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Guinness Ghana Breweries Limited Annual Reprt

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Guinness Ghana Breweries Limited Annual Reprt GUINNESS GHANA BREWERIES LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 GUINNESS GHANA BREWERIES LIMITED Annual Report For the year ended 30 June 2017 I N D E X P a g e(s) Corporate Information 1 Report of the directors 2-3 Report of the independent auditor 4-7 Financial Statements: · Statement of financial position 8 · Statement of comprehensive income 9 · Statement of changes in equity 10 · Statement of cash flows 11-12 · Notes 13-51 Shareholder Information Appendix I Five Year Financial Summary Appendix II GUINNESS GHANA BREWERIES LIMITED Annual Report For the year ended 30 June 2017 CORPORATE INFORMATION BOARD OF DIRECTORS Simon Harvey (Chairman) Stephen Nirenstein Kofi Sekyere Felix Addo (Appointed January 2017) Gavin Pike (Appointed May 2017) Ignacio Salvador Blazquez (Appointed May 2017) Teye Mkushi (Appointed August 2017) John Boadu (Appointed August 2017) Ebenezer Magnus Boye (Resigned December 2016) Leo Breen (Resigned May 2017) Mark Sandys (Resigned May 2017) Francis Agbonlahor (Resigned July 2017) Prince William Ankrah (Resigned July 2017) Martyn Mensah (Resigned August 2017) SECRETARY Afua Oduro-Asante Guinness Ghana Breweries Limited P. O. Box 3610 Accra REGISTERED OFFICE Guinness Ghana Breweries Limited Industrial Area, Kaasi P. O. Box 1536 Kumasi INDEPENDENT AUDITOR PricewaterhouseCoopers Chartered Accountants No. 12, Airport City Una Home 3rd Floor PMB CT42, Cantonments Accra REGISTRAR Universal Merchant Bank Limited 123 Kwame Nkrumah Avenue Sethi Plaza Adabraka - Accra SOLICITOR Legal Ink Solicitors & Notaries House No. F89/7 Emmaus Road Off 2nd Labone Street, Labone PMB 24, Kanda Accra BANKERS Barclays Bank of Ghana Limited Guaranty Trust Bank (Ghana) Limited Societe Generale Ghana Limited Stanbic Bank Ghana Limited Standard Chartered Bank (Ghana) Limited Fidelity Bank Ghana Limited Access Bank (Ghana) Limited 1 GUINNESS GHANA BREWERIES LIMITED Annual Report For the year ended 30 June 2017 REPORT OF THE DIRECTORS The directors, in submitting to the shareholders their report and financial statements of the Company for the year ended 30 June 2017, report as follows: STATEMENT OF DIRECTORS RESPONSIBILITIES The directors are responsible for the preparation of financial statements for each financial year which give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss and cash flows for that period. In preparing these financial statements, the directors have selected suitable accounting policies and applied them consistently, made judgements and estimates that are reasonable and prudent and followed International Financial Reporting Standards (IFRS) and complied with the requirements of the Companies Act, 1963 (Act 179). The directors are responsible for ensuring that the Company keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company. The directors are also responsible for safeguarding the assets of the Company and taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors have made an assessment of the Company’s ability to continue as a going concern and have no reason to believe the business will not be a going concern. FINANCIAL STATEMENTS AND DIVIDEND The results for the year are as set out in the statement of comprehensive income on page 9 of the financial statements. The directors do not recommend the payment of a dividend for the year ended 30 June 2017. The directors consider the state of the Company's affairs to be satisfactory. NATURE OF BUSINESS The Company manufactures, distributes and sells alcoholic and non-alcoholic beverages and their ancillary products. HOLDING COMPANY The Company is a subsidiary of Diageo Highlands BV and Diageo Ghanaian Holdings BV, both companies incorporated in the Netherlands. The ultimate parent Company is Diageo Plc, a Company incorporated in the United Kingdom. CHANGES IN DIRECTORSHIP Since the last Annual General Meeting: the following directors have resigned: Ebenezer Magnus Boye, Leo Breen, Mark Sandys, Francis Agbonlahor, Prince William Ankrah and Martyn Mensah and the following directors have been appointed: Felix Addo, Gavin Pike, Ignacio Salvador Blazquez, Teye Mkushi and John Boadu. Mr. Gavin Pike and Ms Teye Mkushi have been appointed as Managing Director and Finance Director respectively to replace Mr. Francis Agbonlahor and Mr. Stephen Nirenstein. 2 GUINNESS GHANA BREWERIES LIMITED Annual Report For the year ended 30 June 2017 REPORT OF THE DIRECTORS (Continued) DIRECTORS RETIRING AND SEEKING RE-ELECTION In accordance with the Companies Act, 1963 (Act 179), the Company’s Regulations and Ghana Stock Exchange Rules, the newly appointed directors namely Mr. Felix Addo, Mr. Gavin Pike, Ms. Teye Mkushi, Mr John Boadu and Mr. Ignacio Salvador Blazquez will retire and seek re-election at the next Annual General Meeting. The Board would like to recommend that shareholders support their re-election. APPROVAL OF THE FINANCIAL STATEMENTS The financial statements of the Company were approved by the Board of Directors on ………………………... and signed on its behalf by: ..........................…............... ……………………………........ CHAIRMAN FINANCE DIRECTOR SIMON HARVEY TEYE MKUSHI 3 REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF GUINNESS GHANA BREWERIES LIMITED REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Our opinion In our opinion, the financial statements give a true and fair view of the financial position of Guinness Ghana Breweries Limited as at 30 June 2017, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 1963 (Act 179). What we have audited We have audited the financial statements of Guinness Ghana Breweries Limited (the “Company”) for the year ended 30 June 2017. The financial statements on pages 8 to 51 comprise: the statement of financial position as at 30 June 2017; the statement of comprehensive income for the year then ended; the statement of changes in equity for the year then ended; the statement of cash flows for the year then ended; and the notes to the financial statements, which include a summary of significant accounting policies. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the Company’s financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 4 REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF GUINNESS GHANA BREWERIES LIMITED (continued) Key audit matter How our audit addressed the key audit matter Impairment of trade receivables The Company’s route to the consumer in the We evaluated the design and tested the supply of both alcoholic and non-alcoholic operating effectiveness of controls around the products are through direct delivery customers revenue and receivables cycle (order to cash and key distributors. As at 30 June 2017, trade process). receivables amounted to GH¢19.36 million after impairment provision of GH¢0.96 million. We tested the ageing analysis of trade receivables to assess the appropriate Management performs an assessment of the classification of trade receivable balances. ability of the customers to settle their outstanding debts in accordance with the agreed credit terms. We challenged management on the The impairment review is performed at each appropriateness and reasonableness of the reporting date and establishes a provision for all assumptions and judgements used by receivable balances identified as impaired. measuring them against historical trends including third party data where available. Management exercises significant judgements in We assessed the adequacy of impairment identifying whether an impairment event has provision made on impaired trade receivable occurred and determining both the timing of balances. recognition of impairment and the estimation of any such impairment. We assessed the appropriateness and completeness of the related disclosures made in Significant judgements and assumptions note 28(b) (i) of the financial statements. exercised by management are disclosed in note 3(c) of the financial statements. Based on our procedures, we noted no material exceptions and considered management’s assumptions and judgements to be reasonable. Other information The directors are responsible for the other information. The other information comprises the Report of the Directors, Shareholder information and Five year financial summary but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does
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