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Financials NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016 29.7.2 Fair valuation of financial assets and liabilities The carrying amount of trade and other receivables, cash and bank balances and amounts due from and to related parties as well as trade payables, other payables approximate their fair values because of the short-term nature of these instruments and, for trade and other receivables, because of the fact that any loss from recoverability is reflected in an impairment loss. The fair value of financial debt approximate the carrying amount as the loans are pegged to market rates and reset when rates change. 30. Related party transactions Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation. Details of transactions between the Group and Company, and other related parties are disclosed below. The Group and the Company, in the normal course of business, sells to and buys from other business enterprises that fall within the definition of a ‘related party’ contained in International Accounting Standard 24. These transactions mainly comprise purchases, sales, finance costs, finance income and management fees paid to shareholders. The companies in the Group also provide funds to and receive funds from each other as and when required for working capital financing and capital projects. 30.1 Trading transactions During the year, Group entities entered into the following trading transactions with related parties that are not members of the Group: Sale of goods 31-Dec-16 ₦’million Parent company Entities controlled by the parent company - 7,995 31-Dec-15 ₦’million - 565 31-Dec-16 ₦’million Purchases of goods 31-Dec-15 ₦’million - 111,028 During the year, the company entered into the following trading transactions with related parties: Sale of goods Entities controled by the company Entities controlled by the parent company 31-Dec-16 ₦’million 6,054 7,995 31-Dec-15 ₦’million - 565 - 167,348 31-Dec-16 ₦’million Purchases of goods 31-Dec-15 ₦’million - 77,007 - 147,604 In addition to sales and purchases of goods, the Company charged interest amounting to ₦43.8 billion (2015: ₦21.9 billion) on loans granted to subsidiaries. This interest is eliminated on consolidation. Also during the year, the parent company charged the Group a total interest of ₦29.0 billion (2015: ₦25.2 billion), being the cost of borrowing to finance capital projects and other operational expenses. Balances at year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables. Annual Report 2016 209

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