Gambia Printing and Publishing Corporation (GPPC)

Auditor's Report and Financial Statements

for the year ended 31 ^st December 2020

Contents                                                    Page

General information                                                                         4

Directors' report                                                                    5

Report of the Independent Auditors                                           7

Income statement                                                                          10

Balance sheet                                                                                                                                                                                                              11

Statement of changes in equity                                                  13

Cash flow statement                                                                      14

Notes to the financial statements                                              15

Five Year Financial Summary         

Year ended 31 December 2020

All amounts in the nearest Gambian Dalasi unless otherwise stated

                                                                                                  2020              2019              2018                                                                              2017              2016

Balance sheet                                                                                                            D

Assets

Non-current assets

 

92,776,647

Property, plant and equipment

Intangible assets Total non-current assets

Current assets

Inventory

Other receivables

Trade and staff debtors  

Cash and cash equivalents Total current assets

Total assets

Equity and liabilities

Share capital

Retained earnings

Revaluation reserve

Total capital and reserves

Liabilities

Non-current liabilities

Loans

 

10,752,445

10,453,319

Total Non-current Liabilities                                                                       10,453,319

Current liabilities

Bank overdraft

Other payables

Corporation tax

Value Added Tax

Loans

Total current liabilities

Total liabilities

Total equity and liabilities

Income Statement

Revenue

Cost of sales

Gross profit

Personnel costs

General and administrative expenses

Depreciation

Amortisation

Operating profit/(loss) Net financing cost

Loss before taxation

Income tax expense

Loss for the financial year

	Publishing Corporation (GPPC)
For	December 2020

2

 

Financial Highlights

	2020	2019
Post tax loss (GMD)	(1,479,674)	(7,578,798)
Unimpaired capital (GMD)	83,088,704
Net current assets (GMD)	(18,510,045)	(10,664,877)
Management expenses to income ratio (%)	22%	31%
Staff/personnel costs to income ratio (%) Liquidity Rations	38%	38%
Quick Ratio/Acid Test Ratio (GMD)	0.57	0.65
Current Ratio (GMD)	0.72	0.81
Times Interest Earned Ratio (times) Solvency Ratios	0.63	1.01
Debt to Equity Ratio	92%	77%
Equity Ratio	52%	56%
Debt Ratio Efficiency Ratios	48%	44%
Accounts Receivables Turnover (times)	2	2
Asset Turnover Ratio (%)	26%	27%
Inventory Turnover Ratio (Times)	1	2
Days' Sales in Inventory (days) Profitability Ratios	276	242
Gross Margin Ratio (%)	73%	68%
Profit Margin ratio (%) Return on Assets (%)	-3.56%	-18%
Return on Capital Employed (%)	2.14%	-4.20%
Return on Equity (%) Market Prospect Ratios	-2%	-9%
Earnings per share (GMD)	(0.15)	(0.76)
Price Earnings P/E Ratio	(107.59)	(20.06)

Publishing

For                                December

 General Information

Directors

Mr. Kawsu K. Darboe (Chairman)

Mrs. Sukai Mbye Bojang (Vice Chairperson)

Mrs. Amie Njie Joof (Ex-Officio, representative of MOICI)

Mrs. Toulie Jawara (Ex-Officio, representative of Solicitor General)

Mr. Ismaila Bah (Ex-Officio, representative of MoFEA)

Managing Director and Board Secretary

Mr. Momodou Ceesay

Registered Office

Manadi Manyang Highway

Kanifing Industrial Estate

KMC

The Gambia

Auditors

HAD&Co

Audit. Tax. Advisory Registered Auditors

Senegambia Highway

The Gambia

Bankers

Trust Bank Limited

3/4 Ecowas Avenue

Banjul

The Gambia

Arab Gambia Islamic Bank Limited

Becca Plaza

Ecowas Avenue

Banjul,The Gambia

Skye Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

Publishing

For

Solicitors

Mr Abdoulie Fatty

Ecobank Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

Zenith Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

FIB Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

4

Directors' Report

The Directors present their report and financial statements for the year ended 31^st December 2020.

State of Affairs

The state of the Company's affairs at 31^st December 2020 is set out in the attached financial statements.

Statement of Directors' responsibilities

Company law requires the directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Company and of its profit or loss for that period. In preparing those financial statements, the directors are required to:

 select suitable accounting policies and then apply them consistently;  make judgements and estimates that are reasonable and prudent;  state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2013. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activities

The principal activity of the GPPC is the provision of printing and publishing services at an affordable cost to the Government, Private Sector and general public at large. Also, involved in the distribution of text books and other materials to schools, especially primary and junior secondary schools throughout the country and provide support services to education, assisting schools and non-formal education sector.

Employees

The number of employees and the cost associated with these employees is as detailed in note 5.

Results for the year and dividend

The results of the company are detailed in the accompanying financial statements.

The Directors did not recommend the payment of dividend (2019: D Nil).

Publishing

For

Fixed Assets

Fixed assets are as detailed in note 15 of the financial statements. The directors are of the opinion that there has not been any permanent diminution in the value of the fixed assets. As a result, a provision for impairment has not been deemed necessary.

Post balance sheet events

There were no significant events since the year-end, which could affect the results or financial position of the company.

Going concern

The Directors have assessed the company's ability to continue as a going concern and have no reason to believe the company will not remain a going concern in the year ahead.

Directors and their interest

The members of the board are detailed on page 3. None of the director had interest in the shares of the company.

Auditors

The Corporation's external auditors, HAD & Co - Audite Taxation, Advisory, as appointed through the National Audit Office The Gambia, and this is their second year of the Audit.

By order of the Board

Secretary...

Date2022

Publishing

For

^j s

To the Members of Gambia Printing and Publishing Corporation (GPPC)

Opinion

In our opinion, the accompanying financial statements give a true and fair, view of its financial performance and its cash flows for the year then ended in accordance with Generally Accepted Accounting Principles (GAAP) and have been properly prepared in accordance with the GPPC Act.

Basis for opinion

 

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 Entity 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 fin The Gambia, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IÉSBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to prqvide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 26 in the financial statements, which indicates that the Corporation incurred an operating loss before tax of D 1,479,674 and D7,168,369 during the years ended 31^st December 2020 and 31st December 2019 respectively. Also, as of that date, the Company is in. a net current .liability position of D18,510,045 and negative retained earnings of As stated in Note 26, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Corporation's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Befril Harding Highway,                                                 Serrekwnda, TheGambia,                                                                                             798916419093748

Other Information

Management is responsible for the Other information. The other information comprises the General Information and Report of the Directors as required by the GPPC Act. The other information does not include the financial statements and our auditor's report thereon. Our opinion on the financial. statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. 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. If, based on the work we have performed, we concluded that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

 

Management is .responsible for the preparation and fair presentation of the financial statements in accordance with GÄAP and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, in preparing the financial statements, management is responsible for assessing the Corporation's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accountingunless management either intends to liquidate the Entity or to cease operations, or has no realistig alternative but to do so. Those charged with governance are responsible for overseeing the Corporation's financial reporting process.

Auditor's Responsibilities for Audit of the Financial Statements

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 l$As will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,.they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, 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 collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Berfll ^Uardtⁿg     Serrekundc„ The, Cam!bäa,         4466020 798916⁴ 190937⁴ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material^r uncertainty exists related to events or conditions that may cast significant doubt on the Entity'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 financial statements or, if such disclosures are inadequate, to modify our opinions 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 Entity to cease to continue as a going concern.

 

Evaluate the overall presentation, structure and content of the financial statements, •including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit .firidings, including any significant deficiencies in internal control that we identify during our audit.

HAD & co

CharterediAccountants and Business Advisers

RegisteredAuditors

Kerr Serigne, The Gambia

            Date•                                                                        2022

Bern Harding Highway,                                            Serrekunda, The Gambig,                                                                                   0166020 7989164 9093748

Income Statement for the year ended 31 ^st December 2020

Revenue

Cost of sales

Gross profit

Personnel costs

General and administrative expenses

Depreciation

Amortisation

Operating Profit/(Loss)

Net financing cost

Loss before taxation

Income tax expense

Loss for the financial year

                                    31st Dec.            31st Dec.

2020  2019 Notes      D

3 41,539,971 41,042,831 4 (11,379,058) (12,990,445)

	28,052,386
(15,691,405) (9,259,287) (3,402,496) (32,292)	(15,755,142) (12,638,433) (3,263,867)

5

6

10

11

                                    1,775,432       

7. (2,839,706)         (3,563,314)

8. (1,064,274)         (7,168,370)
9. (415,400) (410,428)

                                    (1,479,674)        (7,578,798)

The attached notes form part of these financial statements.

Balance sheet

		31st Deco	31st Dec.
		2020	2019
Assets Non-current assets	Notes	DOOO	DOOO
Property, plant and equipment	10
Intangible assets		129,168	161 ,460

as at 31 ^st December 2020

Total non-current assets

Current assets inventory         12

 

Other receivables                                                                          13

Trade and staff debtors           14 Cash and cash equivalents 15

Total current assets

Total assets

Equity and liabilities

Share capital                                                                                   16

Retained earnings

Revaluation reserve                                                                      17

Total capital and reserves

Liabilities

Non-current liabilities                                                                180

Total Non-current Liabilities

The attached notes form part of these financial statements.

Balance sheet cont.

as at 31stDecember 2020

		31st Dec.	31st Dec.
Current liabilities	Notes	2020	2019
Bank overdraft	15
Other payables	19	28,403,537
Corporation tax	9

         Value Added Tax                                                                             20

         Loans                                                                                              -18b

Total current liabilities

76,111,523	66,213,652
159,200,227	152,039,453

Total liabilities

Total equity and liabilities

1 The financial statements were approved by the Board of Directors on.14...202P-and were signed on its behalf by:

          Director  Director

The attached notes form part of these financial statements.

Statement of changes in equity

for the year ended 31st December 2020

	Share	Revaluation	Retained
	Capital	Reserve	Earnings	Total
Balance as at 1st January 2019 Correction of 2018 omission/system		75,494,942	2,856,596	88,351,538
adjustment(Note 25a)			(2,193,661)	(2,193,661)
Prior Year Adjustments (Note 16) Opening balance difference			7,246,722	7,246,722
Loss for the year			(7,578,798)	(7,578,798)
Transfers (Note 15)		(156,223)	156,223

Balance as at 31st December 2019                                               75,338,719                                                                                                                        487,082

Balance as at 1st January 2020

Adjustment for 2019 Depreciation

 

Prior Year Adjustments/System Adjustment

Loss for the year

Transfers (Note 15)

Balance as at 31st December 2020

The attached notes form part of these financial statements

Cash flow statement

for the year ended 31 ^st December 2020

		31st December	31st December
Reconciliation of operating profit to cash flow from operating activities	Notes	2020	2019
Operating loss before tax Adjust for non-cash items		(1,064,274)
Add: Depreciation charges	10	3,402,496	3,263,867
Add: Amortisation charges		32,292
Add: Finance costs		2,839,706	3,563,314
Adjustment for prior year		(1,390,823)	(2,193,661)

Increase in inventory
Other receivables & Advance payments		(5,731,920)
Increase in Trade and staff debtors	(7,106,486)
Increase in Trade payables	11,344,635	3,405,831
increase in Tax payable & VAT	5,420,953

	12,701,528
income tax paid	(415,400)	(5,344,224)
Interest paid	(2,839,706)	(3,563,314)

        Prior year- Depreciation                                              133,400

3,952,797

                                                                                                                        (910,370)                                                                                                                        (105,493)

Cash flows from operating activities                                                       9,446,422                                                                                                       

Investing activities

 

(161,460)

(14,268,647)

Purchase of property, plant and equipment                   10                        (8,841,986)

Purchase of intangible assets

Cash flows from investing activities                                                     (8,841,986)

Financing activities

 

Increase in Long Term Loan                                             18                        (8,566,112)

Cash flows from financing activities                                                     (8,566,112)

Net increase in cash and cash equivalents                                          (7,961,676)

Cash and cash equivalents at 1 January                                                 5,332,173

Cash and cash equivalents at 31 December                                       (2,629,503)

The attached notes form part of these financial statements.

                                   and                                              (GPPC)

14

< >Corporate informationThe Gambja Printing and Publishing Corporation was Established by an act of parliament as a public enterprise in 2006. The corporation is the result of a merger of former Book Production and Material Resources Unit (BPMRU) under the Ministry of Basic and Secondary Education charged with the responsibility of providing educational materials (i.e. teachers guide, pupils texts books etc.) for the ministry and National Printing and Publishing Corporation (NPPC) under the central government responsible of providing all necessary printing materials such as Government Tax Receipts (GTR), other revenue materials for both central, local and other government departments and agencies. The registered address of the office is Mamadi Manjang Highway, Kanifing Indutrial Area, Kanifing, KMC.

 

The principal activities of the GPPC is the provision of printing and publishing services at an affordable cost to the Government, Private sector and general public at large. Also, involved in the distribution of text books and other materials to schools, especially primary and junior secondary schools throughout the country and provide support services to education, assisting schools and non- formal education sector.

< >Principal Accounting Policies

 

The following accounting policies have been applied consistently in dealing with items, which are considered material to the Corporation's financial statements.< >Statement of compliance and Basis of PreparationThe financial statements have been prepared in accordance with Generally Accepted Accounting Principles and the GPPC Act 2006.

 

< >Revenue recognitionRevenue is measured at the fair value of the consideration received or receivable.

 

The Corporation recognised revenue when it is probable that the economic benefits from the sale will flow to the Corporation, the revenue and costs can be measured reliably and significant risks and rewards of ownership of the goods have been transferred to the buyer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Corporation and the amount of income can be measured reliably. Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

the

(c) Property, plant and equipment

Owned assets

Items of property, plant and equipment are stated at cost less accumulated depreciation.

Depreciation

Depreciation of fixed assets is calculated and charged to the income statement on a straight-line basis by reference to the expected useful lives of the assets at the following rates:

          Buildings                                                                                    2.50%

Plant & Machinery             5% Motor Vehicles        20%

         Computers & Other office equipment            

Furniture, fixtures & Fittings    20% Generators 10%

Land is not depreciated.

 

The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

The gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income statement.

Subsequent expenditure

Expenditure incurred to replace a component of an item of property and equipment that js accounted for separately, including major inspection and overhaul expenditure, is capita!ised. Other subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the item of property and equipment. All other expenditures are recognised in the income statement.

Revaluation

Revaluation of property and equiprnent is not compulsory. Assets which are carried at revalued amounts are revalued at most every five years. Any revaluation gain is taken to a revaluation reserve in equity except when there is a revaluation loss which has been taken to the income statement. The surplus is charged to the income statement to the extent of reserving the previous loss. However, revaluation loss is charge to the income statement except if there is a surplus which was taken to equity. The revaluation loss is charged to equity to the extent of the surplus.

(d) Intangible assets - quickbooks software

Software acquired by the Corporation is classified as an intangible asset and is measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognized in net income and is provided on a straight-line basis over the estimated useful life of the assets as follows:

      Software                                        25%

Amortisation methods, useful lives and residual values are reviewed annually and adjusted if necessary.

Subsequent expenditure on software assets is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. Ail other expenditure is expensed as incurred.

Software is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in other operating income in the income statement in the year the asset is derecognised.

< >Impairment of tangible assets

 

At each reporting date, the Corporation reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment ioss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit, typically the development project, to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cashgenerating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value {ess costs to sell and value in use, In assessing value in use, the estimated future cash flows are discounted to their present va!ue using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the income statement, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

6. Inventory

Inventory is measured at the lower of cost and net realisable value. The cost of inventory is based on the first-in, first-out principle.

NRV is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and discounted for the time value of money if material, less estimated costs of completion and the estimated costs necessary to make the sale.

7. Trade and other receivables

Trade and other receivables are recognised at their original invoiced value except where the time value of money is material, in which case receivables are recognised at fair value and subsequently measured at amortised cost. A provision is made when there is objective evidence that the Corporation will not be abie to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote.

8. Cash and short-term deposits

Cash and short-term deposits in the balance sheet comprise cash at bank and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Corporation's cash management.

1. Interest bearing loans

Interest bearing loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Subsequent to initial recognition, interest bearing borrowings are measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of the asset. Ail other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

10. Other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

11. Employee benefits

Obligations for contributions to Social Security Housing Finance Corporation administered retirement benefit plan are recognised as expense in the income statement as incurred.

• Provisions

A provision is recognised in the balance sheet when the Corporation has a legal or constructive obligation as a result of a past events, and it is probable that an outflow of economic benefits will be required to settle the obligation.

13. Foreign currency

Transactions jn foreign currencies are translated to Dalasi at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Dalasi at the exchange rate ruling at that date. Exchange differences arising on translation are recognised in the income statement.

• Income tax

Income tax on the profit or turnover for the year comprises current tax and is recognised in the income statement.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

• 

Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events and whose existence witl only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. It can also be a present obligation arising from the past events that is not recognized because it is not probable that outflow of economic resources will be required, or the amount of obligation cannot be measured reliably.

Contingent liabilities are not recognized but are disclosed in the notes to the accounts. When a change in the probability of an outflow occurs so that outflow is probable, it will then be recognized as provision.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognized but are disclosed in the notes to the accounts when an inflow of economic benefits is probable. When an inflow is virtually certain, an asset is recognized.

(p) Related parties

For the purposes of these financial statements all fellow subsidiaries and associated companies, key management personnel and Board members, together with the close members of their families in each case and with companies controlled by them, are considered and referred to as related parties. A number of transactions are entered into with related parties in the normal course of business. A detailed breakdown of related party transactions and balances outstanding at the year-end is provided in Note 23.

3. Revenue      2020

D

Government	28,238,408
Area Councils	4,315,475	3,801,690

        Private                                                                                                    1,412,928

        Parastatal                                                                                               

        Sales of Publications                                                                               3,886,198

        Others        68,600                                                                                                       178,580

41,539,971	41,042,831
8,603,732 12,289,429	13,095,937 (8,603,732)
	12,990,445

4. Cost of Sales

Opening Stocks of Printing Materials

Add: Purchases of Printing Materials

Less: Closing Stocks of Printing Materials

5. Personnel costs

The average number of staff employed (including directors) during the year, analysed by category was as follows:

Numbers

Directors      3 3 Management 7 7

        General            123                                                                                                                112

                                                                                                                                 133                                                                                                                                 122

 

Costs

Basic Salary	6,290,156	6,203,681
Residential Allowance	2,639,500
Responsibility Allowance	705,500	725,500
Professional Allowance	610,500	544,000
Car Allowance	180,000	178,000
Telephone Allowance	277,250	288,750
Transport Allowance	2,236,200
HD Allowance	409,800	411,000
Employer's Social Security Con.	1,947,249	1,988,924
Acting/Charge Allowances/drawback	17,205	103,418
Gratituty	154,974	85,168
Staff Overtime	223,072	364,201

                                                                                                                      15,691,405                                                                                                                      15,755,142

(GPPC)

2020

		December	December
		2020	2019
6	Administrative expense
	Water & Electricity	848,796	1,564,649
	Fuel & Lubricants	1,254,727	1,314,446
	Repairs & Maintenance	1,118,932
	Office stationery/Pinting/Photocopying	54,819	36,710
	Local/overseas Travel	147,949	622,242
	Telecommunication Cost/mobile	298,586	348,787
	Publicity/ Promotion & Advertising Cost	435,330	620,291
	Staff Training	416,405	525,506
	Donation & Contribution (Corporate Social Resp.)	173,000	11,340
	Board Incentives	340,400	335,400
	General office expenses	278,571	350,725
	Audit fee	207,000	156,000
	Medical Welfare	894,243	1,190,892
	May Day		448,595
	NISA Football	10,000
	Consultancy/Other Fees	139,430	531,350
	Staff Uniform	o	100,515
	Freight and Shipping Costs/custom fee	64,366	302,425
	Provision for irrecoverable debt	1,687,282	1,687,282
	Write off	o	284,016
	Internet Services	540,288	228,960
	Council Rate and Trade Licence	132,174	154,136
	Insurance/Road Tax and Licence	216,989	253,191
		9,259,287
6.1	Board incentives
	Chairman	60,000                  60,000
	Vice Chairman	48,000                  48,000
	Managing Director	36,000                  36,000
	Other Members	196,400                  179,100                  340,400                323,100

7. Finance costs

Interest on Lease/Bank Interest on purchase of Vehicle

Bank Service Charges:

AGIB

ECO Bank

Trust Bank Zenith Bank

Skye Bank

FiBank

659,587 6,053 333,129 139,692 106,302 2,300 1,592,644	1,520,860 10,619 536,563 44,286 345,535 1,000 1,104,452
2,839,706	3,563,314
207,000 340,400	156,000 335,400
547,400

 

Interest charge on Paper for exercise bk/Cover printing machine

8. Profit before taxation

Profit before taxation is stated after charging:

Auditors' remuneration

Directors' remuneration

Gambia                 and                   Corporation

Financial

For the year                                      2020

9. Income tax

Expense/charge

Taxation at 1% of total revenue

              (2019: 1% of total revenue)                  

Tax on the corporation's total revenue for the year ended agrees with the theoreticat amount that would arise

using the basic tax rate as follows:

Turnover and other income

Tax calculated at a rate of 1% of turnover

(2019: 1%of turnover)

Reconciliation of effective tax rate

income tax using the domestic tax rate

Corporate tax payable

Balance at the beginning of the year

Provision for Corporation Tax

Less: Amount paid during the year

Balance at the end of the year

(GPPC)

2020

41,539,971           41,042,831

     415,400                 410,428

December        31^st December

           2020                    2019

           1               1

                 o            

       415,400               410,428

    (415,400)         (5,344,224)

 

                                                                                                                                                                  31st                                                                                                                                                                   31st

D

11	Inventory
	Materials	7,909,301	6,888,277
	Publications	1,604,802	1,715A55

                Provision for slow moving & damaged stock             

12 Other receivables

Payment in advance- Printing Materials (note 13a)

Payment in advance- White Paper Rolls (note 13b)

13a Payment in advance- Printing Materials

The Corporation entered in to a contract with Procurevis International (UK) Ltd in 2016 to procure printing materials. The corporation paid 75% of the invoice in advance but the supplier defaulted in supplying the materials as per contract terms and conditions. Management terminated the contract after consultation and approval of the board of directors. Legal action has been initiated by the Corporation ^ts solicitor to recover the amount. The supplier provided collateral in the form of landed property with title documents deposited with the Corporation. Management is confident that the market value of the collateral is in excess of the advance paid.

13b Payment in advance- White Paper Rolls

The Corporation entered into a contract to procure 100 metric tons of white paper roll 70/80gsm from Penta International Trading Limited based in Turkey in September 2019. An advance payment of D5,731,920 was made in accordance with the contract terms and conditions. However, these consigment of papers were not delivered by the supplier as at the end of the financial year.

	27,114,357            20,291,886
Write off	(284,015)
Provision for doubtful debts	(1,687,282)            (1,687,282)        25,427,075

14 Trade Receivables

Trade receivables	26,327,374	19,351,825
Staff debtors	786,983	940,061

The provision relates largely to non-government jobs that were outstanding for over 3 years and continues to be a challenge in recovering them. We did not provided for most of the Government related debts because we are confident that these debts will eventually be paid to the Corporation. Management is enagaging the Government to ensure that these debts are recovered in the near future.

The write off relates to cancelled jobs relating to prior periods of which revenue was recognised.

IS Cash and cash equivalents

Bank balances Undeposited fund Cash in hand

Bank overdrafts

                 Cash and cash equivalents in the                                    (4,398,637)                                                                                            (2,700,242)

                     Statement of cash flows                                           

16. Share capital

The total authorised number of ordinary shares at year end  (2019: 10,000,000) with a par value of DI per share (2019; D 1 per share).

All issued shares are fuliy paid.

17. Revaluation reserve

Cityscape Associate, an independent appraiser, valued the Mamadi Manjang complex and MDI Road Annex land, buildings, plant and machinery and other equipment as of October 2011. Their revaluation was based on the observed asset conditions and asset replacement cost by reference to market evidence of recent transactions for similar properties and replacement cost estimation methodologies. Replacement cost estimates are based on estimated cost of Equivalent Assets (EA) and estimating the residual asset value from the EA cost, useful life and age of existing assets (Depreciated Replacement Cost Methodology).

		31st December	315t December
		2020	2019
18	Total Loans
	Purchase of Exercise Book Printing Machine- Agib loan	14,558,535	11,526,734
	Paper for Exercise Book Printing Machine- Sky bank loan	4,900,956	13,571,428
	Short Term Bank Facility		2,927,441

                                                                                                                                                     19,459,491                                                                                                                       28,025,603

Maturity Profile Maturity
Profile	Up to I year	between 2 and 5	Over
2020 Loans		years       D	5years	D	Total
Purchase of Exercise Book Printing Machine- Agib loan	4,824,631	9,733,904			14,558,535

Paper for Exercise Book Printing Machine- Sky bank loan 3,882,416 Short Term Bank Facility

Maturity Profile Maturity
Profile		Up to 1 year	between 2 and 5		Over
2019 Loans			years       D		5years	D	Total
Purchase of Exercise Book Printing Machine- Agib loan Paper for Exercise Book Printing Machine- Sky bank loan		6,073,415	5,453,319				11,526,734 13,571,429
Short Term Bank Facility		2,927,441					2,927
	17,572,285			10,453,319				28,025,604

Purchase of Exercise Book Printing Machine

The corporation obtained a bank loan of  in 16th October,2018 to finance the acquisition of an exercise book printing machine, The loan has a tenor of 3 years with a fixed interest rate of 15% The corporation's land and buildings has been pledged as security for the loan.

Purchase of Paper and Cover Machine for Exercise Book Printing Machine

The corporation obtained a bank loan of D15,000J000 in 19^th July,2019 for the purpose of financing the purchase of a Paper and Cover Machine for the Exercise Book Printing Machine. The tenor of the loan is 2 years with a fixed interest rate of 17.5%. The Machine financed has been offered as a security for loan.

19. Trade and Other payables

Creditors/ Payables        21,122,388 Payroll Liabilities 7,227,857

         Gratituty                                                                                                          53,292

Payroll Liabilities
Staff Income Tax	688,826	618,540
SSHFC	4,617,506	3,320,383
Staff Welfare Fund	503,995	400,152
Teachers' Union Dues	43,350	12,800
Credit Union Dues	882,819	510,934
Kombo Real Estate	357,361	349,819
sas PROPERTY	134,000 7,227,857	73,000

28,403,537

            Printing and                  Corporation

Statements yearended

                                                                                                                                                                    31^st                                                                                                                                                                                                                                                                                                                                              3f

20. Vaiue Added Tax

 

23,400

18,428,905

15,928,821

Balance at the beginning of the year

Adjustment on VAT after system reconciliation

Balance B/F from year 2018

VAT Payable for the year

Adjustment on VAT after system reconciliation

< >Capital commitmentsAuthorised by the board and contracted for

 

                    Authorised by the board and not contracted for  

22 Contingencies

There were no contingent liabilities at the end of the year. (2018: Nii).

23 Related Party Transactions

                     (a)              Related companies

The corporation is a government entity and therefore has direct relationship with all government related entities. The following are the transaction with those entities:

Employer's Social Security Contribution	1,947,249	1,988,924
Water & Electricity	848,796	1,564,649
Gambia revenue Authority	625,911	625,911
Sale of goods and services to related companies	3,421,956	4,179,484

Purchase of goods and services from related companies

 

28,238,408

                     Government                                                                                                          29,569,445

Area Councils

Parastatal

Receivables
Government	17,412,316	9,399,507
Area Councils	994,995	714,602
Parastatal	2,404,924	4,106,515

20,812,235	14,220,625
688,826 4,617,506 882,819 23,849,857	618,540 3,320,383 310,934 18,428,905
30,039,009

Payables

Staff income Tax

SSHFC

Credit Union Dues

VAT

Corporation tax

Gambia Printing and Publishing Corporation (GPPC)

Auditor's Report and Financial Statements

for the year ended 31 ^st December 2020

Contents                                                    Page

General information                                                                         4

Directors' report                                                                    5

Report of the Independent Auditors                                           7

Income statement                                                                          10

Balance sheet                                                                                                                                                                                                              11

Statement of changes in equity                                                  13

Cash flow statement                                                                      14

Notes to the financial statements                                              15

Five Year Financial Summary         

Year ended 31 December 2020

All amounts in the nearest Gambian Dalasi unless otherwise stated

                                                                                                  2020              2019              2018                                                                              2017              2016

Balance sheet                                                                                                            D

Assets

Non-current assets

 

92,776,647

Property, plant and equipment

Intangible assets Total non-current assets

Current assets

Inventory

Other receivables

Trade and staff debtors  

Cash and cash equivalents Total current assets

Total assets

Equity and liabilities

Share capital

Retained earnings

Revaluation reserve

Total capital and reserves

Liabilities

Non-current liabilities

Loans

 

10,752,445

10,453,319

Total Non-current Liabilities                                                                       10,453,319

Current liabilities

Bank overdraft

Other payables

Corporation tax

Value Added Tax

Loans

Total current liabilities

Total liabilities

Total equity and liabilities

Income Statement

Revenue

Cost of sales

Gross profit

Personnel costs

General and administrative expenses

Depreciation

Amortisation

Operating profit/(loss) Net financing cost

Loss before taxation

Income tax expense

Loss for the financial year

	Publishing Corporation (GPPC)
For	December 2020

2

 

Financial Highlights

	2020	2019
Post tax loss (GMD)	(1,479,674)	(7,578,798)
Unimpaired capital (GMD)	83,088,704
Net current assets (GMD)	(18,510,045)	(10,664,877)
Management expenses to income ratio (%)	22%	31%
Staff/personnel costs to income ratio (%) Liquidity Rations	38%	38%
Quick Ratio/Acid Test Ratio (GMD)	0.57	0.65
Current Ratio (GMD)	0.72	0.81
Times Interest Earned Ratio (times) Solvency Ratios	0.63	1.01
Debt to Equity Ratio	92%	77%
Equity Ratio	52%	56%
Debt Ratio Efficiency Ratios	48%	44%
Accounts Receivables Turnover (times)	2	2
Asset Turnover Ratio (%)	26%	27%
Inventory Turnover Ratio (Times)	1	2
Days' Sales in Inventory (days) Profitability Ratios	276	242
Gross Margin Ratio (%)	73%	68%
Profit Margin ratio (%) Return on Assets (%)	-3.56%	-18%
Return on Capital Employed (%)	2.14%	-4.20%
Return on Equity (%) Market Prospect Ratios	-2%	-9%
Earnings per share (GMD)	(0.15)	(0.76)
Price Earnings P/E Ratio	(107.59)	(20.06)

Publishing

For                                December

 General Information

Directors

Mr. Kawsu K. Darboe (Chairman)

Mrs. Sukai Mbye Bojang (Vice Chairperson)

Mrs. Amie Njie Joof (Ex-Officio, representative of MOICI)

Mrs. Toulie Jawara (Ex-Officio, representative of Solicitor General)

Mr. Ismaila Bah (Ex-Officio, representative of MoFEA)

Managing Director and Board Secretary

Mr. Momodou Ceesay

Registered Office

Manadi Manyang Highway

Kanifing Industrial Estate

KMC

The Gambia

Auditors

HAD&Co

Audit. Tax. Advisory Registered Auditors

Senegambia Highway

The Gambia

Bankers

Trust Bank Limited

3/4 Ecowas Avenue

Banjul

The Gambia

Arab Gambia Islamic Bank Limited

Becca Plaza

Ecowas Avenue

Banjul,The Gambia

Skye Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

Publishing

For

Solicitors

Mr Abdoulie Fatty

Ecobank Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

Zenith Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

FIB Bank (Gambia) Limited

Kairaba Avenue

KSMD

The Gambia

4

Directors' Report

The Directors present their report and financial statements for the year ended 31^st December 2020.

State of Affairs

The state of the Company's affairs at 31^st December 2020 is set out in the attached financial statements.

Statement of Directors' responsibilities

Company law requires the directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Company and of its profit or loss for that period. In preparing those financial statements, the directors are required to:

 select suitable accounting policies and then apply them consistently;  make judgements and estimates that are reasonable and prudent;  state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2013. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activities

The principal activity of the GPPC is the provision of printing and publishing services at an affordable cost to the Government, Private Sector and general public at large. Also, involved in the distribution of text books and other materials to schools, especially primary and junior secondary schools throughout the country and provide support services to education, assisting schools and non-formal education sector.

Employees

The number of employees and the cost associated with these employees is as detailed in note 5.

Results for the year and dividend

The results of the company are detailed in the accompanying financial statements.

The Directors did not recommend the payment of dividend (2019: D Nil).

Publishing

For

Fixed Assets

Fixed assets are as detailed in note 15 of the financial statements. The directors are of the opinion that there has not been any permanent diminution in the value of the fixed assets. As a result, a provision for impairment has not been deemed necessary.

Post balance sheet events

There were no significant events since the year-end, which could affect the results or financial position of the company.

Going concern

The Directors have assessed the company's ability to continue as a going concern and have no reason to believe the company will not remain a going concern in the year ahead.

Directors and their interest

The members of the board are detailed on page 3. None of the director had interest in the shares of the company.

Auditors

The Corporation's external auditors, HAD & Co - Audite Taxation, Advisory, as appointed through the National Audit Office The Gambia, and this is their second year of the Audit.

By order of the Board

Secretary...

Date2022

Publishing

For

^j s

To the Members of Gambia Printing and Publishing Corporation (GPPC)

Opinion

In our opinion, the accompanying financial statements give a true and fair, view of its financial performance and its cash flows for the year then ended in accordance with Generally Accepted Accounting Principles (GAAP) and have been properly prepared in accordance with the GPPC Act.

Basis for opinion

 

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 Entity 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 fin The Gambia, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IÉSBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to prqvide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 26 in the financial statements, which indicates that the Corporation incurred an operating loss before tax of D 1,479,674 and D7,168,369 during the years ended 31^st December 2020 and 31st December 2019 respectively. Also, as of that date, the Company is in. a net current .liability position of D18,510,045 and negative retained earnings of As stated in Note 26, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Corporation's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Befril Harding Highway,                                                 Serrekwnda, TheGambia,                                                                                             798916419093748

Other Information

Management is responsible for the Other information. The other information comprises the General Information and Report of the Directors as required by the GPPC Act. The other information does not include the financial statements and our auditor's report thereon. Our opinion on the financial. statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. 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. If, based on the work we have performed, we concluded that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

 

Management is .responsible for the preparation and fair presentation of the financial statements in accordance with GÄAP and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, in preparing the financial statements, management is responsible for assessing the Corporation's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accountingunless management either intends to liquidate the Entity or to cease operations, or has no realistig alternative but to do so. Those charged with governance are responsible for overseeing the Corporation's financial reporting process.

Auditor's Responsibilities for Audit of the Financial Statements

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 l$As will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,.they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, 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 collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Berfll ^Uardtⁿg     Serrekundc„ The, Cam!bäa,         4466020 798916⁴ 190937⁴ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material^r uncertainty exists related to events or conditions that may cast significant doubt on the Entity'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 financial statements or, if such disclosures are inadequate, to modify our opinions 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 Entity to cease to continue as a going concern.

 

Evaluate the overall presentation, structure and content of the financial statements, •including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit .firidings, including any significant deficiencies in internal control that we identify during our audit.

HAD & co

CharterediAccountants and Business Advisers

RegisteredAuditors

Kerr Serigne, The Gambia

            Date•                                                                        2022

Bern Harding Highway,                                            Serrekunda, The Gambig,                                                                                   0166020 7989164 9093748

Income Statement for the year ended 31 ^st December 2020

Revenue

Cost of sales

Gross profit

Personnel costs

General and administrative expenses

Depreciation

Amortisation

Operating Profit/(Loss)

Net financing cost

Loss before taxation

Income tax expense

Loss for the financial year

                                    31st Dec.            31st Dec.

2020  2019 Notes      D

3 41,539,971 41,042,831 4 (11,379,058) (12,990,445)

	28,052,386
(15,691,405) (9,259,287) (3,402,496) (32,292)	(15,755,142) (12,638,433) (3,263,867)

5

6

10

11

                                    1,775,432       

7. (2,839,706)         (3,563,314)

8. (1,064,274)         (7,168,370)
9. (415,400) (410,428)

                                    (1,479,674)        (7,578,798)

The attached notes form part of these financial statements.

Balance sheet

		31st Deco	31st Dec.
		2020	2019
Assets Non-current assets	Notes	DOOO	DOOO
Property, plant and equipment	10
Intangible assets		129,168	161 ,460

as at 31 ^st December 2020

Total non-current assets

Current assets inventory         12

 

Other receivables                                                                          13

Trade and staff debtors           14 Cash and cash equivalents 15

Total current assets

Total assets

Equity and liabilities

Share capital                                                                                   16

Retained earnings

Revaluation reserve                                                                      17

Total capital and reserves

Liabilities

Non-current liabilities                                                                180

Total Non-current Liabilities

The attached notes form part of these financial statements.

Balance sheet cont.

as at 31stDecember 2020

		31st Dec.	31st Dec.
Current liabilities	Notes	2020	2019
Bank overdraft	15
Other payables	19	28,403,537
Corporation tax	9

         Value Added Tax                                                                             20

         Loans                                                                                              -18b

Total current liabilities

76,111,523	66,213,652
159,200,227	152,039,453

Total liabilities

Total equity and liabilities

1 The financial statements were approved by the Board of Directors on.14...202P-and were signed on its behalf by:

          Director  Director

The attached notes form part of these financial statements.

Statement of changes in equity

for the year ended 31st December 2020

	Share	Revaluation	Retained
	Capital	Reserve	Earnings	Total
Balance as at 1st January 2019 Correction of 2018 omission/system		75,494,942	2,856,596	88,351,538
adjustment(Note 25a)			(2,193,661)	(2,193,661)
Prior Year Adjustments (Note 16) Opening balance difference			7,246,722	7,246,722
Loss for the year			(7,578,798)	(7,578,798)
Transfers (Note 15)		(156,223)	156,223

Balance as at 31st December 2019                                               75,338,719                                                                                                                        487,082

Balance as at 1st January 2020

Adjustment for 2019 Depreciation

 

Prior Year Adjustments/System Adjustment

Loss for the year

Transfers (Note 15)

Balance as at 31st December 2020

The attached notes form part of these financial statements

Cash flow statement

for the year ended 31 ^st December 2020

		31st December	31st December
Reconciliation of operating profit to cash flow from operating activities	Notes	2020	2019
Operating loss before tax Adjust for non-cash items		(1,064,274)
Add: Depreciation charges	10	3,402,496	3,263,867
Add: Amortisation charges		32,292
Add: Finance costs		2,839,706	3,563,314
Adjustment for prior year		(1,390,823)	(2,193,661)

Increase in inventory
Other receivables & Advance payments		(5,731,920)
Increase in Trade and staff debtors	(7,106,486)
Increase in Trade payables	11,344,635	3,405,831
increase in Tax payable & VAT	5,420,953

	12,701,528
income tax paid	(415,400)	(5,344,224)
Interest paid	(2,839,706)	(3,563,314)

        Prior year- Depreciation                                              133,400

3,952,797

                                                                                                                        (910,370)                                                                                                                        (105,493)

Cash flows from operating activities                                                       9,446,422                                                                                                       

Investing activities

 

(161,460)

(14,268,647)

Purchase of property, plant and equipment                   10                        (8,841,986)

Purchase of intangible assets

Cash flows from investing activities                                                     (8,841,986)

Financing activities

 

Increase in Long Term Loan                                             18                        (8,566,112)

Cash flows from financing activities                                                     (8,566,112)

Net increase in cash and cash equivalents                                          (7,961,676)

Cash and cash equivalents at 1 January                                                 5,332,173

Cash and cash equivalents at 31 December                                       (2,629,503)

The attached notes form part of these financial statements.

                                   and                                              (GPPC)

14

< >Corporate informationThe Gambja Printing and Publishing Corporation was Established by an act of parliament as a public enterprise in 2006. The corporation is the result of a merger of former Book Production and Material Resources Unit (BPMRU) under the Ministry of Basic and Secondary Education charged with the responsibility of providing educational materials (i.e. teachers guide, pupils texts books etc.) for the ministry and National Printing and Publishing Corporation (NPPC) under the central government responsible of providing all necessary printing materials such as Government Tax Receipts (GTR), other revenue materials for both central, local and other government departments and agencies. The registered address of the office is Mamadi Manjang Highway, Kanifing Indutrial Area, Kanifing, KMC.

 

The principal activities of the GPPC is the provision of printing and publishing services at an affordable cost to the Government, Private sector and general public at large. Also, involved in the distribution of text books and other materials to schools, especially primary and junior secondary schools throughout the country and provide support services to education, assisting schools and non- formal education sector.

< >Principal Accounting Policies

 

The following accounting policies have been applied consistently in dealing with items, which are considered material to the Corporation's financial statements.< >Statement of compliance and Basis of PreparationThe financial statements have been prepared in accordance with Generally Accepted Accounting Principles and the GPPC Act 2006.

 

< >Revenue recognitionRevenue is measured at the fair value of the consideration received or receivable.

 

The Corporation recognised revenue when it is probable that the economic benefits from the sale will flow to the Corporation, the revenue and costs can be measured reliably and significant risks and rewards of ownership of the goods have been transferred to the buyer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Corporation and the amount of income can be measured reliably. Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

the

(c) Property, plant and equipment

Owned assets

Items of property, plant and equipment are stated at cost less accumulated depreciation.

Depreciation

Depreciation of fixed assets is calculated and charged to the income statement on a straight-line basis by reference to the expected useful lives of the assets at the following rates:

          Buildings                                                                                    2.50%

Plant & Machinery             5% Motor Vehicles        20%

         Computers & Other office equipment            

Furniture, fixtures & Fittings    20% Generators 10%

Land is not depreciated.

 

The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

The gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income statement.

Subsequent expenditure

Expenditure incurred to replace a component of an item of property and equipment that js accounted for separately, including major inspection and overhaul expenditure, is capita!ised. Other subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the item of property and equipment. All other expenditures are recognised in the income statement.

Revaluation

Revaluation of property and equiprnent is not compulsory. Assets which are carried at revalued amounts are revalued at most every five years. Any revaluation gain is taken to a revaluation reserve in equity except when there is a revaluation loss which has been taken to the income statement. The surplus is charged to the income statement to the extent of reserving the previous loss. However, revaluation loss is charge to the income statement except if there is a surplus which was taken to equity. The revaluation loss is charged to equity to the extent of the surplus.

(d) Intangible assets - quickbooks software

Software acquired by the Corporation is classified as an intangible asset and is measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognized in net income and is provided on a straight-line basis over the estimated useful life of the assets as follows:

      Software                                        25%

Amortisation methods, useful lives and residual values are reviewed annually and adjusted if necessary.

Subsequent expenditure on software assets is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. Ail other expenditure is expensed as incurred.

Software is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in other operating income in the income statement in the year the asset is derecognised.

< >Impairment of tangible assets

 

At each reporting date, the Corporation reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment ioss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit, typically the development project, to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cashgenerating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value {ess costs to sell and value in use, In assessing value in use, the estimated future cash flows are discounted to their present va!ue using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the income statement, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

6. Inventory

Inventory is measured at the lower of cost and net realisable value. The cost of inventory is based on the first-in, first-out principle.

NRV is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and discounted for the time value of money if material, less estimated costs of completion and the estimated costs necessary to make the sale.

7. Trade and other receivables

Trade and other receivables are recognised at their original invoiced value except where the time value of money is material, in which case receivables are recognised at fair value and subsequently measured at amortised cost. A provision is made when there is objective evidence that the Corporation will not be abie to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote.

8. Cash and short-term deposits

Cash and short-term deposits in the balance sheet comprise cash at bank and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Corporation's cash management.

1. Interest bearing loans

Interest bearing loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Subsequent to initial recognition, interest bearing borrowings are measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of the asset. Ail other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

10. Other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

11. Employee benefits

Obligations for contributions to Social Security Housing Finance Corporation administered retirement benefit plan are recognised as expense in the income statement as incurred.

• Provisions

A provision is recognised in the balance sheet when the Corporation has a legal or constructive obligation as a result of a past events, and it is probable that an outflow of economic benefits will be required to settle the obligation.

13. Foreign currency

Transactions jn foreign currencies are translated to Dalasi at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Dalasi at the exchange rate ruling at that date. Exchange differences arising on translation are recognised in the income statement.

• Income tax

Income tax on the profit or turnover for the year comprises current tax and is recognised in the income statement.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

• 

Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events and whose existence witl only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. It can also be a present obligation arising from the past events that is not recognized because it is not probable that outflow of economic resources will be required, or the amount of obligation cannot be measured reliably.

Contingent liabilities are not recognized but are disclosed in the notes to the accounts. When a change in the probability of an outflow occurs so that outflow is probable, it will then be recognized as provision.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognized but are disclosed in the notes to the accounts when an inflow of economic benefits is probable. When an inflow is virtually certain, an asset is recognized.

(p) Related parties

For the purposes of these financial statements all fellow subsidiaries and associated companies, key management personnel and Board members, together with the close members of their families in each case and with companies controlled by them, are considered and referred to as related parties. A number of transactions are entered into with related parties in the normal course of business. A detailed breakdown of related party transactions and balances outstanding at the year-end is provided in Note 23.

3. Revenue      2020

D

Government	28,238,408
Area Councils	4,315,475	3,801,690

        Private                                                                                                    1,412,928

        Parastatal                                                                                               

        Sales of Publications                                                                               3,886,198

        Others        68,600                                                                                                       178,580

41,539,971	41,042,831
8,603,732 12,289,429	13,095,937 (8,603,732)
	12,990,445

4. Cost of Sales

Opening Stocks of Printing Materials

Add: Purchases of Printing Materials

Less: Closing Stocks of Printing Materials

5. Personnel costs

The average number of staff employed (including directors) during the year, analysed by category was as follows:

Numbers

Directors      3 3 Management 7 7

        General            123                                                                                                                112

                                                                                                                                 133                                                                                                                                 122

 

Costs

Basic Salary	6,290,156	6,203,681
Residential Allowance	2,639,500
Responsibility Allowance	705,500	725,500
Professional Allowance	610,500	544,000
Car Allowance	180,000	178,000
Telephone Allowance	277,250	288,750
Transport Allowance	2,236,200
HD Allowance	409,800	411,000
Employer's Social Security Con.	1,947,249	1,988,924
Acting/Charge Allowances/drawback	17,205	103,418
Gratituty	154,974	85,168
Staff Overtime	223,072	364,201

                                                                                                                      15,691,405                                                                                                                      15,755,142

(GPPC)

2020

		December	December
		2020	2019
6	Administrative expense
	Water & Electricity	848,796	1,564,649
	Fuel & Lubricants	1,254,727	1,314,446
	Repairs & Maintenance	1,118,932
	Office stationery/Pinting/Photocopying	54,819	36,710
	Local/overseas Travel	147,949	622,242
	Telecommunication Cost/mobile	298,586	348,787
	Publicity/ Promotion & Advertising Cost	435,330	620,291
	Staff Training	416,405	525,506
	Donation & Contribution (Corporate Social Resp.)	173,000	11,340
	Board Incentives	340,400	335,400
	General office expenses	278,571	350,725
	Audit fee	207,000	156,000
	Medical Welfare	894,243	1,190,892
	May Day		448,595
	NISA Football	10,000
	Consultancy/Other Fees	139,430	531,350
	Staff Uniform	o	100,515
	Freight and Shipping Costs/custom fee	64,366	302,425
	Provision for irrecoverable debt	1,687,282	1,687,282
	Write off	o	284,016
	Internet Services	540,288	228,960
	Council Rate and Trade Licence	132,174	154,136
	Insurance/Road Tax and Licence	216,989	253,191
		9,259,287
6.1	Board incentives
	Chairman	60,000                  60,000
	Vice Chairman	48,000                  48,000
	Managing Director	36,000                  36,000
	Other Members	196,400                  179,100                  340,400                323,100

7. Finance costs

Interest on Lease/Bank Interest on purchase of Vehicle

Bank Service Charges:

AGIB

ECO Bank

Trust Bank Zenith Bank

Skye Bank

FiBank

659,587 6,053 333,129 139,692 106,302 2,300 1,592,644	1,520,860 10,619 536,563 44,286 345,535 1,000 1,104,452
2,839,706	3,563,314
207,000 340,400	156,000 335,400
547,400

 

Interest charge on Paper for exercise bk/Cover printing machine

8. Profit before taxation

Profit before taxation is stated after charging:

Auditors' remuneration

Directors' remuneration

Gambia                 and                   Corporation

Financial

For the year                                      2020

9. Income tax

Expense/charge

Taxation at 1% of total revenue

              (2019: 1% of total revenue)                  

Tax on the corporation's total revenue for the year ended agrees with the theoreticat amount that would arise

using the basic tax rate as follows:

Turnover and other income

Tax calculated at a rate of 1% of turnover

(2019: 1%of turnover)

Reconciliation of effective tax rate

income tax using the domestic tax rate

Corporate tax payable

Balance at the beginning of the year

Provision for Corporation Tax

Less: Amount paid during the year

Balance at the end of the year

(GPPC)

2020

41,539,971           41,042,831

     415,400                 410,428

December        31^st December

           2020                    2019

           1               1

                 o            

       415,400               410,428

    (415,400)         (5,344,224)

 

                                                                                                                                                                  31st                                                                                                                                                                   31st

D

11	Inventory
	Materials	7,909,301	6,888,277
	Publications	1,604,802	1,715A55

                Provision for slow moving & damaged stock             

12 Other receivables

Payment in advance- Printing Materials (note 13a)

Payment in advance- White Paper Rolls (note 13b)

13a Payment in advance- Printing Materials

The Corporation entered in to a contract with Procurevis International (UK) Ltd in 2016 to procure printing materials. The corporation paid 75% of the invoice in advance but the supplier defaulted in supplying the materials as per contract terms and conditions. Management terminated the contract after consultation and approval of the board of directors. Legal action has been initiated by the Corporation ^ts solicitor to recover the amount. The supplier provided collateral in the form of landed property with title documents deposited with the Corporation. Management is confident that the market value of the collateral is in excess of the advance paid.

13b Payment in advance- White Paper Rolls

The Corporation entered into a contract to procure 100 metric tons of white paper roll 70/80gsm from Penta International Trading Limited based in Turkey in September 2019. An advance payment of D5,731,920 was made in accordance with the contract terms and conditions. However, these consigment of papers were not delivered by the supplier as at the end of the financial year.

	27,114,357            20,291,886
Write off	(284,015)
Provision for doubtful debts	(1,687,282)            (1,687,282)        25,427,075

14 Trade Receivables

Trade receivables	26,327,374	19,351,825
Staff debtors	786,983	940,061

The provision relates largely to non-government jobs that were outstanding for over 3 years and continues to be a challenge in recovering them. We did not provided for most of the Government related debts because we are confident that these debts will eventually be paid to the Corporation. Management is enagaging the Government to ensure that these debts are recovered in the near future.

The write off relates to cancelled jobs relating to prior periods of which revenue was recognised.

IS Cash and cash equivalents

Bank balances Undeposited fund Cash in hand

Bank overdrafts

                 Cash and cash equivalents in the                                    (4,398,637)                                                                                            (2,700,242)

                     Statement of cash flows                                           

16. Share capital

The total authorised number of ordinary shares at year end  (2019: 10,000,000) with a par value of DI per share (2019; D 1 per share).

All issued shares are fuliy paid.

17. Revaluation reserve

Cityscape Associate, an independent appraiser, valued the Mamadi Manjang complex and MDI Road Annex land, buildings, plant and machinery and other equipment as of October 2011. Their revaluation was based on the observed asset conditions and asset replacement cost by reference to market evidence of recent transactions for similar properties and replacement cost estimation methodologies. Replacement cost estimates are based on estimated cost of Equivalent Assets (EA) and estimating the residual asset value from the EA cost, useful life and age of existing assets (Depreciated Replacement Cost Methodology).

		31st December	315t December
		2020	2019
18	Total Loans
	Purchase of Exercise Book Printing Machine- Agib loan	14,558,535	11,526,734
	Paper for Exercise Book Printing Machine- Sky bank loan	4,900,956	13,571,428
	Short Term Bank Facility		2,927,441

                                                                                                                                                     19,459,491                                                                                                                       28,025,603

Maturity Profile Maturity
Profile	Up to I year	between 2 and 5	Over
2020 Loans		years       D	5years	D	Total
Purchase of Exercise Book Printing Machine- Agib loan	4,824,631	9,733,904			14,558,535

Paper for Exercise Book Printing Machine- Sky bank loan 3,882,416 Short Term Bank Facility

Maturity Profile Maturity
Profile		Up to 1 year	between 2 and 5		Over
2019 Loans			years       D		5years	D	Total
Purchase of Exercise Book Printing Machine- Agib loan Paper for Exercise Book Printing Machine- Sky bank loan		6,073,415	5,453,319				11,526,734 13,571,429
Short Term Bank Facility		2,927,441					2,927
	17,572,285			10,453,319				28,025,604

Purchase of Exercise Book Printing Machine

The corporation obtained a bank loan of  in 16th October,2018 to finance the acquisition of an exercise book printing machine, The loan has a tenor of 3 years with a fixed interest rate of 15% The corporation's land and buildings has been pledged as security for the loan.

Purchase of Paper and Cover Machine for Exercise Book Printing Machine

The corporation obtained a bank loan of D15,000J000 in 19^th July,2019 for the purpose of financing the purchase of a Paper and Cover Machine for the Exercise Book Printing Machine. The tenor of the loan is 2 years with a fixed interest rate of 17.5%. The Machine financed has been offered as a security for loan.

19. Trade and Other payables

Creditors/ Payables        21,122,388 Payroll Liabilities 7,227,857

         Gratituty                                                                                                          53,292

Payroll Liabilities
Staff Income Tax	688,826	618,540
SSHFC	4,617,506	3,320,383
Staff Welfare Fund	503,995	400,152
Teachers' Union Dues	43,350	12,800
Credit Union Dues	882,819	510,934
Kombo Real Estate	357,361	349,819
sas PROPERTY	134,000 7,227,857	73,000

28,403,537

            Printing and                  Corporation

Statements yearended

                                                                                                                                                                    31^st                                                                                                                                                                                                                                                                                                                                              3f

20. Vaiue Added Tax

 

23,400

18,428,905

15,928,821

Balance at the beginning of the year

Adjustment on VAT after system reconciliation

Balance B/F from year 2018

VAT Payable for the year

Adjustment on VAT after system reconciliation

< >Capital commitmentsAuthorised by the board and contracted for

 

                    Authorised by the board and not contracted for  

22 Contingencies

There were no contingent liabilities at the end of the year. (2018: Nii).

23 Related Party Transactions

                     (a)              Related companies

The corporation is a government entity and therefore has direct relationship with all government related entities. The following are the transaction with those entities:

Employer's Social Security Contribution	1,947,249	1,988,924
Water & Electricity	848,796	1,564,649
Gambia revenue Authority	625,911	625,911
Sale of goods and services to related companies	3,421,956	4,179,484

Purchase of goods and services from related companies

 

28,238,408

                     Government                                                                                                          29,569,445

Area Councils

Parastatal

Receivables
Government	17,412,316	9,399,507
Area Councils	994,995	714,602
Parastatal	2,404,924	4,106,515

20,812,235	14,220,625
688,826 4,617,506 882,819 23,849,857	618,540 3,320,383 310,934 18,428,905
30,039,009

Payables

Staff income Tax

SSHFC

Credit Union Dues

VAT

Corporation tax