OMATEK VENTURES : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

Omatek Ventures PLC

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED

30TH SEPTEMBER, 2023

OMATEK VENTURES PLC

Table of Contents
Consolidated Statement of Financial Position	11
Consolidated Statement of Profit or Loss and Other Comprehensive Income	12
Consolidated Statement of Changes in Equity	13
Consolidated Statement of Cashflows	15
Notes to the Consolidated Financial Statements	23 - 30
Statement of Value Added	31
Consolidated Financial Summary	32

OMATEK VENTURES PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30TH SEPTEMBER 2023

		GROUP		COMPANY
	NOTE 30-Sep-23	2022	30-Sep-23	2022
		N'M	N'M	N'M	N'M
ASSETS
PROPERTY,PLANT & EQUIPMENT	8	1,530			1,535	1,531			1,535
INVESTMENT PROPERTY	9	2,200			2,200	2,200			2,200
INVESTMENTS	10	132			131	(2,508)			(2,508)
DEFFERED TAX ASSET	11	50			51	-			-
TOTAL NON CURRENT ASSETS		3,912			3,917	1,223			1,227
INVENTORIES	12	609			609	-			-
TRADE & OTHER RECEIVABLES	13	98			98	3,493			3,493
CASH & CASH EQUIVALENTS	15	45			48
TOTAL CURRENT ASSETS		752			755	3,493			3,493
TOTAL ASSETS		4,664			4,672	4,716			4,720
EQUITY
SHARE CAPITAL	16	1,471			1,471	1,471			1,471
SHARE PREMIUM	17	4,376			4,376	4,376			4,376
RETAINED EARNINGS		(16,409)			(16,132)	(16,100)			(15,793)
REVALUATION RESERVE	18	615			615	615			615
NON CONTROLLING INTEREST		(3,460)			(3,429)	-			-
TOTAL EQUITY		(13,407)			(13,099)	(9,637)			(9,331)
LIABILITIES
LONG TERM LOANS & BORROWINGS	19	6,774			6,774	6,774			6,774
DEFFERED TAX LIABILITY	11	431			431	460			460
TOTAL NON CURRENT LIABILITIES		7,205			7,205	7,234			7,234
BANK OVERDRAFT	15	448			448	-			-
TRADE & OTHER PAYABLES	20	9,200			8,900	7,044			6,744
ACCRUED TAX	11	216			216	72			72
SHORT TERM LOANS & BORROWINGS	26	1,002			1,002	-			-
TOTAL CURRENT LIABILITIES		10,866			10,566	7,117			6,817
TOTAL LIABILITIES		18,071			17,771	14,351			14,051
TOTAL EQUITIES & LIABILITIES		4,664			4,672	4,714			4,720

The financial statements were approved by the Board of Directors on 24th October, 2023 and signed on its behalf by:

Dr. Timothy Farinre	Mr. Anthony O. Omhenke	Yemi Ogundipe
Group Chairman	Chief Finance Officer	Group Managing Director
FRC/2014/COREN/0000007564	FRC/2014/ICAN/00000008200	FRC/2013/ICAN/00000001615

THE NOTES FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

11

OMATEK VENTURES PLC

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30TH SEPTEMBER, 2023

		GROUP		COMPANY
	NOT
	E	30-Sep-23		30-Sep-22		30-Sep-23		30-Sep-22
		N'M		N'M		N'M		N'M
REVENUE	21	0.10	-	-	-
			-
COST OF SALES		(0.07)	-	-	-
		-		-
GROSS PROFIT		0.03		-		-		-
OTHER INCOME		-	-	-	-
SELLING AND DISTRIBUTION EXPENSES		-			-	-
ADMINISTRATION EXPENSES		(12.82)		(37.31)		(10.82)		(59.85)
		-	-	-	-
RESULTS FROM OPERATING ACTIVITIES		(12.79)	(37.31)	(10.82)	(59.85)
		-	-
FINANCE COST		(295.50)		(704.34)		(295.50)		(886.50)
		-	-	-
PROFIT/(LOSS) BEFORE TAX		(308.29)	(741.64)	(306.32)	(946.35)
TAX EXPENSE	11							-
		-		-		-		-
PROFIT/(LOSS) ON CONTINUING OPERATIONS		(308.29)	(741.64)	(306.32)	(946.35)
OTHER COMPREHENSIVE INCOME
RENTAL INCOME	22	-	-	-	-
OTHER EXPENSE	23	-		-		-		-
TOTAL OTHER COMPREHENSIVE INCOME		(308.29)		(741.64)		(306.32)		(946.35)
						-		-
TOTAL COMPREHENSIVE INCOME		(308.29)		(741.64)		(306.32)		(946.35)
PROFIT ATTRIBUTABLE TO THE GROUP		(276.83)	(684.39)
NON CONTROLLING INTEREST		(31.45)	(57.25)
		-		-
		(308.29)		(741.64)
BASIC EARNINGS/(LOSS) PER SHARE (NGN)	25	(0.25)		(0.60)
DILUTED EARNINGS/(LOSS) PER SHARE (NGN)		(0.25)	(0.60)

THE NOTES FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

12

OMATEK VENTURES PLC

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH SEPTEMBER 2023

GROUP

	SHARE	SHARE	RETAINED REVALUATION	NON	TOTAL
	CAPITAL	PREMIUM	EARNINGS	RESERVE	CONTROLLING	EQUITY
					INTEREST
	N'M	N'M	N'M	N'M	N'M	N'M
BALANCE AT 1ST JANUARY 2023	1,470.89	4,376.34	(16,132.22)	614.90	(3,428.52)	(13,098.60)
TOTAL COMPREHENSIVE INCOME
PROFIT/(LOSS) ON CONTINUING OPERATIONS			(276.83)		(31.45)	(308.29)
OTHER COMPREHENSIVE INCOME
OTHER INCOME			-		-	-
TOTAL OTHER COMPREHENSIVE INCOME				-	(31.45)	(31.45)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-	-	-	-	-	-
BALANCE AT 30TH SEPTEMBER 2023	1,470.89	4,376.34	(16,409.05)	614.90	(3,459.97)	(13,406.89)
	SHARE CAPITAL	SHARE	RETAINED	REVALUATION	NON	TOTAL
		PREMIUM	EARNINGS	RESERVE	CONTROLLING	EQUITY
					INTEREST
	N'M	N'M	N'M	N'M	N'M	N'M
BALANCE AT 1ST JANUARY 2022	1,470.89	4,376.34	(14,338.57)	614.90	(3,293.29)	(11,169.72)
TOTAL COMPREHENSIVE INCOME
PROFIT/(LOSS) ON CONTINUING OPERATIONS			(1,615.63)	-	(48.92)	(1,664.55)
OTHER COMPREHENSIVE INCOME
OTHER INCOME			-		-	-
TOTAL OTHER COMPREHENSIVE INCOME				-	(48.92)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-	-	-	-	-	-
BALANCE AT 3OTH SEPTEMBER 2022	1,470.89	4,376.34	(15,954.20)	614.90	(3,342.21)	(12,834.27)

13

OMATEK VENTURES PLC

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH SEPTEMBER, 2023

COMPANY

	SHARE CAPITAL	SHARE	RETAINED	REVALUATION	TOTAL EQUITY
		PREMIUM	EARNINGS	RESERVE
	N'M	N'M	N'M	N'M	N'M
BALANCE AT 1ST JANUARY 2023	1,470.89	4,376.34	(15,793.22)	614.90	(9,331.08)
TOTAL COMPREHENSIVE INCOME
PROFIT/(LOSS) ON CONTINUING OPERATIONS	-	-	(306.32)	-	(306.32)
OTHER COMPREHENSIVE INCOME
TOTAL OTHER COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-	-	(306.32)	-	(306.32)
BALANCE AT 30TH SEPTEMBER 2023	1,470.89	4,376.34	(16,099.54)	614.90	(9,637.40)
	SHARE CAPITAL	SHARE	RETAINED	REVALUATION	TOTAL EQUITY
		PREMIUM	EARNINGS	RESERVE
	N'M	N'M	N'M	N'M	N'M
BALANCE AT 1ST JANUARY 2022	1,470.89	4,376.34	(14,338.57)	614.90	(7,876.43)
TOTAL COMPREHENSIVE INCOME
PROFIT/(LOSS) ON CONTINUING OPERATIONS	-	-	(946.35)	-
OTHER COMPREHENSIVE INCOME
TOTAL OTHER COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
BALANCE AT 3OTH SEPTEMBER 2022	-	-	(946.35)	-	(946.35)
	1,470.89	4,376.34	(15,284.91)	614.90	(8,822.77)
THE NOTES FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

14

OMATEK VENTURES PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30TH SEPTEMBER, 2023

		GROUP		COMPANY
		JANUARY -		JANUARY -		JANUARY -		JANUARY -
		SEPTEMBER		SEPTEMBER		SEPTEMBER		SEPTEMBER
	NOTE	2023	2022	2023	2022
		N'M		N'M		N'M		N'M
CASH FLOWS FROM OPERATING ACTIVITIES
PROFIT/(LOSS)		(308.29)	(741.64)	(306.32)	(946.35)
ADJUSTMENTS FOR :
DEPRECIATION		5.25			44.02
RETAINED EARNINGS ADJUSTMENT
FINANCE COST		295.50	704.34	704.34
TAX		-	-	-
RENTAL INCOME					-
INVESTMENT( INCOME)/LOSSES		-		-		-
		300.75	704.34	748.36	-
CHANGES IN CURRENT ASSETS :
INVENTORIES		-	-	-	-
TRADE & OTHER RECEIVABLES		-	0.03	-	-
PREPAYMENTS		-		-		-		-
		-	0.03
CHANGES IN CURRENT LIABILITIES :
TRADE & OTHER PAYABLES		300.11	1,523.02	299.96	946.35
		-		-
		300.11		1,523.02		299.96		946.35
NET CASH FROM OPERATING ACTIVITIES		292.57	1,485.74	742.00	0.00
CASHFLOW FROM INVESTING ACTIVITIES
PURCHASE OF FIXED ASSET		-	-	-	-
INVESTMENT
NET CASH FROM INVESTING ACTIVITIES		-	-	-	-
CASHFLOW FROM FINANCING ACTIVITIES
FINANCE COST		(1,352.88)	(704.34)	-
LOANS & BORROWINGS
CONSUMER FINANCE		1,001.89	207.32	-
NET CASH FROM FINANCING ACTIVITIES		(350.99)		(497.02)		-		-
NET CASH FLOW		(58.42)		988.72		742.00		0.00
CASH & CASH EQUIVALENTS @ 1ST JANUARY		(337.00)	(1,325.72)	-
ADJUSTMENT
CASH & CASH EQUIVALENTS @ END SEPTEMBER	15	(395.42)	(337.00)	-	-

THE NOTES FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

15

OMATEK VENTURES PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR PERIOD ENDED 30TH SEPTEMBER, 2023

1	REPORTING ENTITY
	(A)	LEGAL FORM	Omatek Ventures Plc is a public limited liability company incorporated in
			Nigeria under the Companies and Allied Matters Act of 2020.
	(B)	MAIN ACTIVITIES	Omatek is a holding company which holds shares in the manufacturing,
			distribution and sales and service of various types of computers and home
			entertainment products

1. REGISTERED ADDRESS The registered address is Plot 11, Kudirat Abiola Way, Oregun, Ikeja, Lagos, Nigeria.

2 STATEMENT OF COMPLIANCE The consolidated financial statements have been prepared in accordance

	WITH INTERNATIONAL	with International Financial Reporting Standards (IFRSs).
	FINANCIAL REPORTING	The financial statements were authorised for issue by the Board of Directors on
	STANDARDS	25th Septemeber 2023.
3	BASIS OF PREPARATION
	(A)	BASIS OF	The financial statements have been prepared on the historical cost basis and all
		MEASUREMENT	applicable standards issued by the Financial Reporting Council of Nigeria

1. FUNCTIONAL AND These financial statements are presented in Nigerian Naira, which is the

PRESENTATION	Company's functional currency.
CURENCY
	All financial information presented in naira has been rounded to nearest million.

1. USE OF ESTIMATES AND The preparation of the financial statements in conformity with IFRS requires

JUDGEMENT	management to make judgements, estimates and assumptions that affect the
	application of accounting policies and the reported amounts of assets, liabilities,
	income and expenses.
	Estimates and underlying assumptions are reviewed on an ongoing basis.
	Revisions to accounting estimates are recognised in the period in which the
	estimates are revised and into any future periods affected.

1. ADOPTION OF NEW AND REVISED STANDARDS

1. IFRS 15 Revenue from Contracts with Customers- effective on or after 1 January 2018
2. IFRS 9 Financial Instrument-effective on or after 1 January 2018

IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programme. The Company uses the impact assessment report to disclose the impact of IFRS 15, on the company.

The Company has initially applied IFRS 9 from 1 January 2018. A number of other new standards are also effective from 1 January 2018, but they do not have a material effect on the Company's financial statements.

The effect of initially applying this standard is mainly attributed to an increase in impairment losses recognised on financial assets.

IFRS 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement.

16

OMATEK VENTURES PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR PERIOD ENDED 30TH SEPTEMBER, 2023

IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, FVOCI and FVTPL.

1. CLASSIFICATION AND The classification of financial assets under IFRS 9 is generally based on the
   MEASUREMENT OF business model in which a financial asset is managed and its contractual FINANCIAL ASSETS AND cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories

	FINANCIAL LIABILITIES	of held to maturity, loans and receivables and available for sale. Under
		IFRS 9, derivatives embedded in contracts where the host is a financial asset in
		the scope of the standard are never separated. Instead, the hybrid financial
		instrument as a whole is assessed for classification.
		IFRS 9 largely retains the existing requirements in IAS 39 for the classification
		and measurement of financial liabilities.
		The adoption of IFRS 9 has not had a significant effect on the Company's
		accounting policies related to financial liabilities and derivative financial
		instruments.
b	IMPAIRMENT OF	IFRS 9 replaces the 'incurred loss' model in IAS 39 with an 'expected
	FINANCIAL ASSETS	credit loss' (ECL) model. The new impairment model applies to financial assets
		measured at amortised cost, contract assets and debt investments at FVOCI, but
		not to investments in equity instruments.
		Under IFRS 9, credit losses are recognised earlier than under IAS 39.

4 SIGNIFICANT ACCOUNTING The accounting policies set out below have been applied consistently

POLICIES	to all periods presented in the financial statements, unless otherwise
	indicated.

1. FOREIGN CURRENCY Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign

currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the re- porting period.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of available for-sale equity instruments, a financial liability designated as a hedge of the net investment in a foreign operation or qualifying cash flow hedges, which are recognised in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

5 BASIS OF CONSOLIDATION Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

17

OMATEK VENTURES PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR PERIOD ENDED 30TH SEPTEMBER, 2023

The consolidated financial statements combine the financial statements of

Omatek Ventures Plc, Omatek Ventures Distribution Limited, Omatek

Engineering Services Limited and Omatek Computers Limited.

6 SIGNIFICANT ACCOUNTING The accounting policies set out below have been applied consistently to all

POLICIES

periods presented in these consolidated financial statements.

1. FOREIGN CURRENCY Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at

The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

1. PROPERTY, PLANT & EQUIPMENT

1. RECOGNITION AND Items of property, plant and equipment are measured at cost/revalued amounts

	MEASUREMENT	less accumulated depreciation and accumulated impairment losses.
		The building at Plot 11 Kudirat Abiola Way was valued on 2nd January 2011 as
		part of the IFRS Implementation Project by Adeniji Adele & Associates -
		Consulting Estate Surveyors & Valuers.
		Cost includes expenditure that is directly attributable to the acquisition of the
		asset.
(ii)	DEPRECIATION	Depreciation is calculated over the depreciable amount, which is the cost of an
		asset, or other amount substituted for cost, less its residual value.
		Depreciation is recognised in profit or loss on a straight-line basis over the
		estimated useful lives of each part of an item of property, plant and equipment,
		since this most closely reflects the expected pattern of consumption of the future
		economic benefits embodied in the asset. Land is not depreciated.
		The estimated useful lives for the current and comparative periods are as
		Leasehold Building	50 Years
		Motor Vehicles	5 Years
		Furniture, Fixtures & Fittings	10 Years
		Office Equipment	10 Years
		Plant & Machinery	5 Years
		Computer Equipment	5 Years
		Depreciation methods, useful lives and residual values are reviewed at each
		financial year-end and adjusted if appropriate.
(C)	INVENTORIES	Inventories are measured at the lower of cost and net realisable value. The cost
		of inventories is based on the first-infirst-out	principle, and includes

expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition.

18