UNION DICON SALT : AUDITED FINANCIAL STATEMENT FOR 2021

UNION DICON SALT PLC

AUDITED FINANCIAL STATEMENTS

31 DECEMBER 2021

i

Corporate information

Registration number

RC 66062

Directors

Lt. General (Rtd) T.Y. Danjuma (Chairman) Mrs. Florence Iroye

Engr. Kayode Erikitola, mni Lt. Col. (Rtd) T.O. Miri- Dashe Mrs. Nuratu Babatagarawa Mr. Bekuochi Nwawudu Maj. Gen. Tafilda

• - Chairman

• - Ag. Managing Director

• - Director

• - Director

• - Director

• - Director

• - Director

Registered officeAg. Company Secretary

Kirikiri Lighter terminal Phase 2, Kirikiri

Apapa

Lagos

Barrister Alfred James Kirikiri Lighter terminal Phase 2, Kirikiri

Apapa

Lagos

Auditors

BDO Professional Services 15 CIPM Avenue, CBD Alausa Ikeja

Lagos.

Bankers

Sterling Bank Plc Access Bank Plc

First City Monument Bank Plc

INDEPENDENT AUDITORS' REPORT

TO THE SHAREHOLDERS OF UNION DICON SALT PLC REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Union Dicon Salt Plc, which comprise, the statement of financial position as at 31 December 2021, the statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows for the year 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 2021 and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards, 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 Auditor's 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. The matter below was 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 this matter.

Laws and regulations

Risk

The Company is regulated by different laws and regulations. Non compliance with regulations issued by regulatory agencies and tax laws from the Tax Authorities may expose the Company to penalties and fines from the relevant authorities.

Response

Our audit procedures included, the review of post year end payments and correspondences

• ● Completed law and regulation checklist to ascertain the Company's compliance with relevant laws

• ● Reviewed correspondences with regulatory and statutory authorities for unrecorded liabilities during and subsequent to year end.

• ● Reviewed minutes and invoices received subsequent to year end for possible unrecorded liabilities and checked that any liability which existed at the year-end has been included in the financial statements.

Material uncertainty relating to going concern

We draw attention to note 24 in these financial statements which indicates that the Company's net current liabilities and negative shareholders' funds were N1,369,641,000 and N1,374,220,000 respectively. Notwithstanding the results mentioned above, the Directors have prepared the financial statements on a basis of accounting policies applicable to a going concern based on the assumptions and intentions of the Board as noted in note 24. Our opinion is not modified in respect of this matter.

Responsibilities of Management and those charged with governance for the Financial Statements

The Directors are responsible for the preparation and fair presentation of the financial statements 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, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Other information

Management is responsible for other information. The other information comprises the information included in the Chairman's and Directors' statements, but does not include the financial statements and our auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.

Auditors' responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

• * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• * Conclude on the appropriateness of directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Report on other legal and regulatory requirements

The Companies and Allied Matters Act, 2020 requires that in carrying out our audit we consider and report to you on the following matters. We confirm that:

i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit

ii) in our opinion, proper books of account have been kept by the Company, and

iii)

the Company's statement of financial position, and its statement of profit or loss and other comprehensive income are in agreement with the books of account.

Henry B. Omodigbo

FRC/2013/ICAN/00000003977 For: BDO Professional Services Chartered Accountants

Lagos, Nigeria

30 March 2022