Investor Presentaiton
ANNUAL REPORT 2020
78
Notes to the Financial Statements
For the year ended 31 December 2020
(aii)
The result on disposal of Property, Plant and Equipment is as follows:
In thousands of naira
2019
Cost
NBV at Disposal
Sales Proceeds
Profit/(Loss) on Diposal
Furniture,
Buildings
Plant and
Machinery
Motor
Vehicles
Fittings and
Tools
Total
271,012
9,282
280,294
9,338
8,480
19,223
8,719
17,818
27,942
9,885
239
10,124
(e)
Assets Held on Finance Lease
Included as part of property, plant and equipment is land held under finance lease arrangements for a minimum
lease term of 99 years. The lease amounts were fully paid at the inception of the lease. The carrying amount of the
leasehold land at the end of the year is presented below:
In thousands of naira
2020
2019
Cost
Accumulated depreciation
Carrying amount
3,757,967
(594,153)
3,163,814
1,607,967
(528,640)
1,079,327
The classification of the lease of land as a finance lease is on the basis that the lease transfers substantially all of the risks
and rewards of ownership incidental to ownership of the land to the Company. The increase in the value of the land is due
to the acquisition of Nutricima Limited's dairy business.
Right of Use Asset
The movement in right of use asset for the year was as follows:
57,265
40,614
51,835
279,420
14,044
(40,614)
34,567
34,567
(14,044)
388,521
54,658
34,567
(20,091)
13
2020
Cost
NBV at Disposal
Sales Proceeds
Profit/(Loss) on Diposal
(b) Property, Plant and Equipment Under Construction
Expenditure on property, plant and equipment under construction during the year is analysed as follows:
In thousands of naira
Buildings
Plant and machinery
Others
In thousands of naira
Cost
Warehouse
Land
Total
244,566
244,566
891,454
891,454
1,136,020
1,136,020
Balance at 1 January 2020
2020
2019
Additions
Balance at 31 December 2020
757,819
5,355,570
1,051,592
7,164,981
9,464
8,970,495
669,858
9,649,817
Depreciation and impairment losses
Balance at 1 January 2020
Depreciation for the year
17,827
17,827
At year end, the Company had various ongoing capital projects which included, upgrade of Ikorodu Plant, End of
Line for Powder Plant, IPP project, Dairy Development Programme, plant & building upgrades and expansion of
factory capacity. The projects are expected to be completed in 2021.
No borrowing costs were capitalised in the current year as the assets were not funded through interest bearing
borrowings (2019: Nil).
(c)
Capital Commitments
The approved capital expenditure already committed as at reporting date was #1.4 billion (2019: #1.6 billion).
Capital expenditure approved not contracted amounted to Nil (2019: Nil). Capital expenditure will be funded from
the Company's internal resources.
(d)
There was no property, plant and equipment that was pledged as security for borrowings at year-end
(2019: Nil).
Balance at 31 December 2020
Carrying amounts
At 1 January 2020
At 31 December 2020
226,739
891,454
17,827
17,827
1,118,193
Right of use asset includes #891million which is as a result of the accounting for lease of Bobi grazing reserve in
Niger State (Refer to note 25).
FrieslandCampina WAMCO Nigeria PLC
FrieslandCampina WAMCO Nigeria PLC
79View entire presentation