Hope Okonkwo

 WALDORF BLU HOTELS LIMITED, AWKA. AUDITED FINANCIAL STATEMENTS FOR THE FOUR MONTHS ENDED 31ST DECEMBER, 2023. EMMANUEL UCHENNA O. & Co. (CHARTERED ACCOUNTANTS) TABLE OF CONTENTS THE COMPANY IN BRIEF2 REPORT OF DIRECTORS3 REPORT OF INDEPENDENT AUDITORS4 STATEMENTS OF MANAGEMENT RESPONSIBILITIES6 STATEMENTS OF FINANCIAL POSITION7 STATEMENT OF COMPREHENSIVE INCOME9 STATEMENT OF CHANGES IN EQUITY10 NOTES AND SCHEDULES TO THE ACCOUNTS11 ASSETS DEPRECIATION SCHEDULE 17 WALDORF BLU HOTES LIMITED COMPANY PROFILE: INCORPORATED ON 16TH JULY,2018. INCORPORATION NUMBER: RC- REGISTERED OFFICE:44 OBY OKOLI AVENUE, OKPUNO, AWKA, ANAMBRA STATE. NATURE OF BUSINESS: HOSPITALITY DIRECTORS:METUH TOCHUKWU SIMON METUH IFEOMA CHRISTIANA METUH CHIBUNKEM JOEL METUH CHIZIKORA BRYAN METUH CHIZITELUM EMIL KOBICHIMDI METUH CHINEMELM ISIDORE BANKER(S):UBA PLC FIRST BANK PLC CONSULTANT:Emmanuel Uchenna O. & Co. (Chartered Accountants) 109 Upper New Market Road Onitsha, Anambra. REPORT OF THE DIRECTORS FOR THE PERIOD ENDED ENDED 31ST AUGUST, 2023. The Directors are pleased to present the accounts of the company together with the Auditors Report thereon for the period ended 31ST AUGUST, 2023. RESULT FOR THE YEAR DECEMBER 2023 AUGUST 2023 APRIL 2023 TURNOVER 237,604,200 161,812,150 175,590,300 PROFIT BEFORE TAX 126,169,229 52,621,174 61,633,970 PROVISIONAL TAX (200,000) (200,000) (100,000) TOTAL ASSETS 1,496,870,100 1,496,160,400 1,495,954,000 DIVIDENDS The Directors are not recommending the payment of dividends. DIRECTORS In accordance with the article of association of the company, all the directors are continuing in office. AUDITORS In accordance with section 357(2) of the Companies and Allied Matters Act, 1990, the directors recommend the re- appointment of MESSRS Emmanuel Uchenna O. & Co. Chartered Accountants, since they have indicated their willingness to continue in office as External Auditors. BY ORDER OF THE BOARD MANAGING DIRECTOR REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WALDORF BLU HOTELS LIMITED. REPORTS ON THE FINANCIAL STATEMENTS: We have audited the accompanying financial statement of WALDORF BLU HOTELS LIMITED which comprise the statement of financial position as at 31ST AUGUST, 2023, the profit or loss account, the statement of cash flows for the period then ended and a summary of the significant accounting policies and other explanatory information as set out on pages 6 to 22. Opinion In our opinion, these financial statements give a true and fair view of the financial position of WALDORF BLU HOTELS LIMITED and the company’s financial performance and cash flows for the period then ended in accordance with the statement of Accounting Standards and in the manner required by the Companies and Allied Matters Acts of Nigeria. Basis of Opinion We conducted our audit in accordance with the International Standards on Auditing. We are independent of WALDORF BLU HOTELS LIMITED in accordance with the Institute of Chartered Accountants of Nigeria (ICAN) Professional Code Of Conduct and Guide for Accountants and other Independent requirements applicable to performing audit of financial Statements in Nigeria. We have fulfilled other ethical requirements applicable to performing audits in Nigeria. The ICAN Code is consistent with the International Ethics Standards Board of Accountants Code of Ethics for Professional Accountants. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The Directors Responsibility for the Financial Statement The directors of WALDORF BLU HOTELS LIMITED are responsible for the preparation and fair presentation of the financial statement in accordance with Statement of Accounting Standards issued by Nigerian Standards Board and the International Standards on Auditing (ISAs) and in the manner required by the Companies and Allied Matters Act of Nigeria. These responsibilities include designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statement that are free from material misstatements, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Auditor’s Responsibilities: Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatements, whether due to fraud or error, and to issue and auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that the audit conducted in accordance with the International Standard son Audit (ISAs) will always detect material misstatement when it exists. As part of our audit, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risk of material misstatement of the financial statement, whether due to fraud or error, design and perform procedures responsive to those risks, and obtain evidence that is sufficient and appropriate to provide the basis for our opinion. The risk of not detecting any material misstatement resulting from fraud is higher than the one resulting from error, as fraud AUGUST involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls; Obtain an understanding of internal controls relevant to the audit in order to design 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 the accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors; Evaluate the overall presentation, structure and content of the financial statements, including disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Reports on Other Legal and Regulatory Requirements Compliance with the requirements of Schedule 6 of the Companies and Allied Matters Act. In our opinion, proper books of accounts have been kept by the company, so far as appears from our examination of these books and the company’s Statements Financial Position and Profit or Loss is in agreement with the books of accounts. Okeke Emmanuel Uchenna ACA, ACIT, MSc. Emmanuel Uchenna O. & Co. (Chartered Accountants) 23RD November, 2023. Onitsha, Nigeria. STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST, 2023. The Directors of WALDORF BLU HOTELS LIMITED are responsible for the preparation and fair presentation of the financial statements in compliance with the Statements of Accounting Standards (SAS). In preparing the financial statements, the Directors are responsible for; Properly selecting and applying accounting policies Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable, and understandable information. Providing additional disclosures when compliance with the specific requirements in SAS are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the company’s financial position and financial performance. Making an assessment of the Company’s ability to continue as a going concern. Maintaining adequate accounting records that are sufficient to disclose and explain the financial position of the company and its transactions and results accurately in accordance with SAS Designing , implementing and maintaining an effective and sound system of internal controls throughout the Company; Maintaining statutory accounting records in compliance with legislation in force in Nigeria and in accordance with SAS; Taking such steps as are reasonably available to them to safeguard the assets of the company; and Preventing and detecting fraud and other irregularities by implementing a sound system of internal controls. The Financial Statements of the company for the period ended 31ST AUGUST, 2023 were approved by the Management. Signed on behalf of the management of the Company ______ Director 23rd November, 2023. WALDORF BLU HOTELS LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2023. WALDORF BLU HOTELS LIMITED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME FOR THE 4 MONTHS ENDED 31ST DECEMBER 2023. DECEMBER AUGUST     NOTES-       N N SALES   1 237,604,200 161,812,150 COST OF SALES   2a (27,512,701) (28,529,600) GROSS PROFIT     210,091,499 133,282,550 OTHER INCOME   2b 1,025,079 3,093,009           ADMINISTRATIVE EXPENSES   3 (84,759,191) (83,570,346)           FINANCE COST   4 (188,158) (184,039)       (84,947,349) (83,754,385) PROFIT/LOSS FOR THE PERIOD     126,169,229 52,621,174 PRIOR PERIOD ADJUSTMENT     0 (552,658) PROVISIONAL TAX   TCP (200,000) (200,000)           PROFIT/LOSS AFTER TAX     125,969,229 51,868,516 RETAINED PROFIT B/F     437,243,126 385,374,610         PROFIT CARRIED FORWARD     563,212,355 437,243,126 WALDORF BLU HOTELS LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE FOUR MONTHS ENDED 31ST AUGUST, 2023. Issued PROFIT Total Capital OR LOSS Equity N N N Balance as at 1ST SEPT , 2023 200,000 563,212,355 3 563,412,355 prior year Adjustment - - - 200,000 563,212,355 3 563,412,355     Total Comprehensive income for the period:   Profit/loss for the 4 month Period Reserves       other gains and Rev.             Total Equity and Reserves at 31ST DECEMBER, 2023 200,000 563,212,355 563,412,355 WALDORF BLU HOTELS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE FOUR MONTHS ENDED 31ST DECEMBER, 2023. DECEMBER AUGUST 2023 2023 N N 1 Turnover: 237,890,200 161,812,150 Less Refunds (286,000) - 237,604,200 161,812,150 2a Cost of Sales: OPENING INVENTORY 22,743,269 22,463,895 PURCHASES: 44,127,302 28,808,974 66,870,571 51,272,869 Closing Inventory (39,357,870) (22,743,269) 27,512,701 28,529,600 2b Other Income: Shortages recovered from staff 206,150 164,050 Recoveries from Staff Absentiesm 380,789 639,457 Recoveries from Staff Lateness to work 127,185 54,300 Penalties to Sftaff for work Infractions - 325,785 Credit sales to staff 259,005 439,917 Damage of Room Keys by Guest - 18,000 Penalties for Hotel policy infractions - 448,000 Swimming - 768,500 Photoshoot - 190,000 Gym - 45,000 Bad debt recovered 51,950 1,025,079 3,093,009 3 Administrative Expenses: PRINTING & STATIONERIES - 107,500 TRANSPORT 210,600 227,600 FUEL 232,500 272,800 DIESEL 31,290,000 18,527,000 EEDC 3,900,000 4,400,000 STAFF WELFARE 1,200,000 1,200,000 ICT 1,224,000 921,680 GENERATOR REPAIRS - 360,000 GENERAL MAINTENANCE 374,900 1,137,050 TELEPHONE & POSTAGE 29,500 30,600 SALARIES & WAGES 13,479,200 13,479,200 VEHICLE REPAIRS - - SUBSCRIPTION 318,500 891,050 VAT 426,480 472,419 EXTERNAL AUDITORS FEEDING 18,000 - OTHER EXPENSES 28,000 - BAD DEBT - 9,600 REPAIRS & MAINTENANCE - HOTEL EQUIPMENT 66,400 115,000 CAC FILING - - PAYE 167,104 97,347 DEPRECIATION 30,746,707 30,704,486 MD BIRTHDAY GIFT - - OFFLOADING 34,500 - ENTERTAINMENT (D.J) - - STAFF UNIFORM 48,000 - DECORATIONS (VALANTINE CELEBRATION) - - POLICE CASE FILE & LITIGATION 48,400 - COMPLIMENTARY & DAMAGES - 721,717 PUBLIC RELATIONS 416,100 57,000 HOTEL REGISTRATION & PROCESSING - - DISCOUNT ALLOWED - 9,133,500 SWIMMING POOL MAINTENANCE - 135,000 ADVERT & PUBLICITY - - AUDIT FEE 250,000 390,000 HOTEL & ACCOMODATION - 60,000 FIRST-AID KIT 3,500 4,150 BIRTHDAY GIFT 45,700 20,200 CLEANING & SANITATION 49,500 10,200 ANAMBRA STATE LEVIES & FEES - 85,247 WAGES 22,000 - STAFFS BENEFIT 50,000 IT STAFF 44,400 - CONDOLENCE 26,000 POS CHARGES 9,200 TOTAL 84,759,191 83,570,346 4 FINANCE COST UBA PERSONAL 141,983 122,693 UBA CORPORATE 11,989 33,755 UBA CORPORATE 2 5,872 7,842 FIRST BANK CORPORATE 14,593 14,782 FIRST BANK PERSONAL 4,521 7 POS CHARGE 9,200 4,960 188,158 184,039 5 RECEIVABLES Sundry Debtors 11,987,600 - DEBTORS ROOMS - 9,219,900 11,987,600 9,219,900 6 CASH AT HAND & BANK CASH AT HAND 586,747 UBA (PERSONAL) 867 117,097,696 11,458,925 UBA (CORPORATE) - 921 32,825,291 44,653,632 UBA (CORPORATE) 2 - X13 289,496 7,069,308 FIRST BANK (PERSONAL)799 3,225,560 4,102,778 FIRST BANK (CORPORATE)690 3,174,685 5,227,508 156,612,728 73,098,898 7 AUTHORISED SHARE CAPITAL 200,000 shares @ N1 each 200,000 200,000 200,000 200,000 8 ISSUED SHARE CAPITAL METUH TOCHUKWU SIMON 100,000 100,000 METUH IFEOMA CHRISTIANA 40,000 40,000 METUH CHIBUNKEM JOEL 15,000 15,000 METUH CHIZIKORA BRYAN 15,000 15,000 METUH CHIZITELUM EMIL 15,000 15,000 METUH CHIMELUM ISIDORE 15,000 15,000 200,000 200,000 9 CREDITORS (AMOUNT FALLING DUE WITHIN 1YEAR) TRADE PAYABLES (SUPPLIERS) 403,000 IST Corinthians - 5,037,500 GOLDEN TALIS GLOBAL LINKS - 180,000 CYLMAX NIGERIA LIMITED - 419,800 CALVARY GAS 220,000 EMEGHIEBO NGOZI MARY 60,000 683,000 5,637,300 10 DIRECTORS ACCOUNTS Opening Balance 982,246,497 1,026,631,417 Introductions/additions during the period - 90,514,651 Suspense resulting from Single entries - (10,177,359) 982,246,497 1,106,968,709 Withdrawals/deductions during the period (35,075,027) (124,722,213) 947,171,470 982,246,496 11 ACCRUED EXPENSES SALARY PAYABLE - August 2023 - 3,072,804 AUDIT FEE PAYABLE 750,000 780,000 750,000 3,852,804 12 OTHER PAYABLES CALVARY GAS & CO 12,282,000 CUSTOMERS YET TO USE BALANCES 1,447,500 774,200 1,447,500 13,056,200 13 STAFF LOAN STAFF LOAN 100,000 100,000 504,273 14 TAX PAYABLE BALANCE B/F 300,000 100,000 TAX PROVISION - SEPTEMBER 50,000 50,000 OCTOBER 50,000 50,000 NOVEMBER 50,000 50,000 DECEMBER 50,000 50,000 500,000 300,000 PAYMENTS - - BALANCE C/F 500,000 300,000 WALDORF BLU HOTELS LIMITED NON CURRENT ASST DEPRECIATION SCHEDULE FOR THE FOUR (4) MONTHS ENDED 31ST DECEMBER, 2023. DETAILS LAND & PLANT & MOTOR FURNITURE COMPUTER & OFFICE & HOTEL TOTAL   BUILDING MACHINERY VEHICLE & FITTING ACCESSORIES EQUIPMENT   Cost as at 1/9/2023 1,006,700,000 207,051,000 5,650,000 260,504,000 1,295,000 14,960,400 1,496,160,400 Additions - - 378,000 - 305,000 - 26,700 709,700 Disposals                 1,006,700,000 207,429,000 5,650,000 260,504,000 1,600,000 14,987,100 1,496,870,100 ACC Depr 1ST /09/2023 36,630,681 70,233,394 2,350,488 45,905,884 204,990 4,981,829 160,307,266 Depr Charge for the four months 6,711,333 13,828,600 470,833 8,683,467 53,333 999,140 30,746,707 ACC Depr as at 31/12/2023 43,342,014 84,061,994 2,821,321 54,589,351 258,323 5,980,969 191,053,973                             WDA as at 31/12/2023 963,357,986 123,367,006 2,828,679 205,914,649 1,341,677 9,006,131 1,305,816,127 2% 20% 25% 10% 10% 20%       WALDORF BLU HOTELS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE 4 MONTHS ENDED 31ST AUGUST, 2023. 6 The Company 6.1 Legal Form WALDORF BLU HOTELS LIMITED was incorporated on 23RD March, 2009 as a limited Liability Company and is domiciled in Nigeria. 6.2 Principal Activity The principal activities of the company are Dealers on pants. Basis of Preparation The financial Statements have been prepared in accordance with the going concern principle under historical cost convention. The financial statements are presented in the Nigeria Naira (NGN) which is the company’s chosen currency for presentation. 7 Summary of Significant Accounting Policies 7.1 Property, plant and Equipment a. Initial Recognition All Property, Plant and Equipment assets are stated at cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost AUGUST also include transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that the future economic benefits associated with the item will flow to the company and the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. b. Depreciation Depreciation is calculated using the Reducing balance method to allocate their cost or related amounts to their residual values over their estimated useful lives as follows; Land and Building2% Motor Vehicle25% Plant & Machinery20% Furniture & Fittings10% Office Equipment20% Computer & Accessories 20% The assets residual values and useful lives are reviewed at the end of each reporting period and adjusted if appropriate. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s amount is greater than its estimated recoverable value. 7.2 Inventories Inventories are valued at the lower of cost and net realisable value. The cost of inventories includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventory and work in progress, costs include an appropriate share of production overheads based on normal activity levels. 7.3 Trade and Other Receivables Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection of trade and other receivables is expected in one year or less ( or in the normal operating cycle of the business if longer), they are classified as current assets, if not, they are presented as non-current assets. Where the potential impact of discounting future cash receipts over the short credit period is not considered to be material, trade receivable are stated at their original invoice value. These receivables are reduced by appropriate allowances for estimated irrecoverable amounts. 7.4 Trade and Other Payables Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Other payables are stated at their original invoiced value, as the interest that would be recognised from discounting future cash payments over the short payment period is not considered to be material. 7.5 Cash and Cash Equivalent Cash and cash equivalents comprise of short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. An investment with a maturity of three months or less is normally considered as short term For the purpose of the statements of cash flows, cash and cash equivalents are considered net of bank overdrafts. 7.6 Taxation The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other in other comprehensive income or directly in equity, respectively. 7.7 Revenue Recognition Revenue from the sales of goods in the ordinary course of business is measured at the fair value of consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards or ownership have been transferred to the customer, recovery of consideration is probable, the associated cost and possible return of goods can be estimated reliably. If it is probable that the discount will be granted and the amount can be measured reliably, then the discount is recognised as reduction of revenue as the sales are recognised.