DANGOTE SUGAR REFINERY : QUARTER 1 - FINANCIAL STATEMENT FOR 2024

Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements

for the period ended March 31, 2024

Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Index

The reports and statements set out below comprise the consolidated and separate financial statements presented to the shareholders:

Contents	Page
General Information	1
Consolidated and separate statements of profit or loss and other comprehensive income	2
Consolidated and separate statements of financial position	3
Consolidated and separate statements of changes in equity	4
Consolidated and separate statements of cash flows	5
Notes to the Financial Statements	6 - 39

Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

General Information

Country of incorporation and domicile	Nigeria
Nature of business and principal activities	Refining of raw sugar into edible sugar and selling of refined sugar
Chairman	Alh. Aliko Dangote (GCON)
Group Managing Director/CEO	Mr. Ravindra Singhvi
Executive Director	Hajiya Mariya Dangote
Director	Mr. Olakunle Alake
Director	Mr. Uzoma Nwankwo
Director	Ms. Bennedikter Molokwu
Director	Dr. Konyinsola Ajayi
Director	Alh. Abdu Dantata
Director	Ms. Maryam Bashir
Director	Mrs. Yabawa Lawan Wabi
Registered office	GDNL Administrative Building
	Terminal E, Shed 20
	NPA Apapa Wharf Complex
	Apapa
	Lagos
Holding company	Dangote Industries Limited, incorporated in Nigeria
Ultimate holding company	Greenview International Corp. Cayman Island
Auditors	PricewaterhouseCoopers
	(Chartered Accountants)
	Landmark Towers
	Plot 5B, Water Corporation Road
	Victoria Island
	Lagos
Bankers	Access Bank Plc
	Coronation Merchant Bank
	Ecobank Plc
	Fidelity Bank Plc
	First Bank of Nigeria Limited
	First City Monument Bank Plc
	FSDH Merchant Bank
	Globus Bank Ltd
	Guaranty Trust Bank Plc
	Greenwich Merchant Bank
	Jaiz Bank Plc
	Providus bank Plc
	Keystone bank Limited
	Rand Merchant Bank
	Sterling Bank Plc
	Stanbic IBTC Bank Plc
	Standard Chartered Bank Nigeria Limited
	United Bank for Africa Plc
	Union Bank of Nigeria Plc
	Unity Bank Plc
	Wema Bank Plc
	Zenith Bank Plc
Company Secretary/Legal Adviser	Mrs. Temitope Hassan
	3rd Floor, GDNL Administrative Building
	Terminal E, Shed 20
	NPA Apapa Wharf Complex
	Apapa
	Lagos
Registrars	Veritas Registrars Limited
	Plot 89A Ajose Adeogun Street
	Victoria Island
	Lagos

1

Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Consolidated and separate statement of profit or loss and other comprehensive income

				GROUP						COMPANY
	Note(s)	Qtr1, 2024	31/3/2024	Qtr1, 2023	31/3/2023	F/Yr, 2023		Qtr1, 2024	31/3/2024	Qtr1, 2023	31/3/2023	F/Yr, 2023
	N'000	N'000	N'000	N'000	N'000		N'000	N'000	N'000	N'000	N'000
Continuing operations
Revenue	5	122,727,335	122,727,335	102,224,737	102,224,737	441,452,953	122,727,335	122,727,335	102,224,737	102,224,737	441,452,953
Cost of sales	6	(113,976,576)	(113,976,576)	(76,473,590)	(76,473,590)	(355,149,111)	(113,976,576)	(113,976,576)	(76,473,590)	(76,473,590)	(355,149,111)
Gross profit		8,750,759	8,750,759	25,751,147	25,751,147	86,303,842	8,750,759	8,750,759	25,751,147	25,751,147	86,303,842
Other income	11	52,484	52,484	73,143	73,143	1,233,279	52,284	52,284	73,143	73,143	1,233,163
Selling and distribution expenses	7	(151,213)	(151,213)	(174,562)	(174,562)	(644,496)	(151,213)	(151,213)	(174,562)	(174,562)	(644,496)
Administrative expenses	7	(3,501,785)	(3,501,785)	(2,749,674)	(2,749,674)	(13,280,725)	(3,248,621)	(3,248,621)	(2,489,318)	(2,489,318)	(12,210,566)
Impairment gains/(losses)	23.3	145,222	145,222	-	-	(926,288)	145,222	145,222	-	-	(926,288)
Operating profit	14	5,295,467	5,295,467	22,900,054	22,900,054	72,685,612	5,548,431	5,548,431	23,160,410	23,160,410	73,755,655
Finance income	8	1,892,640	1,892,640	2,581,464	2,581,464	10,559,617	1,892,639	1,892,639	2,581,463	2,581,463	10,559,616
Finance cost	10	(122,524,005)	(122,524,005)	(8,058,689)	(8,058,689)	(201,663,325)	(122,181,415)	(122,181,415)	(8,108,086)	(8,108,086)	(200,972,519)
Finance costs - net		(120,631,365)	(120,631,365)	(5,477,225)	(5,477,225)	(191,103,708)	(120,288,776)	(120,288,776)	(5,526,623)	(5,526,623)	(190,412,903)
Change in fair value adjustment	9	8,478,205	8,478,205	1,111,360	1,111,360	9,495,990	8,478,205	8,478,205	1,111,360	1,111,360	9,495,990
(Loss)/Profit before tax		(106,857,693)	(106,857,693)	18,534,189	18,534,189	(108,922,106)	(106,262,140)	(106,262,140)	18,745,147	18,745,147	(107,161,258)
Taxation	12.1	37,864,284	37,864,284	(5,730,981)	(5,730,981)	35,161,798		37,864,284	37,864,284	(5,730,981)	(5,730,981)	35,161,798
(Loss)/Profit for the period		(68,993,409)	(68,993,409)	12,803,208	12,803,208	(73,760,308)	(68,397,856)	(68,397,856)	13,014,166	13,014,166	(71,999,460)
(Loss)/Profit attributable to:
Owners of the parent		(68,987,453)	(68,987,453)	12,805,318	12,805,318	(73,742,699)	(68,397,856)	(68,397,856)	13,014,166	13,014,166	(71,999,460)
Non-controlling interest		(5,956)	(5,956)	(2,110)	(2,110)	(17,608)		-	-	-	-	-
		(68,993,409)	(68,993,409)	12,803,208	12,803,208	(73,760,308)	(68,397,856)	(68,397,856)	13,014,166	13,014,166	(71,999,460)
Total comprehensive (loss)/income
for the period		(68,993,409)	(68,993,409)	12,803,208	12,803,208	(73,760,308)	(68,397,856)	(68,397,856)	13,014,166	13,014,166	(71,999,460)
Total comprehensive (loss)/income
attributable to:
Owners of the parent		(68,987,453)	(68,987,453)	12,805,318	12,805,318	(73,742,699)	(68,397,856)	(68,397,856)	13,014,166	13,014,166	(71,999,460)
Non-controlling interest		(5,956)	(5,956)	(2,110)	(2,110)	(17,608)	-	-	-	-	-
		(68,993,409)	(68,993,409)	12,803,208	12,803,208	(73,760,308)	(68,397,856)	(68,397,856)	13,014,166	13,014,166	(71,999,460)
Earnings per share
Per share information
Basic earnings per share (Naira)	15	(5.68)	(5.68)	1.05	1.05	(6.07)	(5.63)	(5.63)	1.07	1.07	(5.93)
Diluted earnings per share (Naira)	15
(5.68)	(5.68)	1.05	1.05	(6.07)	(5.63)	(5.63)	1.07	1.07	(5.93)

2

Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Consolidated and separate statements of financial position as at March 31, 2024

		GROUP	GROUP		GROUP		COMPANY		COMPANY	COMPANY
		31/3/2024	31/12/2023	31/3/2023	31/3/2024	31/12/2023	31/3/2023
		N'000	N'000		N'000		N'000		N'000	N'000
Assets
Non-current assets
Property, plant and equipment	16	169,520,980	167,082,812	160,537,435	102,912,009	101,177,856	95,975,323
Deferred tax assets	13	71,009,579	33,145,294	-	71,009,579	33,145,294	-
Investment in subsidiaries	20	-	-	-	297,000	297,000	297,000
Deposit for shares	21	-	-		-		68,591,582	67,035,291	64,834,000
Total non-current assets		240,530,559	200,228,106	160,537,435	242,810,170	201,655,441	161,106,323
Current assets
Inventories	22	130,286,362	47,916,853	45,700,734	129,382,885	47,061,249	44,799,926
Biological assets	17	18,775,135	14,464,427	6,676,974	18,775,135	14,464,427	6,676,974
Trade and other receivables	23	82,302,257	131,804,186	141,816,348	82,084,623	131,569,672	141,056,457
Other assets	18	6,891,080	745,008	292,908	6,889,685	743,612	288,046
Asset held for sale	19	868,642	868,642	868,642	868,642	868,642	868,642
Cash and cash equivalents	24	138,195,859	204,762,703	203,019,810	138,106,015	204,677,479	202,749,905
Total current assets		377,319,335	400,561,819	398,375,416		376,106,985	399,385,081	396,439,950
Total assets		617,849,894	600,789,925	558,912,851	618,917,155	601,040,522	557,546,273
Equity
Attributable to owners of Parent company
Share capital	25	6,073,439	6,073,439	6,073,439	6,073,439	6,073,439	6,073,439
Share premium	25	6,320,524	6,320,524	6,320,524	6,320,524	6,320,524	6,320,524
Retained earnings	26	(2,105,233)	66,882,220	171,650,555	1,018,089		69,415,945	172,649,888
		10,288,730	79,276,183	184,044,518	13,412,052	81,809,908	185,043,851
Non-controlling interest	27	(36,354)	(30,398)	(14,899)	-		-	-
		10,252,377	79,245,785	184,029,618	13,412,052	81,809,908	185,043,851
Liabilities
Non-Current Liabilities
Deferred tax liabilities	13	-	-	13,238,074	-	-	13,238,074
Lease liability	31.1	8,640	83,948	72,706	-	83,948	-
Borrowings	28	297,100	246,109	545,194	297,100	246,109	545,194
		305,740	330,057	13,855,974	297,100	330,057	13,783,268
Current Liabilities
Current tax liabilities	12.3	14,445,581	14,445,581	31,273,621	14,450,510	14,450,510	31,273,620
Lease liability	31.1	238,346	116,260	967,330	149,883	61,932	967,330
Borrowings	28	167,193	285,454	172,315	167,193	285,454	172,315
Trade and other payables	30	518,290,093	487,862,445	311,364,595	516,289,853	485,598,318	309,056,491
Commercial paper	30.1	39,388,223	-	-	39,388,223	-	-
Bank overdraft	30.2	21,562,727	-	-	21,562,727	-	-
Employee benefits	29	712,047	712,047	760,644	712,047	712,047	760,644
Other liabilities	31	12,487,567	17,792,296	16,488,754	12,487,567	17,792,296	16,488,754
Total current liabilities		607,291,777	521,214,083	361,027,259	605,208,003	518,900,557	358,719,154
Total liabilities		607,597,517	521,544,140	374,883,233	605,505,103	519,230,614	372,502,422
Total equity and liabilities		617,849,894	600,789,925	558,912,851	618,917,155	601,040,522	557,546,273

The consolidated and separate financial statements on pages 2 to 39, were approved by the board on April 29, 2024 and were signed on its behalf by:

-----------------------------------------------	-------------------------------------------------	------------------------------------------
Alh. Aliko Dangote, GCON	Mr. Ravindra Singh Singhvi	Mr. Oscar Mbeche
Chairman	Group Managing Director/CEO	Group Chief Finance Officer
FRC/2013/IODN/00000001766	FRC/2021/003/000000/22565	FRC*
`		* "Waiver granted by FRCN"

The accompanying notes on pages 6 to 39 form an integral part of the consolidated and separate financial statements.

3

Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Consolidated and separate statements of changes in equity

Company	Note				Share Capital		Share		Retained			Total
						Premium		Earnings
						N'000		N'000		N'000			N'000
Balance as at 1 January 2023						6,073,439	6,320,524	159,635,722	172,029,685
Profit for the period						-		-		13,014,166		13,014,166
Total comprehensive income for the period						-	-	13,014,166	13,014,166
Transaction with owners:
Surplus on revaluation of Numan land											-
Dividend paid						-	-			-
Balance as at 31 March 2023						6,073,439	6,320,524	172,649,888	185,043,851
Balance as at 1 April 2023						6,073,439	6,320,524	172,649,888	185,043,851
						-	-	-	-
Profit for the period						-	-	(85,013,626)			(85,013,626)
Total comprehensive income for the period						6,073,439	6,320,524	87,636,259	100,030,222
Transaction with owners:
Dividend paid						-	-	(18,220,314)	(18,220,314)
Balance as at 31 December 2023						6,073,439	6,320,524	69,415,942	81,809,908
Profit for the period						-		-		(68,397,856)		(68,397,856)
Total comprehensive income for the period						-	-	(68,397,856)	(68,397,856)
Transaction with owners:
Dividend paid						-		-				-
Balance as at March 2024						6,073,439	6,320,524	1,018,087	13,412,052
Group								Attributable to
		Share		Share	Retained		owners of		Non-controlling			Total
		Capital		Premium	Earnings		parent		interest
								company
		N'000		N'000		N'000		N'000		N'000			N'000
Balance as at 1 January 2023	6,073,439	6,320,524		158,845,237	171,239,200	(12,790)	171,226,410
Profit for the period		-		-		12,805,318		12,805,318		2,110		12,807,428
Total comprehensive income for the period	-	-		12,805,318	12,805,318	2,110	12,807,428
Tax adjustment							(4,219)			(4,219)
Transaction with owners:
Dividend paid		-	-				-	-	-
Balance as at 31 March 2023	6,073,439	6,320,524		171,650,554	184,044,517	(10,680)	184,029,618
Balance as at 1 April 2023	6,073,439	6,320,524		171,650,554	184,044,517	(10,680)	184,029,618
Profit for the period		-	-		(86,548,017)	(86,548,017)	(19,718)	(86,567,734)
Total comprehensive income for the period	6,073,439	6,320,524		85,102,538	97,496,501	(30,398)	97,461,884
Tax adjustment							4,219			4,219
Transaction with owners:
Dividend paid		-	-		(18,220,314)	(18,220,314)	-	(18,220,314)
Balance as at 31 December 2023		6,073,439	6,320,524		66,882,223	79,276,186	(30,398)	79,245,785
Profit for the period		-		-		(68,987,453)		(68,987,453)		(5,956)		(68,993,409)
Total comprehensive income for the period	-	-		(68,987,453)	(68,987,453)	(5,956)	(68,993,409)
Transaction with owners:
Dividend paid		-		-		-		-		-		-
Balance as at March 2024		6,073,439		6,320,524		(2,105,230)		10,288,733		(36,354)		10,252,377

The accompanying notes on pages 6 to 39 form an integral part of the consolidated and separate financial statements.

4

Dangote Sugar Refinery Plc.

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Consolidated and separate statements of cash flows

		GROUP		GROUP		GROUP		COMPANY		COMPANY		COMPANY
	Note(s)	31/3/2024	31/12/2023	31/3/2023	31/3/2024	31/12/2023	31/3/2023
	N'000		N'000		N'000		N'000		N'000		N'000
Cash flows for operating activities
(Loss)/profit before taxation		(106,857,693)	(108,922,106)	18,534,189	(106,262,140)	(107,161,258)	18,745,147
Adjustments for non-cash income and expenses:
Depreciation of property, plant and equipment	16	2,790,281	10,268,323	2,338,372	2,539,390	9,245,056	2,079,986
Depreciation written off	16	-	(343,233)	-	-	(343,233)	-
Impairment of financial assets	23.3	(145,222)	926,288	-	(145,222)	926,288	-
Government grant	11	(8,734)	(43,719)	(11,971)	(8,734)	(43,719)	(11,971)
Impairment of CWIP	16	-	268,623	-	-	268,623	-
Property, plant and equipment impaired and written off	16	2,607,664	-	33,507	2,607,664	-	33,507
Interest income	9	(1,892,640)	(10,559,617)	(2,581,464)	(1,892,639)	(10,559,616)	(2,581,463)
Interest expense	10	46,778	279,756	58,894	25,486	279,756	65,283
Exchange loss	10.1	-	148,328,367	-	-	148,328,367
											-
Fair value loss/(gain) on biological assets	17	(8,478,205)	(9,495,990)	(1,111,360)	(8,478,205)	(9,495,990)	(1,111,360)
Changes in working capital
(Increase) in Inventory		(82,369,509)	(3,652,785)	(1,436,666)	(82,321,636)	(3,674,199)	(1,412,877)
Net (additon)/usage of biological assets		4,167,497	1,974,223	1,377,045	4,167,497	1,974,223	1,377,045
(Increase)/decrease in trade and other receivables		49,647,151	(25,295,583)	(34,381,457)	49,630,271	(25,698,604)	(34,259,101)
(Increase)/decrease in other assets		(6,146,072)	(440,829)	11,271	(6,146,073)	(445,683)	9,883
Increase/(decrease) in other liabilities		(5,304,729)	11,591,534	10,327,261	(5,304,729)	11,591,534	10,327,261
Increase in trade payables		30,436,382	70,336,793	37,629,808	30,700,269	70,242,426	37,529,420
Cash generated from operations		(121,507,051)	85,176,325	30,787,427	(120,888,801)	85,433,971	30,802,728
Finance cost paid		-	-	-	-	-
Tax paid	12.3	-	(22,318,629)	-	-	(22,313,700)
Gratuity paid	29	-	(50,520)	(1,923)	-	(50,520)	(1,923)
Net cash generated from operating activities		(121,507,053)	62,807,179	30,785,504	(120,888,804)	63,069,750	30,800,805
Cash flows from investing activities
Purchase of property, plant and equipment	16.1	(7,836,111)	(19,514,894)	(5,147,679)	(6,881,206)	(16,652,286)	(4,392,798)
Interest received	9	1,892,640	10,559,617	2,581,464	1,892,639	10,559,616	2,581,463
Net cash used in investing activities		(5,943,471)	(8,955,277)	(2,566,215)	(4,988,567)	(6,092,670)	(1,811,335)
Cash flows from financing activities
Dividends paid	26	-	(18,220,317)	-	-	(18,220,317)	-
Unclaimed dividend received	24.1	-	39,268	-	-	39,268	-
Deposit for shares	21	-	-	-	(1,556,291)	(3,010,223)	(808,932)
Commercial paper	30.1	39,388,223	-	-	39,388,223	-	-
Bank overdraft	30.2	21,562,727	-	-	21,562,727	-	-
Interest paid	28	(67,270)	(67,473)	(57,773)	(12,731)	(67,473)	(19,004)
Lease Liabilities paid - Interest	31.1	-	(51,102)	-	-	(51,102)	-
Lease Liabilities paid - Principal	31.1.0	-	(1,746,939)	-	-	(1,746,939)	-
Repayment of borrowings	28	-	(287,438)	-	(76,021)	(287,438)	(69,745)
Net cash used in financing activities		60,883,680	(20,334,001)	(57,773)	59,305,907	(23,344,224)	(897,680)
Net increase in cash and cash equivalents		(66,566,844)	33,517,901	28,161,516	(66,571,464)	33,632,855	28,091,789
Cash and cash equivalents at beginning of period		204,762,703		174,858,294		174,858,294		204,677,479		174,658,116		174,658,116
Effect of exchange rate changes on cash and cash		-	(3,613,492)	-	-	(3,613,492)
equivalents							-
Cash and cash equivalents at end of the period	24	138,195,859	204,762,703	203,019,810	138,106,015	204,677,479	202,749,905

The accompanying notes on pages 6 to 39 form an integral part of the consolidated and separate financial statements.

5

Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Notes to the Consolidated and Separate Financial Statements 1 General information

Dangote Sugar Refinery Plc (the Company) was incorporated as a Public Limited Liability company on 4 January 2005, commenced operation on 1 January 2006 and became quoted on the Nigerian Stock Exchange in March 2007. Its current shareholding is 68% by Dangote Industries Limited and 32% by the Nigerian public.

The ultimate controlling party is Greenview International Corporation, Cayman Island

The registered address of the Company is located at GDNL Administrative Building, Terminal E, Shed 20 NPA Apapa Wharf Complex, Apapa, Lagos

The consolidated financial statements of the Group for the Period ended 31 March comprise the Company and its subsidiaries - Taraba Sugar Company Limited, Adamawa Sugar Company Limited and Nasarawa Sugar Company Limited.

1.1 The principal activity

The principal activity of the Group is the refining of raw sugar into edible sugar and the selling of refined sugar. The Group's products are sold through distributors across the country.

Going Concern status

The Group has consistently been making profits. The Directors believe that there is no intention or threat from any party to curtail significantly its line of business in the foreseeable future. Thus, these financial statements are prepared on a going concern basis.

1. Operating environment
   Emerging markets such as Nigeria are subject to different risks than more developed markets, including economic, political and social, and legal legislative risks. As has happened in the past, actual or perceived financial problems or an increase in the perceived risks associated with investing in emerging economies could adversely affect the investment climate in Nigeria and the country's economy in general. The global financial system continues to exhibit signs of deep stress and many economies around the world are experiencing lesser or no growth than in prior years. These conditions could slow or disrupt Nigeria's economy, adversely affecting the Group's access to capital and cost of capital for the Group and more generally, its business, result of operation, financial condition and prospects.
2. Financial period

These financial statements cover the financial period from 1 January 2024 to 31 March 2024 with comparatives for the year ended 31 December 2023 and period ended 31 March 2023.

2 Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Statement of compliance

These consolidated and separate financial statements have been prepared in accordance with International Financial Reporting standards (IFRS) as issued by the International Accounting Standards Board (IASB) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) of IASB (together "IFRS") that are effective at 31 March 2022 and requirements of the Companies and Allied Matters Act of Nigeria and the Financial Reporting Council (FRC) Act 2011 of Nigeria.

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Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Notes to the Consolidated and Separate Financial Statements

1. Basis of preparation
   The consolidated and separate financial statements have been prepared on the historical cost basis except for biological assets which is measured at fair value less cost to sell. Historical cost is generally based on the fair value of the consideration given in exchange for assets. All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand Naira unless otherwise stated.The principal accounting policies are set out below:
2. Consolidation of subsidiaries
   Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non- controlling interests even if this results in the non-controlling interests having a deficit balance.
   When necessary adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. The results of subsidiaries acquired or disposed of during the year are included in the Group statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal as appropriate.
   In the Company's separate financial statements, investments in subsidiaries are carried at cost less any impairment that has been recognised in profit or loss.

2.4 Revenue recognition

1. Accounting policy
   Revenue is measured at the fair value of the consideration received or receivable for goods or services, in the ordinary course of the Group's activities and it is stated net of value added tax (VAT), rebates and returns. A valid contract is recognised as revenue after;
2. • The contract is approved by the parties.
   • Rights and obligations are recognised.
   • Collectability is probable.
   • The contract has commercial substance.
   • The payment terms and consideration are identifiable.

The probability that a customer would make payment is ascertained based on the evaluation done on the customer as stated in the credit management policy at the inception of the contract. The Group is the principal in all of its revenue arrangement since it is the primary obligor in all of the revenue arrangements, has inventory risk and determines the pricing for the goods and services.

Sale of goods

Revenue is recognised when the control of the goods and service are transferred to the customer. This occurs when the goods are delivered to the customer and customer's acceptance is received or when goods are picked up by the customers.

Revenue from sale of sugar and molasses is recognised based on the price specified in the contract, net of the estimated rebates and returns. Rebates are estimated at the inception of the contract except where the time lag between the recognition of revenue and granting rebates is within one month. Returns on goods are estimated at the inception of the contract except where the timing between when the revenue is recognised and when the returns occur is considered immaterial. In these instances, the returns are accounted for when they occur.

The delivery service provided by the Group is a sales fulfilment activity and the income earned is recognised at the point in time when the goods are delivered to the customer.

Delivery occurs when the goods have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and when the customer has accepted the products in accordance with the sales contract, or the acceptance provisions have lapsed, or the group has objective evidence that all criteria for acceptance have been satisfied.

Contract liability is recognised for consideration received for which the performance obligation has not been met.

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Dangote Sugar Refinery Plc

Consolidated and Separate Financial Statements for the Period Ended March 31, 2024

Notes to the Consolidated and Separate Financial Statements

Revenue recognition (continued)

Disaggregation of revenue from contract with customers

The Group recognises revenue from the transfer of goods at a point in time in the following product lines. The Group derives revenue from the sale of sugar, molasses and freight services.

	Freight	Sale of sugar	Sale of	Total
	services	molasses
	N'000	N'000	N'000	N'000
Revenue from contract with customers	141,844	121,137,179	1,448,312	122,727,335

2.5 Interest income Recognition

1. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset's to that assets's net carrying amount on initial recognition.

2. Pensions and Other post-employment benefits
   The Group operates a defined contribution based retirement benefit scheme for its staff, in accordance with the amended Pension Reform Act of 2014 with employee contributing 8% and the employer contributing 10% each of the employee's relevant emoluments. Payments to defined contribution retirement benefit plans are recognised as an expense in statement of profit or loss when employees have rendered the service entitling them to the contributions.
3. Taxation
   Income tax expense represents the sum of the tax currently payable and deferred tax.
   Current tax
   The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statements of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted.
   Current income tax is the expected amount of income tax payable on the taxable profit for the year determined in accordance with the Companies Income Tax Act (CITA) using statutory tax rates of 30% at the reporting sheet date. Education tax is calculated at 2.5% of the assessable profits in accordance with the Tertiary Education Tax Act.

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