Suma AGM 2019 · · Codeline Clearing (CCC), E-Zwich, mobile and other electronic money transfer systems are available at the Bank for our customers. · New Direction of the Bank:

2018REPORT AND FINANCIAL STATEMENTS

John Allotey & Associates(Chartered Accounts)

P. O. Box 414, SSNIT House Complex, Sunyani.

Mob: 020 901 [email protected]

2018

Board of Directors, Officials and Registered Office

Notice of Annual General Meeting

Year at Glance

Report of the Auditor

Statement of Financial Position

CashflowStatement

Report of Directors

Chairman’sReport

Income Statement

Statement of Changes in Equity

Valued

Added Statement

Top Twenty (20)

Shareholders List

Notes

Proxy Authorisation

Form

01

08

13

15

03

02

09

14

16

18

35

36

37

17

Accounting Policies

and Notes of the Accounts

C O N T E N T S

2018

Report And Financial Statement

Major Income Statement Items

Profit before Taxation 265,495 367,876 (27.83)

Interest Expenses 829,068 539,969 53.54

Earnings Per Share 0.08 0.10 (0.20)

Total Assets 19,323,332 17,137,189 12.76

Loan Impairment Charge 50,748 48,727 4.15

Gross Earnings 4,666,523 3,948,324 18.19

Per Share Data

Shares Issued to date 1,112,971 1,079,291 0.32

Overhead Expenses 3,521,212 2,991,752 17.70

Shareholders' Funds 2,374,720 2,149,593 10.47

Borrowings 161,089 1,161,100 (86.13)

Total Assets Per Share 8.05 7.35 9.52

Profit after Taxation 203,009 244,622 (17.01)

Major Statement of Financial Position Items

Net Assets Per Share 0.96 0.92 0.04

Dividend Per Share - - -

Deposit Liabilities 16,525,299 13,074,371 26.39

Loans and Advances 6,718,066 5,224,453 28.59

THE YEAR AT A GLANCE

2018

2017GH¢

2018GH¢

%Change


AGENDA

6. To fix the remunerations of Directors.

7. To elect Directors in place of those retiring by rotation.

SGD.

4. To receive and consider the Report of the Directors and Accounts for the year ended 31 st

December, 2018 and the Auditors’ report.

(SECRETARY TO THE BOARD)

Notice is hereby given that the 33 rd ANNUAL GENERAL MEETING (AGM) of shareholders of SUMA

RURAL BANK LIMITED will be held at SUMA PRESBY CHURCH, Suma Ahenkro on Saturday, 16 th

November 2019 to transact business of Annual General Meeting at 10:00a.m. prompt.

2. To confirm the minutes of the 32 nd Annual General Meeting.

3. To receive and consider the Chairman’s report.

1. To read the Notice convening the meeting.

5. To authorize the Directors to fix Auditors remuneration.

BY ORDER OF THE BOARD

Dated: 15 th October, 2019

8. To transact any other business appropriate to be dealt with at an Annual General Meeting.

Every member is entitled to attend and vote at the meeting or appoint a Proxy to attend and vote

instead of him/her. A form of proxy has been deposited at the Bank’s registered office. Completed

Proxy Form should be lodged with the Registered Office of the Bank not less than Forty Eight (48)

hours prior to the time of the meeting.

MOSES KOFI SOGA

NOTE:

NOTICE OF ANNUAL GENERAL

MEETING

2018


01

VIVIAN MFOWAA GYAN Member

HEAD OF AUDIT: TWENE YAW FRANCIS

ACCOUNTANT: ABABIO RICHARD

SANAA NYARKO - DABIE Member

EMMANUEL KWESI BABA Member

KOFI WIREDU SASAH Vice - Chairman

GENERAL MANAGER: ADJEI-AMPONSAH MARTIN

MOSES KOFI SOGA Member

MANAGEMENT TEAM:

DIRECTORS: J. OFORI ASUBONTENG Chairman

OPERATIONS MANAGER: KUMA JOSEPH

CREDIT MANAGER: AMANKONAH DENNIS

P. O. BOX 13

[CHARTERED ACCOUNTANTS]

TEL:(03520) 23505

SUMA AHENKRO - BONO REGION

P. O. BOX 414

REGISTERED OFFICE: SUMA RURAL BANK LIMITED

SSNIT HOUSE

SUNYANI

AUDITORS: MESSRS JOHN ALLOTEY & ASSOCIATES

BOARD OF DIRECTORS, MANAGEMENT AND REGISTERED OFFICE

2018


02

· All protocol, observed.

· Macro- Economic Performances During the year

Introduction:

· General Managers and Directors from RCBs present,

· Heads of Department invited,

· Ministers of God,

We thank the Almighty God for gathering us all here once again as stakeholders of our great financial

institution to take inventory of the activities of the Bank for the year 2018.

However, these performances did not directly reflect positively on the performance of the Bank,

partly due to the current reforms that are being taken place in the financial sector of the economy. The

low yields from cocoa and cashew crops together with the unstable producer price of cashew

adversely affected our farmers who constitute the bulk of our customers did not help the situation.

· Officials from BoG/ARB/Apex Bank,

rdI wish to take this opportunity to welcome you all to the 33 Annual General Meeting (AGM). As we all

know, we the directors of the Bank are enjoined by the law to organize such a meeting annually to give

account of our stewardship to you, the shareholders of the Bank. It is against this mandate that we have

met here today.

The performance of the country's macro-economic indicators was generally favourable. During the

year, the inflation rate dropped from 11.8% at the end of the previous year to 9.84% by the close of the

year under review. Likewise, a favourable GDP growth of 6.3% was achieved during the year. Others

such as Treasury Bill Rate of 13.47% and Cedi depreciation rate of 8.8% were good performances

which, ordinarily should have impacted positively on the general economic activities of the country.

· The Member of Parliament for Jaman North Constituency,

· Colleague Directors,

· Fellow Shareholders,

· Ex Directors,

· Nananom,

· The District Chief Executive for Jaman North,

· The Media,

The Bank of Ghana (BoG) in its quest to reforming the financial sector of the country resulted in the

collapse of some commercial banks, savings and loans companies, micro-finance and investment

companies. As a result, our customers developed a “Wait and See” attitude, thinking that rural banks

would also be affected. This impression created by the customers had a ripple effect on the bank's

operations, coupled with high over heads and stiff competition that the bank faced during the year.

CHAIRMAN’S REPORT

BY MR. K. WIREDU SASAH

2018


03

2018


0304

2 Total Deposits 13,074,371 16,625,299 26 Favourable

4 Loan & Advances 5,224,453 6,718,066 29 Favourable

6 Share Capital 1,079,291 1,112,982 3 Favourable

· The Key Performance Indicators of The Bank for 2018

Dear shareholders, I present to you the Bank's performance in its key areas as seen in the table below

for your consumption:

1 Profit before Tax 367,676 265,495 28 Adverse

3 Investments 6,010,625 6,143,673 2 Favourable

5 Shareholders'

Fund 2,138,019 2,291,808 7 Favourable

7 Total Assets 17,137,189 19,323,332 13 Favourable

SHIGHLIGHT ON THE ABOVE KEY PERFORMANCE INDICATORS (KPI )

· Profit before Tax

The reason for the reduction was due to continuous high operational cost and failure on the part

of our investment partners to fulfill the business agreement we have with them by their inability

to pay the bank, returns accrued on our investment with them. However, we are not resting on our

oars, we will do everything possible to better the situation.

Fellow shareholders, the Bank's total deposits grew by 26% from GHS13,074,371 in 2017 to

GHS16,525,299 in 2018. Management have been encouraged to intensify deposit mobilization to

enhance the Bank's deposit base as this indicator is a main determinant of the bank's growth.

Dear shareholders, as the table above depicts, the Bank's profit before tax reduced by 28% as

compared to the previous year.

Management has been tasked to embark on vigorous deposit mobilization through advert, mobile

banking, good customer care, personal selling etc. to achieve the above goal.

· Total Deposits:

· Investments:

It is our humble appeal to all loan defaulters, especially cashew and cocoa loan beneficiaries to do

The Bank was able to increase its investment portfolio marginally from GH¢6,010,625 to

GHS6,143,673 during the year under review. This represents 2% change. Management has been

tasked to mobilize more funds to enable the bank do more risk-free investment.

The Bank's total loans and Advances increased by 29% during the accounting year. This represents

absolute figures of GHS5,224,453 in 2017 and GHS6,718,066 in 2018.The Bank will continue to lend

more to its cherished customers to support their economic activities.

· Loans & Advances:

NO. INDICATOR

ST AS AT 31DEC. 2017

GH¢

ST AS AT 31DEC. 2018

GH¢

%CHANGES REMARKS

2018


05

· Shareholders’ Fund (Net Worth):

Ladies and Gentlemen, I am happy to announce to you at this forum that the size of your bank grew

from GHS17,137,189 to GHS19,323,332, representing 13% growth. The Board and management

would do everything within their limit to grow the Bank into perpetuity.

· The Bank's Total Assets:

· The Financial Sector Reforms and Its Attended Challenges:

· Share Capital of the Bank:

well to repay all outstanding loans to enable the bank grant more loans going forward.

Fellow Shareholders, it is gratifying to note that your Bank met the new Bank of Ghana minimum

capital requirement of Rural and Community Banks (RCB) in November, 2017. We therefore wish to

take this opportunity to allay any fear of those who think the Bank might not meet this requirement

by BoG deadline of February, 2020.

It is worthy to note that rural banking concept is a special concept that the Government of Ghana

established in the mid 1970s and therefore, the rural banking is key to every government.

Suma Rural Bank is bent on accepting the challenge to embark on all these e-banking products to the

benefit of its numerous customers. For this to be possible, we need the corporation of all so that every

e-product that the Bank rolls out will be successful.

We should be mindful, however, that, nothing good comes easy. Electronic services are very

expensive, so we should prepare to make some sacrifices to enable the Bank render the best banking

services to you. Currently, e-banking services such as Automated Clearing House (ACH), Cheque

Members of the Bank, as you may be aware, the Bank of Ghana embarked on financial system cleanup

which saw many financial institutions going down with revocation of their licenses by the regulator.

This exercise has hampered depositors or investors' confidence in the financial institutions.

Nevertheless, we wish to encourage you to remain steadfast with your Bank because the Bank will

survive every challenge that the financial system is going through.

Ladies and Gentlemen, the Bank's net worth marginally grew from GHS2,138,019 in the previous year

to GHS2,291,808 during the year under review. We will do everything within our means to grow this

all-important indicator for you, the shareholders of the bank.

Colleague members of the Bank, we wish to make it known to you at this important meeting that the

old ways of doing banking has changed drastically to modern banking. These days, virtual, electronic

or digital banking requires the use of mobile phones, computers, Internet, Automated Teller

Machines (ATMs), electronic cards that make banking transactions faster without walking into the

banking hall to transact business.

Notwithstanding this, we wish to encourage all of you to continue to purchase more shares to beef up

the capital in readiness for any future requirement by the regulator.

· Digitalization - Contemporary Banking:

The new minimum capital requirement of RCBs is GH¢ 1,00,000.00 and the Bank had GH¢ 1,079,291 in

the previous year to meet the requirement. The figure shot up to GH¢ 1,112,983 during the year

under consideration.

In no time, the Bank is going to install ATMs at some of our agencies and issue out electronic GH-Link

cards. These cards could be used to withdraw money from any GH Link bank. We encourage you to

take advantage of these products.

· Retirement of Directors:

· Codeline Clearing (CCC), E-Zwich, mobile and other electronic money transfer systems are available at

the Bank for our customers.

· New Direction of the Bank:

· Proposed Dividend:

The directors per the powers vested in them by law proposes a dividend of 25% of profit after tax

which amounts to GH¢ 50,752.25. This amount shall be proportionally shared according to the

number of shares owned by each shareholder.

The bank has developed a new strategic plan with five-year life span. The vision of the plan is “To be

the most preferred marketing oriented rural bank in our catchment area”.

Ladies and Gentlemen, for these projections to materialize, we the shareholders should do more to

increase our shareholdings so that the bank's working capital will grow to enable management to

carry out good programmes to achieve our aims and objectives in the said strategic plan.

· Corporate Social Responsibilities (CSR):

The bank shall not rest on its oars as far as its corporate social responsibility is concerned. We will

continue to contribute towards socio-economic development of our catchment area. During the

year, our donations and contributions towards developmental activities amounted to GH¢ 22,679

which is more than double what we did in the previous year.

The Board anticipates that the Bank will grow by at least 25% by the expiration of the plan to the

benefit of shareholders and all stakeholders. What this means is that, if the strategy is able to work

fully, all the KPIs we have spoken about will grow by 25%. This includes deposit and profit, expansion

of the bank, increase in shareholder return, just to mention a few.

Notably among these contributions, were donations to five different administrative districts in Bono

and Western North Regions towards Farmers' Day Celebration, Sampa R/C Primary School,

Presbyterian Health Services- Jankufa and Zoe Health Outreach and Counselling Centre, Suma-

Ahenkro, St. Anne’s SHS - Sampa, Pentecost Preparatory and JHS - Suma Ahenkro.

Fellow members, the companies' code makes it mandatory for 1/3 of the directorship of the Board to

retire rotationally every year and such directors could at the same time seek re-election.

To fulfil this statutory requirement, the following directors have stepped down and are seeking re-

election.:

1. Mr. Saana Nyarko-Dabie

2. Mr. Baba Kwesi Emmanuel

· Conclusion and Appreciation:

I wish to conclude my address by thanking my co-directors, management and staff, you the

2018


06

shareholders of the Bank and also our cherished customers for your invaluable contribution to the

Bank.

I equally wish to express our heartfelt gratitude and appreciation to the BoG, ARB Apex Bank for the

immense roles played to bring the rural banking industry this far. To officials from the rural banking

fraternity and other departments, the ministers of God, the media, all and sundry, we are very happy

that you came to grace the occasion.

May God bless you all.

Long Live Suma Rural Bank, Long Live Ghana.

2018


0307

The Auditors, John Allotey & Associates, will continue in office in accordance with

Section 134 (5) of the Companies Code, 1963 (Act 179).

c. Auditors

The principal activities carried out by the Bank during the year under review are within the

limits permitted by its Regulations and also consistent with its strategic focus. There were no

changes in the principal activities of the Bank during the year.

b. Results and Dividend

The results of operations for the year ended 31st December, 2018 are set out in the Income

Statement, Statement of Financial Position, Statement of Cash Flows, Statement of Changes in

Equity and the Notes to the Financial Statements from pages 13 to 34.

Profit after tax 203,009 244,622

Total Comprehensive Income 203,009 244,622

The Directors have pleasure in submitting their annual report together with the audited Financial

statements of the Bank for the year ended 31st December, 2018 to the members as follows:

a. Principal Activities

A summary of the results is as follows:

2018 2017

GH¢ GH¢

TOTAL ASSETS 19,323,332 17,137,189

BY ORDER OF THE BOARD

___________________________ _________________________

D I R E C T O R: D I R E C T O R:

REPORT OF THE DIRECTORS

2018


08

Report on the financial Statements

We have audited the financial statements of Suma Rural Bank Limited which comprise the statements st

of financial position at 31 December, 2018 and the statements of comprehensive income, changes in

equity and cash flow for the year ended and notes to the financial statements which include a

summary of significant accounting policies and other explanatory information, as set out on pages 13

to 26.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our

responsibilities under those standards are further described in the Auditor's Responsibilities for the

Audit of the Financial Statements section of our report.

We are independent of the bank in accordance with the International Ethics Standards Board for

Accountants' Code of Ethics for Professional Accountants (IESBA Code), together with the ethical

requirements that are relevant to our audit of the financial statements in Ghana and we have fulfilled

our other ethical responsibilities in accordance with these requirements and the IESBA Code. We

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

Opinion

In our opinion, the financial statements gives a true and fair view of the financial Position of Suma stRural Bank Limited as 31 December, 2018, and of its financial performance, changes in equity and its

cash flow for the year then ended in accordance with International Financial Reporting Standards

(IFRSs) and in the manner required by the Companies Act, 1963 (Act 179), and the Banks and

Specialised Deposit-Taking Institutions Act, 2016 (Act 930)

Basis of Opinion

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in

our audit of the financial statements of the current period. These matters were addressed in the

context of our audit of the financial statements as a whole, and in forming our opinion thereon, and

we do not provide a separate opinion on these matters.

Impairment of loans advances to customers (GH¢ 50,748.00) Refer to Note 11c to the financial

statements

Impairment of loans and advances to customers is a key audit matter due to the significance of the

balances and the complexity and subjectivity in estimating the timing and the amount of impairment.

Loans for which there is objective evidence that an impairment event has occurred are assessed

INDEPENDENT AUDITOR’S TO THE MEMBERS OF SUMA RURAL BANK

LIMITED

2018


0309

individually for impairment. If there is deemed to be no evidence that impairment exists on an

individual basis, loans are assessed collectively for impairment.

How the matter was addressed in our audit:

· We reviewed the process for aging and categorization of the various loan buckets and the

application of related regulatory impairment rates.

The estimation of the impairment loss allowance on an individual basis requires management to

make judgments to determine whether there is objective evidence of impairment and to make

assumptions about the financial conditions of the borrower and expected future cash flows. The key

judgment for individual provision on these portfolios is the recoverable value of any underlying

collateral. The collective impairment loss allowance relates to losses incurred but not yet identified on

other loans and advances. The two key judgments in the collective provisioning assessment are the

likelihood of default and the emergence period and it is the latter which is the single most critical

judgment as there is limited historic data on which to accurately assess it and the most sensitive to

adjustment.

· We assessed the systems and related controls instituted by management to ensure the

accurate determination of these impairments.

· We tested a sample of these impairments based on our overall risk assessment of this account.

· We considered the adequacy of the bank's disclosures in relation to impairment about

changes in estimates occurring during the period and its sensitivity to the assumptions.

Other Information

· We critically assessed and analyzed the assumptions and data used by the bank in

determining the likelihood of default and impairment assessment;

The directors are responsible for the Other Information. The other information comprise notice and

agenda for the Annual General Meeting, Corporate information, chairman's report.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit, or otherwise appears to be

materially misstated.

The Directors are responsible for the preparation of the financial statements that give a true and fair

Our opinion on the financial statements does not cover the other information and we do not express

any form of assurance conclusion thereon.

Responsibilities of the Directors for the Financial Statements

If, based on the work we have performed, we conclude that there us a material misstatement of this

other information; we are required to report that fact. We have nothing to report in this regard.

2018


10

In preparing the financial statements, the Directors are responsible for assessing the bank's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting unless the Directors either intended to liquidate the Bank or to

cease operations, or have no realistic alternative but to do so. The Directors are responsible for

overseeing the Bank's financial reporting process.

view in accordance with International Financial Reporting Standards and in the manner required by

the Companies Act, 1963 (Act 179) and the Banks and Specialized Deposit-Taking Institutions Act,

2016 (Act 930), and for such internal control as the Directors determine is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or

error.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also;

· Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

· Conclude on the appropriateness of the Directors' use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast significant doubt on the Bank's ability to

continue as a going concern. If we conclude that a material uncertainty exists, we are required

to draw attention in our auditor's report to the related disclosures in the consolidated and

separate financial statements of, if such disclosures are inadequate, to modify our opinion. Our

conclusions are based on the audit evidence obtained up to the date of our auditor's report.

However, future events or conditions may cause the Bank to cease to continue as a going

· Identify and assess the risk of material misstatement of the financial statements, whether due

to fraud or error, design and perform audit procedures responsive to those risk, and obtain

audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of

not detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collision, forgery, intentional omissions, misrepresentations, or

the override of internal control.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor's report

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAa will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these consolidated financial statements.

Auditor's Responsibilities for the Audit of the Financial Statements.

· Obtain an understanding of internal control relevant to the audit on 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 Bank's internal control.

2018


0311

concern.

· Evaluate the overall presentation, structure and content of the consolidated and separate

financial statements, including the disclosures, and whether the consolidated and separate

financial statements represent the underlying transactions and events in a manner that

achieves fair presentation.

We communicate with the Directors regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in

internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In our opinion, proper books of account have been kept, and the statements of financial position and

comprehensive income are in agreement are in agreement with the books of account.

The Bank has generally complied with the provisions of the Anti-Money Laundering Act, 2008 (Act

762), as amended by Anti-Money Laundering Amendments Act, 2014 (Act 874), the Anti-Terrorism Act,

2008 (Act 762) and the Regulations made under these enactments.

We have obtained all the information and explanations which, to the best of our knowledge and belief

were necessary for the purpose of our audit.

The engagement partner on the audit resulting in this independent auditor's report is: Nana Forkuoh

– Ababioh Yentumi

Compliance with the requirements of Section 133 of the Companies Act, 1963 (Act 179) and Section

85 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).

The Bank's transaction were within its powers and the Bank generally complied with the relevant

provisions of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).

(ICAG/F/2019/161)

For and on behalf of John Allotey & Associates

Chartered Accountants

Sunyani B/A, Ghana

SSNIT House

thDate: 6 May, 2019

2018


12

Interest Income 4 3,813,348 3,218,615

Interest Expense 5 (829,068) (539,969)

Net Interest Income 2,984,280 2,678,646

Commission and Fees 6 853,175 722,206

Net Interest Income and Fees 3,837,455 3,400,852

Other Income - 7,503

Total Income 3,837,455 3,408,355

Operating Expenses 7 (3,521,212) (2,991,752)

Impairment Loss Charge 11c (50,748) (48,727)

Profit Before Tax 265,495 367,876

Income Tax Expense (62,486) (123,254)

Total Comprehensive Income for the year 203,009 244,622

The accounting policies and notes on pages 13 to 26 form an integral part of these financial statements

COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER, 2018

STATEMENT OF PROFIT AND LOSS AND OTHER

NOTES2018GH¢

2017GH¢

2018


0313

Non-Pledged Trading Assets 9 6,020,000 5,886,952

Investments (Other than securities) 10 123,673 123,673

Other Assets 14 2,385,219 2,393,700

Property, Plant and Equipment 15 1,700,005 998,670

Total Assets 19,323,332 17,137,189

Liabilities

Cash and Cash Equivalents 8 2,330,638 2,494,652

Assets

Loans & Advances 11 6,718,066 5,224,453

Current Tax Assets 12 44,367 14,215

Deferred Tax - Asset 13 1,364 874

Deposits from customers 16 16,525,299 13,074,371

Borrowings 17 161,089 1,161,100

Total liabilities and shareholders' fund 19,323,332 17,137,189

Equity

Income Surplus 20 615,722 544,677

Revaluation Surplus 21 - -

Stated Capital 19 1,112,983 1,079,291


Other Liabilities 18 345,136 763,699

Total Liabilities 17,031,524 14,999,170

D I R E C T O R:_____________________________________

Approved by the Board of Directors on 18th May, 2019 and signed

Community Development Fund 23 5,869 7,569

on its behalf by:

D I R E C T O R: ____________________________________

Statutory Reserve 22 557,234 506,482

Total Shareholders Funds 2,291,808 2,138,019

STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2018

NOTES2018GH¢

2017GH¢

2018


040314

Account 39,404 (39,404) - - - -

Capitalization Issue 100,000 - (100,000) - - -

Transfer to Statutory Reserve - - (61,156) 61,156 - -

At 31 December, 2017 1,079,278 - 544,677 506,482 7,569 2,138,006


Written Off - (71,939) - - (71,939)

Profit for the year - 203,009 - - 203,009

Dividend Paid - - - - -

Issue of additional shares for cash 33,693 - - - 33,693

Development Fund Applied - - - (1,700) (1,700)

Transfer to Statutory Reserve - (50,752) 50,752 - -

At 31 December, 2018 1,112,971 615,722 557,234 5,869 2,291,796

At 1 January, 2018 1,079,278 544,677 506,482 7,569 2,138,006

Prior Year Adjustment - (9,273) - - (9,273)

Adjustment -Suspense Account

At 1 January, 2017 817,621 39,404 529,620 445,326 7,569 1,839,540

Prior Year Adjustment - - (11,574) - (11,574)

Profit for the year - - 244,622 - 244,622

Dividend Paid - - - - - -

Issue of additional shares for cash 64,918 - - - - 64,918

Transfer from Office Account 500 - - - - 500

Dividend Declared Capitalized 56,835 - (56,835) - - -

Transfer from Capital Surplus

STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 31ST DECEMBER, 2018

STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 31ST DECEMBER, 2017

STATEDCAPITAL

GH¢

STATEDCAPITAL

GH¢

INCOMESURPLUS

GH¢

INCOMESURPLUS

GH¢

REVALUATIONSURPLUS

GH¢

STATUTORYRESERVE FUND

GH¢

STATUTORYRESERVE FUND

GH¢

COMM. DEV’PT.FUND

GH¢

COMM. DEV’PT.FUND

GH¢

TOTALGH¢

TOTALGH¢

2018


0315

Cash Flows from Operating Activities

Profit before Tax 265,495 367,876

Depreciation & Amortization 162,476 83,553

Income Tax Paid (92,638) (147,431)

Development Fund Applied (1,700) -

Prior Year Adjustment (9,273) (85,218)

Other Adjustment (72,431) -

Cash Flows from Operating activities before

changes in operating Assets & Liabilities 251,929 218,780

Changes in Operating Assets & Liabilities

Change in Advances to Customers (1,493,613) (932,549)

Net Cash generated from Operating Activities 1,799,162 879,753

Cash and Cash Equivalent at beginning of period 2,494,652 2,355,438

Change in Other Assets 8,481 (763,532)


Cash Flows from Investing Activities

Purchase of Property and Equipment (863,810) (184,550)

Change in Customers' Deposits 3,450,928 2,424,694

Change in Other Liabilities (418,563) (67,640)

Additional Shares Issued 33,693 165,418

Cash and Cash Equivalent at end of the year 2,330,638 2,494,652

Redemption of Treasury Bills and Other Eligible Bills (133,048) (1,326,952)

Net Cash used in Investing Activities (996,858) (1,511,502)

Cash Flows from Financing Activities

Dividend Paid - -

Change in Borrowed Funds (1,000,011) 605,545

Net Cash used in Financing Activities (966,318) 770,963

Net (decrease)/Increase in Cash and Cash Equivalent -164,014 139,214

STATEMENT OF CASH FLOW YEAR ENDED DECEMBER, 2018

2018GH¢

2017GH¢

2018


040316

Interest earned and other operating income 4,666,523 3,940,821

Value added by banking services 1,913,212 1,919,223

Non-banking income - 7,503

Impairments (50,748) (48,727)

Direct cost of services and other costs (2,753,311) 2,021,598)

Value added 1,862,464 1,877,999

Distributed as follows:

To employees

Directors (68,248) (65,524)

Other Employees (1,366,248) (1,361,046)

(1,434,496) (1,426,570)

To Government

Income Tax (62,486) (123,254)

To providers of capital

Dividends to shareholders - -

To expansion and growth

Depreciation and amortisation (162,473) (83,553)

Retained Earnings 203,009 244,622

VALUED ADDED STATEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2018

2018GH¢

2017GH¢

2018


0317

Interest income and expense are recognized in the income statement for all interest bearing

financial instruments including loans and advances as interest accrues using the effective

interest rate method. The effective interest rate method is a method of calculating the

amortized cost of a

Suma Rural Bank Limited is a private Company incorporated and domiciled in Ghana. The

Registered office is located at Suma, Bono Region. The Bank primarily is involved in rural banking.

3.1 Revenue Recognition

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognized 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.

1.0 REPORTING ENTITY

The financial statements have been prepared in accordance with International Financial

Reporting Standards (IFRS) and its interpretations adopted by the International Accounting

Standards Board (IASB).

The financial statements have been prepared on a historical cost basis, except for land and

buildings and available-for-sale financial assets that have been measured at fair value. The

financial statements are presented in Ghana Cedis (GH¢) which is the company's functional

currency.

The significant accounting policies adopted by the Bank and which have been applied in

preparing these financial statements are stated below:

2.0 Basis of preparation

2.1 Statement of Compliance

The preparation of financial statements in conformity with IFRS required management to make

judgment, estimates and assumptions that affect the application of policies and reported

amounts of assets, liabilities, income and expenses. The 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 judgment about

carrying values of assets and liabilities that are not readily apparent from other sources. Actual

results may differ from these estimates.

2.2 Use of estimates and judgment

3.0 SIGNIFICANT ACCOUNTING POLICIES

Revenue is recognized to the extent that it is probable that the economic benefits will flow to

the Bank and the revenue can be reliably measured. The following specific recognition criteria

apply in revenue recognition.

3.2 Interest Income and Expense

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER, 2018

2018


040318

financial asset or liability and of allocating the interest income or interest expense. The effective

interest rate is the rate that exactly discounts the estimated future cash payments or receipts

over the expected life of the instrument to the net carrying amount of the financial asset or

liability.

3.2.1 Categorization

Purchases and Sale of Financial Assets are recognized on the Transaction date.

The Bank earns commission and fees from a wide range of services provided to its customers.

Fee income is accounted for as follows:

Income arising from service fees (such as special statement request, commission on turnover,

safe custody etc.) are recognized as the services are provided. Loan origination fees and similar

fees form an integral part of the effective interest rate of a Financial instrument and are not

shown as part of non-interest income.

Income earned on performance of discrete services (such as funds transfer, special clearing,

transaction negotiation with third parties etc.) is recognized as revenue upon completion of the

act or service.

3.1.3 Income Tax

Income tax in the profit and loss account comprises the current tax and deferred tax. The current

tax is the expected tax payable on the taxable income for the year, using tax rates enacted or

substantively enacted at the balance sheet date and any adjustment to tax payable in respect of

previous years.

Deferred tax is provided on all temporary differences at the balance sheet date between the tax

bases of assets and liabilities and their carrying amounts. Deferred tax liability is generally

recognized for all taxable temporary differences while deferred tax assets are recognized to the

extent that probable future taxable profit will be available against which deductible temporary

differences can be utilized. Deferred tax assets are reviewed at each reporting date and are

reduced to the extent that it is no longer probable that the related tax benefit will be realized.

3.1.4 Commission and Fees

Fees and commission income and expenses that are an integral part to the effective interest rate

on financial instruments are included in the measurement of the effective interest rate. Fees and

commission relating to specific services are recognized as revenue when the related services are

performed.

3.1.2 Non-Interest Income

3.2 Financial Instruments Categorization, Initial Recognition and Subsequent

Measurement

The bank classifies its Financial assets into those measured at Fair Value through Profit or loss

and those measured at Amortized Cost; and Financial Assets measured at Fair Value through

other comprehensive Income.

3.2.2 Date of Recognition

Financial instruments are initially recognized at their fair value plus, in the case of Financial

3.2.3 Initial Recognition of Financial Instruments

2018


0319

b. Financial Assets Measured at Amortized Cost

Term Loans to customers come under this category. They are initially recognized when cash

is advanced to the borrowers at fair value, inclusive of transaction costs. Subsequent to initial

recognition, Term Loans are measured at amortized cost less impairment losses.

Financial Assets measured at fair value through Other Comprehensive Income are measured

at Fair Value with gains and losses arising from changes in Fair Value recognized directly in

Other Comprehensive income until the Financial Asset is either sold, becomes impaired, at

which time the cumulative gain or loss previously recognized in equity is recognized in Profit

or Loss.

The asset is held within a business model whose objective is to hold assets in order to collect

contractual cash flows.

A Financial Asset is measured at amortized cost if both the following conditions are met:

Securities including investments in money market and equity shares, other than those

classified as trading securities, or at fair value through Profit or Loss, are classified and

recognized in the Statement of Financial Position at their fair value. Other Financial Assets

that are neither cash nor categorized under any other category also come under this

classification.

Designated at Fair Value through Profit or Loss

Upon initial recognition as Financial Asset, it is designated at fair value through Profit or Loss.

Financial Assets at fair value through Profit or Loss are measured at fair value subsequent to

initial recognition. Gains or losses upon subsequent measurement are treated in Profit or

Loss. All equity instruments are measured at fair value.

The contractual terms of the Financial Asset give rise on specified dates to cash flows that are

solely payments of principal and interest on the principal amount outstanding.

Held for Trading

A Financial Asset is classified as Held for trading if it is acquired principally for the purpose of

selling in the near future, or is part of a portfolio of identified financial instruments that are

managed together and for which there is evidence of a recent actual pattern of short - term

profit-taking.

c. Financial Assets Measured at Fair Value Through Other Comprehensive Income

Interest calculated using the effective interest method is recognized in the Statement of

Comprehensive Income. Dividends on equity instruments are recognized in the Income

Statement when the Bank's right to receive payment is established.

Assets or Financial Liabilities not at Fair Value through Profit and Loss, transaction costs that are

directly attributable to the acquisition or issue of the Financial Asset or Financial Liability.

3.2.4 Subsequent Measurement of Financial Instruments

a. Financial Assets at Fair Value Through Profit or Loss

A Financial Asset at fair value through Profit or Loss is that which meets either of the

following conditions.

2018


040320

d. Financial Liabilities

A Financial liability is derecognized when the obligation is discharged, cancelled or has

expired.

a. Basis for measuring impairment of Financial Assets

ii ) Non-Availability of Active Market

Financial Liabilities are classified as non-trading ,held for trading or designated as fair value

through Profit and Loss. Non-trading liabilities are measured subsequent to initial

recognition at Amortized cost applying the effective interest method. Held for trading

liabilities or liabilities designated as at fair value through Profit or Loss, are measured at fair

value. All Financial liabilities shown in the Statement of Financial Position are non-trading

liabilities.

At each reporting date the bank assesses whether, as a result of one or more events

occurring after initial recognition, there is objective evidence that a financial Asset or group

of Financial Assets have become impaired.

i) Availability of Active Market

The fair value of a financial instrument traded in an active markets such as the Ghana

Stock Exchange (GSE) at the reporting date is based on its quoted market price

without any deduction of transaction costs.

e. Determination of Fair Value of Financial Instruments

Equity investments that do not have a quoted market price in an active market and

whose fair value cannot be reliably measured at cost. However, Fair value for such

equity investments, are determined from the declaration of capital appreciations by

the investee organization of amounts so declared in the form of additional shares in

the equity holdings. Investments whose fair value can be reliably measured

professionally through the use of valuation techniques.

The fair value of short term receivables approximation book value and are measured as

such.

Financial Assets and Financial liabilities are se-off when there is allegedly enforceable

right to do so with the net amount stated in the statement of Financial Position. This

happens when there is the intention to settle on net basis or realize the Financial

Assets and redeem the Financial Liability.

iii ) Short-Term Receivables

iv ) Offsetting of Financial Instruments

v ) De-recognition of Financial Assets and Liabilities

A Financial Asset or a portion thereof, is derecognized when the Bank's rights to cash

flows has expired or when the bank has transferred its rights to cash flows relating to

the Financial Assets, including the transfer of substantially all the risks and rewards

associated with the Financial Assets or when control over the Financial Assets has

passed.

3.3 IMPAIRMENT OF FINANCIAL ASSETS

2018


0321

b. Loans and Advances and amounts due from bank

Evidence of impairment may include indication that the borrower or a group of borrowers

are experiencing significant financial difficulty, default or delinquency in interest or principal

payments, or the fact that the debt is being restructured to reduce the burden of the

borrower.

In the case of equity investments, objective evidence would include significant or prolonged

decline in the fair value of the investment below its cost.

For Loans and advances to customers and amounts due from banks and other financial

institutions are carried at amortized cost, the Bank first assesses individually whether

objective evidence of impairment exists individually for Financial Assets that are individually

significant, or collectively for Financial Assets that are not individually significant. If the bank

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 impairment. Assets

that are individually assessed for impairment and for which an impairment loss is, or

continues to be recognized, are not included in a collective assessment of impairment.

If there is objective evidence that an impairment loss has been incurred, the amount of the

loss is measured as the difference between the asset's carrying amount and the present

value of the estimated future cash flows (excluding future expected credit losses that have

not yet been incurred). The carrying amount of the asset is reduced through the use of an

Allowance Account and the amount of the loss is recognized in the Profit and Loss.

If, in a subsequent year, the amount of the estimate impairment loss increases or decreases

because of an event occurring after the impairment was recognized, the previously

recognized impairment loss is increased or reduced by adjusting the Allowance Account. If a

write-off is later recovered, the recovery is credited to the Profit or Loss and charged to the

Allowance Account (Credit Loss Expense)

For the purposes of collective evaluation of impairment, Financial Assets are grouped on the

basis of the Bank's internal credit grading system that considers credit risk characteristics,

such as asset type, industry, geographical location, collateral type, past-due status and other

relevant factors.

c. Other Financial Assets

The present value of the estimated future cash is determined using the Financial Asset's

original effective interest rate. If a loan has a variable interest rate, the discount rate for

measuring any impairment loss is the current effective interest rate.

Loans together with the associated allowances are written off when there is no realistic

prospect of future recovery and all collaterals have been utilized or have been transferred to

the bank and all the necessary procedures have been completed.

The Bank assesses at each reporting date whether there is objective evidence that an

investment or group of investments are impaired.

2018


040322

In the case of other debt instruments, impairment is assessed based on the same criteria as

Financial Assets carried at amortized cost. If, in a subsequent year, the fair value of a debt

instrument increases and the increase can be objectively related to an event occurring after

the impairment loss was recognized in the Income Statement, the impairment loss is

reversed through the Income Statement.

d. De-recognition of Financial Assets and Liabilities

A Financial Asset or a portion thereof, is derecognized when the Bank's rights to cash flows

has expired or when the Bank has transferred its rights to cash flows relating to the Financial

Assets including the transfer of substantially all the risks and rewards associated with the

Financial Assets or when control over the Financial Assets has passed. A Financial Liability is

derecognized when the obligation is discharged, cancelled or has expired.

3.4 Property, Plant & Equipment

The bank recognizes an item of property, plant and equipment as an asset when it is probable

that future economic benefits will flow to it and the amount meets the materially threshold set

by the bank.

Property, Plant and Equipment are stated at cost less accumulated depreciation and any

improvement in value. Depreciation is provided on the depreciable amount of each component

on a straight-line basis over the anticipated useful life of the assets. The depreciable amount

related to each asset is determined as the difference between the cost and the residual value of

the asset. The residual value is the estimated amount, net of disposable assets, that the bank

would currently obtain from the disposal of an asset in similar age and condition at the end of

the useful life of the asset.

Motor Vehicle 20%

Furniture and Fittings 20%

3.6 Employee Benefits

3.5 Dividend

Office Machinery & Equipment 20%

Bicycle 20%

The Directors recommend the payment of a dividend of GH¢ _______________per share

amounting to GH¢ ________________for the year ended 31 December, 2018.

Dividend on ordinary shares is recognized on equity in the period in which they are approved by

the company’s shareholders. Dividend proposed for approval at AGM is not recognized as a

liability as at 31 December, 2018.

Short-term employee benefit obligations are measured on an undiscounted basis and are

expensed as the related service is provided. A provision is recognized for the amount

expected to be paid under short term cash bonus or profit sharing plans if the Bank has a

present legal or constructive obligation to pay this amount as s result of past service

provided by the employee and the obligation can be estimated reliably.

The current annual depreciation rates for each class of property, plant and equipment are as

follows:

Building 2%

a. Short Term Benefits

2018


0323

Held for sale: Classification

Non-current assets are classified as held-for-sale when their carrying amounts will be recovered

principally through sale.

The Bank has a Provident Fund Scheme for all employees who have completed probation

with the Bank. Employees contribute 5% of their basic salary to the Fund whilst the Bank

contributes 7.5%. The obligation under the plan is limited to the relevant contribution and

these are settled on due dates to the fund manager.

b. Post Employment Benefits

Defined Contribution Plans

Social Security and National Insurance Trust (SSNIT)

Under a National Deferred Benefit Pension Scheme, the bank contributes 13% of employees'

basic salary to the SSNIT for employee pensions. The bank's obligation is limited to the

relevant contributions which were settled on due dates. The pension liabilities and

obligations, however, rest with SSNIT.

For the purpose of cash flow statement, cash and cash equivalent include cash, non-restricted

balances with Bank of Ghana, amounts due from banks and financial institutions and short

term government securities maturing in three months or less from the date of acquisition.

Held for sale: Measurement and presentation

Assets classified as held-for-sale are not amortized or depreciated. Non-current assets held for

sale are generally measured at the lower of their carrying amount and fair value less costs to sell,

and are presented separately on the face of the statement of financial statement . The

comparative statement of financial position is not re-presented when a non-current asset is

classified as held-for-sale.

Provident Fund

3.9 Post statement of financial position events

Events subsequent to the statement of financial position date are reflected in the financial

statements only to the extent that they relate to the year under consideration and the effect is

material.

3.7 Cash and cash equivalents

3.8 Non-current assets held for sale

2018


040324

Specie Movement 19,717 23,443

Board Meeting 7,868 5,368

Deposits 690,043 419,270

Office Expenses 45,714 45,437

Advertising & Publicity 25,871 19,757

5 INTEREST EXPENSE

3,813,348 3,218,615

Borrowings 139,025 120,699

829,068 539,969

Commission Received 162,181 166,150

853,175 722,206

7 OPERATING EXPENSES

Light and Water 77,837 111,478

Remittances Transfer 10,610 11,007

Cheque Clearing Fees 33 100

6 COMMISSION AND FEES

Commitment Fees 395,027 289,593

4 INTEREST INCOME

Staff Salaries and Wages 1,268,711 1,005,233

Directors' Emoluments 60,380 60,156

Staff Training 47,378 64,169

Audit Fees 12,980 7,887

Printing and Stationery 44,126 38,796

Repairs and Maintenance 172,235 194,537

Rent, Rates and Taxes 15,212 33,948

Postages, Telephone and Telegram 26,716 24,679

Bank Charges 15,179 8,537

Loans and Overdrafts 2,412,782 1,884,385

Investments 1,389,956 1,323,223

Other Income 295,935 266,363

Insurance Premium 47,873 68,072

Staff End of Year Party 107,248 44,723

Other Staff Costs 199,578 238,158

Police Guard 105,733 100,001

Entertainment 43,866 52,214

Newspapers and Periodicals 38,966 42,681

Annual General Meeting 63,877 43,234

Cleaning & Sanitation 14,182 12,312

2018GH¢

2017GH¢

2018


0325

Mobilization & Recovery Exps. 18,141 24,251

Computerization 205,774 44,553

Shortages in Till 1,211 2,157

Fuel & Lubricants 135,639 134,494

Staff Housing Expenses 2,243 2,665

Micro Finance Exps 14,697 -

Susu Exps. 157,974 117,656

General Expenses 9,489 10,453

Depreciation 162,473 83,553

� Donation & Charitable Contributions 22,679 10,970

Staff Medical 13,965 11,300

Travelling and Transport 307,510 297,355

3,521,212 2,991,752

8 CASH AND CASH EQUIVALENTS

Cash in Hand 1,344,615 1,283,968

ARB APEX Bank Clearing A/c 179,513 439,480

Legal Fees 8,170 7,525

Short - term:

2,330,638 2,494,652

G.O.G Treasury Bills Held By:

ARB APEX 5% Deposit 798,758 513,637

� � � � �

Uni Securities Limited 1,400,000 -

� TOTAL 6,020,000 5,886,952

Other Banks - Eco bank 7,752 7,567

Placement on Call Accounts:

2,000,000 430,000

Gold Coast Securities Limited 2,420,000 4,056,952

National Trust Holding Company Limited 200,000 1,400,000

� � � � �

ACOD 7 - 250,000

ARB APEX Bank Limited 2,000,000 430,000

� � �

4,020,000 5,456,952

9 NON-PLEDGED TRADING ASSETS

2018


040326

Net Loans 6,718,065 5,224,453

11 LOANS AND ADVANCES

ARB APEX Bank Limited (Unlisted Equity) 23,673 123,673

This represents investment in the ordinary shares of ARB APEX Bank Limited. Currently, the

10 INVESTMENT (Other than Security)

(a) Analysis By Type of Customer

Overdraft 461,370 341,891

Gross Loans 7,075,204 5,568,124

123,673 123,673

Bank has no intention of disposing off the assets.

Term Loans 6,613,834 5,226,233

Less:

Credit Impairment Loss (357,139) (343,671)

(b) Analysis By Type of Business Segment

Less: Credit Impairment Loss (357,139) (343,671)

© Credit Impairment Loss - Loans & Advances

Charge for the year 50,748 48,727

Others 3,470,564 3,046,533

Provision released (37,280) (7,503)

Balance at 31 December 357,139 343,671

12 (a) INCOME TAX EXPENSE

Transport 289,911 178,613

Trading 1,662,625 1,152,844

Current Income Tax 62,976 128,152

Cottage 4,962 7,926

Agriculture 1,647,143 1,182,208

Balance at 1 January 343,671 302,447

7,075,205 5,568,124

Net Loans 6,718,066 5,224,453

Deferred Income Tax (490) (4,898)

62,486 123,254

Deferred Tax Income relates to the origination and reversals of temporary differences.

2018


0327

Profit before tax 265,495

Income Tax using the Domestic Tax Rate 66,374

Non-Deductible Expenses 53,305

Tax Impact of Capital Allowances (57,193)

Recognition of previously Unrecognized Tax Credit -

Deferred Tax -

Current Tax Charges 62,486

Effective Tax Rate (%) 23.54%

13 (a) DEFERRED TAXATION

Charge / (Credit) to Comprehensive Income Statement

Historical Cost - NCA 85,044 2,877 87,921

Loan Impairment Charge (85,918) (3,367) (89,285)

Deferred Tax Asset - Loan Impairment Charge (357,139) 25% (89,285)

Deferred Tax Liability - NCA 351,685 25% 87,921

Net Deferred Tax (Assets) / Liabilities (5,454) (1,364)

(b) CURRENT TAXATION

(874) (490) (1,364)

(b) RECOGNIZED DEFERRED TAX ASSETS AND LIABILITIES

Deferred Tax Assets and Liabilities are attributed to the following:

2015 (17,255) - - - (17,255)

2016 - (28,800) 22,319 - (6,481)

2017 - (118,631) 84,521 43,631 9,521

2018 - (92,638) 62,486 - (30,152)

(17,255) (240,069) 169,326 43,631 (44,367)

All Tax Liabilities calculated are subject to the agreement with the Ghana Revenue Authority.

(c) RECONCILIATION OF EFFECTIVE TAX RATE

Balance at1/1/2018

Balance at31/12/2018

Payment duringThe Year

1/1/2018

TemporaryDifference

GH¢

Charge to IncomeStatement

Movements

TaxRateGH¢

Over/(Under)Provision

31/12/2018

DeferredTax

GH¢

2018


040328

14 OTHER ASSETS

Stationery Stock 71,271 53,390

Rent Prepaid 66,129 42,102

Office Account 1,500,104 1,577,923

Interest in Arrears 116,769 77,158

Insurance Prepaid 38,282 25,770

Managed Loaned Funds 17,233 17,233

Japekrom Project - (Transferred to Building

Office Equipment 621,755 3,850 625,605

Motor Bikes 25,973 3,200 29,173

Furniture & Fittings 130,788 19,005 149,793

DEPRECIATION

Furniture & Fittings 29,922 42,685 72,607

2,385,219 2,393,700

15 PROPERTY & EQUIPMENT

COST

Motor Vehicle 133,025 - 133,025

Capital Work-In-Progress 1,300 - 1,300

Inter-Agencies' Account 47,622 -

Office Computers 107,710 15,770 123,480

Land and Building 403,182 821,985 1,225,167

Motor Bikes 12,701 2,679 15,380

Ezwich 117,659

Land and Building 66,503 20,472 86,975

Office Equipment 202,373 11,842 214,215

Office Computers 40,466 67,813 108,279

Motor Vehicle 73,100 16,982 90,082

Account) - 545,279

425,065 162,473 587,538

CARRYING VALUE

AT 31 DECEMBER, 2018 1,700,005

AT 31 DECEMBER, 2017 998,670

Uncleared Effects 410,150 54,845

1,423,733 863,810 2,287,543

TemporaryDifference

GH¢

AT1/1/2018

GH¢

AT1/1/2018

GH¢

TaxRateGH¢

ADDITIONSGH¢

ADDITIONSGH¢

DeferredTax

GH¢

AT31/12/2018

GH¢

AT31/12/2018

GH¢

2018


0329

GN Bank Limited - 800,000

Current Accounts 2,145,617 1,811,424

Short - term:

Time Deposit 1,782,344 954,269

Others 1,188,339 952,979

16 DEPOSIT AND CURRENT ACCOUNTS

17 BORROWINGS

161,089 1,161,100

Savings Accounts 11,408,999 9,355,699

18 OTHER LIABILITIES

Unearned Interest on Loans & Borrowings 1,978 3,475

Audit Fees 7,000 6,000

16,525,299 13,074,371

Unearned Discount on Treasury Bills 52,297 146,868

Office Account 112,963 54,534

Accrued Interest 787 51,341

Contingency Fund - 796

Unearned Discount on Other Investments 24,215 366,612

Provision for Police Guard - 1,688

E-Zwich Operational Account - 61,379

U-Connect Operational Account - 28

Payment Order 56,076 500

Inter - Agencies 13,342 -

345,136 763,699

ARB APEX Bank Limited 161,089 361,100

Provision for AGM 6,000 -

Managed Funds 70,478 70,478

2018GH¢

2017GH¢

2018


040330

19 STATED CAPITAL

Authorized Shares:

Balance at 1 January - 1,079,291 1,635,728 817,634

Issued and Fully Paid:

20 INCOME SURPLUS

Cash Issuance - 33,679 13,990 69,952

Dividends on Ordinary Shares are recognized in the period in which they are approved by the

Shareholders. Dividends proposed which are yet to be approved by Shareholders are

disclosed by a way of recognizable notes.

Transferred from Income Surplus - - 200,000 100,000

Balance at 31 December - Fully Paid - 1,112,983 2,158,102 1,079,291

Refer to Statement of Changes in Equity.

Number of Ordinary Shares of No Par Value 167,707,705 167,707,705

Transferred from Capital Surplus - - 78,808 39,404

Transferred from Dividend Account - - 104,576 52,288

Preference Shares of No Par Value - 13 125,000 13

This represents the Residual of Cumulative Annual Profits that are available for distribution to

the Shareholders.

Balance at 1 January - -

Balance at 31 December - -

All Ordinary Shares rank equally with regard to the Bank's Residual Assets. Holders of these

Shares are entitled to Dividends as declared from time to time and are entitled to one vote per

share at General Meetings of the Bank.

STATED CAPITAL & RESERVES

STATED CAPITAL

The Bank classifies Capital and Equity Instruments in accordance with the Contractual Terms

of the Instruments. Incremental Costs that are directly attributable to the issue of an Equity

Instrument are deducted from the initial measurement of the Equity Instruments.

21 REVALUATION SURPLUS

2018GH¢

GH¢

No. of Shares2017

No. of Shares2018

2017GH¢

GH¢

Proceeds2017GH¢

Proceeds2018GH¢

2018


0331

2018


040332

22 COMMUNITY DEVELOPMENT FUND

Statutory Reserves are based on the Requirements of Section 34 of the Banks and Specialized

Deposits-Taking Institutions Act (ACT 930).Transfers into Statutory Reserves are made in

accordance with the relationship between the Bank's Reserve Fund and it’s Paid Up Capital,

which determines the proportion of profits for the period that should be transferred.

This Fund supports Development Activities in the Communities that the Bank operates

actively, which evidently is envisaged to continue. Refer to Statement of Changes in Equity.

23 STATUTORY RESERVES

(i) Where the Reserve Fund is less than fifty percent of the Stated Capital, then an amount

not less than 50% of net profit for the year is transferred to the Reserve Fund.

(ii) Where the Reserve Fund is more than 50% but less than 100% of the Stated Capital, then

an amount not less than 25% of net profit is transferred to the Reserve Fund.

(iii) Where the Reserve Fund is equal to 100% of the Stated Capital, then an amount not less

than 12.5% of the net profit for the year is transferred to the Reserve Fund.

2018


0333

Profit as per Accounts 265,495

Add Back: Depreciation 162,473

Impairment Credit Loss 50,748

478,716

Chargeable Income 249,946

Less: Capital Allowances (228,770)

Tax thereon @ 25% 62,487

This calculation is subject to agreement by the Ghana Revenue Authorities.

GH¢

TAX COMPUTATION YEAR OF ASSESSMENT - 2018

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2018


040334

11 FRANCIS TWENE YAW 18,621 9,221.29 0.77

20 NKETIA ABENA STELLA 12,151 6,049.78 0.50

16 CLEMENT AGYEMANG DONKOR 13,313 6,343.09 0.55

8 NYARKO DABIE S. 38,838 13,001.38 1.60

10 ADJEI – AMPONSAH MARTIN 21,940 10,559.59 0.90

2 SASAH WIREDU KOFI 54,742 20,546.83 2.25

5 VIVIAN MFODWAA GYAN 45,602 16,165.05 1.88

1 LYMIN CREEK LIMITED 234,612 111,572.73 9.65

7 NSRAWUDI KWAME NICHOLAS 38,905 12,978.03 1.60

9 SOGA KOFI MOSES 34,554 11,116.29 1.42

6 BABA KWESI EMMANUEL 40,042 12,935.88 1.65

14 RICHARD ABABIO 14,270 7,083.16 0.59

12 YIADOM KUSI BOACHIE 17,760 8,435.23 0.73

13 KUMAH JOSEPH 16,933 8,371.22 0.70

4 UNALLOCATED SHARES 47,299 22,482.37 1.95

15 MARY MFODWAA 14,049 6,976.62 0.58

3 JOHNSON OFORI ASUBONTENG 53,567 19,963.56 2.20

17 YIADOM DIANA 13,269 6,606.28 0.55

18 AMANKONA DENNIS 13,269 6,606.28 0.55

19 ERIC ANSAH ANKOMAH 13,242 6,349.35 0.54

DETAILS OF LARGEST SHAREHOLDERS

No. Name of Shareholder Number of shares

Value %to total Shares

2018


0335

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NOTES

2018


040336

2018


0337

___________________________________________________ Being a Shareholder(s) of hereby appoint

be held on the 16th November. 2019 at Presbyterian Church of Ghana, Suma-Ahenkro and at any

adjournment thereon.

I/We _________________________________________________________________________________ of

_____________________________________________________________________________________ on

__________________________________________________at the Annual General Meeting of the Bank to

Signed on the _______________________________ day of _____________________________ 2019

Completed Proxy form should reach the Secretary, Suma Rural Bank Ltd., not less than Forty-eight (48)

hours to the time of the meeting.

___________________________

NOTE:

(Shareholder's Signature)

PROXY AUTHORIZATION FORM

Documents

Suma AGM 2019 · · Codeline Clearing (CCC), E-Zwich, mobile and other electronic money transfer systems are available at the Bank for our customers. · New Direction of the Bank: