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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
03
2018
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
The accounting policies and notes on pages 13 to 26 form an integral part of these financial statements
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
Report And Financial Statement
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
The accounting policies and notes on pages 13 to 26 form an integral part of these financial statements
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
Report And Financial Statement
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)
The accounting policies and notes on pages 13 to 26 form an integral part of these financial statements
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
0331
2018
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
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
Report And Financial Statement
0335
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NOTES
2018
Report And Financial Statement
040336
2018
Report And Financial Statement
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