaar ante at the advertisement date. The Aggregation had no cogent acknowledgment to absorption bulk accident as at December 31, 2009. Total acknowledgment to acclaim accident Cyberbanking instruments that potentially accountable the Aggregation to acclaim accident are primarily banknote and banknote equivalents and accounts receivable. Annual receivables are mainly acquired from sales to customers. The Aggregation maintains a accouterment for crime of barter receivables based aloft the accepted collectibility of all barter receivables. Barter receivables abide of invoiced amounts from accustomed trading activities. The Aggregation has barter throughout Ghana and Liberia. Austere acclaim ascendancy is acclimatized through ecology of banknote accustomed from barter and, back necessary, accouterment is fabricated for specific ambiguous accounts. As at December 31, 2009, administration was blind of any cogent unprovided acclaim risk. 28 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 25. Financial accident administration (continued) The table beneath shows the best acknowledgment to acclaim accident by chic of cyberbanking instrument: 2009 Coffer balances (excluding cash) Barter and alternative receivables (excluding prepayments) Total acclaim accident acknowledgment Clamminess accident The Aggregation has incurred acknowledgment but additionally has cogent banknote balances. The Aggregation evaluates its adeptness to accommodated its obligations on an advancing basis. Based on these evaluations, the Aggregation devises strategies to administer its clamminess risk. Advisable clamminess accident administration implies that acceptable banknote is maintained and that acceptable allotment is accessible through an able bulk of committed acclaim facilities. The Aggregation has no limitation placed on its borrowing capability. The accessories expiring aural one year are accountable to face-lifting at assorted dates during the abutting year. The Aggregation had the afterward unutilised cyberbanking accessories as at December 31, 2009: 2009 Expiring aural one year 500 2008 500 15,073 2,230 17,303 2008 8,274 2,097 10,371 Banknote of the Aggregation is placed in absorption address accepted accounts to accommodate acceptable allotment to accommodated its debt costs plan. At the annual of cyberbanking position date banknote captivated on the alarm annual was GH? 5,946 (2008: GH? 3,788). This is accepted to readily accomplish banknote inflows for managing clamminess risk. Maturity assay of cyberbanking liabilities The table beneath analyses the company’s cyberbanking liabilities. All cyberbanking liabilities abatement due for acquittal aural six months. 2008 2009 Barter and alternative payables Accounts charter accountability 14, 272 14,272 9,522 197 9,719 29 FAN MILK LIMITED Cyberbanking Statements for the year concluded December 31, 2009 + NOTES (continued) (All amounts in the addendum are apparent in accoutrements of Ghana cedis unless contrarily stated) 26. Basal commitments Basal bulk apprenticed for at the annual of cyberbanking position date but not recognised in the cyberbanking statements is as follows: 2008 2009 Property, bulb and accessories accustomed and apprenticed 27. Capital accident administration The primary objectives of the company’s disinterestedness basal administration are to ensure that the aggregation is able to accommodated its debts as they abatement due, to maximise actor bulk and allowances for alternative stakeholders and to advance an optimal basal anatomy to abate the bulk of capital. No changes were fabricated in the objectives, behavior and processes from the antecedent years. 28. Articulation advice Administration has bent the operating segments based on the letters advised by the arch of administration accumulation that are acclimated to accomplish cardinal decisions. The accumulation considers the business from artefact perspective. The reportable operating segments acquire their acquirement from the accomplish and administration of dairy articles and bake-apple drink. Administration considers the articles to accept agnate bread-and-butter characteristics and they accept accordingly been aggregated into a distinct operating segment. 593 2,031 30

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