Fan Milk Limited Annual Report 2009

FAN MILK LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2009 FAN MILK LIMITED Year finished December 31, 2009 Contents Corporate data Pages 1 Report of the executives 2-3 Corporate administration 4-5 Report of the free examiner 6-7 Financial explanations: I. Proclamation of exhaustive salary 8 ii. Articulation of money related position 9 iii. Explanation of changes in value 10 iv. Proclamation of incomes 11 v. Notes 12 †30 0 FAN MILK LIMITED Year finished December 31, 2009 CORPORATE INFORMATION Directors Charles Mensa (Dr. ) Jesper Bjorn Jeppesen Kodjo Biamawu Aziagbe Einar Mark Christensen Jens Jorgen Kollerup George H.Okai Thompson Peace Ayisi-Okyere Lennap and Co. P. O. Box 37 Accra PricewaterhouseCoopers Chartered Accountants No. 12 Airport City Una Home, third Floor PMB CT 42 Cantonments Accra No. 1 Dadeban Road North Industrial Area P. O. Box 6460 Accra-North Quist, Brown, Wontumi and Associates P. O. Box 7566 Accra National Trust Holding Company Limited Mart co House P. O. Box 9563 Airport, Accra Barclays Bank of Ghana Limited Ecobank Ghana Limited SG-SSB Bank Limited Prudential Bank Limited Agricultural Development Bank Limited Ghana Commercial Bank Limited Standard Chartered Bank Ghana Limited (Chairman) (Managing Director)Secretary Auditor Registered Office Solicitor Registrar and Transfer Office Bankers 1 FAN MILK LIMITED Year finished December 31, 2009 REPORT OF THE DIRECTORS The executives present their report along with the reviewed fiscal summaries of Fan Milk Limited for the year finished December 31, 2009. Proclamation of directors’ duties The executives are liable for the readiness of fiscal summaries for each money related year which give a valid and reasonable perspective on the situation of the organization and of the benefit or misfortune and incomes for that period.In setting up these budget reports, the chiefs have chosen appropriate bookkeeping arrangements and afterward applied them reliably, made decisions and evaluations that are sensible and judicious and observed International Financial Reporting Standards (IFRS). The executives are liable for guaranteeing that the organization keeps appropriate bookkeeping records that unveil with sensible precision whenever the money related situation of the organization. The executives are additionally answerable for shielding the advantages of the organization and making sensible strides for the counteraction and discovery of misrepresentation and other irregularities.Principal movement The primary action of the organization is the assembling and dissemination of dairy items and natural product drinks. Money related outcomes The budgetary consequences of the organization are set out beneath: 2009 GH? ‘000 Profit before charge for the year is from which is deducted duty of giving a benefit after assessment for the time of to which is included equalization presented held income of from which is deducted affirmed profit of giving a parity conve yed forward on held profit of 20,175 (5,019) 15,156 15,410 (1,484) 29,082 The company’s total assets expanded from GH? 1. 4 million as at January 1, 2009 to GH? 35. 1 million at December 31, 2009. 2 FAN MILK LIMITED Year finished December 31, 2009 REPORT OF THE DIRECTORS (proceeded) Dividends The executives suggest a profit of GH? 0. 10 for each offer (2008: GH? 0. 0750 for each offer) in regard of the year finished December 31, 2009. Reviewer The evaluator, PricewaterhouseCoopers, has communicated ability to proceed in office as per Section 134 (5) of the Companies Code, 1963 (Act 179). BY ORDER OF THE BOARD: Name of Director:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Name of Director:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..Signature:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Date:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ S ignature:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Date:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 FAN MILK LIMITED Year finished December 31, 2009 CORPORATE GOVERNANCE Introduction Fan Milk Limited is focused on the standards and usage of good corporate administration. The Company perceives the important commitment that it makes to long haul business flourishing and to guaranteeing responsibility to its investors. The Company is overseen in a manner that augments long haul investor worth and considers the premiums of the entirety of its stakeholders.Fan Milk Limited accepts that complete honesty and straightforwardness in its tasks are in light of a legitimate concern for good administration. As demonstrated in the announcement of obligations of executives and notes to the records, the business embraces standard bookkeeping rehearses and guarantees sound interio r control to encourage the unwavering quality of the budget summaries. The Board of Directors The Board is liable for setting the Company's key bearing, for driving and controlling the Company and for observing exercises of official administration. The Board presents a fair and reasonable evaluation of the Company's advancement and prospects.The Board comprises of the Chairman, five non-official chiefs and an official executive (the overseeing executive). The non-official executives are autonomous of the executives and liberated from any imperatives, which could tangibly meddle with the activity of their free judgment. They have understanding and information on the business, markets, monetary as well as different business data to make a significant commitment to the Company's advancement. The overseeing executive is a different individual from the Chairman and he actualizes the administration procedures and approaches received by the Board.They meet at any rate four times each year. The Audit Committee The Audit Committee is comprised of four chiefs of whom three are non-official executives and they meet two times every year. The fundamental Board decides its terms of reference and they report back to the Board. Its obligations incorporate holding under survey the degree and aftereffects of the outside review, just as the autonomy and objectivity of the evaluator. The Audit Committee additionally holds under survey inside monetary controls, consistence with laws and guidelines and the defending of assets.It likewise audits the ampleness of the arrangement of the inward review and surveys its review reports. 4 FAN MILK LIMITED Year finished December 31, 2009 CORPORATE GOVERNANCE (proceeded) Systems of Internal Control Fan Milk Limited has entrenched interior control frameworks for distinguishing, overseeing and checking dangers. These are intended to give sensible affirmation that the dangers confronting the business are being controlled. The corporate inward r eview capacity of the Company assumes a key job in giving a target see and proceeding with appraisal of the adequacy of the inside control frameworks in the business.The frameworks of interior control are actualized and observed by fittingly prepared work force and their obligations and revealing lines are obviously characterized. Code of Business Ethics Management has conveyed the standards in the Company’s Code of Conduct to its workers in the release of their obligations. This code sets the polished methodology and uprightness required for business tasks which covers consistence with the law, irreconcilable circumstances, ecological issues, unwavering quality of monetary revealing, pay off and exacting adherence to the standards in order to take out the potential for unlawful practices. REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF FAN MILK LIMITED REPORT ON THE FINANCIAL STATEMENTS We have inspected the going with fiscal summaries of Fan Milk Limited set out on page s 8 to 30. These fiscal summaries contain the announcement of budgetary situation at December 31, 2009, and the announcement of extensive pay, proclamation of changes in value and articulation of incomes for the year at that point finished, and a rundown of critical bookkeeping arrangements and other logical notes.Directors’ obligation regarding the budget summaries The chiefs are answerable for the readiness and reasonable introduction of these fiscal reports as per International Financial Reporting Standards and with the necessities of the Companies Code, 1963 (Act 179). This duty incorporates: structuring, executing and keeping up inward control pertinent to the readiness and reasonable introduction of budget summaries that are liberated from material misquote, regardless of whether because of extortion or blunder; choosing and applying proper bookkeeping strategies; and making bookkeeping gauges that are sensible in the circumstances.Auditor’s obligation Our duty i s to communicate a feeling on the fiscal summaries dependent on our review. We directed our review as per International Standards on Auditing. Those measures necessitate that we consent to moral prerequisites and design and play out our review to acquire sensible affirmation that the budget reports are liberated from material error. A review includes performing techniques to get review proof about the sums and exposures in the monetary statements.The systems chose rely upon the auditor’s judgment, including the appraisal of the dangers of material misquote of the fiscal reports, regardless of whether because of misrepresentation or mistake. In making those hazard appraisals, the examiner considers interior control pertinent to the entity’s readiness and reasonable introduction of the budget reports so as to configuration review methodology that are suitable in the conditions, however not to communicate a sentiment on the viability of the company’s inner control. An review additionally incorporates assessing the propriety of bookkeeping arrangements utilized and the sensibility of bookkeeping gauges made by the executives, also