C & I Leasing : AND I LEASING PL.- QUARTER 3 - FINANIAL STATEMENT FOR 2023

C & I LEASING PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

C & I LEASING PLC

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

Contents

Consolidated statement of financial position	3
Consolidated statement of comprehensive income	4
Consolidated statement of cash flows	5
Consolidated statement of changes in equity	6-7
Notes to the consolidated financial statements	8-64

C&I LEASING PLC

UNAUDITED CONSOLIDATED AND SEPARATE STATEMENTS OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

		Group		Company
		30 September		30 December		30 September		30 December
		2023	2022	2023	2022
	Notes	N'000		N'000		N'000		N'000
Assets
Cash and balances with banks	10.	2,011,058	1,150,255	1,380,655	1,047,561
Loans and receivables	11.	1,383,620	769,176	1,377,759	763,743
Trade and other receivables	12.	18,208,848	17,114,806	18,836,365	16,967,131
Due from related companies	12.1	-	-	2,656,138	4,421,662
Finance lease receivables	13.	2,532,964	2,146,988	1,469,184	1,988,845
Available for sale assets	14.	19,389	11,518	19,389	11,518
Investment in subsidiaries	15.	-	-	759,481	759,481
Investment in joint ventures		3,601,961	3,308,053	3,601,961	3,308,053
Other assets	16.	640,171	480,278	502,522	430,591
Operating lease assets	17.	41,258,030	32,123,479	16,330,751	16,511,609
Property, plant and equipment	18.	1,464,074	400,316	1,270,101	309,333
Intangible assets	19.	19,254	25,441	14,143	25,414
Deferred income tax assets	23.3	962,221		878,592		854,607		854,607
Total assets		72,101,590	58,408,902	49,073,056	47,399,549
Liabilities
Balances due to banks	20.	1,189,743	1,625,622	1,163,447	1,618,276
Commercial notes	21.	14,448,378	13,554,429	14,448,378	13,554,429
Trade and other payables	22.	9,265,675	5,083,946	6,181,086	4,418,140
Current income tax liability	23.2	805,593	642,081	659,390	598,872
Borrowings	24.	20,090,911	20,234,751	18,622,668	19,342,621
Retirement benefit obligations	26.	36,289		22,412		36,289		22,412
Total liabilities		45,836,589	41,163,241	41,111,258	39,554,749
Equity
Share capital	27.	390,823	390,823	390,823	390,823
Deposit for shares	28.	1,975,000	1,975,000	1,975,000	1,975,000
Share premium		3,361,609	3,361,609	3,361,609	3,361,609
Statutory reserve	29.	1,875,088	1,776,810	1,024,802	989,703
Statutory credit reserve	30.	351,372	351,372	380,152	380,152
Retained earnings	31.	4,583,017	4,355,006	819,066	738,473
Foreign currency translation reserve	32.	12,649,983	4,205,167	-	-
AFS fair value reserve	33.	10,345	9,039	10,345	9,039
Revaluation reserve	34.	-		-		-		-
		25,197,238	16,424,827	7,961,799	7,844,800
Non-controlling interest	35.	1,067,764		820,834		-		-
Total equity		26,265,002		17,245,661		7,961,799		7,844,800
Total liabilities and equity		72,101,590	58,408,902	49,073,056	47,399,549

These consolidated financial statements were approved by the Board of Directors on 23thrd October, 2023 and signed on its behalf by :

Samuel Onyishi		Ugoji Lenin Ugoji	Okechukwu Nnake
Chairman		Managing Director	Chief Financial Officer
FRC/2021/003/00000023928		FRC/2015/NIM/00000012363	FRC/2013/ICAN/00000005362

The accompanying notes are an integral part of these consolidated financial statements.

3

C & I LEASING PLC

UNAUDITED CONSOLIDATED AND SEPARATE INCOME STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

				Group						Company
		9 Months to		3 Months to		9 Months to		3 Months to		9 Months to		3 Months to		9 Months to		3 Months to
		Sept 2023		Sept 2023		Sept 2022		Sept 2022		Sept 2023		Sept 2023		Sept 2022		Sept 2022
	Notes	N'000		N'000		N'000		N'000		N'000		N'000		N'000
Gross earnings		16,330,803	6,309,716	14,927,139	5,205,621	13,135,621	4,755,394	11,496,576	4,118,139
Lease rental income	38.	13,554,592	5,053,623	12,098,779	4,006,822	9,542,184	3,307,151	8,729,134	2,956,078
Lease expenses	44.	(6,957,182)		(2,741,852)		(6,179,870)		(2,173,271)		(6,008,088)		(2,326,709)		(5,486,096)		(1,969,690)
Net lease rental income		6,597,410		2,311,772		5,918,909		1,833,551		3,534,096		980,441		3,243,039		986,389
Net outsourcing income	40.	1,022,461		333,251		1,218,161		326,455		1,022,461		333,251		1,218,161		326,455
Tracking income	41.	100,815	46,165	101,075	31,693	100,815	46,165	101,075	31,693
Tracking expenses	41.	(60,075)	(26,831)	(45,720)	(10,552)	(60,075)	(26,831)	(45,720)	(10,552)
Net tracking income		40,739		19,333		55,355		21,141		40,739		19,333		55,355		21,141
Interest income	42.	41,236	10,250	26,611	1,517	27,896	2	22,300	370
Other operating income	43.	789,217	426,376	986,726	666,705	1,619,782	628,775	930,119	631,114
Income from Joint Venture		822,483	440,051	495,786	172,429	822,483	440,051	495,786	172,429
Finance cost	39.	(4,421,315)	(1,726,515)	(3,532,381)	(1,218,938)	(4,189,511)	(1,635,911)	(3,237,894)	(1,135,903)
		4,892,231		1,814,518		5,169,167		1,802,859		2,877,947		765,941		2,726,865		1,001,995
Impairment charge	37.	(1,867)	1,035	7,881	28,142	7,871	1,139	2,801	(506)
Depreciation expense	45.	(2,486,780)	(988,609)	(2,985,386)	(1,012,860)	(1,317,091)	(457,904)	(1,662,053)	(589,257)
Personnel expenses	46.	(962,723)	(325,943)	(999,831)	(327,540)	(799,336)	(248,566)	(883,125)	(295,027)
Other operating expenses	47.	(749,510)		(161,915)		(668,131)		(218,501)		(591,874)		(95,934)		(570,015)		(189,240)
Profit on continuing		691,352	339,086	523,700	272,100	177,517	(35,324)	(385,527)	(72,035)
operations before taxation
Income tax	23.1	(277,278)		(165,830)		(154,535)		(37,425)		(60,518)		(32,312)		(65,944)		(13,070)
Profit after tax		414,074	173,256	369,165	234,675	116,998	(67,636)	(451,471)	(85,105)
Profit attributable to:
Owners of the parent		327,595	101,973	313,863	194,568	116,998	(67,636)	(451,471)	(85,105)
Non-controlling interests		86,479	71,283	55,302	40,107
		414,074		173,256		369,165		234,675		116,998		(67,636)		(451,471)		(85,105)
Appropriation of profit
attributable to owners of the
Transfer to statutory reserve		98,279	30,592	229,600	193,812	35,100	(20,291)	-	-
Transfer to statutory credit reserve
Transfer to retained earnings		229,317		71,381		84,263		756		81,899		(47,345)		(451,471)		(85,105)
		327,595		101,973		313,863		194,568		116,998		(67,636)		(451,471)		(85,105)
Basic earnings per share [kobo]	48.	42	13	40	25	15	-9	-58	-11

The accompanying notes are an integral part of these consolidated financial statements.

4

C & I LEASING PLC

CONSOLIDATED AND SEPARATE STATEMENTS OF CASH FLOWS

FOR THE PERIOD ENDED SEPTEMBER 2023

		Group			Company
		30 Sept 2023	30 Sept 2022		30 Sept 2023		30 Sept 2022
	Notes	N'000	N'000		N'000		N'000
Cash flows from operating activities
Profit after tax		327,595			369,165	116,998	(451,471)
Adjustment for:
Depreciation of property, plant and equipment	18.	-			71,466	20,711	27,379
Depreciation of operating lease assets	17.	-			2,913,920	1,296,380	1,634,674
Amortisation of intangible assets	19.	6,187			11,336	11,271	11,271
Profit on disposal of operating/finance lease assets		-			(897,494)	(166,101)	(850,703)
Foreign currency translation difference		8,444,816			(452,183)	-	-
Finance cost	39.	4,421,315			3,532,381	4,189,511	3,237,894
Prior year adjustment		401,633			(148,938)	351,742	732,216
Exchange loss/Gain adjustment		-			15,033	59,026	18,418
Deferred tax income		(83,629)			-			-
Gain on revaluation of AFS assts		(7,871)			(628)	(7,871)	(628)
Tax expense	23.2	163,511			154,535		60,518		65,944
		13,673,557			5,568,594	5,932,186	4,424,994
Changes in operating assets and liabilities
Increase/(Decrease) in loans and receivables		(614,444)			(419,900)	(506,941)	(432,316)
Increase/(Decrease) in trade and other receivables		(1,094,042)			1,312,805	(103,710)	1,030,970
Decrease in finance lease receivables		(385,976)			(626,202)	519,660	(559,974)
Decrease in other assets		(159,893)			(200,022)	(71,930)	(183,666)
Increase/(decrease) in trade and other payables		4,181,729			(247,265)	1,762,947	(5,625)
Increase/(decrease) in commercial papers		893,949			1,268,084	893,949	1,271,521
Decrease/(Increase) in Pension contribution		13,877			106,304	13,877	106,304
Increase/(decrease) in defered tax		-			(36,124)	-	-
Tax paid	23.2	-			(23,964)		-		(23,964)
Net cash from operating activities		16,508,757			6,702,310	8,440,038	5,628,244
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		-			-	-	-
Purchase of property, plant and equipment	18.	(1,063,758)			-	(981,479)	-
Proceeds from sale of operating lease assets		-			923,744	-	1,007,592
Purchase of operating lease assets	17.	(9,134,550)			(2,789,204)	(1,115,502)	(2,738,311)
Acquisition of intangible assets		-			-	-	-
Proceed from investment in subsidiaries					-	-	-
Proceed from investment in joint ventures		(293,908)			687,206	(293,908)	687,206
Proceeds from sale of investment securities		-			-	-	-
Net cash used in investing activities		(10,492,216)			(1,178,255)		(2,390,889)		(1,043,513)
Cash flows from financing activities
Repayment of borrowings					-	-	-
Decrease/(increase) in borrowings		(143,840)			(2,914,923)	(719,953)	(1,905,769)
Finance cost	39.	(4,421,315)			(3,532,381)	(4,189,511)	(3,237,894)
Share of (profit)/loss to non-controlling interest	35.	246,929			263,980	-	-
Dividend paid	31.	-			-	-	-
Net cash from financing activities		(4,318,225)			(6,183,325)		(4,909,464)		(5,143,663)
Increase/(decrease) in cash and cash equivalents		1,698,315			(659,269)	1,139,685	(558,933)
Cash and cash equivalents at 1 January		(877,000)			(217,731)		(922,478)		(363,545)
Cash and cash equivalents at 30 September	36.	821,315			(877,000)	217,206	(922,478)

The accompanying notes are an integral part of these consolidated financial statements.

5

C & I LEASING PLC

UNAUDITED CONSOLIDATED AND SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

Group
										Statutory				Foreign		AFS fair			Non-
		Share		Share		Deposit for		Statutory			Retained		currency		Revaluation
						credit				value		controlling		Total equity
		capital		premium		shares		Reserve			earnings		translation		reserve
						reserve				reserve		interest
													reserve
		N'000		N'000		N'000		N'000		N'000		N'000		N'000		N'000	N'000		N'000		N'000
At 1 January 2023	390,823	3,361,609	1,975,000	1,776,810	351,372	4,355,006	4,205,167	9,039	-	820,834	17,245,661
Changes in equity for the period ended 30
September 2023
Profit for the period	-	-	-	-	-	327,595	-	-	-	86,479	414,074
Right issue	-	-
Other comprehensive income
Fair value changes on available for sale	-	-	-	-	-	(1,306)	-	1,306	-	-	-
financial assets
Audit Adjustment
	-	-	-	-			-	-	-	-	-	-
Arising on consolidation/Audit adjustments
	-	-	-	-	-	-	-	-	-	-	-
Gain on foreign operations translation	-	-	-	-	-	-	8,444,816	-	-	160,451	8,605,267
Total comprehensive income for the
period ended 30 September 2023	-	-	-	-	-	326,289	8,444,816	1,306	-	246,929	9,019,340
Transactions with owners
Transfer between reserves	-	-	-	98,279	-	(98,279)	-	-	-	-	-
Dividend paid											-						-	-
Reclassified from Liabilities
		-	-	-	-	-	-	-	-	-	-	-
	-	-	-	98,279	-	(98,279)	-	-	-	-	-
At 30 September 2023		390,823		3,361,609		1,975,000		1,875,088		351,372		4,583,017		12,649,983		10,345	-		1,067,764		26,265,002
At 30 September 2022
	390,823		3,361,609		-		1,524,988		351,372		3,301,055		3,393,453		6,706	716,490		929,385		13,975,882

6

C & I LEASING PLC

UNAUDITED CONSOLIDATED AND SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

Company													Foreign
			Share		Deposit for		Statutory		Statutory		Retained		AFS fair		Revaluation
								currency
		Share Capital				credit			value			Total equity
			Premium		shares		Reserve		reserve		earnings		translation	reserve		reserve
												reserve
		N'000	N'000		N'000		N'000		N'000		N'000		N'000	N'000		N'000		N'000
At 1 January 2023	390,823	3,361,609	1,975,000	989,703	380,152	738,473	-	9,039	-	7,844,800
Changes in equity for the period ended 30
September 2023
Profit for the period			-	-	-	-	116,999	-	-	-	116,999
Right issue	-	-														-
Other comprehensive income
Fair value changes on available for sale			-	-	-	-	(1,306)	-	1,306	-	-
Audit adjustments	-	-	-	-	-	-			-	-	-
Surplus on revaluation of property, plant and
equipment			-	-	-	-	-	-	-	-	-
Total comprehensive income for the
period ended 30 September 2023	-	-	-	-	-	115,693	-	1,306	-	116,999
Transactions with owners
Transfer between reserves			-	-	35,100	-	(35,100)	-	-	-	-
Dividends paid during the period			-	-	-	-	-	-	-	-	-
Reclassified from Liabilities			-		-		-		-		-			-		-		-
					-		35,100		-		(35,100)							-
At 30 September 2023		390,823	3,361,609		1,975,000		1,024,802		380,152		819,067		-	10,345		-		7,961,799
At 30 September 2022		390,823	3,361,609		-		873,770		380,152			-	6,706		716,490
	19,063		5,748,614

7

C & I LEASING PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

1. The reporting entity

The Company was incorporated on 28 December 1990 and commenced business in June 1991. The Company was licensed by the Central Bank of Nigeria (CBN) as a finance company and is owned by a number of institutional and individuals investors. The Company's shares were listed on the Nigerian Stock Exchange (NSE) in December 1997. The Company is regulated by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the NIgerian Stock Exchange (NSE); in addition, the Company renders annual returns to the Corporate Affairs Commission (CAC). As at year end, the Company has three subsidiary companies namely:

• Leasafric Ghana Limited
• EPIC International FZE, United Arab Emirates
• C&I Leasing FZE, Nigeria

The Registered office address of the company is at C & I Leasing Drive, Off Bisola Durosinmi Etti Drive, Lekki Phase 1, Lagos, Nigeria.

The principal activities of the Group are provision of equipment leasing, logistics solution in the form of car and marine vessel rentals, fleet management and automobile distribution through its main operating entity and its subsidiaries.

These consolidated financial statements cover the financial period from 1 January 2023 to 30 September 2023.

The consolidated financial statements for the period ended 30 September 2023 were approved for issue by the Board of Directors on 26 October 2023.

2. Basis of preparation

1. Statement of compliance with IFRSs
   The Group's Consolidated financial statements for the period ended 30 September 2023 have been prepared in accordance with International Financial Reporting Standards and in compliance with the requirements of the Financial Reporting Council of Nigeria Act, No 6, 2011 and the Companies and Allied Matters Act 2020, the Banks and Other Financial Institutions Act, 2020 and other relevant Central Bank of Nigeria circulars and Guidelines.
   The consolidated financial statements comprise of the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows and the related notes to the consolidated financial statements.
2. Going concern consideration
   The Group's management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in the business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Group's ability to continue as a going concern. Therefore, the consolidated financial statements continue to be prepared on the going concern basis.
3. Basis of measurement
   The consolidated financial statements have been prepared in accordance with the going concern principle under the historical cost convention, except for financial instruments and land and buildings measured at fair value.
   The preparation of the consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates, it also requires management to exercise its judgment in the process of applying the Group's accounting policies. Changes in assumptions may have a significant impact on the consolidated financial statements in the year the assumptions changed. Management believes that the underlying assumptions are appropriate and therefore the Group's financial statements present the financial position and results fairly.

8

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

1. Functional and presentation currency
   The Consolidated financial statements are presented in Naira, which is the Group's presentational currency. The Consolidated financial statements are presented in the currency of the primary economic environment in which the Company operates (its functional currency). For the purpose of the Consolidated financial statements, the Consolidated results and financial position are expressed in Naira, which is the functional currency of the Company, and the presentational currency for the Group's financial statements.
2. Basis of consolidation
   The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 30 September 2023.
   Subsidiaries are fully consolidated from the date of acquisition, being the date in which the Company obtains control, and continues to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using the same accounting policies.
   All inter-group balances, transactions, dividends, unrealised gains on tranasctions within the Group are eliminated on consolidation. Unrealised losses resulting from inter-group transactions are eliminated, but only to the extent that there is no evidence of impairment.
   A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
3. Changes in accounting policies and disclosures and Standards Issued

2.6.1 Changes in accounting policies and disclosures

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 31 December 2022, except for the adoption of new standards effective as of 1 January 2023.

Several standards amendments and interpretations apply for the first time in 2023 but their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements .

The Company has not early adopted any other standard, interpretation or amendment that has been issued but not yet effective.

New and amended IFRS Standards

Amendments to the following standard(s) became effective in the annual period starting from 1 January, 2021. The new reporting requirements as a result of the amendments and/or clarifications have been evaluated and their impact or otherwise are noted below:

2.6.1.a Impact of the initial application of Interest Rate Benchmark Reform

In the prior year, the Company adopted the Phase 1 amendments Interest Rate Benchmark Reform Amendments to IFRS 9/IAS 39 and IFRS 7. These amendments modify specific hedge accounting requirements to allow hedge accounting to continue for affected hedges during the period of uncertainty before the hedged items or hedging instruments are amended as a result of the interest rate benchmark

reform.

In the current year, the Company adopted the Phase 2 amendments Interest Rate Benchmark Reform - Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. Adopting these amendments enables the Company to reflect the effects of transitioning from interbank offered rates (IBOR) to alternative benchmark interest rates (also referred to as 'risk free rates' or RFRs) without giving rise to accounting impacts that would not provide useful information to users of financial statements. The Company has not restated the prior period. Instead, the amendments have been applied retrospectively with any adjustments recognised in the appropriate components of equity as at 1 January 2021

Both the Phase 1 and Phase 2 the amendments are not relevant to the Company and the Directors of the Company assessed that the application of the amendments has an immaterial impact on the Company's financial statements.

9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

2.6.1.b Impact of the initial application of COVID-19-Related Rent Concessions beyond 30 June

2021-Amendment to IFRS 16

In the prior year, the Company early adopted Covid-19-Related Rent Concessions (Amendment to IFRS 16) that provided practical relief to lessees in accounting for rent concessions occurring as a direct consequence of COVID-19, by introducing a practical expedient to IFRS 16. This practical expedient was available to rent concessions for which any reduction in lease payments affected payments originally due on or before 30 June 2021.

In March 2021, the Board issued Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) that extends the practical expedient to apply to reduction in lease payments originally due on or before 30 June 2022. In the current financial year, the Company has applied the amendment to IFRS 16 (as issued by the Board in May 2021) in advance of its effective date.

The practical expedient permits a lessee to elect not to assess whether a COVID-19-related rent concession is a lease modification. A lessee that makes this election shall.account for any change in lease payments resulting from the COVID-19-related rent concession applying IFRS 16 as if the change were not a lease modification.

The practical expedient applies only to rent concessions occurring as a direct consequence of COVID- 19 and only if all of the following conditions are met:

1. The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change
2. Any reduction in lease payments affects only payments originally due on or before 30 June 2022 (a rent concession meets this condition if it results in reduced lease payments on or before 30 June 2022 and

increased lease payments that extend beyond 30 June 2022)

c) There is no substantive change to other terms and conditions of the lease

The Directors of the Company assessed that the application of the amendments has an immaterial impact on the Company's financial statements.

2.6.2 New and revised IFRS Standards in issue but not yet effective (but allow early application) for the year ending 31 December 2021

• At the date of authorisation of these financial statements, the Company has not applied the following new and revised IFRS Standards that have been issued but are not yet effective:

• IFRS 17 (including the June 2020 amendments to IFRS 17) - Insurance Contracts
• Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate OT Joint Venture
• Amendments to IAS 1 - Classification of Liabilities as Current or Non-current
• Amendments to IFRS 3 - Reference to the Conceptual Framework
• Amendments to IAS 16 - Property, Plant and Equipment-Proceeds before Intended Use
• Amendments to IAS 37 - Onerous Contracts - Cost of Fulfilling a Contract
• Annual Improvements to IFRS Standards 2018-2020 Cycle - Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS 16 Leases, and IAS 41 Agriculture
• Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies
• Amendments to IAS 8 - Definition of Accounting Estimates
• Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the Company in future periods.

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