AFAM POWER PLC

ANNUAL REPORT AND FINANCIAL

STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
 AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015

Contents Page

Corporate Information 1

Directors' Report 2

Statement of Directors' Responsibilities 5

Report of the Independent Auditors 6

1- Statement of Significant Accounting Policies 7

Profit and Loss Account 10

Balance Sheet 11

Statement of Cash Flows 12

Statement of Value Added 13

Notes to the Financial Statements 14

Five-Year Financial Summary (2015-2011) 23

AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015

Corporate Information

Directors: Ms Bolanle Onagoruwa Resigned 28.01.2013

Mohammed Kyari Dikwa Appointed 28.03.2011
Benjamin Ezra Dikki Appointed 28 .03.2013
Engr. Obademi O.N Appointed 05.12.2015

Registered Office: Afam Power Station Complex,

Afam,
Rivers State

Company Secretary: Barrister (Mrs.) J.M Iniedu

Afam Power Station Complex,
Afam,
Rivers State

Independent Auditors: Sada, Idris & Co.,

(Chartered Accountants)
2nd Floor, B Wing, FMBN Building,
Central Business District,
Abuja

Bankers: Central Bank of Nigeria

Union Bank PIc
Keystone Bank Limited

1
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
DIRECTORS'REPORT
The directors submit their report together with the audited financial
statements for the year ended 31 December 2015, which disclose the state of
affairs of the company.
Incorporation and address
Afam Power Plc ("the Company'') was incorporated in Nigeria on 9
November 2005 under the Companies and Allied Matters Act CAP (C20)
LFN 2004 as a public limited liability company. The address of its registered
office is:
Afam Power Station Complex,
Afam,
Rivers State

Principal activities
The company is mainly engaged in generation of electric power.
Results
The company's results for the year are set out on page 10. The profit after
taxation for the year of (N832,454) has been transferred to accumulated
deficits. During the year, no interim dividend was paid. The directors do not
recommend the payment of any dividend.
Directors
The directors who held office since incorporation to date of this report
were:

Ms Bolanle Onagoruwa Resigned 28.01.2013

Mohammed Kyari Dikwa Appointed 28.03.2011
Benjamin Ezra Dikki Appointed 28.03.2013
Engr. Obademi O.N Appointed 05.12.2015
Directors' interests in contracts
None of the directors has notified the company for the purpose of section 277 of
the Companies and Allied Matters Act CAP (C20) LFN 2004 of their direct or
indirect interest in contracts or proposed contracts with the company during the
year.

2
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
DIRECTORS' REPORT (continued)

Directors' interests in shares

None of the directors had any interest in the equity of the company as at 31st
December 2014.

Shareholding structure
As at 31 December 2015, the issued share capital of the company as recorded
in the register of shareholders were as follow:

Shareholders No of Percentage
shares held %

Bureau of Public Enterprises (BPE) 8,000,000 80

Ministry of Finance Incorporated (MOFI) 2,000,000 20
10,000,000 100
Equal employment opportunity
The company pursues an equal employment opportunity policy. It does not
discriminate against any person on the ground of race, religion, colour, or
physical disability.

Employment of physically disabled persons

The company maintains a policy of giving fair consideration to applications
from physically disabled persons, bearing in mind their respective aptitudes
and abilities. In the event of members of staff becoming disabled, every effort
is made to ensure that their employment with the company continues and
that the appropriate training is arranged.

3
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
DIRECTORS' REPORT (continued)
Industrial/Employees relations
The company places considerable value on the involvement of its employees
and keeps them informed on matters affecting them as employees and the
various factors affecting the performance of the company. This is achieved
through management's open door policy and improved communication
channels. These channels include the e-mail and an intranet, the revised in
house magazine, the entrenchment of regular departmental meetings and
executive management's divisional town hall meetings. The relationship
between management and the house unions remains very cordial. Regular
dialogue take place at informal and formal levels.
Training and development
The company places great emphasis on the training and development of its
human capital and believes that its employees are its greatest assets. Training
courses are geared towards the dvelopmental needs of staff and the
improvement in their skill sets to face the increasing challenges in the
industry. We will continue to invest in our human capital to ensure that our
people are well motivated and positioned to compete in the industry.
Donations/ Charitable gifts
The company made no donation during the year ended 31 December 2014
(2012:Nil).
Auditors
Messrs Sada, Idris & Co., (Chartered Accountants) have indicated their
willingness to continue in office as auditors in accordance with section 357(2)
of the Companies and Allied Matters Act CAP C20 LFN 2004.

By Order of the Board

~
Barr. Mrs. J.M. Iniedu
Company Secretary
th
29 December, 2016

4
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Companies and Allied Matters Act requires the directors to prepare
financial statements for each financial year that give a true and fair view of the
state of financial affairs of the company at the end of the year and of its profit or
loss. The responsibilities include ensuring that the company:
(a) keeps proper accounting records that disclose, with reasonable accuracy ,
the financial position of the company and comply with the requirements of
the Companies and Allied Matters Act CAP C20 LFN 2004.
(b) establishes adequate internal controls to safeguard its assets and to prevent
and detect fraud and other irregularities; and
(c) prepares its financial statements using suitable accounting policies
supported by reasonable and prudent judgements and estimates, and are
consistently applied.
The directors accept responsibility for the annual financial statements, which
have been prepared using appropriate accounting policies supported by
reasonable and prudent judgements and estimates, in conformity with Nigerian
Accounting Standards and the requirements of the Companies and Allied
Matters Act CAP C20 LFN 2004.
The directors are of the opinion that the financial statements give a true and fair
view of the state of the financial affairs of the company and of its profits or
losses. The directors further accept responsibility for the maintenance of
accounting records that may be relied upon in the preparation of financial
statements, as well as adequate systems of internal financial control.
Nothing has come to the attention of the directors to indicate that the company
will not remain a going concern for at least twelve months from the date of this

Engr. Obademi O.N

Ag. Managing Director / Chief Executive
th
29 December 2016

5
 ~I----..S~a_d--.-*a_Ch:_rte~:e~_
~ AudIt
: -:-:- ~~--u~:---
Tax
- . , nt~
*
~C=°=-i-I
Consultmg

Report of Independent Auditors to the Members of Afam Power PIc

We have audited the accompanying financial statements of Afam Power Plc which comprise the balance
sheet as at 31st December 2015, the profit and loss accounts, the statement of cash flo ws for the year then
ended, summary of significant accounting policies and other explanatory notes.

Respective Responsibilities of the Board and Auditors

The Company's directors are responsible for the preparation and fair presentation of these financial
statements in accordance with the relevant standards issued by the Financial Reporting Council of Nigeria,
the proyisions of the Companies and Allied Matters, CAP C20 Laws of the Federation of Nigeria 2004 and
for such internal control as the directors determines necessary to enable the presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Basis of Opinion
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing. Those standards require that we comply
with ethical requirements, plan and perform the audit w obtain reasonable assurance as to whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making these risks assessments, the auditors consider internal controls relevant to the entity's
preparation and a fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal comro!' An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall
presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide 1 basis for the audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of Afam Power
Pic as at 31st December, 2015, and of the Company's financial performance and cash flows for the period
then ended in accordance with the relevant standards issued by the Financial Reponing Council of
Nigeria, provisions of the Companies and Allied Matters Ac, CAP C20 Laws .of the Federation of Nigeria
2004 .
. Emphasis of Matters
We draw attention to the letter of credit on the Financial Statements which indicates that the sum of
N4,974,457,OOO, we could not confirm and/ or any document to as its validity and existence as such we
could not express an opinion on the appropriateness of the transaction.
Report on other legal and regulatory requirements
In accordance with the requirement of Schedule 6 of the Compames and Allied Matters Act, CAP C20
We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposlC of our audit;
In our opinion, proper boo1;s of account have been kept by the Company, so far a, appears from our
11
examinatiol1 of those books;
III The Company's balance sheet and income and expenditure account are in agreement with the books of account.

Sada, Idris & Co.

Chartered Accountants
Abuja, Nigeria Partner: Nkem Onyekawa
Date:!).O ) \ ~ ,(J-t)1k, FRC/2013/ICAN/00000001804

3rd Floor, Turaki Ali House Partners: Zakari Mohammed Sada FCCA, FCA, Bse; Nkem
p....Q. Box 3322
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

31 DECEMBER 2015

1 Basis of preparation
The financial statements are prepared in compliance with Nigerian Statements
of Accounting Standards (SAS). The financial statements are presented in the
functional currency, Nigeria Naira (N), rounded to the nearest thousand, and
prepared under the historical cost convention.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Although these estimates
are based on the directors' best knowledge of current events and actions, actual
results ultimately may differ from those estimates.

2 Property, plant and equipment

All categories of property, plant and equipment are initially recorded at cost,
and subsequently recorded at historical cost less accumulated depreciation.

Subsequent costs are included in the asset's carrying amount or recognised as a

separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the company and the cost of the
item can be measured reliably. All other repairs and maintenance costs are
charged to the profit and loss account during the financial period in which they
are incurred.
Increases in the carrying amount arising on revaluation are credited to a
revaluation surplus reserve in equity. Decreases that offset previous increases of
the same asset are charged against the revaluation surplus; all other decreases
are charged to the profit and loss account. Each year the difference between
depreciation based on the revalued carrying amount of the asset (the
depreciation charged to the profit and loss account) and depreciation based on
the asset's original cost is transferred from the revaluation surplus to retained
earnmgs.

7
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
31 DECEMBER 2015
An 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. Gains and losses on disposals are determined by comparing proceeds
with carrying amount. These are included in the income statement.
Depreciation
Depreciation is calculated using the straight-line method to allocate their costs
over their estimated useful lives, as follows:
Land Not depreciated
Buildings 2%
Plants and machinery 2.5%
Furniture, fittings and office equipment
Motor vehicles
3 Revenue
Capacity charge is recognized monthly based on the available capacity declared
at the begining of the month. Revenue from energy sent out is calculated on
the basis of GWh of electricity pushed to the transmission grid. The capacity
charge and energy sent out are included in revenue reported in the profit and
4 Natural gas/fuel costs
These comprise the costs of natural gas used in generation of electric power
including costs incurred to transport natural gas to the power plant. These
form part of the operating costs of the company which are accounted for in the
profit and loss account.
S Impairment of assets
Assets are reviewed for impairment 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 costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units).

8
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
31 DECEMBER 2015
6 Inventories (stock)
Inventories primarily consist of spare parts and are stated at lower of cost and
net realisable value. Costs include expenditure incurred in acquiring and
transporting the inventory to their present location. Costs are expensed to
operating costs or capitalized to property, plant and equipment as the parts are
utilised and consumed.
7 Trade receivables
Trade receivables are stated after prOVISIons have been made for debts
considered doubtful of recovery. A provision for impairment of trade
receivables is established when there is objective evidence that the company
will not be able to collect all amounts due according to the original terms of the
receivables. The amount of the provision is recognised in the income
8 Staff retirement benefits
The company operates a defined retirement benefit plan for its staff and
contributes 100% of the fund based on 25% of staff basic salary and payroll
allowances other than hazard, furniture, electricity, leave grant, extra duty and
shift allowances.
9 Government grants
These are receipts from the Federal Government for capital projects and are
accounted for in the year they are received. Grants applied to fund revenue
operations are treated as government subsidies in income statement.

10 Foreign currency translation

Transactions in foreign currencies during the year are converted into the
functional currency, Nigeria Naira, using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year end exchange
rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the profit and loss account.

9
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
PROFIT AND LOSS ACCOUNT 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 NOTES N'OOO N'OOO

Turnover 2 81,324/ 2,805,755

Operating cost 3 (873,959)/ (1,732,333)

Gross profit (792,635)/ 1,073,422

Other operating income 4 549,974/ 39,247

Operating profit (242,661) / 1,112,669

Administrative expenses 5 (589,793)/ (866,050)

Loss before taxation (832,454)/ 246,619

Taxation 13 0 (5,686)

Profit / Loss after taxation (832,454) / 240,933

transferred

Basic loss per share (Naira) 6 (83) 24

The statement of significant accounting policies on pages 7 to 9 and notes on pages

14 to 22 form an integral part of thesefinancial statements.

10
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
BALANCE SHEET 2015 2014
AS AT 31 DECEMBER 2015 NOTE N'OOO N'OOO
Non-current assets I
Property, plant and equipment 7 12,244,356 11,815,840
Total non-current assets 12,244,356 11,815,840
Current assets
Inventories (stock) 8 524,481 / 515,569
Prepayments and other receivables 9 6,897,993 / 7,681,656
Cash and bank balances 10 76,437/ 202,666

Total current assets 7,498,911 8,399,891

Total assets 19,743,267 20,215,731

Current liabilities
Trade payables 11 (756,462) / (829,309)
Other payable and accruals 12 (523,999) j (191,495)
Tax payable 13 (206,318) (206,318)

Total current liabilities (1,486,779) (1,227,122)

Net current assets 6,012,132/' 7,172,769
Total assets less current liabilities 18,256,488 18,988,609
Non-current liabilities
Employee retiremenent benefits 14 (1,790,029)/ (1,790,029)

Total non-current liabilities (1,790,029)/ (1,790,029)

Net assets 16,466,459 17,198,580

Capital and reserves
Share capital 15 5,000
Federal government funding 16 20,921,886
NELMCO 27 1,899,796
Accumulated deficit 17 (5,628,102)
Shareholders' funds 17,198,580

The financial statements and notes on pages 14 to 22 were approved

by the Board of Directors and signed on its behalf by:

~~
Obademi O:::-:-.N-::---- ~hinweOlU
Ag. Managing Director / Chief Executive Chief Financial Officer
29th December 2016 29th December 2016

The statement of significant accounting policies on pages 7 to 9 and notes on pages 14 to 22

form an integral part of these financial statements.

11
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
STATEMENT OF CASH FLOWS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE N'OOO N'OOO
Cash flows from operating activities:

Net cash flow from operating activities

before changes in working capital 18 (415,868) 642,078

Net decrease in working capital 19 1,034,407 (655,439)

Net cash from operating activities 618,538 (13,361)

Cash flows from investing activities:

Purchase of property, plant and 7 (845,102) (331,711)
equIpment

Net cash used in investing activities (845,102) (331,711)

Cash flows from financing activities:

Federal government funding 16 100,333 399,823
NELMCO 0 5,919
Net cash generated from financing activities 100,333 405,742

Increase/ (Decrease) in cash and cash equivalents (126,229) 60,672

Analysis of changes in cash and cash equivalents

Cash and cash equivalent at the beginning of the year 10 202,666 141,994
Cash and cash equivalents at end of the year 10 76,437 202,666
(126,229) 60,672

The statement of significant accounting policies on pages 7 to 9 and notes on pages 14 to

22 form an integral part of thesefinancial statements.

12
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
STATEMENT OF VALUE ADDED 2015 2014
NOTE
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO

Turnover 2 81,324 2,805,755

Bought-in materials and services:
Local 21 (228,081) (1,208,275)

(146,757) (36) 1,597,480 98

Other operating income 4 549,974 136 39,247 2

Value added/(absorbed) 403,217 100 1,636,727 100

Distributed as follows

Employees:
To pay salaries, wages and other staff costs 20 819,086 203 988,149 61

Government:
13 5,686
To pay tax
° ° °
Maintenance of assets:
Depreciation 7 416,585 103 395,458 24

Retained for future growth:

Loss for the year 17 (832,454) (206) 240,933 15

Value added/(absorbed) 403,217 100 1,630,226 100

13
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO

1 General information
The company was incorporated in Nigeria as a public limited liability company to
operate as an electric power generation company. Its principal activity is the
generation and sale of electric power to the electricity distribution companies.

2 Turnover
Energy sent out 81,324 2,805,755
Total Turnover 81,324 2,805,755

3 Operating cost
Natural gas/fuel costs 28,461 869,044
Salaries and allowances 362,853 401,156
Industrial training fund levy 3,629 4,012
Employee's compensation levy 3,629 4,012
Employement benefit 9,357 12,948
Repairs and maintenance 80,070 63,283
Depreciation 376,585 355,458
Other direct expenses 9,375 22,421

Total operating cost 873,959 1,732,333

4 Other operating income
Rental income 17,019 12,048
Asset disposed 26,199
NAPTIN training ° 1,000
Market operator (MYTO) °
532,955

Total other operating income 549,974 39,247

°

14
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015

NOTES TO THE FINANCIAL STATEMENTS 2015 2014

FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO
5 Administrative expenses
Salaries and wages 407,841 481,199
Staff training and seminars
Staff welfare °
13,348
24,650
31,127
Industrial training fund levy 4,078 4,812
Employee's compensation levy 4,078 4,812
Employement benefit 10,273 19,422
Hotel expenses 6,485 19,459
Transport and travels 7,001 16,984
Entertainment 6,427 19,181
Printing and stationery 2,177 3,537
Books, newspapers and periodicals 432 495
Subscriptions and fees 1,089 3,405
Security services 31,833 44,280
Telephone and postages 1,339 1,634
Office repairs and maintenance 9,879 12,097
Vehicle repairs and maintenance 4,909 8,667
Office equipment and maintenance 20,654 75,060
Medical expenses 9,470 19,077
Internal audit expenses 0 9,335
Audit fees 6,500 6,500
Bank charges 1,390 4,485
Rent and rates 590 15,832
Depreciation 40,000 40,000
589,793 866,050
Depreciation expenses is charged as follows:
Operating cost 376,585 355,458
Administrative expenses 40,000 40,000
416,585 395,458

15
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO

6 Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the equity
holders of the company by the weighted average number of shares in issue during the
year.

Loss attributable to equity holders of the company (832,454) 240,933

Weighted average number of shares in issue 10,000 10,000

Basic loss per share (Naira) (83) 24

16
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO

7 Property, plant and equipment

Furniture,
Plant & Motor
Land Building Fittings & Total
Machinery Vehicles
Equipment

N'OOO N'OOO N'OOO N'OOO N'OOO N'OOO

Cost:
At 1 January 2015 280,000 42,037 14,218,310 175,690 107,952 14,823,989

Addition for the year 0 0 845,102 0 0 845,102

At 31 December2015 280,000 42,037 15,063,412 175,690 107,952 15,669,091

Depreciation:

At 1 January 2015 0 3,914 2,803,240 124,658 76,338 3,008,150

Charge for the year 0 841 376,585 17,569 21,590 416,585

At 31 December 2015 0 4,755 3,179,826 142,227 97,928 3,424,735

Net book value:

At 31 December 2015 280,000 37,282 11,883,586 33,463 10,024 12,244,356

At 31 December 2014 280,000 38,123 11,415,070 51,032 31,614 11,815,839

17
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO
8 Inventories (stock)
Spare parts 118,238 118,240
General stores 290,940 281,585
Stationery 4,303 4,744
Tools and lubricants 111,000 111,000

Balance as at 31 December 2015 524,481 515,569

9 Prepayment and other receivables

Headquarter letter of credit 4,974,457 4,974,457
Temporary advances 8,004 35,448
Trade Debtors 1,915,532 2,671,751

Balance as at 31 December 2015 6,897,993 7,681,656

10 Cash and bank balances

Cash in hand 565 1,266
Cash at bank 75,830 195,656
CBN: Emergency fund 0 776
CBN: Capital appropriation account 0 199
Keystone: MYTO account 42 4,769
Balance as at 31 December 2015 76,437 202,666

11 Trade payable
Opening Balance 829,309 120,600
Add: Invoices 28,461 869,044
Less: Settlement of bill (101,308) (160,335)

Balance as at 31 December 2015 756,462 829,309

18
AFAM POWER PLC
Annual Report and Financial Statements
F or the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO

12 Other payables and accruals

Wages and salaries payable 140,307
WHT payable 11,313 °
3,933
VAT payable 11,313 3,577
Pay as you earn 22,228 9,625
Industrial training fund levy 74,348 66,641
Employees' compensation levy 50,099 42,392
Employees' retirement savings 63,563 37,207
Audit fees 22,334 15,834
Sundry creditors 128,494 12,286

Balance as at 31 December 2015 523,999 191,495

13 Tax payable
Based on the result of the year as adjusted for tax purposes
Income tax (minimum tax) 5,686
Education tax ° 0
Per profit and loss account
° 5,686
°
Balance brought forward 206,318 200,632
Tax paid during the year 0
Per balance sheet 206,318
°
206,318

14 Employee retirement benefits

Opening balance 1,790,029 1,790,029
Charge for the year
Less payment during the year ° °
0
Balance as at 31 December 2015 °
1,790,029 1,790,029

19
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO
15 Share capital
Authorised:
10,000,000 Ordinary shares of NO.50 each 5,000 5,000

Issued and fully paid:

Bureau of Public Enterprises (BPE) 4,000 4,000
8,000,000 ordinary shares of NO. 50 each
Ministry of Finance Incorporated (MOF!) - 1,000 1,000
2,000,000 ordinary shares of NO. 50 each
Balance as at 31 December 2015 5,000 5,000

16 Federal government funding

Opening balance 20,921,886 20,522,063
Additions during the year 101,308 399,823
Mop up viz CBN (975)
Balance as at 31 December 2015 21,022,219 20,921,886

17 Accumulated deficits
Opening balance (5,628,102) (5,869,035)
Loss for the year (832,454) 240,933
Balance as at 31 December 2015 (6,460,556) (5,628,102)

18 Net cash flow from operating activities

before changes in working capital
Operating profit (832,454) 246,620
Adjustments for non-cash items and interests:
- Depreciation 416,585 395,458
Balance as at 31 December 2015 (415,868) 642,078

20
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO
19 Net increase/(decrease) in workim! caoital
Inventories (stock) (8.912) 108.083
Preoavments and other receivables 783.662 (1.492.991)
Trade oavables (72.847) 708.709
Other payables and accruals 332,504 20,760
Balance as at 31 December 2015 1,034,407 (655,439)
20 Staff costs
1. Emolovees' costs durinQ: the vear amounted to:
Salaries and wages 770,694 882,355
Industrial training fund levy 7,707 8,824
Employees' compansation levy 7,707 8,824
Employees' benefits 19,630 32,370
Welfare and training 13,348 55,777
819,086 988,149
ii. The average number of full-time persons employed by the company during the year
was as follows:
Number Number
Mana£ement staff 13 15
Senior staff 64 66
Junior staff 138 166
215 247
111. Higher-paid employees of the company, other than directors, whose duties were wholly or
mainly discharged in Nigeria, received remuneration (excluding pension contributions) in the
following ranges:
Number Number
Below Nl,OOO,OOO 25 30
Nl,OOO,OOl Nl,500,000 20 25
N1,500,001 N2,000,000 25 31
N2,000,001 N2,500,000 48 52
N2,500,001 N3,000,000 24 28
N3,000,001 N3,500,000 22 30
N3,500,001 N4,000,000 21 21
N4,000,001 N4,500,000 15 15
N4,500,001 N5,000,000 10 10
Above N5,000,000 5 5
215 247

21
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
NOTES TO THE FINANCIAL STATEMENTS 2015 2014
FOR THE YEAR ENDED 31 DECEMBER 2015 N'OOO N'OOO
21 Bought-in materials and services
Operating costs 873,959 1,732,333
Administrative expenses 589,793 859,549
Salaries and wages (819,086) (988,149)
Depreciation (416,585) (395,458)
228,081 1,208,275

22 Contingent liabilities
As at the end of the year, there were no contingent liabilities standing against the company.

23 Pending litigation
As at the end of the year, there were no pending litigations standing against the company.

24 Related party transactions

There were no significant related party transactions relating to the company's financial statements.

25 Post balance sheet events

In accordance with the Federal Government Power Sector Reform Programme, Taleveras Group
successfully acquired 100% stake in the equity share capital of Afam Power Pic on 30th July 2013
and made a part payment of 25% on 12th February, 2014. Taleveras Group will take over the
management and control of the company upon full and final payment of the remaining 75% balance.
Apart from the above, no events or transactions have occurred since the balance sheet date which
could have a material effect upon the financial statements at that date or which need to be mentioned
in the financial statements in order to make them not misleading as to the financial position or result
of operations at the balance sheet date.

26 Segment information
There are no seperately identifiable business segments that met the criteria for disclosure m
accordance with SAS 24. The entity has only one geographical location in Nigeria.

27 NELMCO
Opening balance 1,899,796 1,893,877
Add: unpaid invoice o 5,919
Less: Amount from Asset disposal remit to NELMCO o (4,200)
1,899,796 1,899,796
28 Comparative Figures
Certain figures have been restated in line with current year's presentation to make more meaningful
companson.

22
AFAM POWER PLC
Annual Report and Financial Statements
For the Year Ended 31 December 2015
2015 2014 2013 2012 2011
FIVE-YEAR FINANCIAL SUMMARY
N'OOO N'OOO N'OOO N'OOO N'OOO

Balance Sheet

Non-current assets 12,244,356 11,815,840 11,879,588 11,815,466 11,679,606

Current assets 7,498,911 8,399,891 6,954,313 6,269,569 6,030,284
Current liabilities (1,486,779) (1,227,122) (491,967) (1,606,748) (1,282,294)
Non-current liabilities (1,790,029) (1,790,029) (1,790,029) (1,404,367) (1,197,410)

Net assets 16,466,459 17,198,580 16,551,905 15,073,920 15,230,186

Share capital 5,000 5,000 5,000 5,000 5,000

Federal government funding 21,022,219 20,921,886 20,522,063 20,001,627 19,745,099
NELMCO 1,899,796 1,899,796 1,893,877 0 0
Retained earnings (6,460,556) (5,628,102) (5,869,035) (4,932,707) (4,519,913)

Total equity 16,466,459 17,198,580 16,551,905 15,073,920 15,230,186

Profit and loss account

Turnover 81,324 2,805,755 3,011,912 3,524,748 1,768,429

Loss before taxation (832,454) 246,619 (932,481) (552,206) (1,543,701)

Taxation 0 (3,847) (3,847) (4,480) 0

Loss after taxation transferred
to accumulated deficits (832,454) 242,772 (556,686) (1,543,701) (1,427,420)

Basic loss per share (Naira) (83) 24 (56) (154) (143)

23