SOLVENT PARTNERS LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

BOARD OF DIRECTORS, OFFICERS, ETC

DIRECTORS: Mr. Adeyemo Adekunle - Chairman/ CEO

Mr. Adebayo Oluwadamilola - Director

OPERATING OFFICE: 41, Fatai Arobieke, Lekki Phase 1, Lagos Nogeria.

INCORPORATION NO: RC: 1610587

AUDITORS: Olalekan Fatolu & Co.

Chartered Accountants
99, Joju Road,
Abeokuta-Lagos Expressway.
Ogun State

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 SOLVENT PARTNERS LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

STATEMENT OF DIRECTORS’ RESPONSIBILITY

Responsibility for Annual Financial Statements

The Companies and Allied Matters Act and the Banks and other Financial Institutions Act,
require the directors to prepare nancial statements for each nancial year that gives a true
and fair view of the state of nancial affairs of the Company at the end of the year and of its
prots or loss. The responsibilities include ensuring that the company;

i. Keeps proper accounting records that disclose, with reasonable accuracy, the
nancial position of the Company and comply with the requirements of the
Companies and Allied Matters Act 2004.

ii. Establishes adequate internal controls to safeguard its assets and to prevent and
detect fraud and other irregularities; and

iii. Prepares its nancial statements using suitable accounting policies supported by
reasonable and prudent judgments and estimates that are consistently applied.

The Directors accept responsibility for the annual nancial statements which have been
prepared using appropriate accounting policies supported by reasonable and prudent
judgments and estimates, in conformity with,

- International Financial Reporting Standards

- The requirement of the Companies and Allied Matters Act 2004
- SEC rules and guidelines; and
- Financial Reporting Council Act

The directors are of the opinion that the nancial statements give a true and fair view of the
states of the nancial affairs of the company and of the prot for the year. The directors further
accept responsibility for the maintenance of accounting records that may be relied upon in
the preparation of nancial statements, as well as adequate systems of internal nancial
control.

………………………… ………………………
Director Director

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 SOLVENT PARTNERS LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

1. DIRECTORS’REPORT
The Directors have pleasure in submitting this report together with the audited
nancial statements for the year ended 31st December 2022.

2. PRINCIPAL ACTIVITIES
The company's principal activity during the nancial year is to trading in Federal
government and State Securities which include bonds and Treasury bills. The
company commenced operations on

3. RESULTS FOR THE YEAR

2022 2021
N’000 N’000

Gross Earnings 126,236 114,760

Prot or (Loss) before Taxation (201) (4,301)

Taxation (2,512) (2000)

--------------- ---------------
Prot or (Loss) after Taxation (2,713) (6,300)

4. PROPERTY, PLANT & EQUIPMENT Information

relating to Property, Plant & nancial Equipment is contained in note 5 to the
statements.

5. DIVIDEND
The directors do not recommend the payment of dividend for the year ended 31st
December 2022.

6. DIRECTORS AND THEIR INTERESTS

The directors who held ofce during the period, together with their direct and indirect
interests in the issued share capital of the company as recorded in the Register of
Director’s shareholding and/or as notied by the Directors for the purposes of sections
275 and 276 of the Companies and Allied Matters Act is noted below:

NAMES Direct Holding Direct Holding

December 2022 December 2021
Mr. Adeyemo Adekunle 49,999,999 49,999,999
Mr. Adebayo Oluwadamilola 11 1 1

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SOLVENT PARTNERS LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

7. DIRECTORS’ INTEREST IN CONTRACTS

No director has disclosed any declarable interest in any contract with the company
during the year in pursuant of section 277 of the Companies and Allied matters Act,
2004.

8. POST BALANCE SHEET EVENTS

(a) There are no signicant developments since the end of the accounting year.
(b) There has been no material post balance sheet event to date.

9. DONATIONS
The company did not make any donation to any political party or organisation.

10. PERSONNEL

(a) Employment of Disabled Persons

It is the policy of the company not to discriminate in considering applications
for employment including those from disabled persons. However the company
has no disabled persons in its employment.

(b) Staff Relationship

The company maintains a cordial relationship with its staff.

(c) Health, Safety and Welfare of Employees

Health and safety regulations are in force within the company for the benet
of all employees. In addition the company has made arrangement with private
hospitals and clinics for the treatment of employees.

11. AUDITORS
In accordance with section 357(2) of the Companies and Allied Matters Act, 2004
Messrs Olalekan Fatolu & Co., have indicated their willingness to continue in ofce as
the company’s auditors. A resolution will be proposed at the annual general meeting
authorizing the Directors to determine their remuneration.

By Order of the Board

Company Secretary

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SOLVENT PARTNERS LIMITED
STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2022.

December
December 31,
31,
2022 2021
Assets Notes N'000 N'000
Cash and Cash Equivalents 3 350,191 23,481
Financial Asset Held for Trading 4 1,292,847 340,357
Property and Equipment 5 42,100 62,400
Intangible Assets 6 - -
Other Assets 7 - -
Total assets 1,685,138 426,238
Liabilities
Other Liabilities 8 - 257,614
Tax Payable - -
Deferred Taxation 9 - -
Total liabilities - 257,614
Equity
Ordinary Share Capital 10 50,000 50,000
Deposit for Shares 1,650,452 124,993
Retained Earnings/(Accum. Losses) (15,314) (6,369)
Total Equity 1,685,138 168,624
Total Liabilities and Equity 1,685,138 426,238

The notes on pages 10 to 28 form an integral part of the nancial statements. The nancial statements
were approved by the Board of Directors on January 06, 2022 and signed on its behalf by:

………………………………………………………… ……………………………………………………………..
Director Director
Mr. Adeyemo Adekunle Mr Adebayo Oluwadamilola

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SOLVENT PARTNERS LIMITED

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED
31ST DECEMBER, 2022

Notes Dec. 31, Dec. 31,

2022 2021
N'000 N'000
Earnings 11 126,236 114,760
Earnings Expense - -
Net Earnings 126,236 114,760
Other Operating Income 11
- -
Interest Income 12 - -
Interest Expense - -
Net interest Income - -
Operating Income 126,236 114,760
Allowance and Impairment Loss - -
Personnel Expenses 13 (54,000) (51,679)
Other Operating Expenses 14 (72,437) (67,382)
Prot Before Income Tax (201) (4,301)
Income Tax Expense (2,512) (2,000)
Prot for the year (2,713) (6,300)
Other Comprehensive Income for the
17
period net of Income Tax
- -
Total Comprehensive Income after Tax (2,713) (6,300)

The notes on pages 10 to 28 form an integral part of the nancial statements.

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 SOLVENT PARTNERS LIMITED
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST DECEMBER, 2022

Share Share Retained Statutory Other

Capital Premium Earnings Reserve Reserve Total
N'000 N'000 N'000 N'000 N'000 N'000
Balance at 1st January 2021 50,000 - (6,300) - - 43,700
Adjustment to Retained Earnings -
Prot or Loss for the year - - (6,300) - - (6,300)
Other Comprehensive Income/(Loss) - - - -
Total comprehensive income - - - -
Issue of New Shares - - - - -
Share Issue Expenses - - - - - -
Dividend Paid - - - - - -
Transfer from Retained Earnings - - - - - -
Transfer between Reserves - - - - - -

At 31st December 2021 50,000 - (12,601) - - 37,399

Adjustment to Retained Earnings -

Prot or (Loss) for the year - - (2,713) - - (2,713)
Other Comprehensive Income/(Loss) - - - -
Total Comprehensive Income - - - -
Issue of New Shares - - - - -
Share Issue Expenses - - - - - -
Dividend Paid - - - - - -
Transfer from Retained Earnings - - - - - -
Transfer between Reserves - - - - - -

At 31st December 2022 50,000 - (15,314) - - 34,686

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SOLVENT PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR
`` THE YEAR ENDED 31ST DECEMBER 2022

1. Reporting Entity
Solvent Partners Capital Limited is a private limited liability company registered in
Nigeria on 1st September, 2019.

The company's principal activity is to trade in Federal and State government’s

nancial instruments.

Authorisation for issue

The nancial statements include the assets and liabilities of the Company and were
authorized for issue by the directors on January 20, 2022.

2. Summary of signicant accounting policies

The principal accounting policies applied in the preparation of these nancial
statements are set out below. These policies have been consistently applied to all the
years presented, unless otherwise stated.

2.1.1 Basis of Preparation

These nancial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the IASB.
The nancial statements have been prepared in accordance with the going
concern principle.

2.1.2 Basis of Measurement

Financial assets and nancial liabilities are stated on a fair value basis of measurement.
Properties, Plants and Equipment are stated at the fair value of the consideration given
at the time of acquisition. Employee benets are recognised on a present value basis.
All other assets, liabilities and provisions are initially measured at historical cost and
reported based on their recoverable or settlement amount.
Financial instruments are measured at fair value through prot or loss accounts.

2.1.3 Functional and Presentation Currency

These nancial statements are presented in Nigerian Naira which is the Company’s
functional currency. Except otherwise indicated, nancial information presented in
Nigerian Naira has been rounded to the nearest thousand.

2.1.4 Use of Estimates and Ju d g m e n ts

The preparation of the nancial statements in conformity with IFRSs requires
management to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.

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`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

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Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to
accounting estimates are recognised in the period in which the estimates is revised
and in any future periods affected.
Judgments made in the application of IFRS that could have a signicant effect on the
nancial statements and estimates with a risk of adjustment in future are as follows:
Recovery of deferred tax assets - deferred tax assets are recognised for deductible
temporary differences as management considers that it is probable that future
taxable prots will be available to utilise those temporary differences.

Estimation of economic life of Property, Plant and Equipment

Impairment - the company assesses impairment of all receivables at reporting date by

evaluating any issue particular to an asset that may lead to impairment. In the opinion
of Directors, no impairment exists beyond that provided at 31st December 2022.

2.2 Intangible Assets

2.2.1 Internally Generated Intangible Assets - Computer Software Development Costs
Expenditure on research activities is recognised as an expense in the period in which
it is incurred. An internally-generated intangible asset arising from the company’s
computer software program development is recognised only if all of the following
conditions are met:
An asset is created that can be identied;
It is probable that the asset created will generate future economic benets; and
The development cost of the asset can be measured reliably.
Internally-generated intangible assets are amortised on a straight-line basis over their
useful lives. Where no internally-generated intangible asset can be recognised,
development expenditure is recognised as an expense in the period in which it is
incurred.

After initial recognition, intangible assets are carried at cost less accumulated
amortisation and accumulated impairment losses.
The amortisation period, amortisation method and residual value is reviewed at each
nancial year end. The residual value of intangible assets is assumed to be zero.

2.2.2 Purchased Computer Software

Intangible assets are measured initially at cost and are amortised on a straight-line
basis over their useful lives.
After initial recognition, intangible assets are carried at cost less accumulated
amortisation and accumulated impairment losses. The average amortisation period is
as follows:

Computer software: 4 years.

The residual value of intangible assets is assumed to be zero.
An asset’s carrying amount is written down to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.

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`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

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2.3 Property, Plant and Equipment
Property, Plant and Equipment and other tangible assets are stated at historical cost
less accumulated depreciation and accumulated impairment losses. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic benets
associated with the item will ow to the company and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to the prot or loss
during the nancial period in which they are incurred.

Depreciation is recognised so as to write-off the cost or valuation of assets less their

residual values over their useful lives, using the straight line method. The estimated
useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a
prospective basis.

The average useful lives are as follows:

Motor Vehicles: 25 % (4 years)
Ofce Equipment: 10 % (10 years)
Furniture and Fittings: 10 % (10 years)
Computer Equipment 25 % (4 years)

Each part of an item of ofce equipment, furniture and other tangible assets with a
cost that is signicant in relation to the total cost of the item is depreciated separately.

The asset’s residual values, useful lives and depreciation method are reviewed on an
annual basis, and are adjusted if appropriate.
An asset’s carrying amount is written down to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the
carrying amount. These are included in the prot or loss account.

2.4 Share Capital

(i) Ordinary Shares
Ordinary shares are classied as equity and are recorded at the proceeds received
net of incremental external costs directly attributable to the issue.
(ii) Preference Shares
Preference share capital is classied as equity if it is non-redeemable by holders and
bears an entitlement to distributions that is non-cumulative and at the discretion of the
Board of Directors. Accordingly, they are presented as a component of equity
2.5 Employee Benets
2.5.1 Pension Fund Obligations
A dened contribution plan is a pension plan under which the company pays xed
contributions into a separate entity. The company has no legal or constructive
obligations to pay further contributions if the fund does not hold sufcient assets to pay
all employees the benets relating to employee service in the current and prior
periods.

For dened contribution plans, the company pays contributions to an administered

pension plans on a rule basis, however, additional voluntary contributions are allowed.
The company has no further payment obligations once the contributions have been
paid. The contributions are recognised as employee benet expense when they are
due.

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`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

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2.5.2 Short-Term Employee Benets
The cost of short-term employee benets (those payable within 12 months after service
is rendered) such as paid vacation, leave pay, sick leave and bonuses are recognised
in the period in which the service is rendered and is not discounted. The expected cost
of short-term accumulating compensated absences is recognised as an expense as
the employees render service that increases their entitlement or, in the case of non-
accumulating absences, when the absences occur. The expected cost of bonus
payments is recognised as an expense when there is a legal or constructive obligation
to make such payments as a result of past performance.
Provisions for leave pay and bonuses are recognised as a liability in the nancial
statements.

2.5.3 Share-Based Payments

Cash-settled and equity-settled share-based payments could be issued to certain
employees.
For cash-settled share-based payments the liability is initially measured at the fair value
of the options granted to employees and expensed over the vesting period of the
benets. Subsequent measurement is at the fair value of the options, which are valued
annually.

2.6 Taxation
The tax expense represents the sum of the current tax payable and deferred tax.

The current tax payable is based on taxable prot for the year. Taxable prot differs
from net prot as reported in the statement of comprehensive income because it
excludes items of income or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The company’s liability
for current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.

However, all income generated in the current year were from trading in Federal
government bond which are exempted from all form of Taxes. Hence no tax is due for
the nancial year.

Deferred tax is the tax expected to be payable or recoverable on differences

between the carrying amounts of assets and liabilities in the nancial statements and
the corresponding tax bases used in the computation of taxable prot, and is
accounted for using the balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable prots will be available against
which deductible temporary differences can be utilised.

Such assets and liabilities are not recognised if the temporary difference arises from
the initial recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the tax prot nor the accounting prot.
Deferred tax liabilities are recognised for taxable temporary differences arising on
investments in subsidiaries and associates, and interests in joint ventures, except
where the company is able to control the reversal of the temporary difference and it
is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with
such investments and interests are only recognised to the extent that it is probable
that there will be sufcient taxable prots against which to utilise the benets of the
temporary differences and they are expected to reverse in the foreseeable future

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 SOLVENT PARTNERS LIMITED
`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

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The carrying amount of deferred tax assets is reviewed at the end of the reporting
period and reduced to the extent that it is no longer probable that sufcient taxable
prots will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to
apply to the period when the asset is realised or the liability is settled, based on tax
rates and tax laws that have been enacted or substantively enacted by the end of
the reporting period. The measurement of deferred tax liabilities and assets reects the
tax consequences that would follow from the manner in which the company expects,
at the end of the reporting period, to recover or settle the carrying amount of its assets
and liabilities.

Deferred tax is charged or credited to prot or loss for the period, except to the extent
that the tax arises from (1) a transaction or event which is recognised, in the same or
a different period, outside prot or loss, either in other comprehensive income or
directly in equity or (2) a business combination. Deferred tax is charged or credited
outside prot or loss if the tax relates to items that are recognised, in the same or a
different period, outside prot or loss.

2.7 Provisions
Provisions are liabilities of uncertain timing or amount and are recognised when the
company has a present obligation as a result of a past event, and it is probable that
the company will be required to settle that obligation. Provisions are measured at the
Directors’ estimate of the expenditure required to settle that obligation at the end of
each reporting period, and are discounted (at a pre-tax rate that reects current
market assessments of the time value of money and the risks specic to the liability) to
present value where the effect is material.

Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outow will be
required in settlement is determined by considering the class of obligations as a whole.

A provision is recognised even if the likelihood of an outow with respect to any one
item included in the same class of obligations may be small.

2.8. Revenue Recognition

Revenue recognized represents margin earned on trading of Federal government
bonds and Treasury bills

2.8.1 Investment Income

Investment income comprises realised and unrealised gains on investments, interest
income and dividend income.

Interest income is accrued on a time basis, by reference to the principal outstanding

and the effective interest rate applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the nancial asset to
t h a t asset’s net carrying amount.
Dividend income is recognised when the right to receive payment is established.

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`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

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2.9 Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and other short
term, highly liquid Assets, investments that are convertible to a known amount of cash
which are subject to insignicant risk of changes in value, all of which are available for
use by the company unless otherwise stated.

2.10 Leasing
Leases are classied as nance leases whenever the terms of the lease transfers
substantially all the risks and rewards of ownership to the lessee. All other leases are
classied as operating leases.
Rentals payable under operating leases are charged to prot or loss on a straight- line
basis over the term of the lease. Benets received and receivable as an incentive to
enter into an operating lease are also spread on a straight-line basis over the lease
term.

2.11 Foreign Currencies

Foreign currency transactions are translated into the functional currency using the
exchange rates prevailing at the dates of the transactions. The functional currency is
the currency of the primary economic environment in which the entity operates,
which is the Nigeria Naira.

Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at year-end closing exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in prot or loss.

At the end of each reporting period, monetary items denominated in foreign

currencies are retranslated at the rates prevailing at that date. Non-monetary items
carried at fair value that are denominated in foreign currencies are retranslated at
the rates prevailing at the date when the fair value was determined. Non-monetary
items that are measured in terms of historical cost in a foreign currency are not
retranslated.

2.12. Interest Bearing Liabilities

All loans and borrowings are initially recognised at fair value, being the amount
received less attributable transaction costs. After initial recognition, interest bearing
liabilities are stated at amortised cost with any difference between cost and
redemption value being recognised in the income statement over the period of the
borrowings on an effective interest basis.

2.13. Trade and Other Payables

Liabilities are recognised for amounts to be paid for goods or services received. Trade
payables are normally settled within 60 days.

2.14 Dividend
Provision is not made for dividend unless the dividend has been declared by the
Directors on or before the end of the period and not distributed at reporting date.

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 SOLVENT PARTNERS LIMITED
`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

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2.15 Finance Costs
Finance costs are recognised as expenses in the period in which they are incurred,
except where they are included in the costs of qualifying assets.

The capitalisation rate used to determine the amount of nance costs to be

capitalised to qualifying assets is the weighted average interest rate applicable to the
entity's outstanding borrowings during the period.

Finance costs include interest on bank overdrafts and short-term and long-term
borrowings, amortisation of discounts or premiums relating to borrowings, amortisation
of ancillary costs incurred in connection with the arrangement of borrowings, nance
lease charges and certain exchange differences arising from foreign currency
borrowings.

2.16. Financial Instruments

2.16.1 Recognition and Measurement
Financial assets and nancial liabilities are recognised in the statement of nancial
position when the company becomes a party to the contractual provisions of the
instrument. Financial assets and nancial liabilities are initially recognised at their fair
value plus in the case of all nancial assets not carried at fair value through prot or
loss, transaction costs that are directly attributable to their acquisition. Purchases and
sales of nancial instruments are measured on a settlement-date basis.

Financial liabilities and equity instruments, issued by the company, are classied
according to the substance of the contractual arrangements entered into and the
denitions of a nancial liability and an equity instrument. An equity instrument is any
contract that evidences a residual interest in the assets of the company after
deducting all of its liabilities.

Financial assets are derecognised when and only when:

The contractual rights to the cash ows from the nancial assets expire; or
The company transfers the nancial asset, including substantially all the risks and
rewards of ownership of the asset.

A nancial liability is derecognised when and only when the liability is extinguished,
that is, when the obligation specied in the contract is discharged, cancelled or has
expired. The difference between the carrying amount of a nancial liability (or part
thereof) extinguished or transferred to another party and consideration paid, including
any non-cash assets transferred or liabilities assumed, is recognised in prot or loss.

Investments made by the company which are classied as either held at fair value
through prot or loss or available-for-sale, and are measured at subsequent reporting
dates at fair value.

Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date

The fair values of quoted investments and unit trusts in active markets are based on
current market prices. Since actual market prices are available in determining fair
values, no signicant estimates or valuation models are applied in determining the fair
value of quoted nancial instruments.

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`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

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2.16.2 Fair Value Hierarchy
Fair values are determined according to the following hierarchy based on the
requirements in IFRS 7 ‘Financial Instruments: Disclosures’:

– Level 1: quoted market prices: nancial assets and liabilities with quoted prices for
identical instruments in active markets.

– Level 2: valuation techniques using observable inputs: quoted prices for similar
instruments in active markets or quoted prices for identical or similar instruments in
inactive markets and nancial assets and liabilities valued using models where all
signicant inputs are observable.

– Level 3: valuation techniques using signicant unobservable inputs: nancial assets

and liabilities valued using valuation techniques where one or more signicant inputs
are unobservable. The best evidence of fair value is a quoted price in an active
market. In the event that the market for a nancial asset or liability is not active, a
valuation technique is used.
2.16.3 De-Recognition of Financial Instruments
Financial assets are derecognised when the contractual right to receive cash ows
from the investments have expired or on trade date when they have been transferred
and the Company has also transferred substantially all risks and rewards of ownership.
Non-cash nancial assets pledged, where the counterparty has the right to sell or re-
pledge the assets to a third party, are classied as pledged assets.
Financial liabilities are derecognised when they are extinguished, that is when the
obligation is discharged, cancelled or expires.

2.16.4 Classication of Financial Assets

Financial assets are classied into the following categories: nancial assets at fair value
through prot or loss; loans and receivables, held-to-maturity and available- for-sale
nancial assets. Management determines the classication of nancial assets at initial
recognition; this classication depends on the nature and purpose of the nancial
asset.

2.16.5 Financial Liabilities

Financial liabilities are recognised initially at fair value, generally being their issue
proceeds net of transaction costs incurred. Financial liabilities are subsequently stated
at amortised cost and interest is recognised over the period of the borrowing using the
effective interest method.
The company classies certain liabilities at fair value through prot or loss, mainly to
match the accounting classication of assets with similar risks. Such liabilities are
accounted for at fair value with changes in fair value recognised in prot or loss.

2.16.6 Gains and Losses

Gains and losses arising from changes in the fair value of the ‘nancial assets at fair
value through prot or loss’ category are included in prot or loss in the period in which
they arise. Gains and losses arising from changes in the fair value of available- for-sale
nancial assets are recognised in comprehensive income, until the nancial asset is
derecognised or impaired at which time the cumulative gain or loss previously
recognised in comprehensive income is recognised in prot or loss. Interest income,
calculated using the effective interest method, is recognised in prot or loss except for
short term receivables where the recognition of interest would be immaterial.
Dividends on available-for-sale equity instruments are recognised in the prot or loss
when the company’s right to receive payment is established.

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 SOLVENT PARTNERS LIMITED
`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

FO
2.16.7 Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash receipts (including
all fees on points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) through the expected life of
the debt instrument, or (where appropriate) a shorter period, to the net carrying
amount on initial recognition.
2.16.8 Offsetting of Financial Instruments
Financial assets and liabilities are offset and the net amount reported in the statement
of nancial position when there is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basis or, realise the asset and settle
the liability simultaneously.
2.16.9 Financial Assets at Fair Value through Prot or Loss
This category has two components: those held for trading, and those designated at
fair value through prot or loss at inception. A nancial asset is classied in this category
if acquired principally for the purpose of generating a prot from short-term
uctuations in price or dealer’s margin, or a security is included in a portfolio in which
a pattern of short-term prot taking exists or if so designated by management at
inception as held at fair value through prot or loss.
Financial assets designated at fair value through prot or loss at inception is those that
are:
Held to match liabilities that are linked to changes in fair value of these assets. The
designation of these assets at fair value through prot or loss eliminates or
signicantly reduces a measurement or recognition inconsistency (sometimes
referred to as ‘an accounting mismatch’) that would otherwise arise from measuring
assets or liabilities or recognising gains and losses on them on different bases; or
Managed and whose performance is evaluated on a fair value basis. Information
about these nancial assets is provided internally on a fair value basis to the
company’s key management personnel.
The company’s investment strategy is to invest in equity and debt securities, and to
evaluate them with reference to their fair values. Assets that are part of these portfolios
are designated upon initial recognition at fair value through prot or loss.

2.16.10 Loans and Receivables

Loans and receivables are non-derivative nancial assets with xed or determinable
payments that are not quoted in an active market. These arise when the company
provides money, goods or services directly to a debtor with no intention of trading the
receivable. Subsequent to initial recognition loans and receivables are measured at
amortised cost using the effective interest method, less impairment losses. The
amortised cost of a nancial asset or liability is the amount at which the nancial asset
or liability is measured on initial recognition, minus principal repayments, plus or minus
the cumulative amortisation using the effective interest method of any difference
between the initial amount recognised and the maturity amount, minus any
reductions for impairment of nancial assets. The carrying amount represents its fair
value.

Available-for-Sale
Available-for-sale instruments are those intended to be held for an indenite period of
time, which may be sold in response to needs for liquidity or changes in interest rates,
exchange rates or equity prices. Subsequent to initial recognition, nancial assets
classied as available-for-sale are measured at fair value on the statement of nancial
position.
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 SOLVENT PARTNERS LIMITED
`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

FO
Held-to-Maturity
Held-to-maturity investments are non-derivative nancial assets with xed or
determinable payments and xed maturities that management has both the positive
intent and ability to hold to maturity. Were the group to sell more than an insignicant
amount of held-to-maturity investments, the entire category would be tainted and
reclassied as available-for-sale assets with the difference between amortised cost
and fair value being accounted for in OCI. Held-to-maturity investments are carried
at amortised cost, using the effective interest method, less any impairment losses.

2.17. Impairment of Financia Assets

(i) Assets Carried at Amortised Cost
At each reporting date, the company assesses whether there is objective evidence
that a nancial asset or group of nancial assets is impaired. A nancial asset or a
group of nancial assets is impaired and impairment losses are recognised if, and only
if, there is objective evidence of impairment as a result of one or more events that
occurred after the initial recognition of the asset (a ‘loss event’) and that loss event
(or events) has an impact on the estimated future cash ows of the nancial asset or
group of nancial assets that can be reliably estimated. Objective evidence of
impairment could include:
▪ Signicant nancial difculty of the counterparty or
▪ Breach of contract, such as a default or delinquency in interest or principal
payments or
▪ It becoming probable that the borrower will enter bankruptcy or nancial
reorganisation or
▪The disappearance of an active market for that nancial asset because of nancial
difculties

The company rst assesses whether objective evidence of impairment exists

individually for nancial assets that are individually signicant, and individually or
collectively for nancial assets that are not individually signicant. If the company
determines that no objective evidence of impairment exists for an individually
assessed nancial asset, whether signicant or not, it then includes the asset in a group
of nancial assets with similar credit risk characteristics and collectively assesses them
for impairment.

Assets that are individually assessed for impairment and for which an impairment loss
is or continues to be recognised are not included in the collective assessment of
impairment. If there is objective evidence that an impairment loss on loans and
receivables has been incurred, the amount of the loss is measured as the difference
between the assets’ carrying amount and the present value of estimated future cash
ows discounted at the nancial asset’s original effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account
and the amount of the loss is recognised in prot or loss. If a loan has a variable interest
rate, the discount rate for measuring any impairment loss is the current effective
interest rate determined under the contract.

When a loan is uncollectible, it is written off against the related provision for loan
impairment. Such loans are written off after all the necessary procedures have been
completed and the amount of the loss has been determined. Subsequent recoveries
of amounts previously written off decrease the amount of the provision for loan
impairment in prot or loss.

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 SOLVENT PARTNERS LIMITED
`` NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

FO
If, in a subsequent period, the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment was
recognised (such as an improvement in the debtor’s credit rating), the previously
recognised impairment loss is reversed by adjusting the allowance account. The
reversal shall not result in a carrying amount of the nancial asset that exceeds what
the amortised cost would have been had the impairment not been recognised at the
date the impairment is reversed. The amount of the reversal is recognised in prot or
loss.

(ii) Assets Carried at Fair Value

At each reporting date, the company assesses whether there is objective evidence
that a nancial asset or a group of nancial assets is impaired. In the case of
investments classied as available-for-sale, a signicant or prolonged decline in the
fair value of the security below its cost is considered in determining whether the assets
are impaired. If any such evidence exists for available-for-sale nancial assets, the
cumulative loss – measured as the difference between the acquisition cost and the
current fair value, less any impairment loss on that nancial asset previously recognised
in prot or loss – is removed from comprehensive income and recognised in prot or
loss.
Impairment losses recognised in prot or loss on equity instruments classified as
available-for-sale are not subsequently reversed through prot or loss, any increase in
fair value subsequent to an impairment loss is recognised in other comprehensive
income. However, if in a subsequent period the fair value of a debt instrument
classied as available-for-sale increases and the increase can be objectively related
to an event occurring after the impairment loss was recognised in prot or loss, the
impairment loss is reversed through prot or loss.

2.18. Related Parties

Parties are considered to be related if one party has the ability to control or jointly
control the other party or exercise signicant inuence over the other party in making
nancial and operating decisions. Key management personnel are also regarded as
related parties. Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the activities of the Group, directly
or indirectly, including all executive and non-executive directors. Related party
transactions are those where a transfer of resources or obligations between related
parties occur, regardless of whether or not a price is charged

20
 SOLVENT PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

3. Cash and Cash Equivalents

December
December 31,
31,
2022 2021
N'000 N'000
Cash in hand
Bank 350,191 23,481
Fixed Deposit - -
Cash and Cash Equivalents 350,191 23,481

These are cash and treasure bills with banks and other nancial institutions with tenors of
90 days or less. Cash & cash equivalents are short-term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignicant
risk of changes in value and have a maturity of three months or less from the date of
acquisition.

4. Financial Asset Held for Trading

The fair value of quoted equities is determined by reference to published price quotations in an
active market.

December
December 31,
31,
2022 2021
N'000 N'000
Securities stocks 1,292,847 340,357
Treasury Bills & Bond
Allowance for Impairment
(Note 4.1)
Total 1,292,847 340,357

Impairment
December
December 31,
31,
2022 2021
N'000 N'000
Balance as at January 1 - -
Impairment Loss
Amount Written back
Balance as at December 31 - -

21
 SOLVENT PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

5. Property, Plant and Equipment

Cost Accum NBV

Additions Depreciation
1/1/2022 Dep
N’000 N’000 N’000 N’000 N’000

Furniture and Fittings 871 174 87 609

Motor Vehicles 80,000 20,000 20,000 40,000
Ofce Equipment 2,129 426 213 1,491
Plant and Equipment -

TOTAL 83,000 - 20,600 20,300 42,100

6. Intangible Assets – Computer Software and Website Development

December 31, December 31,

2021 2020
N'000 N'000
Balance as at January 1 - -
Acquisitions
Amortisation Note (8.1)
Balance as at December 31 - -

6.1 Impairment and Amortization Losses

December
December 31,
31,
2021 2020
N'000 N'000
Balance as at January 1 - -
Amortisation for the Year - -
Impairment Losses
Balance as at December 31 - -

Intangible asset represents the Company computer software. Intangible

asset is accounted for using the cost model. Amortization is charged on a
straight line basis to prot or loss in line with the Company's policy.

22
 SOLVENT PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

7. Other Assets

December
December 31,
31,
2021 2020
N'000 N'000
Loans and Advances
Prepaid Expenses - -
Others - -
- -

8. Other Liabilities
December
December 31,
31,
2021 2020
N'000 N'000

Other liabilities - 257.614

Accrued Expenses - -
Current Account - -

257.614

9. Tax Payable

December 31, December 31,

2021 2020
N'000 N'000
At January 1 -
Charge for the Year
Payment
At December 31

23
 SOLVENT PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

9.1 Tax Expense

December 31, December 31,
2022 2021
N'000 N'000
Current Period
Based on Prot for the Year
- Income Tax 2,010 1,600
- Education Tax 502 400
- Deferred Tax
2,512 2,000

9.2 Deferred Tax Liability

December 31, December 31,

2022 2021
N'000 N'000
At start of year
Changes during the year: - -
- Charge/(credit) to income statement
At end of year -

10 Share Capital

December 31, December 31,

2022 2021
N'000 N'000
Authorised Share Capital
50,000,000 Ordinary Shares of =N=1.00 each 50,000 50,000
Issued Share Capital
50,000,000 Ordinary Shares of =N=1.00 each 50,000 50,000

24
 SOLVENT PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

11 Net Earnings
December 31, December 31,
2022 2021
N'000 N'000
Income from Bonds & Treasury Bills 126,236 114,760
- -
Total Earnings 126,236 114,760

12. Net Interest Income

December
December 31,
31,
2021 2020
N'000 N'000
Interest Income
Total Interest Income -
Interest Expense
Net Interest Income|(Expense) -

13 Personnel Cost
December 31, December 31,
2022 2021
N'000 N'000

Staff Training and Welfare 20,500 18,179

Medical 1,500 3,500
Directors' Remuneration 32,000 30,000
54,000 51,679

25
 SOLVENT PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2022 (CONTINUED)

14 Other Operating Expenses:

December
December 31,
31,
2022 2021
N'000 N'000
Depreciation
Furniture and Fittings 87 87
Motor Vehicles 20,000 20,000
Ofce Equipment 213 213
Plant and Equipment
Amortisation
20,300 20,300
Auditors' Remuneration
Audit Fees 500 500
Fees for other Services
500 500
Professional Fees - -
Other Expenses
Business promotion 5,700 3,800
ofce expenses 9,272 6,272
Motor Vehicles Expenses 16,400 18,000
Subscription 3,825 2,550
telephone & Internet & Postages 6,810 4,540
Transport & Travelling 4,623 6,415
Utilities 8 5
Rent & Rate 5,000 5,000
Other Expenses 51,637 46,582
Total Other Operating Expenses 72,437 67,382

26
 SOLVENT PARTERS LIMITED
STATEMENT OF VALUE ADDED FOR THE YEAR ENDED 31ST
DECEMBER 2022

December
December 31,
31,
2022 2021
N'000 % N'000 %
Income 126,236 114,760
Less: Cost of bought in services_ Local (52,137) (47,082)
Less: Cost of bought in services_ Foreign - 0
Add: Other income - -
Value added 74,099 100 67,678 100

APPLIED AS FOLLOWS:
TO PAY EMPLOYEES
Salaries, wages & other staff costs 54,000 73 51,679 76
TO PAY PROVIDERS OF CAPITAL
Dividend - -
TO PAY GOVERNMENT
Taxation 2,512 3 2,000 3
RETAINED IN THE BUSINESS FOR
GROWTH AND EXPANSION
Depreciation & Amortization 20,300 27 20,300 30
Retained Prot or ( Loss) (2,713) (4) (6,300) (9)
74,099 100 67,678 100

Value added is the contribution the company has been able to make to the gross national
product by its own and its employees' efforts.

27
SOLVENT PARTNERS LIMITED
FIVE YEAR FINANCIAL SUMMARY - 31ST DECEMBER 2022

31-Dec 31-Dec 31-Dec

2022 2021 2020
N'000 N'000 N'000
Assets
Cash and Cash Equivalents 350,191 23,481 23,234
Financial Asset Held for
1,292,847 340,357 21,041
Trading
Property and Equipment 42,100 62,400 2,700
Intangible Assets - - -
Net Current Assets
Other Assets - - 3,230
Total assets 1,685,138 426,238 50,205

Liabilities
Other Liabilities - 257,614 120
Tax Payable - - 120
Deferred Taxation - -
Total liabilities - 257,614 240

Equity
Ordinary Share Capital 50,000 50,000 50,000
Deposit for share 1,650,452 124,993 -
Accumulated Losses (15,314) (6,369) (34)
Total Equity 1,685,138 168,624 49,966

Total Liabilities and Equity 1,685,138 426,238 50,206

INCOME STATEMENT

Income 126,236 114,760 978

Prot or (Loss) before taxation (201) (4,301) 86

Taxation (2,512) (2,000) (120)

Prot/(loss) after taxation (2,713) (6,300) (34)

28