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Annual Report and Financial Statements 2019 / 2020 Annual Report and Financial Statements KTDA MANAGEMENT SERVICES LTD TEA MACHINERY & ENGINEERING KTDA POWER COMPANY LTD CHAI TRADING COMPANY LTD COMPANY LTD Global Leader in Quality Teas ABOUT KTDA Smallholder tea farmers More than 630,000 smallholder farmers 54 tea factory companies Owned by smallholder tea farmers Tea cultivation, Hydropower KTPC payments, processing generation POWER & marketing Tea blending, Microfinance packaging & services marketing Tea machinery & engineering Tea trading & company warehousing Focus on CSI Insurance & activities brokerage FOUNDATION Vision Mission To be the preferred investment vehicle To invest in tea and other related profitable for the smallholder tea farmers in ventures for the benefit of shareholders and Eastern Africa other stakeholders Core values Customer focus Innovation High standards of ethical Equal opportunity practices employer Sustainability Social responsibilities Team work KTDA AT A GLANCE 127,000 630,000+ Hectares of tea grown Number of farmers by smallholder farmers 69 Number of KTDA 56 years managed factories of producing the best quality teas 1.45 billion Kilos of green leaf delivered to factories in 2019/20 326 million Kilos of made tea in 2019/20 2.1 million 1Million Indigenous trees planted 2 Feet by KTDA Foundation in tea growing areas Area of warehouse built to store farmers’ tea and other goods 4 million 10,000+ Kenyans supported KTDA employees by smallhoder tea industry 14 16 Number of hydropower Number of tea plants at various stages growing counties of implementation CONTENTS Performance Highlights ..............................................................................5 Corporate Information .............................................................................. 6 Notice of the Annual General Meeting .....................................................7 Board of Directors’ Profiles .........................................................................8 Chairman’s Report .....................................................................................12 Chief Executive Officer’s Statement.........................................................16 Subsidiary Company Heads .....................................................................24 Senior Management .................................................................................26 Corporate Governance Statement ..........................................................27 Corporate Scene .......................................................................................30 Directors’ Report .......................................................................................31 Statement of Directors’ Responsibilities ................................................33 Report of the Independent Auditor .........................................................34 Consolidated Statement of Profit or Loss ....................................37 Consolidated Statement of Comprehensive Income .................38 Company Statement of Profit or Loss and Other Comprehensive Income ................................................................39 Consolidated Statement of Financial Position ............................40 Company Statement of Financial Position ..................................41 Consolidated Statement of Changes in Equity ...........................42 Company Statement of Changes in Equity .................................43 FINANCIAL STATEMENTS Consolidated Statement of Cash Flows ......................................44 Company Statement of Cash Flows .............................................45 Notes to the Financial Statements ................................................... 46 - 91 PERFORMANCE HIGHLIGHTS GROUP INCOME 2014 - 2020 Ksh (M) TOTAL PAYMENT IN BILLION KSH - 2014 - 2020 Ksh (B ) 30,000 27,184 25,369 25,723 25,000 24,769 24,046 70 61.91 62.35 20,000 60 57.44 18,266 51.85 50 46.45 s 43.25 15,000 14,170 h 40 35.50 Ks s 10,000 30 illion B 20 5,000 10 0 2014 2015 2016 2017 2018 2019 2020 0 2014 2015 2016 2017 2018 2019 2020 GROUP PROFIT BEFORE TAX AFTER EXCEPTIONAL ITEMS 2014 - 2020 Ksh (M) DIVIDENDS PAYOUT 2014 - 2020 Ksh (M) 3000 2,858 2,710 800 2,531 2,500 700 691 683 734 2,084 2,018 600 2,000 532 514 1,602 500 1,500 1,399 382 400 1,000 300 272 200 500 100 0 2014 2015 2016 2017 2018 2019 2020 0 2014 2015 2016 2017 2018 2019 2020 GROUP TOTAL ASSETS 2014 - 2020 Ksh (M) GROUP NET WORTH 2014 - 2020 Ksh (M) 40,000 36,066 18,000 16,973 35,683 35,000 34,309 16,000 15,793 15,174 29,381 29,505 13,686 14,076 30,000 14,000 13,426 12,035 25,000 12,000 22,267 19,183 20,000 10,000 15,000 8,000 6,000 10,000 4,000 5,000 2,000 0 2014 2015 2016 2017 2018 2019 2020 0 2014 2015 2016 2017 2018 2019 2020 AVERAGE PERCENTAGE RETURN TO FARMER (7 YEARS) TOTAL INCOME FROM SALE OF TEA - Ksh BILLION (7 YEARS) 90 80 83.97 85.74 80 78.31 79.02 75 76 75 70 69.77 73 63.53 71 60 70 52.97 s 67 67 66 h 50 Ks 65 s 40 illion 30 60 B 20 55 10 50 2014 2015 2016 2017 2018 2019 2020 0 2014 2015 2016 2017 2018 2019 2020 KTDA HOLDINGS LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 | 5 CORPORATE INFORMATION Registered Office KTDA Farmers Building, Moi Avenue/Ronald Ngala Lane Email: [email protected] P.O. Box 30213 GPO 00100, Tel: 3227000, Nairobi Website: www.ktdateas.com Fax: 211240, 210636 Directors Mr. P. T. Kanyago, MBS, EBS Zone 4/Chairman Mr. S. C. Tonui Zone 9 Mr. P. K. Ngetich OGW, MBS Zone 8/Vice Chairman Mr. J. N. Achoki Zone 10 Eng. J. M. Wakimani Zone 1 Mr. B. O. Matonda Zone 11 Eng. E. Gakuya Zone 2 Mr. S. K. Mbatia Zone 12 Mr. F.M. Mark Zone 3 M/s. I. Gaha Independent Director Mr. P. M. Migwi Zone 5 Mr. L. S. Tiampati MBS CEO/Managing Director Mr. S. M. Mwafrika Zone 6 Mr. B. K. Ngari Group Finance & Strategy Mr. P. M. Ringera HSC Zone 7 Director Board Audit Committee Ms. I. Gaha - Chairperson Main Bankers Mr. F. M. Mark Mr. P. M. Ringera Mr. S. C. Tonui M r . S . K . M b a t i a NCBA Bank Kenya PLC Ms. S. Kasinga - Independent Director Mama Ngina Street Branch P.O. Box 30437, Tel: +254 20 2228802 Secretary Dr. J. K. Omanga Nairobi Cooperative Bank of Kenya Management Coop House Branch P.O. Box 48231-00100, Tel: +254 20 3276000 Mr. L. S. Tiampati - Group Chief Executive Officer / Managing Director Nairobi Mr. B. K. Ngari - Group Finance & Strategy Director Dr. J. K. Omanga - Group Company Secretary Mr. A. Otochi - Managing Director – Kenya Tea Packers Ltd Family Bank Limited D r. C . M b u i - Managing Director - Chai Trading Company Ltd KTDA Plaza Corporate Branch Mr. A. A. Njagi - Managing Director- KTDA Management Services Ltd P.O Box 74145 -00200 Mr. S. Rugutt - Finance Director –KTDA Management Services Ltd Tel: +254 20 241852/ M s . P. M w a n g i - General Manager/Director - Majani Insurance Brokers Ltd +254 20 210088 Ms. A. Gathuku - General Manager/Director – Greenland Fedha Ltd Nairobi Mr. J. Sayi - General Manager/Director – KTDA Power Company Ltd Mr. S. Ngera - General Manager /Director–Tea Machinery & Eng. Co Ltd Absa Bank Kenya PLC Mr. W. Muthaura - General Manager – Human Resources & Administration Barclays Plaza Branch Mr. J. Bett - General Manager - Sales and Marketing (MS) P.O. Box 40984, Mr. D. Mbugua - General Manager – ICT Tel: +254 20 3267000 Nairobi Mr. F. Miano - General Manager – Technical Services D r. S . G i k a n g a - General Manager - Chai Trading Company Ltd Mr. L. Munyao - General Manager - Group Audit Citi Bank Mr. G. Godana - General Manager Operations (MS) Nairobi Branch M r . N . K i t h a e - Group Head Corporate Affairs P.O .Box 30711-00100 M r . B . K a n a m p i u - Group Head Procurement and Logistics Tel: +254 20 2718704 M r . W . K a r a n j a - Group Head Enterprise Risk Management Nairobi Mr. S. Matara - Head, KTDA Foundation Stanbic Bank Chiromo Branch Independent Auditor P.O Box 30550-00100 Tel: +254 20 3638113 PricewaterhouseCoopers LLP, PwC Towers Waiyaki Way/Chiromo road, Nairobi Westlands, P.O. Box 43963 - 00100, Tel: +254 20 2855000 NAIROBI, KENYA 6 | KTDA HOLDINGS LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 NOTICE OF THE ANNUAL GENERAL MEETING FOR THE YEAR ENDED 30 JUNE 2020 NOTICE IS HEREBY GIVEN THAT THE TWENTIETH (20TH) ANNUAL GENERAL MEETING OF THE SHAREHOLDERS WILL BE HELD AT THE SAFARIPARK HOTEL, JAMBO CONFERENCE HALL, NAIROBI, ON FRIDAY 18TH DECEMBER 2020, AT 10.00 AM TO TRANSACT THE FOLLOWING BUSINESS: - ORDINARY BUSINESS 1. To receive and adopt the financial statements for the year ended 30th June 2020, together with the reports of the Chairman, Directors and Auditors thereon. 2. To consider and if deemed appropriate to declare a final dividend of Kshs. 733,950,900/- @ Kshs 1,452.22 per share payable to members on the Register at the close of business on 30th June 2020. 3. To approve the Directors’ remuneration of Kshs 4,200,000/- for the year ending 30th June 2020. 4. To appoint Messrs PWC LLP as Auditors of the Company by virtue of Section 721 (2) of the Companies Act, 2015 and to authorize the directors to fix the auditors remuneration for the ensuing financial year. (PWC LLP have expressed their willingness to continue as Company Auditors) 5. To appoint Directors representing Zones 1, 3, 9 and 10 following their nomination by directors of their respective zones, at the concluded elections held on 23rd October 2020. i. Eng. Joseph M. Wakimani - Zone 1 ii. Mr. Francis Macharia Mark - Zone 3 iii. Mr. Samuel C. Tonui - Zone 9 iv. Mr. Wilfred M. Nyakundi - Zone 10 SPECIAL BUSINESS 1. To consider and approve capitalisation of Kshs. 451,680,199
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