201

Financials NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016 The Group’s obligations to settle environmental restoration and dismantling / decommissioning cost of property, plant and equipment. The expenditure is expected to be utilised at the end of the useful lives for the mines which is estimated to be between the years 2025 to 2035. 27. Long term payables Balance at beginning of the year Credit obtained during the year Transfer to short term Foreign exchange differences Balance at the end of the year Group 31-Dec-16 31-Dec-15 ₦’million 24,442 21,354 (42,353) 14,287 17,730 ₦’million - 24,442 - - 24,442 Company 31-Dec-16 31-Dec-15 ₦’million 24,442 3,624 (42,353) 14,287 - Long term payables represent amounts payable for trucks acquired on 2 to 3 years suppliers’ credit. 28. Employee benefits Group 28.1 Defined contribution plans Balance at beginning of the year Provision for the year Payments during the year Balance at the end of the year 31-Dec-16 31-Dec-15 ₦’million 44 2,292 (2,125) 211 ₦’million 134 931 (1,021) 44 ₦’million - 24,442 - - 24,442 Company 31-Dec-16 31-Dec-15 ₦’million 40 1,534 (1,533) 41 ₦’million 94 658 (712) 40 Provisions for staff pensions have been made in the financial statements in accordance with the relevant pension rules applicable in the country. The accrual at 31st December, 2016 amounted to ₦211 million (2015: ₦44 million) for the Group. Outstanding staff pension deductions that have not been remitted as at year end have been accrued accordingly. The employees of the Group are members of a State arranged Pension scheme which is managed by several private sector service providers. The Group is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the defined contribution plan is to make the specified contributions. The total expense recognised in profit or loss of ₦2.29 billion (2015: ₦931 million) represents contributions payable to these plans by the Group at rates specified in the rules of the plans. Annual Report 2016 201

202 Publizr Home