Cocoa Processing : 2021 & 2022 Annual Reports

FINANCIAL AND OPERATIONAL

HIGHLIGHTS

	2022	2021
FINANCIALS	US $	US $
Turnover	43,489,657	41,835,142
Operating Loss	(7,211,830)	(9,819,429)
Loss before Tax	(12,945,825)	(15,169,927)
Loss for the year	(12,058,964)	(15,088,714)
Total Assets	140,964,348	160,034,555
Net asset per share	0.0109	(0.0243)
No of shares ranking for
dividend	2,038,074,176	2,038,074,176
Earnings per share	(0.0059)	(0.0074)

	2022	2021
OPERATIONS	MT	MT
CPC Beans	13,097	13,495
% of Throughput	20%	21%

Semi Finished Products Packed

10,908

11,296

Confectionery Products Packed

2,181

2,183

COCOA PROCESSING COMPANY PLC

ANNUAL REPORTS AND FINANCIAL STATEMENTS

30 SEPTEMBER 2021

COCOA PROCESSING COMPANY PLC

ANNUAL REPORTS AND FINANCIAL STATEMENTS 30 SEPTEMBER 2021

CONTENTS	P A G E
Corporate Information	1
Report of the Directors	2 - 7
Independent Auditor's Report	8 - 11
Statement of Financial Position	12
Statement of Profit or Loss and other Comprehensive Income	13
Statement of Changes in Equity	14 - 15
Statement of Cash Flows	16
Notes to the Financial Statements	17 - 57

COCOA PROCESSING COMPANY PLC

CORPORATE

INFORMATION 30

SEPTEMBER 2021

BOARD OF DIRECTORS	Kwaku Owusu Baah	Chairman
	Nana Agyenim Boateng	Managing Director
	Hon. Ben Abdullah Banda	Member
	Philomena Okyere (Mrs)	Member
	Emmanuel Ray Ankrah (Mr)	Member
	J oe Forson (Mr)	Member- resigned, 30
		December 2021
	Douglas Boateng (Prof)	Member
	Abdul Samed-Adams (Mr)	Member
	Vincent Okyere Akomeah	Member - appointed,18
		December 2020
REGISTERED OFFICE	Cocoa Processing Company Plc
	Heavy Industrial Area
	Private Mail Bag Tema
SOLICITORS	A. Ossei-Aidooh & Co
	1st Floor, Design House, Community 2
	P. O. Box CE 11295
	Tema
	Apex Lawconsult
	1st Floor, Oburdum Fie, Labone
	P. O. Box GP 4889
	Accra
COMPANY SECRETARY	Sheila Minkah-Premo
	Apex Lawconsult
	1st Floor, Oburdum Fie, Labone
	P. O. Box GP 4889
	Accra
AUDITOR	Ernst & Young
	Chartered Accountants
	60 Rangoon Lane
	Cantonments City Accra
	Ghana

BANKERS

REGISTRAR

Absa Bank Ghana Limited ADB Bank Limited Bank of Ghana Ecobank Ghana Limited GCB Bank Limited

Prudential Bank Limited

Societe Generale Ghana Limited United Bank for Africa (Ghana) Limited

NTHC Limited

Martco House

P. O. Box 9563

Airport, Accra

1

COCOA PROCESSING COMPANY PLC

ANNUAL REPORTS AND FINANCIAL

STATEMENTS

REPORT OF THE DIRECTORS

TO THE MEMBERS OF

COCOA PROCESSING COMPANY PLC

The Directors present their report and the financial statements of the Company for the year ended 30 September 2021.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors are responsible for the preparation of financial statements that give a true and fair view of Cocoa Processing Company Plc, comprising the statements of financial position at 30 September 2021, and the statements of comprehensive income, changes in equity and cash flows for the year ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 2019 (Act 992). In addition, the Directors are responsible for the preparation of the report of the Directors.

The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management.

The Auditor is responsible for reporting on whether the financial statements give a true and fair view in accordance with the applicable financial reporting framework.

GOING CONCERN CONSIDERATION AND STATE OF AFFAIRS OF THE COMPANY

The Company incurred a loss of US$15.09m (2020: US$18.6 m) for the year ended 30 September 2021, and as of

that date its current liabilities exceeded its current assets by US$113m (2020: US$108.82m). In addition, total

liabilities exceeded its total assets by US$49.59m (2020: S$38.2m).

A substantial part of the Company's liabilities is due to the majority shareholder, Ghana Cocoa Board (COCOBOD), a syndicate of banks led by Absa and Prudential Bank US$43.6m, US$24.8m and US$4.51m respectively. During the year, the Company defaulted on both the principal and interest repayment to respective banks and COCOBOD.

The Company's loss-making position is significantly driven by unavailability of cocoa beans to process due to insufficient cashflow during the year.

The Directors have been in discussions with Africa Export-Import Bank (Afreximbank) to obtain a US$86.7m loan facility. Management plans to use this loan to settle amounts due to the syndicate of banks, support its working capital requirements and retool its property, plant, and equipment to expand production capacity. Management expects the agreement to be signed by December 2023 and the first tranche disbursed by J anuary 2024. The ability of the Company to return to profitability and also settle the liabilities due within twelve months is dependent of the Afreximbank loan. At the date of this report, discussions with Afreximbank have not yet been finalised.

The above conditions indicate the existence of a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern and therefore, may be unable to realize its assets and discharge its liabilities in the normal course of business.

COCOBOD as at 30 September 2022 has converted loan of US$32m and trade accounts payable of US$55 to deposit for shares pending finalisation of a legal requirement to recognise it as stated capital.

2