197
Financials
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL
STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016
21.4 Capital Contribution
A subordinated loan was obtained by the Company from the immediate parent, Dangote Industries Limited in
2010. The interest on the long term portion was waived for 2011. Given the favourable terms at which the Company
secured the loan, an amount of ₦2.8 billion which is the difference between the fair value of the loan on initial
recognition and the amount received, has been accounted for as a capital contribution.
21.5 Employee benefit reserve
The employee benefit reserve arises on the re-measurement of the defined benefit plan. Items of other comprehensive
income included in the employee benefit reserve will not be reclassified subsequently to profit or loss.
22. Dividend
On 19th April, 2016, a dividend of ₦8.00 per share (total dividend ₦136.3 billion) was approved by shareholders to
be paid to holders of fully paid ordinary shares in relation to the 2015 financial year.
In respect of the current year, the Directors proposed a dividend of ₦8.50 per share. This dividend is subject
to approval by shareholders at the Annual General Meeting and has not been included as a liability in these
consolidated and separate financial statements.
23. Trade and other payables
Trade payables
Payable to contractors
Value added tax
Withholding tax payable
Defined contribution plan (Note 28.1)
Advances from customers
Suppliers’ credit
Other accruals and payables
Total trade and other payables
Group
31-Dec-16 31-Dec-15
₦’million
83,164
33,851
651
8,439
211
44,077
42,353
56,220
268,966
₦’million
44,044
34,234
1,520
5,006
44
11,286
-
31,463
127,597
Company
31-Dec-16 31-Dec-15
₦’million
53,660
22,532
399
2,351
41
35,783
42,353
21,448
178,567
₦’million
30,341
19,893
110
1,557
40
8,769
-
18,874
79,584
The average credit period on purchases of goods is 94 days (2015: 80 days). Normally, no interest is charged on
trade payables. The Group has financial risk management policies in place to ensure that all payables are paid in
line with the pre-agreed credit terms.
Annual Report 2016
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