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The systems of internal control are executed and supervised by appropriately trained staff and their tasks and revealing lines happen to be clearly defined\. ‘

FAN DAIRY LIMITED MONETARY STATEMENTS FOR THE YEAR CONCLUDED DECEMBER 31, 2009 LOVER MILK LIMITED Year concluded December thirty-one, 2009 Contents Corporate details Pages 1 Report from the directors 2-3 Corporate governance 4-5 Record of the independent auditor 6-7 Financial transactions: i. Statement of comprehensive income almost 8 ii. Affirmation of financial placement 9 iii.

Statement of changes in fairness 10 iv. Statement of money flows 14 v. Remarks 12 , 30 zero FAN DAIRY LIMITED 12 months ended Dec 31, 2009 CORPORATE DATA Directors Charles Mensa (Dr. ) Jesper Bjorn Jeppesen Kodjo Biamawu Aziagbe Einar Mark Christensen Jens Jorgen Kollerup George H.

Okai Thompson Peacefulness Ayisi-Okyere Lennap , Company. P. To. Box 37 Accra PricewaterhouseCoopers Chartered Accountancy firm No . doze Airport Town Una Residence, 3rd Floor PMB CT 42 Cantonments Accra Number 1 Dadeban Road North Industrial Area P. Um. Box 6460 Accra-North Quist, Brown, Wontumi , Co-workers P. O. Box 7566 Accra Countrywide Trust Keeping Company Limited Martco Home P. O. Box 9563 Airport, Accra Barclays Lender of Ghana Limited Ecobank Ghana Limited SG-SSB Traditional bank Limited Prudential Bank Limited Agricultural Advancement Bank Limited Ghana Commercial Bank Limited Standard Chartered Bank Ghana Limited (Chairman) (Managing Director)

Secretary Auditor Registered Business office Solicitor Registrar , Copy Office Bankers 1 SUPPORTER MILK LIMITED Year finished December 31, 2009 SURVEY OF THE OWNERS The owners submit their particular report together with the audited financial statements of Fan Dairy Limited to get the year concluded December 31, 2009. Statement of directors’ responsibilities The directors are responsible for the preparation of financial statements for each and every financial yr which offer a true and fair perspective of the situation of the firm and of the money or reduction and money flows for this period.

In preparing these types of financial claims, the owners have chosen suitable accounting policies then applied these people consistently, manufactured judgements and estimates which have been reasonable and prudent and followed International Financial Confirming Standards (IFRS). The company directors are responsible intended for ensuring that the corporation keeps proper accounting documents that divulge with affordable accuracy at any time the financial position of the firm. The owners are also accountable for safeguarding the assets from the company and taking reasonable steps pertaining to the avoidance and diagnosis of fraud and other problems.

Principal activity The principal activity of the company may be the manufacturing and distribution of dairy products and fruit drinks. Financial benefits The economic results of the company will be set out beneath: 2009 GH? ‘000 Earnings before tax for the year is from where is subtracted tax of giving a revenue after tax for the season of that is added balance brought forward about retained profits of that is deducted approved gross of providing a balance transported forward on retained earnings of twenty, 175 (5, 019) 12-15, 156 15, 410 (1, 484) twenty nine, 082 You can actually net worth elevated from GH? 1 . four million because at January 1, 2009 to GH? 35. one particular million by December 31, 2009. two FAN MILK LIMITED Season ended Dec 31, 2009 REPORT OF THE DIRECTORS (continued) Dividends The directors recommend a gross of GH? 0. 12 per reveal (2008: GH? 0. 0750 per share) in respect of the year ended January 31, 2009. Auditor The auditor, PricewaterhouseCoopers, has indicated willingness to keep in business office in accordance with Section 134 (5) of the Businesses Code, 1963 (Act 179). BY ORDER OF THE PANEL: Name of Director: ¦¦¦¦¦¦¦¦.. Name of Director: ¦¦¦¦¦¦¦¦¦¦..

Signature: ¦¦¦¦¦¦¦¦¦¦¦¦ Date: ¦¦¦¦¦¦¦¦¦¦¦¦¦¦, Signature: ¦¦¦¦¦.. ¦¦¦¦¦¦¦¦ Date: ¦¦¦¦¦¦.. ¦¦¦¦¦¦¦¦¦. 3 LOVER MILK LIMITED Year finished December 31, 2009 CORPORATE GOVERNANCE Intro Fan Milk Limited is usually committed to the principles and execution of good corporate governance. The organization recognises the valuable contribution that it makes to long term business wealth and to making sure accountability to its investors. The Company is managed in a way that maximises long-term shareholder worth and takes into account the pursuits of all of its stakeholders.

Fan Milk Limited believes that complete disclosure and transparency in the operations happen to be in the passions of good governance. As mentioned in the declaration of responsibilities of directors and notes for the accounts, the business enterprise adopts standard accounting methods and ensures sound inside control to facilitate the reliability with the financial statements. The Panel of Directors The Table is responsible for placing the Company’s proper direction, for leading and controlling the Company and for monitoring activities of executive administration. The Board presents a well-balanced and understandable assessment in the Company’s improvement and leads.

The Board consists of the Chairman, five non-executive owners and a great executive overseer (the managing director). The nonexecutive owners are 3rd party of managing and clear of any limitations, which could materially interfere with the exercise of their independent judgement. They have encounter and familiarity with the industry, markets, economical and/or various other business info to make a important contribution for the Company’s improvement. The taking care of director is a separate person from the Chief and this individual implements the management tactics and guidelines adopted by Board.

That they meet at least 4 times a year. The Review Committee The Audit Committee is made up of 4 directors of whom 3 are nonexecutive directors plus they meet two times a year. The main Board establishes its conditions of guide and they record back to the Board. Its duties include keeping beneath review the scope and results with the external taxation, as well as the independence and objectivity of the auditor. The Review Committee also keeps below review inner financial regulates, compliance with laws and regulations and the safeguarding of assets.

Additionally, it reviews the adequacy in the plan with the internal taxation and opinions its audit reports. some FAN MILK LIMITED Yr ended Dec 31, 2009 CORPORATE GOVERNANCE (continued) Devices of Inner Control Lover Milk Limited has well-established internal control systems to get identifying, controlling and monitoring risks. These are designed to present reasonable guarantee that the dangers facing the company are staying controlled. The organization internal review function of the Company takes on a key role in rendering an objective watch and continuing assessment from the effectiveness of the internal control systems in the commercial.

The systems of inner control happen to be implemented and monitored by simply appropriately educated personnel and the duties and reporting lines are precise. Code of Business Integrity Management features communicated the principles in the Business Code of Conduct to its workers in the relieve of their tasks. This code sets the professionalism and integrity required for business procedures which covers compliance with the legislation, conflicts of interest, environmental problems, reliability of financial reporting, bribery and strict adherence for the principles so as to eliminate the potential for illegal practices. REPORT IN THE INDEPENDENT AUDITOR TO THE USERS OF SUPPORTER MILK LIMITED REPORT ON THE FINANCIAL STATEMENTS We have audited the associated financial statements of Enthusiast Milk Limited set out about pages almost 8 to 35. These economic statements contain the declaration of financial situation at 12 , 31, 2009, and the assertion of extensive income, statement of changes in equity and statement of cash flows pertaining to the year then simply ended, and a summary of significant accounting policies and other explanatory notes.

Directors’ responsibility to get the economical statements The directors are responsible for the preparation and fair display of these economical statements in accordance with International Economical Reporting Criteria and with the requirements of the Corporations Code, 1963 (Act 179). This responsibility includes: designing, implementing and maintaining interior control relevant to the preparation and reasonable presentation of financial statements which might be free from materials misstatement, if due to fraud or mistake, selecting and applying suitable accounting guidelines, and producing accounting quotes that are affordable in the instances.

Auditor’s responsibility Our responsibility is to express an opinion for the financial assertions based on the audit. All of us conducted our audit in accordance with International Requirements on Auditing. Those specifications require that people comply with honest requirements and plan and perform the audit to have reasonable guarantee that the economical statements have time from material misstatement. A great audit entails performing procedures to obtain review evidence regarding the quantities and disclosures in the monetary statements.

The procedures chosen depend on the auditor’s judgement, including the evaluation of the dangers of material misstatement of the economic statements, if due to fraudulence or error. In making all those risk checks, the auditor considers inner control highly relevant to the entity’s preparation and fair demonstration of the financial statements in order to design examine procedures which have been appropriate in the circumstances, but is not for the purpose of articulating an opinion around the effectiveness in the company’s internal control.

An audit also includes evaluating the appropriateness of accounting plans used and the reasonableness of accounting estimates made by the directors, and also evaluating the complete presentation of the financial statements. We believe the audit evidence we have obtained is sufficient and appropriate to realise a basis pertaining to our view.

Opinion Within our opinion the accompanying economic statements provide a true and fair look at of the condition of the company’s financial affairs at 12 , 31, 2009 and of it is financial functionality and funds flows intended for the year then ended in agreement with Worldwide Financial Credit reporting Standards and the requirements of the Companies Code, 1963 (Act 179). six REPORT WITH THE INDEPENDENT AUDITOR TO THE PEOPLE OF SUPPORTER MILK LIMITED (continued) STATEMENT ON OTHER LEGAL REQUIREMENTS The firms Code, 1963 (Act 179) requires that in carrying out our taxation we consider and are accountable to you on the following things.

We state that: i) ii) iii) we have obtained all the info and answers which for the best of the knowledge and belief were necessary for the purposes of the audit, within our opinion right books of account had been kept by the company, in terms of appears from our examination of those books, and the company’s declaration of financial position and statement of thorough income will be in agreement with the books of bank account. Chartered Accountancy firm ¦¦¦¦¦¦¦¦¦ 2010 Accra, Ghana Mark Appleby (101193) ENTHUSIAST MILK LIMITED Financial Assertions for the season ended January 31, 2009 STATEMENT OF COMPREHENSIVE INCOME (All quantities are portrayed in a large number of Ghana cedis) Year ended December 31 Note Income Cost of sales Gross income Distribution costs Administrative expenditures Operating revenue Other profits Finance costs Profit before tax Tax Net revenue after taxes Other extensive income Total comprehensive salary Earnings per share Standard and diluted (GH? ) 11 zero. 77 zero. 6 9 7 eight 5 six 3 4 2009 82, 471 (38, 460) 44, 011 (18, 628) (6, 184) nineteen, 199 1, 177 (201) 20, 175 (5, 019) 15, 156 15, 156 2008 fifty five, 041 (28, 599) 21, 442 (12, 569) (4, 873) being unfaithful, 000 five-hundred (113) 9, 387 (2, 333) several, 054 six, 054 8 FAN DAIRY LIMITED Financial Statements pertaining to the year ended December thirty-one, 2009 STATEMENT OF FINANCIAL PLACEMENT (All sums are stated in a large number of Ghana cedis) Assets Non-current assets Property, plant and equipment Prepaid operating rental land Notice 12 13 At Dec 31 08 2009 21 years old, 622 one particular, 647 twenty three, 269 Current assets Stocks Trade and also other receivables Traditional bank and cash balances 13, 383 1, 701 15, 084 5 15 twenty two 9, 656 2, 318 15, 871 27, 845 6, 811 2, 129 8, 834 17, 774 32, 858 Total property Equity Capital and supplies attributable to Provider’s equity cases Stated capital Retained earnings 51, 114 20 6th, 000 twenty nine, 082 thirty-five, 082 6, 000 15, 410 twenty one, 410 Debts noncurrent financial obligations Finance lease obligation Deferred tax Current liabilities Transact and other payables Current duty Dividend payable 19 16 18 one particular, 330 one particular, 330 808 808 9, 719 699 222 twelve, 640 eleven, 448 thirty-two, 858 sixteen 17 12 14, 272 137 293 14, 702 Total liabilities Total shareholders’ equity and liabilities six, 032 fifty-one, 114 The financial claims on webpages 8 to 30 were approved by the Board of Directors on ¦¦¦¦¦¦¦¦¦2010 and signed in its part by: Director: Director: on the lookout for FAN MILK LIMITED Financial Statements for the year ended December 31, 2009 AFFIRMATION OF CHANGES IN EQUITY (All amounts are expressed in thousands of Ghana cedis) Explained capital Year ended 12 , 31, 2009 At the beginning of the year Total complete income Gross At the end from the year 6th, 000 6, 000 12-15, 410 12-15, 156 (1, 484) 29, 082 twenty-one, 410 15, 156 (1, 484) thirty five, 082 Maintained earnings

Total Year finished December thirty-one, 2008 At the start of the year Total comprehensive cash flow Dividend At the conclusion of the yr 6, 500 6, 500 9, 494 7, 054 (1, 138) 15, 410 15, 494 7, 054 (1, 138) 21, 410 10 FAN MILK LIMITED Financial Statements for the entire year ended 12 , 31, 2009 STATEMENT OF MONEY FLOWS (All amounts happen to be expressed in thousands of Bekwai, ghana cedis) 12 months ended December 31 2008 2009 twenty-five, 191 (17) 418 seventeen (5, 059) 20, 533 13, 198 (113) 239 (1, 310) 12, 014

Note Cash flows from operating actions Cash produced from operations Interest paid out Interest received Tax paid out Net cash generated coming from operating activities Cash moves from investment activities Acquiring property, grow and gear Purchase of terrain Proceeds from sale for property, herb and equipment Net cash used in trading activities Cash flows by financing actions Dividend paid Finance rent repaid Net cash found in financing actions Increase in money and cash equivalents Money and cash equivalents at the beginning of the year Funds and money equivalents at the conclusion of the season 22 10 12 13 12 21 years old 12, 181) (1) 296 (11, 886) (6, 429) (216) 112 (6, 533) (1, 413) (197) (1, 610) 7, 037 8, 834 15, 871 (1, 048) (710) (1, 758) 3, 723 5, 111 8, 834 11 ENTHUSIAST MILK LIMITED Financial Assertions for the season ended 12 , 31, 2009 NOTES (All amounts in the notes will be shown in thousands of Bekwai, ghana cedis unless of course otherwise stated) 1 . Basic information Supporter Milk Limited manufactures, redirects and sells dairy products and fruit drinks through a network of self-employed distributors and agents. The company is a public limited business incorporated and domiciled in Ghana within the Companies Code, 1963 (Act 179) and listed on the Bekwai, ghana Stock Exchange.

The registered workplace is located without. 1 Dadeban Road, North Industrial Area, Accra-North. installment payments on your Summary of significant accounting policies The main accounting plans applied in the preparation of the financial statements are placed below. These kinds of policies had been consistently put on all the years presented, until otherwise stated. (a) Foundation accounting The financial statements have been well prepared on the traditional cost basis. They have been prepared in accordance with Worldwide Financial Reporting Standards (IFRS).

The administration of Fan Milk Limited considers the subsequent to be the most critical accounting policies for the business. In applying these accounting policies, management makes selected judgements and estimates that affect the reported amounts of property and debts at the yr end day and the reported revenues and expenses through the financial yr. The economical statements have already been prepared in accordance with the company’s accounting policies referred to below. The corporation has used the following new and amended IFRSs since January one particular, 2009:?

IFRS 7 “Financial instruments , Disclosures (amendment) , powerful January one particular, 2009. The amendment requires enhanced disclosure about fair value measurement and liquidity risk. In particular, the modification requires disclosure of good value measurements by degree of a fair benefit measurement structure. As the change in accounting policy simply results in further disclosure, there is no impact on profits per reveal.? IAS you (revised) “Presentation of financial statements , effective January one particular, 2009. The revised normal prohibits the presentation of things of income and xpenses (that is definitely, ` non-owner changes in equity`) in the affirmation of changes in equity, necessitating ` nonowner changes in equity` to be provided separately coming from owner within equity in a statement of comprehensive profits. Comparative info has been re-presented so that it is also in conformity with the revised standard. Because the difference in accounting insurance plan only affects presentation factors, there is no impact on earnings per share. doze FAN DAIRY LIMITED Economical Statements pertaining to the year concluded December 23, 2009 NOTES (continued) (All amounts inside the notes are shown in thousands of Bekwai, ghana cedis except if otherwise stated) 2 .

Brief summary of significant accounting procedures (continued) (b) Property, herb and tools Property, herb and products held for use in the production or supply of items, or to get administrative uses are set by the statement of financial placement at traditional cost or deemed are cheaper depreciation. Traditional cost comes with the expenditure that is directly attributable to the acquisition of the products. Deemed price includes surpluses arising on the revaluation of certain real estate to their good values prior to the date of transition to IFRS.

Succeeding costs are included in the asset’s carrying volume or recognized as a individual asset, as appropriate, only if it is likely that long term economic benefits associated with the item can be scored reliably. The carrying quantity of the substituted part is usually derecognised. All other repairs and maintenance happen to be charged for the statement of comprehensive cash flow during the financial period in which they are sustained. Assets in the course of construction are carried in cost less virtually any recognised impairment loss. Price includes professional fees that happen to be capitalised according to the Company’s accounting policy.

Depreciation of these possessions commences when the assets are ready for their intended use. Land is certainly not depreciated. Devaluation is determined using the straight line strategy to write off the cost of every single asset or revalued sums over their particular estimated useful lives as follows: Buildings Flower and machines Deep freezers and bicycles Distribution vans Other automobiles Computer systems Home furniture and fittings 10 , 20 years a decade 5 years 8 years 5 years 3 years five years The assets’ residual values and useful life is reviewed and adjusted if perhaps appropriate at each statement of economic position day.

Any asset’s carrying amount is created down immediately to it is recoverable quantity if the asset’s carrying sum is greater than its predicted recoverable quantity. Gains and losses upon disposals are determined by evaluating the earnings with the having amount and they are recognised within other gains/(losses) in the assertion of comprehensive income. When revalued assets are sold, the amounts contained in other supplies are utilized in retained revenue. 13 FAN MILK LIMITED Financial Transactions for the season ended Dec 31, 2009

NOTES (continued) (All amounts in the notes are displayed in thousands of Ghana cedis unless otherwise stated) 2 . Summary of significant accounting policies (continued) (c) Impairments of resources At each affirmation of financial situation date, the business reviews the carrying amounts of its tangible and intangible assets to determine whether there is certainly any indicator that those resources have endured an impairment loss. In the event any such sign exists, the recoverable sum of the asset is estimated in order to determine the extent of the disability loss (if any).

In which the asset would not generate cash flows which can be independent from other assets, the organization estimates the recoverable volume of the money generating unit (CGU) to which the advantage belongs. Recoverable amount is a higher of fair value less costs to sell and value in use. In determining value-in-use, the estimated upcoming cash moves are reduced to their present value using a post-tax lower price rate that reflects the current market analysis of the time benefit of money and the risks particular to the property for which the estimates of future money flows never have been adjusted.

If the recoverable amount of an asset (or CGU) is usually estimated to get less than the carrying amount, the carrying amount from the asset (CGU) is lowered to its recoverable sum. An impairment loss is usually recognised because an expense instantly. (d) Arrays Inventories are stated with the lower of cost and net realisable value. Expense is determined using the first-in, first-out (FIFO) technique. The cost of done goods and work in progress comprises recycleables, direct labour, other direct costs and related development overheads, based on normal functioning capacity.

It excludes asking for costs. Net realisable value is the believed selling price in the ordinary span of business, fewer all estimated costs of completion and costs to become incurred in marketing, offering and syndication. Spare parts happen to be written off in the year of purchase. (e) Investments and also other financial assets Financial possessions are labeled as either financial property at good value through profit or perhaps loss, financial loans and receivables, held to maturity opportunities, or available financial assets, as appropriate.

When monetary assets will be recognised initially, they are scored at reasonable value, (plus in the case of assets not by fair worth through earnings or loss, directly attributable costs). The business determines the classification of its economic assets upon initial reputation and, exactly where allowed and appropriate, re-evaluates this designation at each economical year end. All standard purchases and sales of economic assets will be recognised for the trade particular date , the date on which the company does to purchase or perhaps sell the asset. 16

FAN MILK LIMITED Financial Statements for the year finished December 31, 2009 RECORDS (continued) (All amounts in the notes are shown in thousands of Bekwai, ghana cedis unless of course otherwise stated) 2 . Brief summary of significant accounting plans (continued) (e) Investments and other financial assets (continued) Financial loans and receivables Loans and receivables happen to be nonderivative economic assets with fixed or determinable repayments that are not quoted in an active market. These kinds of assets happen to be carried in amortised expense using the powerful interest method.

Gains and losses are recognised in income when the loans and receivables are derecognised or perhaps impaired, and through the amortisation process. (f) Trade receivables Trade receivables are portions due via customers pertaining to goods sold in the ordinary span of business. In the event collection is definitely expected in one year or perhaps less (or in the usual operating cycle of the business if longer), they are categorized as current assets. In the event not, they can be presented since non-current resources. Trade receivables are recognised initially in fair worth and subsequently measured at amortised cost using the effective interest ethod, less allocation for disability. An allowance for disability of receivables is predicted when there may be objective proof that the firm will not be capable of collect every amounts due according to the first terms of the receivables. (g) Funds and cash equivalents Funds and cash equivalents contains cash in side, deposits organised at phone with banking institutions, other temporary highly water investments with original maturities of 90 days or fewer and bank overdrafts. Financial institution overdrafts will be shown within just borrowings in current liabilities on the assertion of financial location. h) Operate payables Control payables are initially recognised at fair value and subsequently assessed at amortised cost. (i) Bank borrowings Interest bearing loans and overdrafts will be recorded on the proceeds quantity received net of immediate issue costs. Finance costs payable on settlement or redemption and direct costs, are accounted for on an accrual basis inside the statement of comprehensive profits using the powerful interest rate technique and are included with the having amount from the instrument for the extent that they are not settled in the period in which they will arise. 12-15

FAN DAIRY LIMITED Financial Statements intended for the year finished December 23, 2009 RECORDS (continued) (All amounts in the notes happen to be shown in thousands of Bekwai, ghana cedis until otherwise stated) 2 . Brief summary of significant accounting policies (continued) (j) Current and deferred income tax Current tax Current duty assets and liabilities pertaining to the current and prior durations are scored at the sum expected to be recovered coming from or paid to the taxation authorities. The tax level and tax laws accustomed to compute the total amount are all those enacted or substantively enacted by the assertion of financial situation date.

Deferred tax Deferred income tax can be provided using the liability approach on momentary differences in the statement of financial position day between the duty base of assets and liabilities and the carrying quantity for economic reporting purposes. Deferred taxes liabilities will be recognised for a lot of taxable temporary differences, besides where the deferred tax legal responsibility arises from the initial recognition of goodwill or perhaps of an property or responsibility in a deal that is not a company combination and, at the time of the transaction, impacts neither the accounting profit nor taxable profit or loss.

Deferred income tax resources are accepted for all insurance deductible temporary differences, carry-forward of unused tax credits and unused tax losses, towards the extent that it must be probable that taxable earnings will be available against which the deductible temporary distinctions, and the carry-forward of abandoned tax credits and abandoned tax deficits can be used except in which the deferred taxes assets relating to the insurance deductible temporary variations arise through the initial reputation of an asset or legal responsibility in a transaction that is not a company combination and, at the time of the transaction, impacts neither the accounting neither taxable income or reduction. k) Rents Leases are classified since finance rents whenever the terms of the lease contract involve the substantial copy of all the hazards and benefits of possession to the lessee. All other leases are categorized as operating leases. Resources held under finance rents are accepted as possessions of the Organization at all their fair benefit or, if perhaps lower, presently value from the minimum rental payments, every single determined on the inception from the lease. The related liability to the lessor is roofed in the statement of financial placement as a financial lease responsibility.

Lease obligations are apportioned between loans charges and a reduction with the lease obligation so as to acquire a constant interest rate on the leftover balance of the liability. Financial charges will be charged straight against salary, unless they may be directly attributable to qualifying possessions, in which case they are really capitalised with the Company’s plan on borrowing costs. 16 FAN MILK LIMITED Monetary Statements intended for the year ended December 23, 2009

NOTES (continued) (All amounts inside the notes happen to be shown in thousands of Bekwai, ghana cedis unless of course otherwise stated) 2 . Summary of significant accounting plans (continued) (k) Leases (continued) Property, plant and equipment acquired beneath finance leases are depreciated over the short of the valuable life of such possessions or the rental period. Obligations made below operating leases are recharged to the declaration of complete income over a straight line basis over the period of the lease. l) Employee benefits Pension accountability The Company functions a defined contribution pension prepare (provident fund). A defined contribution plan is a pension prepare under which the Company will pay fixed efforts into a separate enterprise. The Company does not have legal or perhaps constructive requirements to pay further advantages if the finance does not keep sufficient assets to spend all employees the benefits in relation to employee service. The input are recognised as employee benefit charge when they are because of. m) Procedures Provisions will be recognised when a present legal or constructive obligation exists as a result of past events, wherever it is more likely than not that an output of solutions will be necessary to settle the duty and the volume can be reliably measured. (n) Revenue recognition Sale of merchandise Sales are recognised if the risks and rewards of the products have been greatly transferred to the customer. Sales will be shown net of results and useful tax. o) Foreign currencies Deals are recorded on initial reputation in Ghana cedis, staying the currency of the major economic environment in which the company functions (the useful currency). Deals in foreign exchange during the year are converted into Ghana cedis at prevailing prices of exchange ruling at the transaction date ranges. Monetary resources and debts denominated in foreign currencies happen to be translated in to Ghana cedis at the costs of exchange ruling with the statement of financial position day.

The resulting gains and losses happen to be dealt with in the statement of comprehensive income. 17 LOVER MILK LIMITED Financial Assertions for the year ended January 31, 2009 NOTES (continued) (All amounts in the paperwork are proven in a large number of Ghana cedis unless normally stated) installment payments on your Summary of significant accounting policies (continued) (p) Dividend Dividend given away to the provider’s shareholders can be recognised as being a liability in the financial transactions in the period in which the payouts are approved by the Company’s shareholders. q) Content statement of economic position situations Events subsequent to the statement of financial situation date happen to be reflected only to the degree that they bring up directly to the financial assertions and the effect is materials. (r) Contingent liabilities Contingent liabilities are potential liabilities that happen from past events, the existence of which will be proved only around the occurrence or perhaps non-occurrence of one or more uncertain future situations which are certainly not wholly inside the control of the business.

Provisions pertaining to liabilities are recorded if a loss is regarded as probable and is reasonably approximated. The willpower of whether or perhaps not a dotacion should be registered for any potential liabilities is founded on management’s reasoning. (s) Quotes Estimates are continually examined and are based upon historical knowledge and other factors, including expectations of upcoming events which might be believed to be fair under the situations. Because of the inherent uncertainties in this evaluation method, actual losses may be unlike the formerly estimated provision.

In addition , significant estimates take part in the dedication of supply related to taxes and lawsuits risks. These kinds of estimates will be subject to alter as new information receives and adjustments subsequent to these types of estimates may possibly significantly have an effect on future functioning results. Accounting for home, plant and equipment, and intangible assets involves the use of estimates pertaining to determining the fair worth at the purchase date. Furthermore, the predicted useful lives of these assets must be believed.

The dedication of the fair values of assets and liabilities, along with of the useful lives in the assets is founded on management’s thinking. (t) Segment reporting Functioning segments are reported within a manner like internal confirming provided towards the chief working decision-maker. The primary operating decision-maker is responsible for the allocation of resources and assessing the performance of the operation segments. 18 LOVER MILK LIMITED Financial Claims for the year ended Dec 31, 2009

NOTES (continued) (All quantities in the records are demonstrated in a large number of Ghana cedis unless or else stated) three or more. Revenue Product sales Value added duty Included in income are export sales of GH? 182, 773 (2008: GH? Nil). 4. Expense of sales Cost of sales comes with: Depreciation of factory buildings and grow and machines Staff costs , Income and salaries , Cultural security , Provident fund 5. Circulation costs Providing and division costs incorporate: Depreciation of buildings, cars and machinery Staff costs , Pay and salaries , Sociable security , Provident fund 6.

Management expenses Administrative expenses include: Depreciation of buildings, vehicles and machinery Staff costs , Salary and salaries , Cultural security , Provident account Auditor’s remuneration Directors’ remuneration Donations 346 1, 457 105 41 33 529 55 244 813 75 29 twenty six 357 4 1, 902 2, 249 186 69 1, 646 1, 695 141 54 1, 534 3, 187 240 eighty-five 1, 094 2, 292 180 65 2009 94, 842 (12, 371) 82, 471 08 63, 297 (8, 256) 55, 041 Total number of staff utilized by the company in year was 407 (2008: 401). six.

Other salary Profit in disposal of property, herb and equipment (Note 12) Interest about current accounts Sale of empty bags and scraps Provident fund refund Rent salary Bad debts recovered Exchange gain 136 418 37 12 64 almost 8 502 one particular, 177 19 109 239 61 13 56 twenty-two 500 FAN MILK LIMITED Financial Assertions for the season ended December 31, 2009 NOTES (continued) (All amounts in the records are displayed in 1000s of Ghana cedis unless or else stated) almost 8. Finance costs Interest payable on traditional bank overdraft Interest payable in finance rental Interest payable on brokers savings Financial costs upon staff financial loans (Note 15) 2009 17 134 55 201 9.

Income tax expenditure 2009 Current tax (Note 17) Deferred tax (Note 18) four, 497 522 5, 019 2008 a couple of, 009 324 2, 333 2008 four 109 113 The impose for the season can be reconciled to the income per the statement of comprehensive salary as follows: 2009 2008 Earnings before tax Tax incurred at 25% (2008: 25%) Expenses not deductible in determining taxable profit Other differences Capital allowances brought forward utilized in 2008 Foreign trade income for different taxes rate 20, 175 five, 044 18 (31) (8) 5, 019 10.

Gross payable Equilibrium at January 1 Gross declared and approved (GH? 0. 0750 per discuss, 2008: GH? 0. 0575 per share) Dividend paid out Balance in December thirty-one 222 you, 484 (1, 413) 293 132 1, 138 (1, 048) 222 9, 387 2, 347 1 four (19) a couple of, 333 Payment of gross is be subject to the deduction of withholding taxes at the appropriate rate. Proposed gross for approval at AGM (not accepted as a the liability as by December 23, 2009) amounted to GH? 1 . 978 million (GH? 0. twelve per share). 20

ENTHUSIAST MILK LIMITED Financial Assertions for 12 months ended January 31, 2009 NOTES (continued) (All amounts in the records are demonstrated in 1000s of Ghana cedis unless otherwise stated) 10. Earnings every share Earnings after duty Number of regular shares Fundamental and diluted earnings per share (GH? ) 2009 15, one hundred and fifty six 19, 784, 548 0. 77 2008 7, 054 19, 784, 548 zero. 36 There are no share options, potential rights concerns or reward issues, hence diluted profits per talk about are the same because basic earnings per share. 12.

House, plant and equipment 2009 Buildings and roads Cost/deemed cost For January 1, 2009 Upgrades Transfers Units At 12 , 31, 2009 Accumulated downgrading At January 1, 2009 Charge intended for the year Released on units At December 31, 2009 Net publication value For December 31, 2009 2008 Buildings and roads Cost/deemed cost At January one particular, 2008 Additions Transfers Disposals At 12 , 31, 08 Accumulated downgrading At January 1, 2008 Charge pertaining to the year Released on disposals At Dec 31, 08 Net publication value At December 31, 2008 2, 829 a hundred and twenty-five 3 (12) 2, 945 1, 069 154 (9) 1, 214 1, 731 Motor Grow and automobiles machinery four, 301 you, 921 (431) 5, 791 3, 036 783 (431) 3, 388 2, 403 14, 501 3, 312 427 (174) 18, 066 7, 850 2, 047 (174) 9, 723 8, 343 Capital WIP 265 1, 071 (430) 906 906 Total 21, 896 6, 429 (617) twenty-seven, 708 11, 955 2, 984 (614) 14, 325 13, 383 2, 945 353 296 3, 594 1, 214 236 one particular, 450 two, 144 Motor unit Plant and vehicles equipment 5, 791 4, 602 72 (327) 10, 138 3, 388 1, 164 (327) some, 220 a few, 918 18, 066 5, 740 80 (956) twenty two, 928 9, 723 a couple of, 387 (796) 11, 314 11, 614 Capital WIP 906 1, 486 (446) 1, 946 1, 946 Total 28, 708 doze, 181 (1, 283) 32, 606 14, 325 a few, 782 (1, 123) of sixteen, 984 21, 622 Contained in motor vehicles, herb and machinery are assets with a cost of GH? 2 . 3 million (2008: GH? 2 . 3 million) rented under a financing lease. twenty one FAN MILK LIMITED Financial Statements intended for the year finished December thirty-one, 2009 PAPERWORK (continued) (All amounts inside the notes happen to be shown in thousands of Ghana cedis except if otherwise stated) 12.

Property, plant and equipment (continued) 2009 Cost-capitalised finance rent Accumulated devaluation Net publication value Profit on removal of real estate, plant and equipment Expense of assets Built up depreciation Net book worth Sale takings Profit in disposal 13. Prepaid working lease-land Price At January 1 Additions At 12 , 31 Accrued amortisation At January 1 Charge to get the year At December 23 Net publication value for December 23 14. Stocks Raw materials Finished goods Operate progress Products in transit Other shares 1, 888 984 61 6, 557 166 on the lookout for, 656 one particular, 692 772 46 four, 214 87 6, 811 1, 283 (1, 123) 160 (296) (136) 617 (614) several (112) (109) 2, 295 (2, 295) 2008 2, 295 (2, 101) 194 1, 910 1 one particular, 911, 694 216 you, 910 209 55 264 1, 647 154 55 209 1, 701 In the past year the cost of arrays charged for the statement of comprehensive income amounted to GH? twenty-seven. 7 million (2008: GH? 21. one particular million). 22 FAN DAIRY LIMITED Monetary Statements for the year concluded December thirty-one, 2009 RECORDS (continued) (All amounts inside the notes are shown in thousands of Ghana cedis unless otherwise stated) 15. Control and other receivables Trade receivables Other receivables Amounts credited from personnel Prepayments 2009 717 1, 362 151 88 two, 318 2008 419 you, 551 127 32 2, 129 The utmost amount of staff indebtedness during the year would not exceed GH? 0. twenty-one million (2008: GH? 0. 14 million).

Amounts thanks from staff are recoverable as follows: Not later than 1 year Later than 12 months and no after than 5 years 2009 130 71 201 Foreseeable future finance costs Present value of amounts due by staff This current value with the amounts thanks from staff is break up as follows: Not later than 1 year After than 1 year and no after than 5 years 105 46 151 108 nineteen 127 (50) 151 08 108 nineteen 127 127 The good value of amounts credited from personnel is based on cash flows discounted using a price based on borrowing rate of twenty-two. 53% (2008: Nil). The discount charge equals base rate less appropriate credit score from the industry’s bankers. The directors consider that the holding amount of trade and other receivables approximates to their good value. 16.

Trade and other payables Operate payables Additional payables Fund lease requirement (Note 19) Accruals 2009 8, 199 5, 861 212 18, 272 17. Current duty As by January you Charged to income Payments As by December 31 23 2008 6, 375 2, 934 197 213 9, 719 699 5, 497 (5, 059) 137 2, 009 (1, 310) 699 LOVER MILK LIMITED Financial Claims for the year ended December 31, 2009 NOTES (continued) (All portions in the notes are displayed in thousands of Ghana cedis unless otherwise stated) 18. Deferred tax Deferred tax is calculated in full upon temporary distinctions under the legal responsibility method using a tax charge of 25% (2008: 25%). The charge for the season relates to quicker tax allowances on real estate, plant and equipment. 008 2009 As at January 1 Billed to profits As by December thirty-one 19. Financing lease obligation The Company entered into a finance lease arrangement in 2006 for the rental of selected motor vehicles, press carts, mountain bikes and freezers. The capital expense of these possessions amounted to ¬753, 070 and US$525, 864. 91. The Company posseses an option to buy the items following your primary rent period for a consideration of 0. 25% of the capital on the assets. The rental obligation is as follows: Minimal lease obligations: Not later on than 12 months Later than 1 year and no later than 5 years 2009 Long term finance expenses on financing lease Present value of finance lease contract liabilities 08 212 212 (15) 197 808 522 1, 330 484 324 808

The modern day value with the finance rent liabilities can be as follows: Not later than 1 year (Note 16) Later than one year and no later on than 5 years 197 197 twenty four FAN MILK LIMITED Economical Statements pertaining to the year finished December 31, 2009 NOTES (continued) (All amounts in the notes are shown in thousands of Bekwai, ghana cedis unless otherwise stated) 20. Stated capital No . of shares Proceeds 2009 2009 Sanctioned Ordinary stocks of not any par worth Issued For cash Capitalisation of extra 40, 500, 000 No . of shares 2008 40, 000, 000 Proceeds 08 19, 784, 548 nineteen, 784, 548 19 five, 981 6, 000 19, 784, 548 19, 784, 548 nineteen 5, 981 6, 1000 There is no delinquent liability in shares. There are no treasury shares. There are no calls or instalments unpaid. twenty one.

Cash produced from functions Reconciliation of net earnings before taxes to cash generated via operations: 2009 Profit prior to tax Devaluation Amortisation Interest expense Curiosity income Increase in inventories Increase in trade and other receivables Increase in trade and also other payables Revenue on fingertips of flower and equipment Cash made from functions 20, 175 3, 782 55 201 (418) (2, 845) (189) 4, 566 (136) twenty-five, 191 2008 9, 387 2, 984 55 113 (239) (1, 289) (536) 2, 832 (109) 13, 198 25 FAN DAIRY LIMITED Economic Statements pertaining to the year ended December 31, 2009 RECORDS (continued) (All amounts in the notes are shown in thousands of Ghana cedis unless of course otherwise stated) 22. Money and cash equivalents Money and funds equivalents consist of cash held and short term bank debris with a unique maturity of three months or less. The carrying volume of these possessions approximates to their fair values.

For the purpose of the statement of money flows, the entire year end cash and money equivalents consist of the following: 08 2009 Lender and funds balances Lender overdrafts 12-15, 871 12-15, 871 almost 8, 834 almost 8, 834 On the statement of financial position time the Company had an approved unguaranteed overdraft facility with neighborhood banks not exceeding GH? 0. five million (2008: GH? 0. 5 million). 23. Related party disclosures The Company includes a related get together relationship having a major shareholder and with its directors. The main shareholder Supporter Milk Foreign A/S has 55. 449% shares in Fan Dairy Limited. Emidan A/S and Fan Dairy Togo happen to be subsidiaries of Fan Milk International A/S and are as a result entities related through prevalent control.

Inside the normal span of business, the business entered into the next transactions shown below: (i) Purchase of merchandise Emidan A/S Fan Dairy Togo (ii) Sale of products Fan Dairy Togo Supporter Milk Liberia (iii) 12 months end bills arising from purchase of goods Emidan A/S Fan Milk Togo 7, 362 12 your five, 697 of sixteen 183 6 2009 3, 602 twenty-eight 2008 19, 174 108 26 SUPPORTER MILK LIMITED Financial Transactions for the season ended 12 , 31, 2009 NOTES (continued) (All sums in the notes are shown in 1000s of Ghana cedis unless otherwise stated) 23. Related get together disclosures (continued) (iv) Year end bills arising from sale for goods Enthusiast Milk Liberia (v) Technological assistance charges Fan Milk International (vi) Year end balances as a result of technical assistance fees Lover Milk Worldwide Transactions with key management personnel Important management staff are considered as the directors.

Remuneration Executive director (short-term benefits) nonexecutive owners (short-term benefits) Key administration personnel have no post-employment rewards. 24. Dependant liabilities There were no contingent liabilities on the statement of financial position day (2008: GH? Nil). twenty-five. Financial risikomanagement Financial risk factors You can actually activities make it vulnerable to a number of financial risks, including the associated with changes in money exchange costs and interest levels. The Company’s general risk management system focuses on the unpredictability of financial markets and seeks to minimise the adverse effects about its monetary performance.

Risk management is carried out by the management of the business under procedures approved by the board of directors. Supervision identifies, examines and shrubs financial dangers. 407 180 302 129 351 267 1, 237 825 2009 56 2008 , twenty seven FAN DAIRY LIMITED Monetary Statements intended for the year finished December 23, 2009 RECORDS (continued) (All amounts inside the notes will be shown in thousands of Bekwai, ghana cedis except if otherwise stated) 25. Economical risk management (continued) Sensitivity examination ” currency risk The business seeks to reduce its money exposure by using a policy of matching, as far as possible, property and debts denominated in foreign currencies.

The organization imports raw materials, spare parts and equipment from overseas and therefore is encountered with foreign exchange risk arising from European and UNITED STATES DOLLAR exposures. Supervision is responsible for minimising the effect in the currency publicity by buying foreign exchange when prices are relatively low and using them to settle bills when due. The business hedges the currency risk using the practice stated above in order to reduce currency risk as a result of within foreign exchange prices. The company’s hedging strategy works well and movements in forex trading rates may have no material impact on the Company’s result. Tenderness analysis , interest rate risk The Company’s experience of the risk of changes in market interest levels relates mainly o you can actually long-term responsibilities with a suspended interest rate. To manage this risk, the Company’s insurance plan is to obtain best interest rate borrowings the moment terms offered are attractive. The sensitivity examination for interest risk displays how modifications in our fair worth or upcoming cash goes of a economic instrument will certainly fluctuate due to changes in industry rates in the reporting time. The Company experienced no significant exposure to interest rate risk because at Dec 31, 2009. Total exposure to credit risk Financial tools that possibly subject the corporation to credit rating risk will be primarily cash and cash equivalents and accounts receivable. Account receivables are mainly based on sales to customers.

The business maintains a provision for disability of transact receivables based upon the predicted collectibility coming from all trade receivables. Trade receivables consist of invoiced amounts from normal trading activities. The Company has customers throughout Bekwai, ghana and Liberia. Strict credit control can be exercised through monitoring of cash received by customers and, when necessary, supply is made for specific doubtful accounts. As by December 23, 2009, management was unacquainted with any significant unprovided credit risk. 28 FAN MILK LIMITED Economical Statements pertaining to the year ended December 31, 2009 PAPERWORK (continued) (All amounts inside the notes happen to be shown in thousands of Bekwai, ghana cedis until otherwise stated) 25.

Monetary risk management (continued) The table below shows the maximum experience of credit risk by category of financial tool: 2009 Financial institution balances (excluding cash) Transact and other receivables (excluding prepayments) Total credit rating risk publicity Liquidity risk The Company has incurred indebtedness but also offers significant cash balances. The Company evaluates its ability to satisfy its obligations on an regular basis. Based on these evaluations, the Company devises strategies to control its liquidity risk. Advisable liquidity risikomanagement implies that adequate cash is usually maintained and this sufficient money is available via an adequate sum of committed credit facilities.

The Company does not have any limitation put on its funding capability. The facilities expiring within twelve months are susceptible to renewal at various schedules during the next year. The Company got the following unutilised banking facilities as at December 31, 2009: 2009 Expiring within one year five-hundred 2008 500 15, 073 2, 230 17, 303 2008 8, 274 two, 097 twelve, 371 Money of the Firm is placed in interest bearing current accounts to provide enough funding to meet its debt financing strategy. At the declaration of financial placement date money held for the call bank account was GH? 5, 946 (2008: GH? 3, 788). This is anticipated to readily make cash inflows for controlling liquidity risk.

Maturity evaluation of financial financial obligations The table below studies the company’s economical liabilities. Every financial financial obligations fall credited for payment within 6 months. 2008 2009 Trade and also other payables Financing lease liability 14, 272 14, 272 9, 522 197 9, 719 29 FAN DAIRY LIMITED Economic Statements to get the year finished December 31, 2009 + NOTES (continued) (All sums in the remarks are displayed in a large number of Ghana cedis unless in any other case stated) twenty six. Capital obligations Capital costs contracted for at the assertion of financial placement date but is not recognised inside the financial transactions is as follows: 2008 2009 Property, grow and gear approved and contracted 27.

Capital risk management The primary aims of the business equity capital management are to ensure that the corporation is able to satisfy its debt as they fall due, to increase shareholder benefit and rewards for different stakeholders and maintain a great optimal capital structure to lessen the cost of capital. No alterations were made inside the objectives, procedures and operations from the past years. twenty eight. Segment information Management has determined the operating segments based on the reports evaluated by the brain of division group used to make ideal decisions. The group thinks the business by product perspective. The reportable operating sectors derive their very own revenue from the manufacture and distribution of dairy products and fruit drink. Management considers the products to have similar monetary characteristics and they have consequently been aggregated into a single operating segment. 593 2, 031 30