GREIF NIGERIA PLC Apapa, Nigeria - The Nigerian Stock Exchange

GREIF NIGERIA PLC Apapa, Nigeria UNAUDITED MANAGEMENT FINANCIAL STATEMENTS FOR THE THIRD QUARTER PERIOD ENDED 31 JULY 2016

GREIF NIGERIA PLC UNAUDITED MANAGEMENT FINANCIAL STATEMENTS FOR THE THIRD QUARTER PERIOD ENDED 31 JULY 2016

CONTENTS

PAGE

Directors, Professional And Other Corporate Advisers.

2

Results at a glance

3

Statement of Financial Position

4

Statement of Profit or Loss & Comprehensive Income

5

Statement of Changes in Equity

6

Statement of Cash Flows

7

Notes to the Financial Statements

8

Statement of Value Added

44

Five Years Financial Summary

45

1


DIRECTORS, PROFESSIONAL ADVISERS DIRECTORS:

Mr. Louis Wentzel -South African Chairman Mr. Olukunle Adebayo Obadina Managing Director Mr. Gaius Adetayo Omotayo Mr. Erik Maarten ‘t Sas -Dutch Appointed February 26, 2016

COMPANY SECRETARY:

Marina Nominees Limited Aret Adams House 233 Ikorodu Road, Ilupeju, Lagos Tel: 01-7740219 Email: [email protected]

REGISTERED OFFICE:

1, Alapata Road. (Off Dockyard Road) Apapa, Lagos, Nigeria Tel: 01-212-1764; 01-212-1765 Email: [email protected] Website: www.greif.com

AUDITORS:

Ernst & Young (Chartered Accountants) 10th & 13th Floor, UBA House 57 Marina, Lagos.

SOLICITORS:

Irving and Bonnar Akuro House (7th Floor) 24/26 Campbell Street P.O. Box 2578, Lagos.

PRINCIPAL BANKERS:

EcoBank International Plc First City Monument Bank Plc Stanbic IBTC Bank Plc Sterling Bank Plc United Bank for Africa Plc Zenith Bank Plc

REGISTRARS AND TRANSFER OFFICE:

All Crown Registrars Limited 190 Ikorodu Road, Onipanu Bu Stop, Shomolu, Lagos, P.M.B 12884, Marina, Lagos Email: aallcrownregistrarsltd.com

AUDIT: COMMITTEE

Mr. David Oguntoye Alhaji Kolawole Saka Mr. G.A.Omotayo Mr. Eric Maarten ‘t Sas Elder Lady A.Shoewu, JP

2


RESULTS AT A GLANCE 31-Jul

31-Jul

2016

2015

% change

N’000

N’000

incr/(decr)

Revenue

693,043

584,656

19%

Cost of Sales

577,133

477,292

21%

(Loss)/Profit before taxation

(16,549)

29,206

-157%

Tax Expense

(16,327)

Total Comprehensive (Loss)/Income

(32,876)

12,331

-367%

Paid-up share capital - N'000

21,320

21,320

0%

Shareholders’ funds - N'000

277,602

323,769

-14%

42,640

42,640

0%

-3%

(16,875)

At Year End

Total No. of Shares - '000 Per –Share data Earnings per share

(77)

Kobo

29

Kobo

-366%

Net assets per share

651

Kobo

759

Kobo

-14%

Dividend Proposed

0

Kobo

0

Kobo

0%

3


STATEMENT OF FINANCIAL POSITION Notes Assets

31-Jul-16

31-Jul-15

N'000

N'000

Non-Current Assets Property, plant & Equipment

5

152,571

154,381

Intangible Assets

6

0

0

152,571

154,381

Total Non-Current Assets Current Assets Inventories

7

99,387

134,629

Trade & Other Receivables

8

297,297

265,495

Prepayments

9

102,632

40,230

Cash at bank and in hand

10

112,897

118,209

Total Current Assets

612,213

558,563

Total Assets

764,784

712,944

21,320

21,320

Retained earnings

256,282

302,449

Total Equity

277,602

323,769

20,739

33,220

20,739

33,220

Equity & Liabilities Equity

12

Non-Current Liabilities Deferred taxation

14c

Total Non-Current Liabilities Current Liabilities Trade & other payables

16

443,116

328,187

Income Tax Payable

14b

16,327

20,768

Provisions

22

7,000

7,000

Total Current Liabilities

466,443

355,955

Total Equity & Liabilities

764,784

712,944

_______________________ G. A. Omotayo Director

FRC/2014/IODN/00000009253

_____________________ O. A. Obadina Managing Director

FRC/2013/ICAN/00000004254

See notes to the financial statements 4

__________________ H. G. Omidiora Chief Finance Officer

FRC/2013/ICAN/00000004092


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Note

31-Jul-16 N'000

Revenue Cost of Sales

17 18

Gross Profit

General and Administrative Expenses

18 18

Operating Profit Finance Income Finance Charge

20 20

Profit before tax Tax Expense

14a

Profit for the year

N'000

693,043

584,656

577,133

477,292

115,910

107,364

Other Operating Income Selling & Marketing Costs

31-Jul-15

0

0

(3,576)

(2,752)

(131,820)

(78,959)

(19,486)

25,653

2,938

3,553

0

0

(16,549)

29,206

(16,327)

(16,875)

(32,876)

12,331

Other Comprehensive income

0

0

Total comprehensive income

(32,876)

12,331

(32,876)

12,331

Total comprehensive income attributable to: Equity Holders of the Company Earnings per share

N

N

Basic earnings per share Earnings from continuing operations Earnings from discontinued operations Total

24

(77)

29

0

0

(77)

29

(77)

29

0

0

(77)

29

Diluted earnings per share Earnings from continuing operations Earnings from discontinued operations Total

24

See notes to the financial statements

5


STATEMENT OF CHANGES IN EQUITY For the third quarter period ended 31 July 2016 Share Capital

Retained Earnings

Total Equity

N'000

N'000

N'000

21,320

314,742

336,062

Profit for period

0

(32,876)

(32,876)

Other comprehensive income

0

0

0

21,320

281,866

303,186

0

(25,584)

(25,584)

21,320

256,282

277,602

Notes Balance at 1 November 2015

Dividend Paid Balance at 31 July 2016

12

For the third quarter period ended 31 July 2015

Balance at 1 November 2014

Share Capital

Retained Earnings

Total Equity

N'000

N'000

N'000

21,320

315,702

337,022

Profit for period

0

12,332

12,332

Other comprehensive income

0

0

0

21,320

328,033

349,353

0

(25,584)

(25,584)

21,320

302,449

323,769

Dividend Paid Balance at 31 July 2015

12

See notes to the financial statements

6


STATEMENT OF CASH FLOWS Note

31-Jul-16

31-Jul-15

N'000

N'000

495,177

494,842

(562,757)

(501,122)

OPERATING ACTIVITIES Cash receipts from customers Cash paid to suppliers and employees

(67,581)

(6,280)

Tax Paid

14b

(31,898)

(18,093)

Net cash provided by operating activities

11

(99,479)

(24,372)

Proceeds from sales of property and equipment Purchase of property, plant and equipment 5

0

0

(17,601)

(5,649)

2,938

3,553

(14,664)

(2,096)

0

0

(25,584)

(25,584)

0

0

(25,584)

(25,584)

(139,727)

(52,052)

252,623

170,261

112,897

118,209

INVESTING ACTIVITIES

Interest received

FINANCING ACTIVITIES Interest paid Dividend Loan Repayment

NET CHANGE IN CASH AND CASH EQUIVALENTS Cash and cash equivalent at November 1, Cash and cash equivalent at July 31,

10

See notes to the financial statements 7


NOTES TO THE FINANCIAL STATEMENT (1)

REPORTING ENTITY

GREIF Nigeria Plc (the "Company") is a manufacturing company incorporated as a limited liability company under the Company Ordinance (CAP 38) with the name Metal Containers of West Africa Limited on 20 January 1940. The name was subsequently , by a special resolution on 4 th July 1969, changed to Van Leer Containers (Nigeria) Limited. The Company became “Van Leer Containers (Nigeria) Plc” in line with the Companies and Allied Matters Act (CAP 20), Laws of the Federation of Nigeria 1990. The Company’s name was eventually changed to “Greif Nigeria Plc” by a special resolution on 12 th May 2004. The authorized share capital is allotted to Greif International Holdings B.V. Netherlands (51%), The Van Leer Nigerian Educational Trust (23%) and other Nigerian investors (26%). The Company is primarily involved in the manufacturing and marketing of steel drums. These financial statements of the Company is as at and for the third quarter period ended 31 July 2016. (2)

BASIS OF PREPARATION

(2a) Statement of compliance These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Standards Board (IASB). The financial statements comprise the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows and the notes to the financial statements for the Company. These financial statements were approved by the Board of Directors on ……………, 2016 and there were no events subsequent to the year end. (2b) Functional and presentation currency These financial statements are presented in Nigerian Naira, which is the Company’s functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated

8


NOTES TO THE FINANCIAL STATEMENT (2c) Basis of measurement The financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis on each reporting date:. (i) Inventory – Weighted Average or lower of cost and net realizable value (ii) Financial Instruments –Initially measured at fair value and subsequently at amortized cost (iii) Provision – Best estimate to settle the present obligations at the end of reporting period. (iv) Held for sale and Disposal Group – Lower of carrying amount and fair value cost to sell The accounting policies have been applied consistently throughout the period covered by the financial statements and comparative period. (2d) Use of judgements and estimates The preparation of financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recogn ised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. (2e)

Current vs non-current classification

The Company presents assets and liabilities in statement of financial position based on current/non-current classification. An asset is presented as current when it is: - Expected to be realised or intended to sold or consumed in normal operating cycl e - Held primarily for the purpose of trading - Expected to be realised within twelve months after the reporting period, or - Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is presented as current when: - It is expected to be settled in normal operating cycle - It is held primarily for the purpose of trading - It is due to be settled within twelve months after the reporting period, or - There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. 9


NOTES TO THE FINANCIAL STATEMENT The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. 2f) Fair value measurement The Company does not measure any recogn ised asset or liability at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: - In the principal market for the asset or liability, or - In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to by the Company. (3)

SIGNIFICANT ACCOUNTING POLICIES

(3a) Property, plant and equipment Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see accounting policies 3aii and 3f). Such cost includes the cost of replacing part of the property, plant and e quipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company recognises such parts as individual assets with specific useful lives and depreciates them accordingly. The cost of self-constructed assets includes the cost of materials, direct labour and an appropriate proportion of directly attributable production overheads. Where significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment in line with IAS 16 principle of componentization. 3a.i

Subsequent costs The cost of replacing a part of an item of property, plant and equipment is recogn ised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecogn ised. The costs of the day-to-day servicing of property, plant and equipment are recogn ised in profit or loss as incurred.

3a.ii

Depreciation 10


NOTES TO THE FINANCIAL STATEMENT Depreciation is charged to the profit or loss (except where it is required for recognition in another asset, based on another IFRS Standard e.g. IAS 2) on a straight-line basis over the estimated useful lives of each significant part of an item of property, plant and equipment. Depreciation on leased assets is charged over the shorter of the lease term and their useful economic life. Freehold land is not depreciated whilst leasehold land is depreciated over the lease period in the certificate of occupancy, usually 99years. The economic useful lives of the property, Plant and Equipment are as follows: ASSET CLASS

ECONOMIC USEFUL LIVES

• Leasehold land -

62.5-Years.

• Building -

20 – 30-Years

• Equipment, Plant and Machinery -

5 – 15-Years

• Motor vehicles -

3 – 5-Years

The residual values, useful economic lives and depreciation methods are reassessed annually and if expectations differ from earlier projections, the change is treated as a change in estimate in accordance with IAS 8. Assets under construction are not depreciated until they are ready for use. 3a.iii Derecognition An item of property, plant and equipment is derecogn ised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in statement of profit or loss in the year the asset is de-recognised 3b. Intangible assets 3b.i

Software Software acquired by the Company is stated at cost less accumulated amortization (see below) and impairment losses (see accounting policies 3biii and 3f). Expenditure on internally generated goodwill and brands is recogn ised in the Statement of profit or loss as an expense as incurred.

3b.ii Subsequent expenditure Subsequent expenditure on capitalized intangible assets (So ftware) is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred. 3b.iii Amortization 11


NOTES TO THE FINANCIAL STATEMENT Amortization is charged to the profit or loss on a straight-line basis over the estimated useful lives of intangible assets unless such lives are indefinite. Software assets are amortized from the date they are available for use and over the license period. . Classes of intangible assets

Useful lives

IT Software

3 years

3c.

Financial assets

3c.i

Initial recognition and measurement Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments or available-for-sale financial assets. All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

3c.ii Subsequent measurement The subsequent measurement of financial assets depends on their classification as follows. Financial assets within the Company include trade and other receivables and cash and short-term deposits.

3c.iii Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortised cost using t he effective interest rate method (EIR), less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in profit or loss. The company's financial assets that qualify as loans and receivables include trade receivables; amount due from related parties and employee loans and advances.

3c.iv Trade and other receivables Trade and other receivables include trade receivables which are on trade terms and receivables from affiliated companies. These are carried at original invoice amount less any allowance for impairment. When a receivable is determined to be uncollectable, it is written off, firstly against any provision available and then to 12


NOTES TO THE FINANCIAL STATEMENT profit or loss. Subsequent recoveries of amounts previously provided for are recognised as other income and credited to profit or loss.

3c.v

Derecognition A financial asset (or, where applicable a part of a financial asse t or part of a group of similar financial assets) is derecognised when: - The rights to receive cash flows from the asset have expired - The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through 'arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substa ntially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of it, the asset is recognised to the extent of the Company’s continuing involvement in it. In such case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

3c.vi Impairment of financial assets The Company assesses at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the receivables or a group of receivables is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

3c.vii Financial assets carried at amortised cost For financial assets carried at amortised cost, the Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually 13


NOTES TO THE FINANCIAL STATEMENT significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impa irment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognised are not included in a collective assessment of impairment. The amount of any impairment loss identified is measured as the dif ference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in profit or loss. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income in profit or loss. Loans together with the associated allowance a re written off when there is no realistic prospect of future recovery and all collateral has been realised or has been transferred to the company. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an ev ent occurring after the impairment was recognised, the previously recognised impairment loss is increased or reduced by adjusting the allowance account. If a future write -off is later recovered, the recovery is credited to other operating expense in profit or loss. 3d

Financial liabilities Financial liabilities are classified, at initial recognition, as loans and borrowings or payables, as appropriate. These financial liabilities are recognised initially at fair value, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, bank overdrafts and other loans and borrowings.

3d.i

Trade and other payables

Trade and other payables are obligations to pay for goods and services that have been acquired in the normal course of business. These amounts are classified as current because payment is expected in one year or less. Trade and other payables are initially recogn ised at fair value i.e. transaction cost less all discounts. Subsequent to initial recognition, they are measured at amortised cost using effective rate of interest. Normally they are due for payment within 12 months from the reporting year end. In the event of a longer payment i.e. greater 14


NOTES TO THE FINANCIAL STATEMENT than 12-months such balances are discounted using the effective interest rate.

3d.ii Bank overdrafts

Bank overdrafts are initially recognised at fair value which is the proceeds received, net of directly attributable costs. These are subsequently measured at amortised cost using the effective interest rate method with finance costs being recognised in profit or loss and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. Bank overdrafts are classified as interest-bearing loans and borrowings under current liabilities.

3d.iii Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when liabilities are derecognised as well as through the effective interest rate method (EIR) amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in profit or loss.

3d.iv Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in profit or loss.

3d.v Offsetting of financial instruments

Financial assets and financial liabilities are offset with the net amount reported in the consolidated statement of financial position only if there is a current enforceable legal right to offset the recognised amounts and the intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

3e. Inventories Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs to completion and of selling expenses. The cost of inventories is based on the weighted average principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. The Company’s finished goods inventories cost includes an 15


NOTES TO THE FINANCIAL STATEMENT appropriate share of overheads based on normal operating capacity which were incurred in bringing the inventories to their present location and condition. Costs incurred in bringing each product to its present location and conditions are accounted for as follows: Raw materials: Purchase cost on a weighted average basis Materials Work-in-progress: On weighted average cost basis Finished goods: Cost of direct materials, conversion costs and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs. 3f. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose of the Cash Flow Statement. Greif Plc has chosen the policy of recognizing all interest received and dividend received under the ‘cash flow from investing activities’ in the statement of cash flows. In a similar vein, interest paid and dividend paid shall be shown under ‘cash flow from financing activities’. 3g.

Impairment of non-financial assets

3g.i

Impairment review The carrying amounts of the Company's assets, other than inventories (see accounting policy 3d) and deferred tax assets (see accounting policy 3p), are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is recogn ised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recogn ised in the profit or loss. The company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. 16


NOTES TO THE FINANCIAL STATEMENT When the carrying amount of an asset or CGU exceeds its recoverable a mount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses recogn ised in respect of cash-generating units are allocated to reduce the carrying amount of the assets in the cash generating unit (since goodwill arises only on consolidation and the Company does not have any subsidiary) in the unit on a pro rata basis. A cash-generating unit is the group of assets identified that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of assets or cash-generating units is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax discount rate that reflects current market assessments of the time value of money and t he risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash -generating unit to which the asset belongs. 3g.ii

financial assets (including receivables) A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. The Company considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been 17


NOTES TO THE FINANCIAL STATEMENT incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together such receivables. In assessing collective impairment the Company uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recogn ised in profit or loss and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recogn ised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. 3g.iii Conditions for reversals of impairments An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recogn ised.. 3h. Foreign currency transactions Transactions in foreign currency are recorded initially in Nigerian Naira which is the functional and presentation currency at the rate of exchange ruling at the date of the transaction. At each subsequent annual reporting date :  Foreign currency monetary amounts are reported using the closing rate  Non-monetary items carried at historical cost are reported using the exchange rate at the date of the transaction  Non-monetary items carried at fair value are reported at the rate that existed when the fair values were determined Exchange differences arising when monetary items are settled or when monetary items are translated at rates different from those at which they were translated when initially recognised or in previous financial statements are reported in profit or loss in the period

18


NOTES TO THE FINANCIAL STATEMENT 3i.

Share capital 3i.i Share capital Share capital is classified as equity if it is non-redeemable and any dividends are discretionary, or is redeemable but only at the Company's option. Dividends on share capital classified as equity are recogn ised as distributions within equity. Nonequity share capital is classified as a liability if it is redeemable on a specific date or at the option of the shareholders or if dividend payments are not discretionary. Dividends thereon are recogn ised in the Statement of profit or loss as a finance charge. 3i.ii Dividends Dividends on non-equity shares are recogn ised as a liability and accounted for on an accruals basis. Equity dividends are recogn ised as a liability in the period in which they are declared (appropriately author ised and not at the discretion of the Company).

3j.

Pension schemes

The Company operates a defined contributory staff pension scheme in accordance with the provisions of the Pension Reforms Act 2014. The Company and each employee contribute 10% and 8% of annual emoluments (Basic, Housing and Transport) respectively. Staff contribution to the scheme is funded through the payroll deductions while the Company’s contributions are charged to the Statement of profit or loss. Obligations for contributions to defined contribution pension plans are recogn ised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. Prepaid contributions are recogn ised as an asset to the extent that a cash refund or a reduction in future payments is available. Payment to a defined contribution plan, those due more than 12 months after the end of the period in which the employees render the service are discounted to their present value. Also the Company operates a defined end of service savings scheme wherein certain amounts are set aside monthly, charged to the Statement of profit or loss and remitted to a fund manager to provide for lump sum payment to employee after the period of service. Only the amounts accrued and not yet transferred to the fund manager are recognised as liability at the end of every reporting period. The Company does not have any further obligation whatsoever after the monthly remittance. This scheme meets all the characteristics of defined contribution plan of IAS 19 – Employee Benefits 3k. Termination benefits Termination benefits are recogn ised as an expense when the Company is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination 19


NOTES TO THE FINANCIAL STATEMENT benefits for voluntary redundancies are recogn ised as an expense if the Company has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their pre sent value. 3l. Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recogn ised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. 3m. Provisions A provision is recogn ised in the Statement of Financial Position when the Company has a present legal or constructive obligation as a result of a past event, it can be measured reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. A provision for restructuring is recognised when the Company has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been announced publicly. Future operating costs are not provided for. 3n. Revenue – Sales of goods Revenue in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when evidence exists in the form of delivery of, and delivery acknowledgment of goods to clients, that the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reduction of revenue as the sales are recognised. 3o. Income tax Income tax on the profit or loss for the year comprises current and deferred taxation. Income tax is recognised in the of profit or loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. 20


NOTES TO THE FINANCIAL STATEMENT

Current tax is the expected tax payable/(recoverable) on the taxable income/(loss) for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable/(receivable) in respect of previous years. Current tax includes income tax, education tax etc.

Deferred taxation is provided using the liability method, providing for temporary

differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: The amount of deferred taxation provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates that are expected to apply when the temporary difference reverses, based on rates that have been enacted or substantively enacted at the reporting date. The initial recognition of assets or liabilities that affect neither accounting nor ta xable profit. A deferred taxation asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred taxation assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend. 3p. Segment reporting The Company has determined that, in accordance with IFRS 8 "Operating Segments" and based on its internal reporting framework and management structure, it is a single product entity with one reportable segment. Such determination is necessarily judgmental in its nature and has been determined by management in preparing the Financial Statements. However, the following entity wide disclosure are relevant: -

The Company manufactures and markets steel drums packaging products from three locations in Nigeria with revenue concentration from customers within Nigeria only at 59% for Apapa, Lagos State, (2015: 60%), 22% for Koko, Delta State, (2015: 23%) and 19% for Kaduna, Kaduna State, (2015:18%)

-

Approximately 97% (2015: 97%) of the Company’s revenue is attributable to sales transactions to the Oil and Gas sector of the Nigerian economy.

-

A particular customer accounted for about 43% of the Company’s sales on the average (2015: 43%).

-

More than 98% of GREIF Plc’s customers have been transacting with the company for over 10years 21


NOTES TO THE FINANCIAL STATEMENT 3q. Earnings per share The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held if any. The Company does not have any potential ordinary shares with dilutive effect at the reporting date. 3r.

Standards issued but not yet effective

A number of new Standards and amendments to Standards are effective for annual period beginning after the reporting period and earlier application is permitted; however, the Company has not early applied the following new or amended Standards in preparing these financial statements. New or amended Standards IFRS 9 Financial Instruments

IFRS 15 Revenue from Contracts with Customers

Agriculture: Bearer Plants

Summary of the requirements

IFRS 9, published in July 2014, replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and de-recognition of financial instruments from IAS 39. IFRS 9 is effective for annual reporting periods beginning on after 1 January 2018, with early adoption permitted. IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. IFRS 15 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. These amendments require a bearer plant, defined as a living plant, to be accounted for as 22

Possible impact on the financial statements The Company is currently assessing the potential impact on its financial statements resulting from the application of IFRS 9

The Company is assessing the potential impact on its financial statements resulting from application of IFRS 15

None. The Company does


NOTES TO THE FINANCIAL STATEMENT (Amendments to IAS 16 and IAS 41)

IFRS 16 LEASES

IAS 12 amendments

property, plant and equipment and included in the scope of IAS 16 Property, Plant and Equipment, instead of IAS 41 Agriculture. The amendment are effective for annual reporting periods beginning on or after 1 January 2016, with early adoption permitted This standard sets out the principles for the recognition, measurement, presentation and disclosure of lesses.The objective is to ensure that the lessees and lessors provide relevant information in a manner that faithfully represents those transactions. The amendments require that the changes in the opening equity of the earliest comparative period may be recognized in opening retained earnings( or in another component of equity, as appropriate) without allocating the change between opening retained earnings and other components of equity. The amendments are effective for annual reporting periods beginning on or after 1 January 2017 with early adoption permitted.

not have any bearer plants.

None The company did not have any lease currently running

The Company is assessing the potential impact on its financial statements resulting from application of amended IAS 12

The following new or amended Standards are not expected to have any impact or any significant impact on the Company’s financial statements. - IFRS 15 Regulatory Deferral Accounts - Accounting for Acquisition of Interest in Joint Operation (Amendments to IFRS 11). - Clarification of Acceptable Methods of Depreciation and Amortization (Amendments to IAS 16 and IAS 38). - Equity Method in Separate Financial Statements (Amendments to IAS 27). - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28). - Annual Improvements to IFRSs 2012 – 2014 Cycle – various standards. - Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28). - Disclosure Initiative (Amendments to IAS 1).

23


NOTES TO THE FINANCIAL STATEMENT 3s. Significant accounting judgments, estimates and assumptions The preparation of the financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

3t. Judgments In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognised in the financial statements:

3t-i Operating lease commitments – Company as lessee The Company has entered into leases on land. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of the economic life, that it does not retain all the significant risks and rewards of ownership and accounts for the contracts as operating leases.

3t-ii

Estimates and assumptions Going concern: The Company’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.

3t-iii

Impairment of non-financial assets Impairment exists when the carrying amount of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the 24


NOTES TO THE FINANCIAL STATEMENT CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash -inflows and the growth rate used for extrapolation purposes.

3t-iv Property, plant and equipment The company carries its property, plant and equipment at cost in the Statement of financial position. Estimates and assumptions made to determine their carrying value and related depreciation are critical to the company’s financial position and performance. The charge in respect of peri odic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the assets are determined by management at the time the asset is acquired and reviewed periodically. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. The carrying amount of the property, plant and equipment at the reporting date is disclosed in Note 5.

3t-v Taxes Uncertainties exist with respect to the interpretation of tax regulations and the amount and timing of future taxable income. Differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities in the country. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing (note 13) and the level of future taxable profits together with future tax planning strategies.

3s-vi Fair value of financial instruments Where the fair values of financial instruments recorded on the Statement of Financial Position cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flow model. The inputs to these models are derived from observable market data where possible, 25


NOTES TO THE FINANCIAL STATEMENT but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of model inputs regarding forward prices, credit risk and volatility that are not supported by observable market data. Changes in assumptions about these factors could affect the reported fair value of financial instruments. 4

FINANCIAL RISK MANAGEMENT

4a Overview The company has exposure to the following risk from its use of financial instruments:  Credit risk  Liquidity risk  Market risk This note presents information about the GREIF Plc’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included throughout these financial statements. 4b Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of Greif Nigeria Plc’s risk management framework. Executive Management is responsible for developing and monitoring Greif Nigeria Plc’s risk management policies and reporting regularly to the Board of Directors on its activities. The Company’s risk management policies are established to identify and analyze the risks faced by the business, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in the business environment. The Company, through management standards, procedures and training, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the business. The Audit Committee is assisted in its oversight role by the Management. Management undertakes both regular and ad-hoc review of risk management controls and procedures, the results of which are reported to the Audit Committee of the Board of Directors and possible escalation to the Group designated officer in South Africa . 4c Credit risk Credit risk is the risk of financial loss to GREIF Plc if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the GREIF Plc’s receivables from customers. 4c.i Trade and other receivables The Company’s exposure to credit risk is influenced mainly by the individual 26


NOTES TO THE FINANCIAL STATEMENT characteristics of each customer. However, Management considers the profile of individual customer, including the default risk of the industry and the specific antecedents of the customer and Management’s intrinsic knowledge of the customer. During the period ended 31 July 2016, approximately 97% (corresponding period 31 July 2015: 97%) of GREIF Plc’s revenue is attributable to sales transactions to the oil and gas sector of the Nigerian economy. Additionally, a particular customer accounted for about 43% of the Company’s sales on the average (April 2015 comparative 43%). The Company has established a credit policy under which each new customer is analyzed individually for credit worthiness before the Company’s standard payment and delivery terms and conditions are offered. Management review includes external ratings, when available, and in some cases bank references. Credit purchase limits are established for each customer, which represents the maximum open amount without requiring approval from the Board of Directors; these limits are reviewed annually. Customers that fail to meet the Company’s benchmark credit worthiness may transact business on a cash-on-delivery basis. More than 98% of GREIF Plc’s customers have been transacting with the company for over 10years, and no impairment loss has been recognised against these customers. In monitoring customer credit risk, customers are grouped according to their credit characteristics. Trade receivables relate mainly to the Company’s end-user customers. The Company provides for doubtful debts, calculated at 30% of the amounts between 90days and 180days, and 100% of amounts over 180days in the age analysis, excluding related party balances. In addition, Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. The schedule below shows the schedule of trade and other receivables at the end of the tagged reporting periods. 31-Jul-16 N'000 170,431 170,431

Trade Receivables - Local Allowance for Bad and Doubtful Debt

31-Jul-15 N'000 190,681 (20,089) 170,592

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on actual incurred historical data. The maximum exposure to credit risk for the components of the statement of financial position at 31 July 2016, and 31 July 2015 is the carrying amounts as disclosed in note.

27


NOTES TO THE FINANCIAL STATEMENT 4c.ii An analysis of Trade Receivable is as follows: Total Trade Receivable N'000

Not past due Past due but not impaired Not Impaired 61-90days 91-180days N'000 N'000 N'000

31-Jul-16

170,431

169,523

1,280

(372)

31-Jul-15

170,592

56,954

97,697

15,941

Movement in impairment of trade receivables is as detailed below: 31-Jul-16 N'000 At Start of period 20,089 Trade receivable impairment Recovered during the year Written off as uncollectible during year 20,089 -

31-Jul-15 N'000 20,089 20,089

4d Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as practicable, that it would always have sufficient liquidity to meet its maturing obligations when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. Excessive risk concentration Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry. In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

28


NOTES TO THE FINANCIAL STATEMENT 4d.i Maturity schedule for Financial Liabilities The following are the contractual maturities of financial liabilities: 31-Jul-16 Financial Liabilities Trade Payables – Local Trade Payables – Greif SA Due to Greif USA Due to Greif Netherlands Accrued Professional Fees ESB Staff Savings Scheme Accrued Payroll Benefits Other Accruals

31-Jul-15 Financial Liabilities Trade Payables – Local Trade Payables – Greif SA Due to Greif USA Due to Greif Netherlands Accrued Professional Fees ESB Staff Savings Scheme Accrued Payroll Benefits Other Accruals

Due Within One Year N'000

Due After One Year N'000

32,380 371,257 8,402 8,098 1,200 1,466 (6,630) 416,173 Due Within One Year N'000 18,650 263,400 1,620 13,111 7,583 2,073 1,421 14,725 322,583

Due After One Year N'000 -

Total N'000 32,380 371,257 8,402 8,098 1,200 1,466 (6,630) 416,173 Total N'000 18,650 263,400 1,620 13,111 7,583 2,073 1,421 14,725 322,583

The carrying amounts of trade and other payables for period ended July 31, 2016 and 2015 respectively approximate to their true fair values. The Company uses activity-based costing to cost its products and services, which assists it in monitoring cash flow requirements and optimizing its cash profit. Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period for at least 30days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

29


NOTES TO THE FINANCIAL STATEMENT 4e Market risk Market risk is the risk that changes in market prices, such as foreign exchange interest rates and equity prices will affect the Company’ income or the value holdings of financial instruments. The objective of market risk management manage and control market risk exposures within acceptable parameters, optimizing the return.

rates, of its is to while

4f Currency risk The Company is exposed to currency risk on purchases of raw materials that are denominated in United States Dollars, or a currency other than the functional currency of the Company. Confirmed letters of credit are opened for such offshore purchases and official bids for Dollars are made at the Central Bank of Nigeria official rates. Besides, the company is exposed to foreign exchange volatility on account of the group loan. Such foreign currency denominated loans are revalued at the rate of exchange ruling at the end of every reporting period, with exchange gains or/and losses recognised in the income statement. Below is the effect on profit & Equity of a +/-5% change in exchange rate: Sensitivity Analysis Description Due to GSA Due to Greif International Due to Greif USA Dollar Denominated Bank Balance Due from GSA Net Foreign Balances Closing rate at period-end Naira Equivalent of Net Foreign Balances 5% Change in Closing rate Naira Equivalent of change on Closing rate Net Effect of Change in Naira Net Profit for year Net Effect as % of Profit

A B C=AxB D F=AxD G=F-C H I=G/H%

US$ US$ US$ US$ US$ US$ N/$ Naira N/$ Naira +/Naira %+/-

31-Jul-16 '000 (1,453) (16) 315 102 (1,052) 315 (331,682) 331 (348,266) (16,584) (32,876) -50.44%

31-Jul-15 '000 (1,453) (60) (7) 325 94 (1,101) 198 (218,060) 208 (228,963) (10,903) 12,331 88.42%

4g Interest rate and Equity price risk The company is not exposed to interest rate risk and equity price risk at the end of 3 1 July 2016.

30


NOTES TO THE FINANCIAL STATEMENT 5. PROPERTY, PLANT AND EQUIPMENT – ACQUISITION, DISPOSAL, DEPRECIATION AND IMPAIRMENT

PROPERTY, PLANT AND EQUIPMENT

31-Jul-16 Accumulated Depreciation & Impairment

Carrying Value

N'000

N'000

N'000

N'000

N'000

N'000

50,557

15,510

35,048

50,557

14,177

36,380

Cost

Leasehold Land & Building Plant, Machinery & Equipment

31-Jul-15 Accumulated Depreciation & Impairment

Cost

Carrying Value

231,572

141,594

89,979

227,715

126,171

101,543

Motor Vehicles

14,831

10,614

4,216

14,831

9,237

5,594

Capital Work-in-progress

23,329

0

23,329

10,864

0

10,864

320,289

167,718

152,571

303,966

149,585

154,381

Total

Reconciliation of property, plant and equipment: 31-Jul-2016 Reconciliation of property, plant and equipment - 31-Jul-2016

Opening Balance

Additions

Disposal Cost

Transfers

Depreciation

N'000

N'000

N'000

N'000

N'000

36,047

0

0

0

(999)

101,468

0

0

0

Motor Vehicles

5,189

0

0


5,728

17,601

148,432

17,601

Leasehold Land & Building Plant, Machinery & Equipment

Total

Disposal Depreciation

Impairment Loss

Total

N'000

N'000

0

0

35,048

(11,490)

0

0

89,979

0

(973)

0

0

4,216

0

0

0

0

0

23,329

0

0

(13,462)

0

0

152,571

Depreciation

Disposal Depreciation

Impairment Loss

Reconciliation of property, plant and equipment - 31-jul-2015 Reconciliation of property, plant and equipment - 31-Jul-2015 Leasehold Land & Building Plant, Machinery & Equipment

Opening Balance

Additions

Disposal Cost

Transfers

N'000

N'000

N'000

N'000

N'000

37,379

0

0

0

(999)

109,955

0

(162)

3,123

Total

N'000

N'000

0

0

36,380

(11,535)

162

0

101,543

Motor Vehicles

6,807

0

0

0

(1,214)

0

0

5,594


8,338

5,649

0

(3,123)

0

0

0

10,864

162,480

5,649

(162)

0

(13,748)

162

0

154,381

Total

During the period ended 31 July 2016, the Company acquired assets with a cost, excluding capitalized borrowing costs, of N17.601million (31 July 2015: N5.649million). During the period the Company disposed of items of property, plant and equipment with a carrying cost of Nil (31 July 2015: N0.162million). Any profit or loss as a result of disposal is recognized in the statement of profit or loss and other comprehensive income at the year end. No impairment loss on items of Property, plant and equipment occurred during the period ended 31 July 2016.

31


NOTES TO THE FINANCIAL STATEMENT 6.

INTANGIBLE ASSETS

Greif Plc has Intangible Assets representing software with which the company processes its financial and operational transactions. The schedule below depicts the asset position at the end of the relevant interim periods. 31-Jul-16 31-Jul-15 Software Software N'000 N'000 Cost at period opening – 1 November 4,837 4,837 Additions Cost at Period end – 31 July 4,837 4,837 Accumulated amortization at opening – 1 November (4,837) (4,837) Amortised During Year Acc Amorisation at period end – 31 July (4,837) (4,837) Carrying Amount – 31 July 7. INVENTORIES

31-Jul-16

31-Jul-15

64,877 7,453

92,880 4,689

Raw Materials (Note 7a) Work-in-Progress Finished Goods (at lower of cost and net realisable value) Goods-in-Transit

4,777 8,220 22,281 28,839 99,387 134,629 The cost of inventories recognized as expense and included in cost of sales amounted to 31-July-2016: N464.607million (31-July-2015: N375.055million). Inventory carried at Net Realisable Value as at balance sheet date amounted was nil. 7a Raw Materials

31-Jul-16 N'000 64,877 0 64,877

Raw Materials Allow For slow moving materials

31-Jul-15 N'000 93,817 (936) 92,880

During the period ended 31 July 2016 there was no additional allowance for slow moving materials. 8 TRADES AND OTHER RECEIVABLES

31-Jul-16 N'000 170,431 76,894 5,258 0 44,715 297,297

Trade receivables VAT Recoverable Sundry Receivables Insurance claim Receivable from related parties (Note 13a.i)

32

31-Jul-15 N'000 170,592 65,944 8,820 (437) 20,576 265,495


NOTES TO THE FINANCIAL STATEMENT Trade receivables are non-interest bearing and are generally on a term of 30 to 90 days. VAT recoverable consists of amounts recoverable from FIRS in respect of 5% VAT deducted at source from our invoices and paid over to FIRS by our customers in the Oil marketing industry. Other classes within other receivables do not contain any impaired assets. The receivable from related parties represents balance due from Greif South Africa relates to traveling expenses recoverable from Greif South Africa in respect of KDD maintenance visits by Greif Nigeria Maintenance Manager. No receivable is pledged as security for borrowings 8b. Impairment - Individually impaired As at 31 July 2016, trade receivables with an initial carrying value of N2,089,000 (2015:N2,089,000) were impaired and fully provided for were written-off against the allowance. See below for the movements in the allowance for impairment of receivables: 31-Jul-16 31-Jul-15 N'000 N'000 At 1 November 20,089 20,089 Charge for the year Amount written-off (20,089) --------------At 31 July 20,089 ===== ===== Age analysis of trade receivables are as follows: Not past due Not Impaired

Total Trade Receivable N'000

N'000

Past due but not impaired 61-90days

91-180days

N'000

N'000

31-Jul-16

170,431

169,523

1,280

(372)

31-Jul-15

170,592

56,954

97,697

15,941

9. PREPAYMENT Advance to suppliers Employees advances Prepaid Expenses (current)

31-Jul-16 N'000

31-Jul-15 N'000

72,084 3,194 27,353 102,632

22,704 2,802 14,723 40,230

Prepayment consists of amounts in respect of advance payment for imports on confirmed letters of credit, prepaid employee payroll and other operational prepayments 10. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash balances and call deposits. The schedules below 33


NOTES TO THE FINANCIAL STATEMENT show the balances at the current period (and at the comparative period) 31-Jul-16 31-Jul-15 N'000 N'000 Cash in hand 434 342 Bank Balances 43,075 68,932 Short Term Bank Deposit 69,388 48,935 112,897

118,209

Cash at banks earns interest based on daily bank deposit rates determined by the banks. These deposits have an average maturity of between 60-90 days. For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows is same as in the statement of financial posi tion. 11. RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 31-Jul-16 31-Jul-15 N'000 N'000 Profit /(Loss) after tax (32,876) 12,331 Adjustment to reconcile net income to net cash provided: Depreciation of PPE 13,462 13,748 Amortisation of Intangibles 0 0 Loss on disposal of assets 0 0 Interest received (2,938) (3,553) Allowance for slow moving inventory 0 0 Allowance for doubtful debts 0 0 (22,351) 22,526 Changes in Assets & Liabilities: Decrease in Inventories 13,208 (19,509) Decrease/(Increase) in Receivables & Prepayment (197,865) (89,813) Increase/(Decrease) in Payables & Accruals 123,102 63,642 Increase in Taxation (15,571) 1,098 (Decrease) in Deferred taxation 0 (2,316) Increase in Provisions 0 0 (99,478) (24,372) 12. SHARE CAPITAL AND RESERVES No issue of additional shares was made during the period ended 31 July 2016 (no similar 34


NOTES TO THE FINANCIAL STATEMENT issue was made during the period ended 31 July 2015). Details of equity at the reporting date are as follows: Share Capital 31-Jul-16 31-Jul-15 Authorised: N'000 N'000 60,000,000 ordinary shares of 50kobo each 30,000 30,000 Called up and fully paid: N'000 N'000 42,640,000 ordinary shares of 50kobo each 21,320 21,320 Dividend 31-Jul-16 N'000

31-Jul-15 N'000

=====

=====

Dividends on ordinary shares: No dividends proposed during period under review. Reserve

Description and purpose

Retained Earnings

All other net gains and losses on transactions with owners not recognized elsewhere

13 RELATED PARTIES’ DISCLOSURES 13a. Related Party Transactions with the Greif Group The shares of the Company are beneficially held as follows: Description Shareholdings (%) Greif International Holding B.V. The Netherlands 51 The Van Leer Nigerian Education Trust 23 Other Nigerian Citizens & 26

Unit in shares 21,760,000 15,160,040 1,066,247

The Company enters into transactions with related parties and sister Companies within the Greif group in the course of its business. These transactions include, but are not limited to, technical advises, investment advisory services, IT related support, logistics support, personnel support and the purchase of certain production materials and spares. Amounts owed to and due from related parties are transaction based. No allowances for doubtful debts has been made against amounts outstanding and no expenses have been recognised during the year in respect of bad or doubtful debts due from related parties. The Company currently has no technical or management services agreement with Greif group in place.

35


NOTES TO THE FINANCIAL STATEMENT Summary of Related Party Transactions with the Greif Group:

Years Greif International Holding B.V. the Netherlands Greif South Africa Greif International USA

2015 2014 2015 2014 2015 2014

Sales to related parties

Purchases from related parties

Amount of intercompany loans

Amounts owed by related parties

Amounts owed to related parties

N'000 -

N'000 -

N'000 -

N'000 44,715 20,576 -

N'000 13,111 371,257 263,400 8,402 1,620

13a.i Due from Greif South Africa Due From Greif South Africa

31-Jul-16 N'000

31-Jul-15 N'000

44,715

20,576

The amount relates to recoverable traveling expenses in respect of Knocked Down Drums (KDD) factory maintenance visits by Greif Nigeria on behalf of Greif South Africa . 13a.ii Due to Greif South Africa Due To Greif South Africa (Note 16)

31-Jul-16 N'000

31-Jul-15 N'000

371,257

263,400

The company has an intercompany trade payable balance of US$ 1,453,133 (2014: US$ 1,453,133) due to its sister company, Greif South Africa. As at the reporting date, there is uncertainty as to the timing and repayment of the balance. Movement in the balance has been basically due to payment on account and fluctuations in closing exchange rate.

13a.iii Due to Greif International Holding Due To Greif International Holding B.V. the Netherlands (Note 16)

31-Jul-16 N'000

31-Jul-15 N'000

0

13,111

Greif International Holding B.V. the Netherlands holds approximately 51% shares of the Greif Nigeria Plc. The above represents charges in respect of its share of 36


NOTES TO THE FINANCIAL STATEMENT group and corporate costs. In 4th quarter 2015 last year, a credit note was received for a write-off of the balance into profit and loss and other comprehensive income statement due to lack of CBN approval in respect of payment of the balance.

13a.iv Due to Greif International USA

Due To Greif International USA (Note 16)

31-Jul-16 N'000 8,402

31-Jul-15 N'000 1,620

The above represents quarterly IT-related costs billed against the Company still outstanding as at period-ended 31-July 2016. This liability has been reflected in the profit and loss and other comprehensive income statement while the invoiced amount which still remained unpaid as at 31-July-2016 is reflected in other payables 13b Related Party Transactions - Key Management Personnel Compensation (13b.i) Key management compensation - Staff 31-Jul-16 31-Jul-15 N'000 N'000 Salaries and other short-term employment benefits 9,599 9,706 Management Incentive Program 756 617 Pension Costs - Defined Contribution Scheme 894 805 End Of Service Savings Scheme - Defined Contribution 789 708 12,038 11,836 Short term employee benefit Post-employment benefit

10,355 10,323 1,683 1,513 12,038 11,836 (13b.ii) Key management compensation - Audit Committee shareholders representative 31-Jul-16 31-Jul-15 N'000 N'000 Sitting Allowance for the year 528 492 (13b.iii) Key management compensation - Directors 31-Jul-16 31-Jul-15 N'000 N'000 DIRECTORS' EMOLUMENTS Fees – Chairman 158 158 Fees - Other Directors 503 540 660 698 Emolument as non-executives 0 144 Emolument as executives 5,857 5,167 Total Directors Emoluments 6,517 6,008 Emolument of highest paid Director 6,037 5,347 Key management personnel includes executive directors, non-executive directors, shareholders representatives on audit committee, the functional heads of Finance and accounts, Sales and Marketing, Plant Management, Maintenance and Human 37


NOTES TO THE FINANCIAL STATEMENT Resources Management No transaction in respect of sale of goods or services was entered into with any key management personnel or shareholder representatives of the audit committee 14 INCOME TAX EXPENSE Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre -tax income of the period. The Company's effective tax rate in respect of its operations for the period ended 31 July 2016 was 22.36% as against 31 July 2015: 26.07%. 31-Jul-16 N'000 16,327 0 16,327 0 0 16,327

31-Jul-15 N'000 18,680 511 19,191 0 (2,316) 16,875

14b Income tax payable Opening balance Current period charge (Note 14a) Over provision of income taxes Payment during period Closing balance

31,898 16,327 0 (31,898) 16,327

19,669 19,191 0 (18,093) 20,768

14c Deferred Tax Liabilities Balance at November 1, Provision for the year (Note 14a) Closing balance

N’000 20,739 0 20,739

N’000 35,536 (2,316) 33,220

14a Profit and Loss: Provision for period Educational Tax provision Company Income Tax ( Note 14b) Over provision of income taxes Deferred Tax for period (Note 14c) Income Tax Expense

15. Income tax reconciliation Accounting profit before tax Impact of disallowable expenses for tax purpose Utilization of previously unrecognized tax credit Impact of education tax rule Income tax expenses

38

31-Jul-16 N’000 (4,965) 26,869 (5,577) 16,327

31-Jul-15 N’000 8,762 13,325 (3,407) 511 19,191


NOTES TO THE FINANCIAL STATEMENT 16. TRADE AND OTHER PAYABLES

31-Jul-16 N'000 32,380 371,257 8,402 0 8,098 6,702 1,200 1,466 8,165 12,077 (6,630) 443,116

Trade Payables – Local Payables to related parties (Note 13a.ii) Due to Greif USA (Note 13a.iv) Due to Greif Netherlands (Note 13a.111) Accrued professional fees Dividend Unclaimed ESB Staff Savings Scheme Accrued payroll benefits Other taxes payable Dividend Payable Other accruals

31-Jul-15 N'000 18,650 263,400 1,620 13,111 7,583 712 2,073 1,421 4,892 0 14,725 328,187

The company has an intercompany trade payable balance of US$1,453,133 (2014: US$1,453,133) due to its sister company, Greif South Africa. As part of the Greif group affiliation, the balance is without interest and currently there is no repayment schedule in respect of the balance. Movement in the balance has been basically due to either payment or fluctuations in closing exchange rate. The carrying amounts of trade payables for period ended Jul 31, 2016 and 2015 respectively approximate to their true fair values Terms and conditions of the above financial liabilities: • Trade payables are non-interest bearing and are normally settled on a 60 day terms • Other payables are non-interest bearing and have an average term of three months. It comprises of VAT, WHT and PAYE • Accruals are liabilities to pay for goods or services that have been received or supplied but have not been invoiced or formally agreed with the supplier. They have an average term of three months. • For terms and conditions with related parties, refer to Note 13 For explanations on the Company’s credit risk management processes, refer to the Note. 17 REVENUE The analysis of Turnover which was all achieved in Nigeria by product Lines is as follows: 31-Jul-16 31-Jul-15 Product Lines N'000 N'000 Steel Drums 693,043 584,656

39


NOTES TO THE FINANCIAL STATEMENT 18 COSTS OF SALES, SELLING AND MARKETING EXPENSES, OTHER OPERATING EXPENSES 31-Jul-16 N'000 The following items have been charged/(credited) in arriving at operating profit: Operating Expenses Included in Cost of Sales: Direct Material Cost Direct Line Costs General Administration Employees Benefits (Note 21b) Indirect Factory Labor/employee benefits (Note 21b) Depreciation on Property, Plant & Equipment Indirect Factory/Production Costs Total Cost of Sales Included in Selling & Marketing Costs: Publicity Commercial Presents Total Selling & Marketing Costs Included in Other Operating Costs: Loss/(Gain) on Asset disposal General Administration Employees Benefits (Note 21a) Depreciation on Property, Plant & Equipment Amortisation of Intangible Assets Auditors' Remuneration Repairs & Maintenance Personnel expenses Travelling expenses Director expenses Insurance Professional fees Donation Bank charges Subscription Sundry expenses Office expenses Annual general Meeting expenses Director fees Exchange Loss Total General and Administrative Expenses

31-Jul-15 N'000

712,529

559,003

464,607 42,974 20,958 7,992 11,657 28,944 577,133

375,055 37,683 18,002 8,181 11,636 26,736 477,292

383 3,193 3,576

351 2,402 2,752

0 19,366 1,805 0 2,625 3,653 3,626 2,168 528 837 5,522 133 529 1,363 0 10,655 2,250 660 76,100 131,820

0 18,181 2,112 0 2,625 1,834 3,603 1,986 636 756 2,599 125 941 1,271 (0) 10,923 0 698 30,669 78,959

Exchange loss 76,100 30,669 This is the net effect of changes in exchange rate on foreign currency denominated transactions including intercompany balances

40


NOTES TO THE FINANCIAL STATEMENT 19

COST CLASSIFICATION BY NATURE OF EXPENSES 31-Jul-16 N'000 0 13,462 464,607 48,317 0 2,625 3,653 71,918 3,576 3,626 2,168 528 837 5,522 133 529 1,363 0 10,655 2,250 660 76,100 712,529

Loss/(Gain) on Asset disposal Depreciation Direct material Employee benefits (Note 21a) Amortization Auditors Remuneration Repairs & Maintenance Factory/Production Expenses Publicity and Advertisement Personnel expenses Travelling expenses Director expenses Insurance Professional fees Donation Bank charges Subscription Sundry expenses Office expenses Annual general Meeting expenses Director fees Exchange Loss/Gain

20

31-Jul-15 N'000 0 13,748 375,055 44,364 0 2,625 1,834 64,418 2,752 3,603 1,986 636 756 2,599 125 941 1,271 (0) 10,923 0 698 30,669 559,003

INTEREST INCOME

Interest Income

2,938

3,553

This represents interest received on placement of excess funds in short term treasury deposits

41


NOTES TO THE FINANCIAL STATEMENT 21 EMPLOYEE BENEFITS 21a The following items are included within employee benefits expense: Short term employee benefits Employee & Management Incentive Programs Pension Costs - Defined Contribution Scheme End Of Service Savings Scheme - Defined Contribution 21b This is reflected in Profit and Loss accounts as follows: Direct Labour/employee benefits (Note 18) Indirect Factory Labor/employee benefits (Note 18) General Administration Employees Benefits (Note 18)

31-Jul-16 N'000

31-Jul-15 N'000

40,939 2,778 2,949 1,650 48,317

37,146 3,022 2,705 1,492 44,364

20,958 7,992 19,366 48,317

18,002 8,181 18,181 44,364

21c Staff Categories and Number Total full time employees at the Company as at 31-July-2016 and as compared to corresponding period in 2015 are as follows: Category 31-Jul-2016 31-Jul-2015 Managerial 6 6 Senior Staff 8 8 Junior Staff 15 14 Total 29 28 22

PROVISIONS 31-Jul-16 N'000 7,000 7,000

Balance at 1 November Additional Provisions during the year Write back during the year Balance at 31 July

31-Jul-15 N'000 7,000 7,000

In December 2011, Judgment was delivered by the High Court of Lagos State against the Company in suit No. LD/1908/06, between Onson Plastics & Industries Limited and Greif Nigeria Plc for the claimant's claim in the sum of Seven Million Naira only i.e. N7m being special and general damages for alleged breach of contract to remove PVC armored cables for purchase entered into between the parties, sometime in March 2005. The Company thereafter filed an appeal at the Court of Appeal, Lagos against the High Court of Lagos State's judgment. On November 28, 2014 judgment was again delivered by the Court of 42


NOTES TO THE FINANCIAL STATEMENT Appeal against the Company in suit No. CA/L/916/2011 The Company has since filed an appeal at the Supreme Court of Nigeria against the Court of Appeal's judgment. As at the reporting date, the contingent liability was re -assessed and is determined to be N7 million, based on the expected probable outcome. The charge to profit or loss has been recogn ised. 23. CONTINGENT LIABILITY The Company had no known contingent liabilities as at the period ended 31-July-2016. 24. EARNINGS PER SHARE Profit attributable to equity holders of the Company (N'000) Weighted average number of ordinary shares in issue ('000) Basic earnings per share (Kobo) Diluted earnings per share (kobo)

31-Jul-16 (32,876) 42,640 (77) (77)

31-Jul-15 12,311 42,640 29 29

Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year. There were no potential ordinary shares outstanding at 31-July-2016 or 2015; diluted earnings per share are therefore the same as basic earnings per share. 25.

EVENTS AFTER REPORTING DATE

There is no material event after the reporting date which could have had a material effect on the state of affairs of the Company as at 31 July 2016.

43

GREIF NIGERIA PLC STATEMENT OF VALUE ADDED 31-Jul-16 N'000 693,043 (324,973)

% Share 100% -47%

31-Jul-15 N'000 584,656 (229,566)

% Share 100% -39%

(325,777) 42,293 2,938 45,230

-47% 6% 0% 7%

(271,325) 83,765 3,553 87,318

-46% 14% 1% 15%

To pay employees Salaries, Wages & Other Benefits

48,317

107%

44,364

51%

To government Taxation

16,327

36%

19,191

22%

To providers of finance Interest Paid

0

0%

0

0%

13,748

16%

(2,316)

-3%

12,331 87,318

14% 100%

Turnover Bought in materials and duty- local Bought in materials and dutyforeign Other Income Value added Applied as follows:

To provide for maintenance & expansion of business Depreciation 13,462 30% Deferred taxation 0 0% Profit for the year (32,876) -73% 45,230 100%

Value added represents the additional wealth, which the Company created by its own, and its employees' efforts. This statement shows the allocation of that wealth between employees, government, providers of finance, and that retained for future creation of more wealth.

44

GREIF NIGERIA PLC FIVE-YEAR FINANCIAL SUMMARY AS AT: 31-Jul-16 31-Oct-15 31-Oct-14 31-Oct-13 31-Oct-12 N'000 N'000 N'000 N'000 N'000 TOTAL ASSETS Non-Current Assets 152,571 148,432 162,480 165,865 172,062 Current Assets 612,213 567,282 501,293 516,550 459,505 764,784 715,714 663,772 682,415 631,567 TOTAL EQUITY Equity Share Capital 21,320 21,320 21,320 21,320 21,320 Retained Earnings 256,282 314,742 315,702 297,843 279,383 277,602 336,062 337,022 319,163 300,703 NON-CURRENT 33,913 LIABILITIES 20,739 20,739 35,536 39,042 CURRENT 296,951 LIABILITIES 466,443 358,913 291,215 324,210 TOTAL EQUITY & LIABILITIES 764,784 715,714 663,772 682,414 631,567 TURNOVER

795,200

795,200

795,200

795,200

748,664

Profit before tax

(16,549)

40,149

58,029

52,469

61,011

Tax Expense Profit for the year Other Comprehensive income Total comprehensive income

(16,327) (32,876)

(15,525) 24,624

(14,586) 43,443

(21,843) 30,626

(22,064) 38,947

0

0

0

0

0

(32,876)

24,624

43,443

30,626

38,947

(77) 651 0

58 788 60

102 790 60

72 749 60

Per Share Information Basic earnings per share Net Assets per Share Dividend Declared

91 kobo 705 kobo 30 kobo

A. The following are the nature of adjustments which will make the 31 October 2012 figures under GAAP comply with IFRS in line with IFRS 1: Property, Plant and Equipment: Greif Equipment: Greif Nigeria Plc maintained its building and some production machines at revalued amount under local GAAP. The company has elected to do retrospective application to the cost model under IFRS,tus revaluation reserve has been written back to retained earnings, is mush have impacted on the cost of sales which in turn would have impacted on the profit before tax. B. Inventory: Under the local GAAP, factory overheads and other fixed production cost to were to be written off cost sales as they were incurred but IFRS requires fixed overhead to be capitalized as part of the carrying amount of inventory and based on normal capacity. This mush have had impacted on the cost of sales as well as the profit before tax. C. Depreciation Adjustment to PPE and Retained Earnings: Depreciation adjustment as a result of the application of componentization clause in IFRS conversion in the prior year was expected to be applied retrospectively to the retained earnings of the year in which it relates. 45

GREIF NIGERIA PLC FIVE-YEAR FINANCIAL SUMMARY This must have impacted on the retained earnings. D. Trade and Other Receivables: Under the local GAAP, the company combined many unrelated balances into trade and other receivables. These were reclassified to various appropriate IFRS compliant sub-account headings. This may not have significant impact on the profit/loss account. E. Trade Payable: Under local GAAP, other sundry payables and accounts payable were classified along with trade payables. Under IFRS, these have been separated and included under payables and accruals. This might not have effects on the income statement F. Long term liabilities: Under the local GAAP, the outstanding balance due to Greif South Africa was reflected as a long term liability but under IFRS, this has been appropriately reflected as part of trade payable. This must have no effect on the profit or loss account. G. Gratuity: Under local GAAP, the unfunded portion of the contribution based gratuity scheme was reflected under non-current liability. But under IFRS this has been appropriately reflected as part of other payable. This might have had any impact on the profit/loss account. H. Income Tax Payable: Prior year taxes which had been settled with the tax credits but which were still rs(as income tax withholding tax credits) and liability(as provision for company taxes previous years now appropriately reflected under IFRS).This might not have had any significant effect on the income statement.

46