Associated Discount House

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ASSOCIATED DISCOUNT HOUSE LIMITED

Report on the Financial Statements

We have audited the financial statements of Associated Discount House Limited as at 31 July 2007 which have been prepared on the basis of the significant accounting policies of the Company. Directors’ Responsibility for the Financial Statements. The Directors are responsible for the preparation and fair presentation of these financial statements in accordance with the Companies and Allied Matters Act CAP C20 LFN 2004, Banks and Other Financial Institutions Act CAP B3 LFN 2004. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the Group and the Company have kept proper accounting records and the financial statements are in agreement with the records in all material respects and give in the prescribed manner, information required by the Companies and Allied Matters Act CAP C20 LFN 2004 and the Banks and Other Financial Institutions Act CAP B3 LFN 2004. The financial statements give a true and fair view of the financial position of Associated Discount House Limited as at 31 July 2007, and of its financial performance and its cash flows for the year then ended in accordance with the
Statement of Accounting Standards issued by the Nigerian Accounting Standards Board and relevant International Financial Reporting Standards.

Chartered Accountants
Lagos, Nigeria
24 September, 2007

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ASSOCIATED DISCOUNT HOUSE LIMITED
BALANCE SHEET AT 31 JULY 2007
	THE GROUP		THE COMPANY
	2007 N'000	2006 N'000	2007 N'000	2006 N'000
ASSETS
Cash and bank balances	376,954	40,944	82,412	30,110
Trading securities	33,571,579	25,497,177	32,834,181	25,276,170
Assets under repurchase agreements	1,000,000	2,000,000	1,000,000	2,000,000
Investments	66	35,180	150,066	185,180
Other assets	1,165,293	1,427,647	864,321	1,380,953
Fixed assets	151,741	99,190	134,931	82,310
	36,265,633	29,100,138	35,065,911	28,954,723

LIABILITIES
Deposits	1,959,910	1,224,445	2,056,976	1,304,737
Managed Funds	685,997	97,580	-	-
Bank overdraft	147,190	-	-	-
Liabilities under repurchase agreements	1,000,000	2,000,000	1,000,000	2,000,000
Taxation	351,372	108,758	215,024	107,362
Deferred taxation	17,543	9,911	12,431	8,049
Dividend payable	-	300,000	-	300,000
Other Income	520,652	920,559	468,433	908,694
	31,387,636	25,772,944	30,301,954	25,633,339

CAPITAL AND RESERVES
Share capital	1,820,000	1,500,000	1,820,000	1,500,000
Share premium	90,281	50,278	90,281	50,278
Statutory reserve	1,081,853	874,384	1,081,853	874,384
Bonus issue reserve	364,000	300,000	364,000	300,000
General reserve	1,521,863	602,532	1,407,906	596,722
SHAREHOLDERS' FUNDS	4,877,997	3,327,194	4,763,957	3,321,384
	36,265,633	29,100,138	35,065,911	28,954,723

The financial statements were approved by the Board of Directors on 24 September 2007 and signed on its behalf by:	Erastus B.O. Akingbola		Directors

	Yetunde O.A. Ogunseye

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 JULY 2007
	2007 N'000	2006 N'000	2007 N'000	2006 N'000
Gross Earnings	10,215,435	4,761,006	9,857,428	4,612,110
Profit before taxation and after exceptional item	1,832,537	1,210,807	1,584,689	1,201,739
Taxation	(341,737)	(145,278)	(202,119)	(142,020)
Profit after taxation	1,490,800	1,065,529	1,382,570	1,059,719
Appropriations:
Transfer to statutory reserve	207,469	158,958	207,386	158,958
Transfer to bonus reserve	364,000	300,000	364,000	300,000
Proposed dividend	300,000	-	300,000	-
Retained profit transferred to general reserve	919,331	306,571	811,184	300,761
Earnings per share (In kobo)	82	71	76	71
Dividend per share (In kobo)	20	-	20	-