TOURIST OF NIGERIA : QUARTER 2 - FINANCIAL STATEMENT FOR 2023

6 - 8 Ahmadu Bello Way

Victoria Island Lagos Nigeria

Telephone [phone]

Websites: www.tcn.com.ng

www.suninternational.com

THE TOURIST COMPANY OF

NIGERIA Plc

CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2023

The Tourist Company of Nigeria Plc (trading as Federal Palace Hotel & Casino) Directors Chief A Idigbe SAN A Bulama TA Ibru U Ibru

AG Johnston* DR Mokhobo* GI Wood* TJD Kliegl* (*South African)

Company Registration No.: RC3781, TIN No.00275919-0001

Company Secretary: Punuka Nominees Limited

THE TOURIST COMPANY OF NIGERIA PLC

CONDENSED UNAUDITED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2023

CONTENTS	Page Nos
RESPONSIBILITY STATEMENT	1
SHAREHOLDER INFORMATION	2
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES	3 - 11
STATEMENT OF FINANCIAL POSITION	12
STATEMENT OF COMPREHENSIVE INCOME	13
STATEMENT OF CHANGES IN EQUITY	14
STATEMENT OF CASH FLOWS	15
NOTES TO THE FINANCIAL STATEMENTS	16 - 22
FINANCIAL SUMMARY	23

THE TOURIST COMPANY OF NIGERIA PLC

RESPONSIBILITY STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2023

We have conducted a review of the condensed financial statements. We confirm that to the best of our knowledge:

• The condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting', and in the manner required by the Companies and Allied Matters Act of Nigeria Cap C.20, Laws of the Federation of Nigeria, 2004 and the Financial Reporting Council Act, 2011.

• The condensed financial statements do not contain any untrue material fact or contain a material omission of fact.

• The condensed financial statements of the Company fairly present in all material respects the financial performance for the period and financial position for the period then ended.

Mr David Kliegl (General Manager)	Ms. Morenikeji Onaderu (Chief Accountant)
FRC/2013/NIM/00000004949	FRC/2022/PRO/ICAN/001/538526
28 July 2023	28 July 2023

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THE TOURIST COMPANY OF NIGERIA PLC

SHAREHOLDER INFORMATION

AS AT 30 JUNE 2023

	No. of shares	%
Sun International Limited	1,108,138,647	49.3%
Associated Ventures International Limited	419,408,169	18.7%
Oma Investments Limited	405,614,547	18.1%
Ikeja Hotel Plc	273,529,085	12.2%
Shareholders holding more than 5% of the issued share capital	2,206,690,448	98.2%
Free float	39,747,024	1.8%
	2,246,437,472	100.0%

Delisting from the Nigerian Stock Exchange

On 1 July 2015, the Nigerian Stock Exchange (NSE) notified the Company of its intention to delist The Tourist Company of Nigeria Plc due to the free float deficiency. A board resolution was passed on 13 July 2015 authorising the delisting, and communicated in a letter to the NSE on 20 July 2015. The Company sent a reminder to the NSE on 27 April 2016. The NSE responded on 31 May 2017 that the delisting process had been placed on hold until the governance problems at Ikeja Hotel Plc have been resolved. The board will consider its options when the Ikeja Hotel Plc's governance issues have been resolved, but will co-operate fully with the NSE on the way forward.

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THE TOURIST COMPANY OF NIGERIA PLC

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. REPORTING ENTITY
   The Tourist Company of Nigeria Plc is a public liability company registered in Nigeria and is quoted on the Nigerian Stock Exchange. It was incorporated on 10 April 1964. The Company converted from a private company to its current form on 20 April 1994. The Company operates a gaming and hospitality business in Victoria Island, Lagos.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
3. 1. Statement of compliance
      The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and in the manner required by the Companies and Allied Matters Act of Nigeria Cap C.20, Laws of the Federation of Nigeria, 2004 and the Financial Reporting Council Act, 2011. The financial statements were authorised for issue by the board of directors on 28 July 2023.
   2. Basis of measurement
      The financial statements have been prepared under the historical cost convention except for certain financial instruments initially measured at fair value and certain classes of property, plant and equipment measured at fair value.
   3. Critical accounting estimates and judgements
      Preparation of the financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
   4. • Asset useful lives and residual values
        Property, plant and equipment are depreciated over their useful lives, taking into account residual values where appropriate. The actual useful lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset useful lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the assets and projected disposal values.
      • Deferred tax
        Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.
      • Contingencies (including taxation)
        Management made certain key assumptions about the likelihood and magnitude of outflow of economic resources.
      • Going concern
        Management has made estimates on future economic and business realities as it relates to forecasts and budgets used in the assessment of the Company's ability to continue as a going concern and the appropriateness of the going concern assumption in the preparation of the financial statements.
   5. Functional and presentation currency
      The financial statements are presented in Nigerian Naira, which is the Company's functional currency. All financial information presented in Naira has been rounded to the nearest thousand except where otherwise indicated.
4. CHANGES IN ACCOUNTING POLICIES
   The Company initially applied IFRS 16 Leases from 1 January 2019. A number of other new standards are also effective from 1 January 2019 but they do not have a material effect on the Company's financial statements.
   Definition of lease
   Previously, the Company determined at contract inception whether an arrangement was or contained a lease under IFRIC 4 Determining whether an arrangement contains a Lease. The Company now assesses whether a contract is or contains a lease based on the definition of a lease, as explained in Note 4(k).
   On transition to IFRS 16, the Company elected to apply the practical expedient to grandfather the assessment of which transactions are leases. The Company applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for whether there is a lease under IFRS 16. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into or changed on or after 1 January 2019 contains a lease.
   As a lessee
   As a lessee, the Company leases assets such as printers and a table game. The Company previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Company. Under IFRS 16, the Company recognises right-of-use assets and lease liabilities for most of these leases ie. these leases are on-balance sheet.

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