ETranzact International : E-TRANZACT INTERNATIONAL PLC- QUARTER 5 - FINANCIAL STATEMENT FOR 2022

eTRANZACT INTERNATIONAL PLC

ANNUAL REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

eTRANZACT INTERNATIONAL PLC

REPORT OF THE DIRECTORS, AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2022

Table of Contents	Page
Report of the directors	3
Statement of corporate responsibility for the financial statements	6
Statement of directors' responsibilities in relation to the preparation of financial statements	7
Report of Statutory Audit Committee	8
Independent auditor's report	9
Statement of profit or loss and other comprehensive income	14
Statement of financial position	15
Statement of changes in equity	16
Statement of cash flows	17
Notes to the financial statements	18
Other National Disclosures:
Statement of value added	44
Five-year financial summary	45

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eTRANZACT INTERNATIONAL PLC

Report of the Directors

For the year ended 31 December 2022

The directors present their annual report on the affairs of eTranzact International Plc ("the Company"), together with the financial statements and auditor's report for the year ended 31 December 2022.

Legal Form and Principal Activities

The Company was incorporated as a Private Limited Liability Company on 7 May 2003. It converted and registered as a Public Limited Liability Company on the 25 June 2009 and its shares were listed on The Nigerian Stock Exchange on 7 August, 2009. The principal activity of the Company is the provision of all facets of electronic payment technology and maintenance services.

Operating Results

The following is a summary of the Company's operating results:

				2022		2021
				N'000		N'000
Revenue				22,542,395		23,584,553
Gross Profit				5,681,090		2,804,899
Operating profit				1,591,003		332,241
Profit before income tax expense				1,609,205		536,037
Income tax expense				(434,233)		(80,288)
Profit after income tax expense				1,174,972		455,750
Shareholders With More Than 5% Interest
	31 December 2022		31 December 2021
Name of the Company	Number of shares	%	Number of shares	%
Access Bank Nigeria Plc	3,453,937,783	37.54%	1,579,258,416	23.80%
eTranzact Global Limited	2,113,903,449	22.98%	2,113,903,449	31.86%
Accelerex Holdings	1,026,173,333	11.15%	-	-
Sybase Nigeria Business Solutions Ltd	568,014,565	6.17%	568,014,565	8.56%
Blue Account GASL Nominee Ltd	544,163,523	5.91%	544,163,523	8.20%
	7,706,192,653	84%	4,805,339,953	72%

Share Capital

As at 31 December 2022, the issued share capital of the Company is Four Billion, Five Hundred and Ninety Nine Million, Nine Hundred and Ninety Nine Thousand, Nine Hundred and Eight Naira (N4,599,999,908) divided into Nine Billion, One Hundred and Ninety Nine Million, Nine Hundred and Ninety Nine Thousand, Eight Hundred and Sixteen (9,199,999,816) ordinary shares of 50kobo each.

Share Capital History

The Company was incorporated in 2003 as a Private Limited Liability Company with an initial authorized share capital of N1,000,000 divided into 1,000,000 ordinary shares of N1.00 each. In 2005, the Company increased its share capital to N350,000,000 divided into 350,000,000 ordinary shares of N1.00 each. In 2008, the Company further increased its share capital to N2,100,000,000 divided into 4,200,000,000 ordinary shares of 50kobo each and was listed on The Nigerian Stock Exchange in 2009.

In 2021, there was an increase of N1,217,283,241 in paid-up issued share capital which is made up of 2,434,566,480 ordinary shares. The additional share capital is a result of the right issues that was completed during the year.

During the year there was an increase of N1,282,716,667 in paid-up issued share capital during the year which is made up of 2,565,433,333 ordinary shares. The additional share capital is a result of the irredeemable convertible debentures that were converted to equity during the year.

As at date, the Company has share capital of N4,599,999,908 divided into 9,199,999,816 ordinary shares of 50kobo each and a paid up share capital of N4,599,999,908.00 divided into 9,199,999,816 ordinary shares of 50kobo each.

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eTRANZACT INTERNATIONAL PLC

Report of the Directors - Continued

For the year ended 31 December 2022

Directors and their Interests in Shares

The Directors of the Company who held oce during the year together with their interests in the shares of the Company at 31 December

2022 are shown below:

Name of Director & Company	31 December 2022		31 December 2021
	Direct	Indirect	%	Direct Holdings	Indirect	%
	Holdings	Holdings	Holdings
Mr. Anthony Egbuna	-	2,113,903,449	22.98	-	2,113,903,449	31.86
(eTranzact Global Limited)
Mr. Victor Etuokwu	-	3,453,937,783	37.54	-	1,579,258,416	23.8
(Access Bank Plc)
Mr. Wole Abegunde	-	324,723,892	3.53	-	164,702,048	2.48
(Meristem Securities Limited)
Mr. Niyi Toluwalope	35,518,304	-	0.39	35,518,304	-	0.54
	35,518,304	5,892,565,124	64.44	35,518,304	3,857,863,913	58.68

Directors Interest in Contracts

For the purpose of Section 303(1) and (3) of Companies and Allied Matters Act of Nigeria, 2020 (CAMA 2020), all contracts with related parties during the year were conducted at arm's length. Information relating to related parties transactions are contained in Note 31 to the financial statements.

Related Director	Name of Company		Status	Service to the Company
Mr. Wole Abegunde	Meristem Group		Director	Registrars and Stock Brokers
Mr. Anthony Egbuna	eTranzact Global Limited		Director	Platform Provider
Property, Plant and Equipment

Movements in property, plant and equipment for the period are shown in Notes 15 in the Financial Statements. In the opinion of the Directors, market value of property, plant and equipment is not less than the value shown in the Financial Statements.

Employment and Employees:

1. Employment Policy
   The Company gives equal opportunity to all applicants including disabled persons. All employees whether or not disabled are given equal opportunity for career growth and development. As at 31 December 2022, no disabled person applied for employment in the Company.

1. Health, Safety and Welfare of Employees
   The Company places high importance on the health, safety and welfare of its employees. It ensures that the work environment is safe. Employees are entitled to graduated medical allowances. Hazard allowances are also paid to employees who are exposed to hazards in the course of their duties. Other staff benefits which include employers contribution to pension schemes are also implemented.

1. Employees Involvement and Training
   The Company is of the opinion that its employees are an invaluable asset and as such equip them with skills and knowledge necessary to keep them up to date and enhance eciency on their jobs.
   The employees are considerably involved in major policy matters a ecting them and are informed on various factors a ecting the performance of the Company. This is achieved through formal and informal meetings. All employees are exposed to trainings, workshops and seminars that are necessary to enhance their knowledge and skill. The Company encourages continuing knowledge development of its employees.
2. Donations
   In compliance with Section 43(2) of the Companies and Allied Matters Act of Nigeria, 2020, the Company did not make any donation or gift to any political party, political association or for any political purpose, nor other donations, during the year (2021: Nil).

1. Format of Accounts
   The Financial Statements have been prepared in accordance with the standards and requirements of the International Financial Reporting Standards (IFRS). The Directors consider that the format adopted in this account is the most suitable for the Company's purposes.

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