ETranzact International : E-TRANZACT INTERNATIONAL PLC- QUARTER 1 - FINANCIAL STATEMENT FOR 2024

eTRANZACT INTERNATIONAL PLC

UNAUDITED FINANCIAL STATEMENTS

FOR THE FIRST QUARTER ENDED 31ST MARCH 2024

eTRANZACT INTERNATIONAL PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FIRST QUARTER ENDED 31ST MARCH 2024

	Unaudited	Unaudited
	3/31/2024	3/31/2023
	N'000	N'000
Continuing operations
Revenue	7,045,872	10,288,245
Cost of sales	(5,057,979)	(8,730,251)
Gross profit	1,987,893	1,557,994
Selling and Marketing costs	(63,579)	(62,469)
Administrative expenses	(1,218,250)	(835,521)
Operating profit	706,063	660,004
Other Income	-	-
Finance Cost	(5,436)	(6,620)
Investment income	53,866	49,467
Profit before tax	754,494	702,851
Taxation	(226,348)	(196,238)
Profit for the period	528,146	506,613

There is no other comprehensive income for the period, hence the profit for the period is equal to the total comprehensive income.

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eTRANZACT INTERNATIONAL PLC

STATEMENT OF FINANCIAL POSITION AS AT 31ST MARCH 2024
		Unaudited	Audited
		3/31/2024	12/31/2023
	Note	N'000	N'000
Non-current assets
Property, plant and equipment	1	1,453,198	1,483,676
Investment property	2	136,810	136,810
Intangible assets	3	43,519	51,637
Deposit for shares		456,755	456,755
Total non-current assets		2,090,283	2,128,878
Current assets
Inventories	6	1,909,903	2,296,714
Trade and other receivables	7	439,364	480,328
Other assets	5	3,754,119	3,601,352
Cash and cash equivalents	8	15,587,333	19,697,267
Total current assets		21,690,720	26,075,660
Total assets		23,781,003	28,204,538
Non-Current liabilities
Deferred Grant Income	10	73,344	73,344
Long term Loan	10	253,154	272,977
		326,498	346,321
Current liabilities
Trade and other payables	9	10,219,076	15,267,254
Current tax liabilities	11	1,229,666	1,113,347
Total current liabilities		11,448,742	16,380,600
Total liabilities		11,775,240	16,726,920
Equity
Share capital	12	4,600,000	4,600,000
Share premium account	13	7,374,272	7,374,272
Retained earnings	15	31,492	(496,654)
Total equity attributable to owners of the company	12,005,763	11,477,618
Total equity and Liabilities		23,781,003	28,204,538

The financial statements was approved by the Board of Directors on April 29, 2024 and signed on its behalf by:

…………………………	……………………………..
Mr Niyi Toluwalope	Mr Emmanuel Ogunji
Chief Executive Officer	Chief Financial Officer
FRC/2013/PRO/ICAN/002/00000002251	FRC/2014/PRO/ICAN/001/00000007266

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eTRANZACT INTERNATIONAL PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE FIRST QUARTER ENDED 31ST MARCH 2024

		Share	Convertible	Retained
	Share capital	premium	Debenture	earnings	Total
	N'000	N'000	N'000	N'000	N'000
Balance at 1 January 2023	4,600,000	7,374,272	-	(2,698,444)	9,275,828
Profit for the year	-	-	-	2,201,790	2,201,790
Other comprehensive income	-	-	-	-	-
Total comprehensive income	-	-	-	2,201,790	2,201,790
Balance at 31 December 2023	4,600,000	7,374,272	-	(496,654)	11,477,618
Balance at 1 January 2024	4,600,000	7,374,272	-	(496,654)	11,477,618
Profit for the period	-	-	-	528,146	528,146
Other comprehensive income for the period	-	-	-	-	-
Total comprehensive income	-	-	-	528,146	528,146
Balance at 31 March 2024	4,600,000	7,374,272	-	31,492	12,005,764

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eTRANZACT INTERNATIONAL PLC

CASHFLOW STATEMENT FOR THE FIRST QUARTER ENDED 31ST MARCH 2024

Cashflow from operating activities

Cash receipt from customers

Cash paid to suppliers and employees

Cash generated from operations

Income taxes paid

Net cash used in operating activities

Cashflow from investing activities Purchase of property, plant and equipment Additions to intangible assets

Interest received and similar income Interest on Loan

Proceeds from sale of Investment Property Proceeds from sale of Property, plant and equipment

Net cash used in investing activities

Cashflow from financing activities Net Proceeds from Debenture Issue Issue Cost

Conversion cost of debenture to ordinary shares Repayment of Loan Principal

Repayment of Interest on Loan Loan obtained

Net cash generated by financing activities

Net increase in cash and cash equivalents Effects of exchange rate on year end bank balances Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of the period

	3/31/2024	12/31/2023
Note	N'000	N'000
	7,045,872	33,689,480
	(10,964,388)	(24,037,803)
	(3,918,516)	9,651,677
11	(110,028)	(423,723)
	(4,028,544)	9,227,954
1	(104,562)	(996,839)
3	-	-
	53,866	94,060
	(5,436)	(38,416)
	-	-
	-	4,312
	(56,132)	(936,883)
	-	-
	-	-
	-	-
	(17,857)	(71,429)
	(7,401)	(31,513)
10	-	-
	(25,258)	(102,942)
	(4,109,934)	8,188,129
	-	6,161
	19,697,267	11,502,977
8	15,587,333	19,697,267

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eTRANZACT INTERNATIONAL PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FIRST QUARTER ENDED 31ST MARCH 2024

1.0 Property, plant and equipment
			Furnitures,
		Plant &	Fittings and	Computer	Work In
	Motor Vehicle	machinery	Equipment	Equipment	Progress	TOTAL
	N000	N000	N000	N000	N000	N000
Cost or Valuation
As at January 1, 2024	1,177,164	85,904	1,926,597	570,344	-	3,760,009
Additions	-	-	34,711	69,851	-	104,562
Reclassifications	-	-	-	-	-	-
Disposals	-	-	-	-	-	-
As at 31 March, 2024	1,177,164	85,904	1,961,308	640,195	-	3,864,571
Accumulated depreciation and impairment
As at 1 January	611,304	73,573	1,213,363	378,095	-	2,276,334
Adjustments
Charge for the period	43,823	1,052	57,414	32,749		135,038
Disposals	-	-	-	-		-
As at 31 March, 2024	655,127	74,624	1,270,776	410,844	-	2,411,373
Carrying amount
As at January 1, 2024	565,861	12,332	713,234	192,249	-	1,483,676
As at 31 March, 2024	522,038	11,280	690,532	229,351	-	1,453,198
1.1 Impairment losses recognised in the Period

There were no impairment losses recognized during the period.

1.2 Contractual commitments

At March 31, 2024 the company had no contractual commitments for the acquisition of property, plant and equipment

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eTRANZACT INTERNATIONAL PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FIRST QUARTER ENDED 31ST MARCH 2024
2 Investment property
	3/31/2024	31/12/2023
	N'000	N'000
Cost
Land	136,810	136,810
	3/31/2024	31/12/2023
	N'000	N'000
Balance at the beginning of the year	136,810	136,810
Disposal	-	-
Impairment loss	-	-
Balance at the period end	136,810	136,810

The company's investment property is held under freehold interests.

Investment property is recognized at cost in the books and subsequently tested for impairments.

As at March 31, 2024 the fair value of the investment property has been estimated as N258m (2023: N258m). The fair value has been determined by the management of the company by reference to market evidence of transaction prices for similar properties in comparable areas.

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eTRANZACT INTERNATIONAL PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FIRST QUARTER ENDED 31ST MARCH 2024

3.0 Intangible assets

This represents the cost incurred in acquiring e-portal and other technologies which form the basis of the Company's e-payment Technology solutions.

	eTranzact
	enterprise	eRemit	Other
	platform	platform	Softwares	TOTAL
	N'000	N'000	N'000	N'000
Cost
At 1 January 2024	293,510	105,858	303,949	703,317
Additions	-	-	-	-
Reclassification	-	-	-	-
As at 31 March, 2024	293,510	105,858	303,949	703,317
Amortisation
At 1 January 2024	277,604	80,754	293,323	651,680
Adjustments				-
Charge for the year	2,935	1,059	4,124	8,118
As at 31 March, 2024	280,539	81,813	297,447	659,799
Carrying amount
At 1 January 2024	15,906	25,104	10,626	51,637
As at 31 March, 2024	12,971	24,045	6,502	43,519

3.1 Significant intangible assets

In line with the IFRS reporting and disclosure standards, management has reviewed in detail the intangible assets and is of the opinion that the useful life of the Enterprise software platform and eRemit platform should be 25 years from its original implementation and this has been adjusted accordingly from the year 2012. The carrying amounts of eTranzact enterprise softwares will be fully amortised in 18 years from 2012, the eRemit platform carrying amount will be fully amortised in 22 years and 4 months.

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eTRANZACT INTERNATIONAL PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FIRST QUARTER ENDED 31ST MARCH 2024

4.0 Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

	3/31/2024	12/31/2023
	N'000	N'000
At 1 January	-	-
Charged to profit or loss	-	-
Charged to other comprehensive income	-	-
Charged directly to equity	-	-
Reclassification from equity to profit or loss	-	-
Acquisitions/disposals	-	-
Others (describe)	-	-
As at 31 March, 2024	-	-

	3/31/2024	12/31/2023
	N'000	N'000
Deferred tax assets	-	-
Deferred tax liabilities	-	-
	-	-
5.0 Other assets
	3/31/2024	12/31/2023
	N'000	N'000
Prepayments	359,103	248,583
Advance payments	3,395,016	3,352,768
Other assets (Note 5.1)	84,259	84,259
Fraud assets (Note 5.2)	3,821,102	3,821,102
	7,659,480	7,506,712
Allowance for other assets	(84,259)	(84,259)
Allowance for fraud assets	(3,821,102)	(3,821,102)
	3,754,119	3,601,352

1. Other assets
   Other assets balance represents amounts recoverable from the banks on unauthorized withdrawals on the reloadable customers float account in various banks, which were initially refunded by etranzact pending the outcome of investigations into the cases.
2. Fraud assets
   Fraud assets relates to the balance of the total value of assets that is expected to be recovered from Smart Micro Systems Limited as settlement of the liability to First Bank of Nigeria for fraudulent transactions. The balance of 3.82 billion is highly unlikely to be recovered from Smart Micro Systems Limited, hence the full provision for the fraud asset.

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	eTRANZACT INTERNATIONAL PLC
	NOTES TO THE FINANCIAL STATEMENTS
	FOR THE FIRST QUARTER ENDED 31ST MARCH 2024
6.0	Inventories
		3/31/2024	31/12/2023
		N'000	N'000
	Airtime Pins	1,813,980	2,173,384
	Utility Stock	95,923	123,330
	Point of Sales (POS)	-	-
	EMV - (Note 6.1)	-	-
	Bulk SMS	-	-
		1,909,903	2,296,714
	Provision for obsolete spares and slow moving stock	-	-
		1,909,903	2,296,714
6.1	EMV Cards
		N'000	N'000
	EMV in Store	-	-
	Stocks in transit	-	-
		-	-

7.0 Trade and other receivables

	3/31/2024	31/12/2023
	N'000	N'000
Trade receivables	578,369	578,369
Allowance for doubtful debts	(466,372)	(466,372)
	111,997	111,997
Other receivables
Staff debtors (Note 7.1)	174,961	158,312
Other debtors	152,406	210,019
	439,364	480,328

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

7.1	Staff debtors	3/31/2024	31/12/2023
		N'000	N'000
	Staff debtors	232,690	216,041
	Allowance for staff debtors	(57,729)	(57,729)
		174,961	158,312
8	Cash and Bank
		3/31/2024	31/12/2023
		N'000	N'000
	Cash and bank balances	3,658,669	2,604,720
	Restricted Cash	9,892,492	15,104,855
	Short term investments	2,036,172	1,987,692
		15,587,333	19,697,267

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