GREIF NIGERIA PLC Apapa, Nigeria - The Nigerian Stock Exchange

GREIF NIGERIA PLC Apapa, Nigeria UNAUDITED MANAGEMENT FINANCIAL STATEMENTS FOR THE HALF YEAR PERIOD ENDED 30 APRIL 2017

GREIF NIGERIA PLC UNAUDITED MANAGEMENT FINANCIAL STATEMENTS FOR THE HALF YEAR PERIOD ENDED 30 APRIL 2017

CONTENTS

PAGE

Directors, Professional And Other Corporate Advisers.

1

Results at a Glance

2

Statement of Financial Position

3

Statement of Profit & Loss & Comprehensive Income

4

Statement of Changes in Equity

5

Statement of Cash Flows

6

Notes to the Financial Statements

7

Statement of Value Added

42

Five Years Financial Summary

43

0


DIRECTORS, PROFESSIONAL ADVISERS DIRECTORS:

Mr. Louis Wentzel -South African Chairman Mr. Adedayo Abiodun Olowoniyi – Appointed April 21, 2017 Mr. Olukunle Adebayo Obadina Managing Director Mr. Gaius Adetayo Omotayo Mr. Erik Maarten ’t Sas -Dutch

COMPANY SECRETARY:

Marina Nominees Limited Aret Adams House 233 Ikorodu Road, Ilupeju, Lagos Tel: 08186507567 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. Erik Maarten ’t Sas Elder Lady A.Shoewu, JP

1

GREIF NIGERIA PLC UNAUDITED MANAGEMENT FINANCIAL STATEMENTS FOR THE HALF YEAR PERIOD ENDED 30 APRIL 2017 RESULTS AT A GLANCE

30-Apr 2017 N’000

30-Apr 2016 N’000

% change incr/(decr)

Revenue

768,603

434,304

77%

Cost of Sales

636,913

358,902

-77%

73,699

37,190

98%

(15,337)

(8,241)

-86%

58,362

28,949

102%

Profit before taxation Tax Expense Total Comprehensive (Loss)/Income

At Year End Paid-up share capital - N'000

21,320

21,320

0%

Shareholders’ funds - N'000

370,362

339,427

9.1%

42,640

42,640

0%

Total No. of Shares - '000

Per –Share data Earnings per share

137 Kobo

68 Kobo

101%

Net assets per share

869 Kobo

796 Kobo

9.1%

Dividend Proposed

0 Kobo

0 Kobo

2

0%


STATEMENT OF FINANCIAL POSITION Notes Assets Non-Current Assets Property, plant & Equipment Intangible Assets

30-Apr-17 N'000

30-Apr-16 N'000

31-Oct-16 N'000

127,449 11,254

155,134 -

156,018 0

138,704

153,134

156,018

115,128 313,323 76,991 122,519 627,962

64,014 274,183 32,904 222,694 593,796

126,965 251,477 115,241 72,790 566,472

766,665

748,929

722,490

12

21,320 349,042 370,362

21,320 318,107 339,427

21,320 316,264 337,584

14c

3,683

20,739

3,683

3,683

20,739

3,683

377,219 15,401 0 392,620

341,624 40,139 7,000 388,763

351,177 27,547 2,500 381,223

766,665

748,929

722,490

5 6

Total Non-Current Assets Current Assets Inventories Trade & Other Receivables Prepayments Cash at bank and in hand Total Current Assets Total Assets Equity & Liabilities Equity Retained earnings Total Equity Non-Current Liabilities Deferred taxation

7 8 9 10

Total Non-Current Liabilities Current Liabilities Trade & other payables Income Tax Payable Provisions Total Current Liabilities

16 14b 22

Total Equity & Liabilities

_______________________ G. A. Omotayo Director

FRC/2014/IODN/00000009253

_____________________ O. A. Obadina Managing Director

FRC/2013/ICAN/00000004254

See notes to the financial statements

3

__________________ H. G. Omidiora Chief Finance Officer

FRC/2013/ICAN/00000004092


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Note Revenue Cost of Sales Gross Profit Other Operating Income Selling & Marketing Costs General and Administrative Expenses

17 18

18 18

Operating Profit Finance Income Finance Charge Profit before tax Tax Expense Profit for the year Other Comprehensive income Total comprehensive income

20 20 14a

Total comprehensive income attributable to: Equity Holders of the Company Earnings per share Basic earnings per share Earnings from continuing operations Earnings from discontinued operations Total Diluted earnings per share Earnings from continuing operations Earnings from discontinued operations Total

30-Apr-17 N'000 768,603 636,913 131,689 0 (1,225) (57,226)

30-Apr-16 N'000 434,304 358,902 75,402 0 (2,012) (37,865)

31-Oct-16 N'000 999,150 832,998 166,153 0 (7,262) (127,916)

73,239

35,525

30,975

461 0 73,699 (15,337) 58,362 0 58,362

1,665 0 37,190 (8,241) 28,949 0 28,949

6,622 0 37,597 (10,491) 27,106 0 27,106

58,362

28,949

27,106

N

N

N

24

137 0 137

68 0 68

64 0 64

24

137 0 137

68 0 68

64 0 64


4


STATEMENT OF CHANGES IN EQUITY For the period ended 30 April 2017 Notes

Share Capital

Retained Earnings

Total Equity

N'000

N'000

N'000

21,320

316,264

337,584

Profit for period

0

58,362

58,362

Other adjustments to RE

0

0

0

21,320

374,626

395,946

0

(25,584)

(25,584)

21,320

349,042

370,362

Balance at 1 November 2016

Dividend Paid Balance at 30 April 2017

12

For the year ended 30 April 2016

Balance at 1 November 2015 Profit for period Other comprehensive income Dividend Paid Balance at 30 April 2016

12

Share Capital

Retained Earnings

Total Equity

N'000

N'000

N'000

21,320

314,742

336,062

0

28,949

28,949

0

0

0

21,320

343,691

365,011

0

(25,584)

(25,584)

21,320

318,107

339,427


5


STATEMENT OF CASH FLOWS 30-Apr17

30-Apr-16

N'000

N'000

745,006

329,279

(642,672)

(319,596)

102,335

9,683

Note OPERATING ACTIVITIES Cash receipts from customers Cash paid to suppliers and employees Tax Paid

14b

(27,482)

(0)

Net cash provided by operating activities

11

74,853

9,683

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

0

0

0

(15,676)

461

1,665

461

(14,012)

INVESTING ACTIVITIES

Interest received

FINANCING ACTIVITIES Interest paid

0

0

(25,584)

(25,584)

0

0

(25,584)

(25,584)

NET CHANGE IN CASH AND CASH EQUIVALENTS

49,729

(29,912)

Cash and cash equivalent at November 1,

72,790

252,623

122,519

222,711

Dividend paid Loan Repayment

Cash and cash equivalent at April 30,

10

See notes to the financial statements 6


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 for the half year period ended 30 April 2017. (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 authorised by the Board of Directors on 15-May 2017 and there were no events subsequent to the period 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

7


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 less 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. The se 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. Rev isions 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 consume d in normal operating cycle - 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 8


NOTES TO THE FINANCIAL STATEMENT -

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

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 asset or liability at fair value, subsequent to initial recognition. 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 meas urement 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. Such cost includes the cost of replacing part of the property, plant and equipment 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 9


NOTES TO THE FINANCIAL STATEMENT 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 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 cha rged over the shorter of the lease term and their useful life. Freehold land is not depreciated whilst leasehold land is depreciated over the lease period in the certificate of occupancy, usually 99years. The 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. Expenditure on internally generated goodwill and brands is recogn ised in the Statement of profit or loss as an expense as incurred. 10


NOTES TO THE FINANCIAL STATEMENT 3b.ii Subsequent expenditure Subsequent expenditure on capitalized intangible assets (Software) 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 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 the effective interest rate method (EIR), less impairment losses. 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 11


NOTES TO THE FINANCIAL STATEMENT 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 impairment losses. When a receivable is determined to be uncollectable, it is written off, firstly against any provision available and then to 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 asset 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 substantially 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 12


NOTES TO THE FINANCIAL STATEMENT 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 cha nges in arrears or economic conditions that correlate with defaults.

3c.vii Financial assets carried at amortised cost The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value o f 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. 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 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 co sts 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.

13


NOTES TO THE FINANCIAL STATEMENT

3d.iii Loans and borrowings

After initial recognition, interest bearing loans and borrowings are s ubsequently 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 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 n et 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, les s 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 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 and weighted average cost 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. 14


NOTES TO THE FINANCIAL STATEMENT 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 purp ose 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 inve ntories and deferred tax assets, 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. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its reco verable 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 deter mining 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 or 15


NOTES TO THE FINANCIAL STATEMENT associate) 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 dis count rate that reflects current market assessments of the time value of money and the 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. 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. 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 carryin g 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.. 16


NOTES TO THE FINANCIAL STATEMENT 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 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 i n 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 deducti ons 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 a re 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. 17


NOTES TO THE FINANCIAL STATEMENT 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 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 present 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 18


NOTES TO THE FINANCIAL STATEMENT 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.

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 tempo rary difference reverses, based on rates that have been enacted or substantively enacted at the reporting date. Deferred tax is not recognized from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). 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 util ized. 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 19


NOTES TO THE FINANCIAL STATEMENT 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, (2016: 56%), 20% for Koko, Delta State, (2016: 26%) and 21% for Kaduna, Kaduna State, (2016:18%)

-

Approximately 98% (2016: 98%) 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 42% of the Company’s sales on the average (2016: 42%).

-

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

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 20

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

IFRS 15 Revenue from Contracts with Customers

Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)

IFRS 16 LEASES

IAS 12 amendments

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 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.

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

None. The Company does 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). 21


NOTES TO THE FINANCIAL STATEMENT -

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).

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. 22


NOTES TO THE FINANCIAL STATEMENT

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 mo del. 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 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 periodic 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 23


NOTES TO THE FINANCIAL STATEMENT 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, 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 24


NOTES TO THE FINANCIAL STATEMENT 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 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 30 April 2017, approximately 98% (corresponding period 30 April 2016: 98%) 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 42% of the Company’s sales on the average (April 2016 comparative 42%). 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. Mana gement 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 lim its 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 25


NOTES TO THE FINANCIAL STATEMENT 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. 30-Apr-17 N'000 224,674 0 224,674

Trade Receivables - Local Allowance for Bad and Doubtful Debt

30-Apr-16 N'000 166,104 0 166,104

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 30 April 2017, and 30 April 2016 is the carrying amounts as disclosed in note. 4c.ii An analysis of Trade Receivable is as follows: Total Trade Receivable 30-Apr-17

N'000 224,674

30-Apr-16

166,104

Not past due Not Impaired N'000 224,604 168,431

Past due but not impaired 61-90days 91-180days N'000 N'000 70 728

(3,055)

Movement in impairment of trade receivables is as detailed below: 30-Apr-17 30-Apr-16 N'000 N'000 At Start of period 0 20,089 Trade receivable impairment 0 0 Recovered during the year 0 (0 Written off as uncollectible during year 0 20,089 0 0 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 26


NOTES TO THE FINANCIAL STATEMENT 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. 4d.i Maturity schedule for Financial Liabilities The following are the contractual maturities of financial liabilities: 30-Apr-2017 Financial Liabilities

Due Within One Year N'000

Trade Payables – Local

34,368

-

34,368

274,892

-

274,892

6,431

-

6,431

Due to Greif Netherlands

24,154

-

24,154

Accrued Professional Fees

4,258

-

4,258

ESB Staff Savings Scheme

5,868

-

5,868

Accrued Payroll Benefits

1,563

-

1,563

Other Accruals

5,294

-

5,294

356,826

-

356,826

Trade Payables – Greif SA Due to Greif USA

30-Apr-2016 Financial Liabilities Trade Payables – Local

Due Within One Year N'000

Due Within

Due Within

One Year

One Year

N'000

N'000

Total N'000

Total N'000

9,343

-

9,343

289,130

-

289,130

3,111

-

3,111

Due to Greif Netherlands

-

-

-

Accrued Professional Fees

5,507

-

5,507

ESB Staff Savings Scheme

1,116

-

1,116

Accrued Payroll Benefits

1,456

-

1,456

16,343

-

16,343

326,005

-

326,005

Trade Payables – Greif SA Due to Greif USA

Other Accruals

The carrying amounts of trade and other payables for period ended January 31, 2017 and 2016 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.

27


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 marke t 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 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 %+/-

30-Apr-17 '000 (900) (22) 181 (740) 305 (225,788) 320 (237,077) (11,289) 58,362 19.34%

30-Apr-16 '000 (1,453) (14) 315 94 (1,058) 198 (209,388) 208 (219,858) (10,469) 28,949 36.16%

4g Interest rate and Equity price risk The company is not exposed to interest rate risk and equity price risk at the end of period January 2017.

28


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

PROPERTY, PLANT AND EQUIPMENT

30-Apr-17 Accumulated Depreciation & Impairment

Cost

Leasehold Land & Building Plant, Machinery & Equipment Motor Vehicles

Cost

Carrying Value

N'000

N'000

N'000

N'000

N'000

N'000

50,557

16,721

33,836

50,557

15,177

35,381

243,102

152,732

90,370

231,572

137,764

93,808

14,831

11,587

3,243

14,831

10,290

4,541

0

0

0

21,404

0

21,404

308,490

181,040

127,449

318,364

163,230

155,134

Capital Work-in-progress Total

Carrying Value

30-Apr-16 Accumulated Depreciation & Impairment

Reconciliation of property, plant and equipment: 30-Apr-2017 Reconciliation of property, plant and equipment - 30-April-2017

Opening Balance

Additions

Disposal Cost

Transfers

Depreciation

N'000

N'000

N'000

N'000

N'000

Leasehold Land & Building

34,714

0

0

0

(878)

Plant, Machinery & Equipment

86,149

0

(527)

12,057

3,892

0

0

31,263

0

156,018

0

Motor Vehicles Capital Work-in-progress Total

Disposal Depreciation

Impairment Loss

Total

N'000

N'000

0

0

33,836

(7,835)

527

0

90,370

0

(649)

0

0

3,243

0

(25,535)

0

0

(5,728)

0

(527)

(13,478)

(9,362)

527

(5,728)

127,449

Depreciation

Disposal Depreciation

Impairment Loss

Reconciliation of property, plant and equipment - 30-Apr-2016 Reconciliation of property, plant and equipment - 30-April-2016

Opening Balance

Additions

Disposal Cost

Transfers

N'000

N'000

N'000

N'000

N'000

36,047

0

0

0

(666)

101,468

0

0

0

Motor Vehicles

5,189

0

0

Capital Work-in-progress

5,728

15,676

148,432

15,676

Leasehold Land & Building Plant, Machinery & Equipment

Total

Total

N'000

N'000

0

0

35,381

(7,660)

0

0

93,808

0

(649)

0

0

4,541

0

0

0

0

0

21,404

0

0

(8,975)

0

0

155,134

During the period ended 30 April 2017, the Company acquired assets with a cost, excluding capitalized borrowing costs, of Nil (30 April 2016: Nil). During the period the Company disposed of items of property, plant and equipment with a carrying cost of N0.527Million ( 30 April 2016: Nil). 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 en d. Impairment loss on items of Property, plant and equipment during the period amounted N5.728million for the year ended 30 April 2017. 29


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. 30-Apr-17 30-Apr-16 Software Software N'000 N'000 Cost at period opening 4,837 4,837 Additions 13,478 0 Disposal 0 0 Cost at Period end 18,316 4,837 Acc. Amortisation at period opening (4,837) (4,837) Amortised During Year (2,224) 0 Disposal 0 0 Acc Amorisation at period end (7,061) (4,837) Carrying Amount 11,254 0

7. INVENTORIES

30-Apr-17 N'000

Raw Materials (Note 7a) Work-in-Progress Finished Goods Goods-in-Transit

30-Apr-16 N'000

77,107 10,046 6,952 21,023 115,128

40,257 5,478 5,474 12,806 64,014

The cost of inventories recognized as expense and included in cost of sales 30-April-2017 amounted to: N533.241million (30-April-2016: N290.531million). Inventory carried at Net Realisable Value as at balance sheet date amounted was nil. (7a) Raw Materials 30-Apr-17 30-Apr-16 N'000 N'000 Raw Materials 77,107 40,257 Allowance for slow moving materials

0 0 77,107 40,257 During the period ended 30 April 2017 there was no additional allowance for slow moving materials. 8 TRADES AND OTHER RECEIVABLES

30-Apr-17 N'000

Trade Receivables - Local VAT Receivables Sundry Receivables Insurance Claims Receivable from related parties (Note 13a)

224,674 83,156 6,356 (864) 0

313,323

30

30-Apr-16 N'000 122,004 79,031 6,729 0 19,130 274,183


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. Withholding Taxes deducted at source represent tax credits in our possession available for future tax set off. All available tax credits were utilized to pay company tax during the year 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. Other classes within other receivables do not contain any impaired assets. No receivable is pledged as security for borrowings

8b. Impairment - Individually impaired As at 30 April 2017, no trade receivables were impaired. See below for the movements in the allowance for impairment of receivables: 30-Apr-17 N'000 0 0 0 0 0

At Start of period Trade receivable impairment Recovered during the year Written off as uncollectible during year

30-Apr-16 N'000 20,089 0 0 20,089 0

Age analysis of trade receivables are as follows: Total

Not past due

Trade Receivable 30-Apr-17 30-Apr-16

N'000 224,674 166,104

Not Impaired N'000 224,604 168,431

Past due but not impaired 61-90days N'000 728

91-180days N'000 70 (3,055)

10. PREPAYMENTS 30-Apr-17 N'000 56,050 4,475 16,467 76,991

Advance to suppliers Employees advances Prepaid Expenses (current)

30-Apr-16 N'000 12,053 4,768 16,084 32,904

Prepayment consists of amounts in respect of advance payment for imports on confirmed letters of credit, to local suppliers, prepaid employee payroll and other operational prepayments 31


NOTES TO THE FINANCIAL STATEMENT 10. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash balances and call deposits. The schedules below show the balances at the current period (and at the comparative period) Cash in hand Bank Balances Short Term Bank Deposit

30-Apr-17 N'000 518 111,872 10,130 122,519

30-Apr-16 N'000 455 153,666 68,573 222,694

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 position. 11. RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES

Profit /(Loss) after tax Adjustment to reconcile net income to net cash provided: Depreciation of PPE Amortisation of Intangibles Impairment of Assets Loss on disposal of assets Interest received Allowance for slow moving inventory Allowance for doubtful debts

30-Apr-17 N'000 58,362

30-Apr-16 N'000 28,949

9,362 2,224 5,728 0 (461) 0 0 75,215

8,974 0 0 0 (1,665) 0 0 36,259

11,836

48,582

(23,596)

(105,025)

26,044 (12,145) (0) (2,500) 74,854

21,611 8,241 0 0 9,667

Changes in Assets & Liabilities: Changes in Inventories Changes in Receivables & Prepayment Changes in Payables & Accruals Changes in Taxation Changes in Deferred taxation Changes in Provisions

32


NOTES TO THE FINANCIAL STATEMENT 12. SHARE CAPITAL AND RESERVES No issue of additional shares was made during the period ended 30 April 2017 (no similar issue was made during the period ended 30 April 2016). Details of equity at the reporting date are as follows: 12a. Share Capital 30-Apr-17 30-Apr-16 Authorised: N'000 N'000 60,000,000 ordinary shares of 50kobo each 30,000 30,000 Called up and fully paid: 42,640,000 ordinary shares of 50kobo each

N'000 21,320

N'000 21,320

12a.i Dividend 30-Apr-17 30-Apr-16 N'000 N'000 Proposed dividend for Period ended Nil Nil ===== ===== No Dividend is proposed on ordinary shares for the First quarter period ended 30-April-2017 12b. Reserve RETAINED EARNINGS Balance at the beginning Profit for the period Dividend Paid during the year Balance at the end

30-Apr-17 N'000 316,264 58,362 (25,584) 349,042

30-Apr-16 N'000 314,741 28,949 (25,584) 318,106

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 Compan ies 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 33


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

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

Sales to related parties

2017 2016 2017 2016 2017 2016

N'000 -

Purchases from related parties N'000 -

Amount of intercompany loans N'000 -

Amounts owed by related parties N'000 20,499 -

Amounts owed to related parties N'000 24,154 274,892 289,130 6,431 3,111

13a.i Due from Greif South Africa 30-Apr-17 30-Apr-16 N'000 N'000 Due From Greif South Africa 20,499 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)

30-Apr-17 N'000

30-Apr-16 N'000

274,892

289,130

The company has an intercompany trade payable balance of US$899,809 (2016: US$1,453,133) due to its sister company, Greif South Africa. As at reporting date, there is uncertainty as to the timing and repayment of the balance. Movement in the balance has been basically due to settlement of Knocked Down Drums (KDD) bills, payment on account, write-off and/or fluctuations in closing exchange rate.

13a.iii Due to Greif International Holding 30-Apr-17 N'000

30-Apr-16 N'000

Due To Greif International Holding B.V. the Netherlands (Note 16) 24,154 Greif International Holding B.V. the Netherlands holds appr oximately 51% shares of the Greif Nigeria Plc. The above represents unpaid net dividend in respect of 2015 & 2016 not yet transferred due to delays in approval of Fom "A" by CBN . 34


NOTES TO THE FINANCIAL STATEMENT 13a.iv Due to Greif International USA 30-Apr-17 30-Apr-16 N'000 N'000 Due To Greif International USA (Note 16) 6,431 3,111 The above represents quarterly IT-related costs billed against the Company still outstanding as at period-ended 30-April 2017. 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 30-April-2017 is reflected in other payables 13b Related Party Transactions - Key Management Personnel Compensation (13b.i) Key management compensation - Staff

30-Apr-17 N'000 Salaries and other short-term employment benefits 7,583 Management Incentive Program 932 Pension Costs - Defined Contribution Scheme 632 End Of Service Savings Scheme - Defined Contribution 673 9,820 Short term employee benefit 8,515 Post-employment benefit 1,305 9,820 (13b.ii) Key management compensation - Audit Committee shareholders representative 30-Apr-17 N'000 Sitting Allowance for the year 468

30-Apr-16 N'000 7,066 756 596 526 8,944 7,822 1,122 8,944

(13b.iii) Key management compensation - Directors DIRECTORS' EMOLUMENTS Fees - Chairman Fees - Other Directors

30-Apr-17 N'000 105 360 465 60 4,039 4,564

30-Apr-16 N'000 105 283 388 0 3,905 4,292

4,129

3,995

Emolument as non-executives Emolument as executives Total Directors Emoluments Emolument of highest paid Director

30-Apr-16 N'000 216

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 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 30 April 2017 was 20.81% as against 30 April 2016: 22.16%. 35


NOTES TO THE FINANCIAL STATEMENT INCOME TAX EXPENSES (14a) PROFIT AND LOSS: Provision for period Educational Tax provision Write-back provision no longer required Write-back provision no longer required Deferred Tax for period (Note 20) (14b) INCOME TAX PAYABLE Opening balance Current period charge Write-back provision no longer required Payment during the year Closing balance (14c) DEFERRED TAX LIABILITIES Balance at November 1, Adjustments to Deferred tax Provision for the year (Note 24) Balance at End of Period,

15. Income tax reconciliation - IAS 12P.81c

30-Apr-17 N'000

30-Apr-16 N'000

15,337 0 0 15,337 0 0 15,337

8,241 0 0 8,241 0 0 8,241

N'000 27,547 15,337 0 (27,482) 15,401

N'000 31,898 8,241 0 (0) 40,139

N'000 3,683 (0) 0 3,683

N'000 20,739 0 20,739

30-Apr-17 N'000

30-Apr-16 N'000

Profit before income tax

73,699

37,190

Tax thereon at 30% (2016: 30%) Impact of disallowable expense for tax purpose Tax Effect cap allownaces - Temp Differences Utilization of previously recognised tax credit Tertiary education tax at 2% of assessable profit Effect of over-provision in prior year

22,110 5,179 (11,952) -

11,157 3,545 (6,461) -

Total income tax expense

15,337

8,241

Effective tax rate %

20.81%

36

22.16%


NOTES TO THE FINANCIAL STATEMENT 16. TRADE AND OTHER PAYABLES

30-Apr-17

30-Apr-16

N'000 34,368 274,892 6,431 24,154 4,258 10,004 5,868 1,563 10,389 0 5,294 377,219

N'000 9,343 289,130 3,111 0 5,507 6,702 1,116 1,456 8,917 0 16,343 341,624

Trade Payables – Local Trade Payables - Greif SA Due to Greif USA Due to Greif Netherlands Accrued Professional Fees Dividend Unclaimed ESB Staff Savings Scheme Accrued Payroll Benefits Other Taxes Payable Dividend Payable Other Accruals

The company has an intercompany trade payable balance of US$899,809 (2016: US$1,453,133) due to its sister company, Greif South Africa. As at 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/or fluctuations in closing exchange rate. The carrying amounts of trade payables for period ended April 30, 2017 and 2016 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 The carrying amounts of trade and other payables for period ended October 31, 2015 and 2014 respectively approximate to their true fair values.

37


NOTES TO THE FINANCIAL STATEMENT 17

REVENUE

The analysis of Turnover which was all achieved in Nigeria by product Lines is as follows: 30-Apr-17 Product Lines N'000 Steel Drums 768,603

30-Apr-16 N'000 434,304

18 COST OF SALES, SELLING/MARKETING EXPENSES, OTHER OPERATING EXPENSES 30-Apr-17 30-Apr-16 N'000 N'000 The following items have been charged/(credited) in arriving at operating profit Operating Expenses 695,364 398,779 Included in Cost of Sales: Direct Material Cost 533,241 290,531 Direct Line Costs 45,999 23,910 Direct Labour/employee benefits 21b 14,832 13,481 Indirect Factory Labor/employee benefits 21b 6,264 5,245 Depreciation on Property, Plant & Equipment 8,060 7,771 Indirect Factory/Production Costs 28,517 17,963 Total Cost of Sales 636,913 358,902 Included in Selling & Marketing Costs: Publicity & Representation Expenses 0 16 Commercial & advertising expenses 1,225 1,995 Total Selling & Marketing Costs 1,225 2,012 Included in General and Administrative Expenses: (Gain)/Loss on Asset disposal 0 0 General Administration Employees Benefits 21b 14,643 12,641 Depreciation on Property, Plant & Equipment 1,302 1,203 Amortisation of Intangible Assets 2,224 0 Impairment of Assets 5,728 0 Auditors' Remuneration 1,313 875 Repairs & Maintenance 3,202 2,572 Personnel expenses 3,310 2,746 Travelling expenses 3,671 1,151 Director expenses 806 216 Insurance 1,116 558 Professional fees 4,850 4,011 Donation 830 33 Bank charges 377 375 Subscription 773 463 Sundry IT expenses 8,621 4,793 Office expenses 3,692 2,998 Annual general Meeting expenses 630 0 Director fees 188 388 Exchange Loss (50) 2,842 Total General and Administrative Expenses 57,226 37,865 Included in Exchange Loss/Gain: Exchange Loss (50) 2,842 This is the effect of changes in exchange rate on Dollar denominated payables, receivables and domiciliary accounts

38


NOTES TO THE FINANCIAL STATEMENT 19

COST CLASSIFICATION BY NATURE OF EXPENSES

(Gain)/Loss on Asset disposal Depreciation Direct material Employee benefits Amortization Impairment of Assets Auditors Remuneration Repairs & Maintenance Production overheads Publicity & Presents 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

30-Apr-17 N'000 0 9,362 533,241 35,739 2,224 5,728 1,313 3,202 74,516 1,225 3,310 3,671 806 1,116 4,850 830 377 773 8,621 3,692 630 188 (50) 695,364

30-Apr-16 N'000 0 8,974 290,531 31,367 0 0 875 2,572 41,873 2,012 2,746 1,151 216 558 4,011 33 375 463 4,793 2,998 0 388 2,842 398,779

20 INTEREST INCOME 30-Apr-17 30-Apr-16 N'000 N'000 Interest Income 461 1,665 This represents interest received on placement of excess funds in short term treasury deposits:

39


NOTES TO THE FINANCIAL STATEMENT 21 EMPLOYEE BENEFITS 30-Apr-17 N'000 (21a) The following items are included within employee benefits expense: Wages & Salaries 29,724 Employee & Management Incentive Programs 2,661 Pension Costs - Defined Contribution Scheme 2,128 End Of Service Savings Scheme - Defined Contribution 1,226 35,739 (21b) This is reflected in Profit and Loss accounts as follows: Direct Labour/employee benefits (Note 18) 14,832 Indirect Factory Labor/employee benefits (Note 18) 6,264 General Administration Employees Benefits (Note 18) 14,643 35,739

30-Apr-16 N'000 26,712 1,600 1,966 1,090 31,367 13,481 5,245 12,641 31,367

21c Staff Categories and Number Total full time employees at the Company as at 30-April-2017 and as compared to corresponding period in 2016 are as follows: Category 30-Apr-17 30-Apr-16 Managerial 6 6 Senior Staff 8 8 Junior Staff 14 14 Total 28 28 22

PROVISIONS

Balance at 1 November Additional Provisions during the year Payment during year Write back during the year At closing

30-Apr-17 N'000 2,000

30-Apr-16 N'000 7,000

0 (2,000) 0 0

0 0 0 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 an d Greif Nigeria Plc for the claimant's claim in the sum of Seven Million Naira only i.e. N7m (2011: N7m) being special and general damages for alleged breach of contract to remove PVC armored cables for purchase entered into between the parties, sometime i n March 2005

40


NOTES TO THE FINANCIAL STATEMENT 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 Appeal against the Company in suit No. CA/L/916/2011 In line with legal advice from the solicitors, the Company has subsequently finally reached an out of court agreement in lieu of Supreme Court appearance to settle the liability at N6.5million in installments. At period ended April 30, 2017 N6.5million had been settled while the recovery of N500,000 from earlier provision had been credited to the profit and loss account. 23. CONTINGENT LIABILITY The Company had no known contingent liabilities as at the period ended 30-Apr-2017. 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)

30-Apr-17 20,461 42,640 48 48

30-Apr-16 9,611 42,640 23 23

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 30-April-2017 or 2016; 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 30 April 2017.

41

GREIF NIGERIA PLC STATEMENT OF VALUE ADDED 30-Apr-17 N'000 768,603 (486,320) (161,719) 120,564 461 121,024

% Share 100% -63% -21% 16% 0% 16%

30-Apr-16 N'000 434,304 (179,784) (178,653) 75,867 1,665 77,532

% Share 100% -41% -41% 17% 0% 18%

To pay employees Salaries, Wages & Other Benefits

35,739

30%

31,367

40%

To government Taxation

15,337

13%

8,241

11%

0

0%

0

0%

To provide for maintenance & expansion of business Depreciation 11,586 Deferred taxation 0 Profit for the year 58,362 121,024

10% 0% 48% 100%

8,974 0 28,949 77,532

12% 0% 37% 100%

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

To providers of finance Interest Paid

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.

42

GREIF NIGERIA PLC FIVE-YEAR FINANCIAL SUMMARY AS AT:

30-Apr-17 N'000

31-Oct-16 N'000

31-Oct-15 N'000

31-Oct-14 N'000

31-Oct-13 N'000

31-Oct-12 N'000

138,704 627,962

156,018 566,472

148,432 567,282

162,480 501,293

165,865 516,550

172,062 459,505

766,665

722,490

715,714

663,772

682,415

631,567

21,320 349,042

21,320 316,264

21,320 314,742

21,320 315,702

21,320 297,843

21,320 279,383

370,362

337,584

336,062

337,022

319,163

300,703

NON-CURRENT LIABILITIES CURRENT LIABILITIES

3,683 392,620

3,683 381,223

20,739 358,913

35,536 291,215

39,042 324,210

33,913 296,951

TOTAL EQUITY & LIABILITIES

766,665

722,490

715,713

663,772

682,414

631,567

TURNOVER

768,603

999,150

805,370

787,582

795,200

748,664

Profit before tax Tax Expense Profit for the year Other Comprehensive income Total comprehensive income Per Share Information Basic earnings per share Net Assets per Share Dividend Declared

73,699 (15,337) 58,362 0 58,362

37,597 (10,491) 27,106 0 27,106

40,149 (15,525) 24,624 0 24,624

58,029 (14,586) 43,443 0 43,443

52,469 (21,843) 30,626 0 30,626

61,011 (22,064) 38,947 0 38,947

137 869 0

64 792 60

58 788 60

102 790 60

72 749 30

91 705 30

TOTAL ASSETS Non-Current Assets Current Assets TOTAL EQUITY Equity Share Capital Retained Earnings

43

kobo kobo kobo