NEIMETH INTERNATIONAL PHARMACEUTICALS : QUARTER 5 - FINANCIAL STATEMENT FOR 2022

NEIMETH INTERNATIONAL PHARMACEUTICALS PLC

FINANCIAL STATEMENTS 31 DECEMBER 2022

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Corporate information
Tax Identification Number	01380533-0001
Directors	Dr. A.B.C. Orjiako	Chairman
	Pharm. M.O Azoji	MD/CEO	(Retiring)
	Mr. G.I. Oputa	Acting MD/CEO	(Appointed 1/4/2022)
	Mrs. R.A Oputa	Executive Director
	Mrs. T.O. Nelson	Executive Director
	Mazi S.I. Ohuabunwa	Non-Executive Director
	Engr.G.E.Omene	Non-Executive Director	(Resigned 4/4/2022)
	Prof. E.N. Sokomba	Non-Executive Director
	Pof.M.M. Iwu	Non-Executive Director
	Sir. I.T. Onyechi	Non-Executive Director
	Mr. T.T. Osobu	Non-Executive Director
	Mrs. B. O. Odunewu	Independent Non-Executive Director
Company Secretary	Mrs. F.I.Onyenekwe
Registered Office	16,Doherty Akanni Layout (Billings Way)
	Oregun Industrial Estate
	Oregun
	Tel: [phone]
	E-mail:[e-mail]
	Website:www.neimethplc.com.ng
Auditors	BDO Professional Services
	ADOL House
	15 CIPM Avenue
	Central Business District
	Alausa, Ikeja
	Lagos
Registrars	Meristem Registrars and Probate Services Limited
	213, Herbert Macaulay Way
	Adekunle
	Yaba
	Lagos
Legal Adviser/Solicitor	Chris O. Omolabi & Associates
	REALS PLAZA, 1, Junaid Dosunmu Street
	Off Hakeem Balogun Street,CBD, Alausa
	Ikeja
	Lagos
Bankers	Providus Bank Plc
	Access Bank Plc
	First Bank of Nigeria Limited
	Guaranty Trust Bank Limited

Fidelity Bank Plc

Sterling Bank Plc

United Bank for Africa Plc

Zenith Bank Plc

NEIMETH INTERNATIONAL PHARMACEUTICALS PLC	ii
STATEMENT OF DIRECTORS' RESPONSIBILITIES
FINANCIAL STATEMENTS, 31 DECEMBER 2022

The Companies and Allied Matters Act, 2020, 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 the profit or loss for the year ended 31 December 2022, and in so doing they ensure that:

1. Proper accounting records are maintained;
2. Applicable accounting policies are adopted and consistently applied;
3. Judgments and estimates made are reasonable and prudent;
4. The going concern basis is used, unless it is inappropriate to presume that the Company will continue in business; and
5. Internal control procedures are instituted which as far as reasonably possible, safeguard the assets of the Company and prevent and detect fraud and other irregularities.
   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 International Financial Reporting Standards (IFRS) and the requirements of the Companies and Allied Matters Act, 2020.
   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 statement.

NEIMETH INTERNATIONAL PHARMACEUTICALS PLC	iii
STATEMENT OF CORPORATE RESPONSIBILITY
FOR THE PERIOD ENDED 31 DECEMBER 2022

In line with the provisions of Section 405 of the Companies and Allied Matters Act, 2020; we have reviewed the audited financial statements of the Company for the period ended 31 December 2022 and based on our knowledge confirm as follows:

1. the audited financial statements do not contain any untrue statement of material fact or omit to state a material fact, which would make the statements misleading;
2. the audited financial statements and all other financial information included in the statements fairly present, in all material respects, the financial condition and results of operations of the Company as at and for the period ended 31 December 2022.
3. the Company's internal controls have been designed to ensure that all material information relating to the Company is received and provided to the Auditors in the course of the audit.
4. the Company's internal controls were evaluated within 90 days of the financial reporting date and are effective as at 31 December 2022.
5. that we have disclosed to the Auditors that there are no significant deficiencies in the design or operations of the Company's internal controls which could adversely affect the Company's ability to record, process, summarise and report financial data, and have discussed with the Auditors any weaknesses in internal controls observed in the course of the Audit
6. that we have disclosed to the Auditors that there is no fraud involving management or other employees who have significant role in the Company's internal control; and
7. there are no significant changes in internal controls or in other factors which could significantly affect internal controls subsequent to the date of this audit, including any corrective actions with regard to any observed deficiencies and material weaknesses

Tel: [phone]	ADOL House
15 CIPM Avenue
[phone]
Central Business District,
[e-mail]
Alausa, Ikeja
www.bdo-ng.com
P. O. Box 4929, GPO, Marina
	Lagos, Nigeria

REPORT OF THE INDEPENDENT AUDITORS

TO THE SHAREHOLDERS OF NEIMETH INTERNATIONAL PHARMACEUTICALS PLC

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Neimeth International Pharmaceuticals Plc which comprise, the statement of financial position as at 31 December 2022, the statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for the period then ended; and notes to the financial statements, including a summary of significant accounting policies and other explanatory notes.

In our opinion the accompanying financial statements give a true and fair view of the financial position of the Company as at 31 December 2022 and of its financial performance and cash flows for the period then ended in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board, and in compliance with the relevant provisions of the Financial Reporting Council of Nigeria, Act No 6, 2011 and the Companies and Allied Matters Act, 2020.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants together with the ethical requirements that are relevant to our audit of the financial statements in Nigeria, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the International Ethics Standards Board Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of Trade receivables- Expected Credit Loss

Risk

The Company is exposed to credit risk arising from the Company's trade receivables.The determination of the impairment charge for trade receivables requires the assessment of Expected Credit Loss Model (ECL) using the simplified approach on recoverable amounts in line with IFRS 9. The ECL model involves the application of considerable level of judgements and estimation in determining inputs which are derived from historical records obtained within and outside the Company in formulating the financial model. The model also requires assumptions in the estimation of foward looking macro-economic variables in computing the probability of default (PD). The appropriateness of impairment calculation for long overdue debts which require significant management's judgements and assumptions, makes it a key audit matter

Our response

Our audit procedures in response to the risk included, amongst others:

• Assessed and tested the design and operating effectiveness of the controls over impairment calculations
• Reviewed the age analysis of trade receivables and internal controls over recoverability of receivables
• Reviewed impairment model adopted by management and evaluated whether the model used to calculate the recoverable amount complies with the requirements of IFRS 9 and is in agreement with our understanding of the business and the industry in which the Company operates
• Challenged management's assessment on the recoverability of overdue receivables, collection pattern, considering historical patterns of debt and repayment as well as recent communications with their counterparties
• Evaluated the accounting principles underlying revenue recognition which form the basis for the recognition of trade receivables

BDO Professional Services, a firm of Chartered Accountants registered in Nigeria, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

Partners: E. Olaseinde Olabisi, Olugbemiga A. Akibayo, Kamar Salami, Henry B. Omodigbo, Gideon Adewale, Olusegun Agbana-Anibaba

BN: 170585