CHELLARAMS PLC AND ITS SUBSIDIARY COMPANIES
FINANCIAL STATEMENTS 31 MARCH 2022
i
CORPORATE INFORMATION
DIRECTORS, ADVISORS AND REGISTERED OFFICE
Asiwaju Solomon Kayode Onafowokan, OON
Chairman of the Board
Directors
Chief Suresh M. Chellaram
Managing Director
Alhaji Ahmed Adamu Abdulkadir
Director
Mrs Angela Morenike Agbe-Davies
Director
Mr. Aditya Suresh Chellaram
Chief Executive Officer
Registered office
Isolo, Lagos.
Ehimare Isiramen
Company Secretary
Plot 110/114 Oshodi – Apapa Expressway,
Isolo, Lagos.
Greenwich Registrars & Data Solutions Limited
Company Registrar
274, Murtala Muhammed Way
Alagomeji,
Yaba,Lagos
BDO Professional Services
Auditors
ADOL House
15, CIPM Avenue
Cental Business District
Alausa, Ikeja
Lagos.
Standard Chartered Bank Nigeria Limited
Bankers
Citibank Nigeria Limited
First City Monument Bank Limited
First Bank of Nigeria Limited
United Bank of Africa Plc
Eco Bank Plc
Access Bank Plc
Union Bank Plc
Coronation Merchant Bank Limited
CHELLARAMS PLC AND ITS SUBSIDIARY COMPANIES
ii
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
CHAIRMAN’S STATEMENT
Members of Regulatory Agencies, Invited Guests,
Gentlemen of the Press,
Ladies and Gentlemen,
I am delighted to welcome you all to the 73rd Annual General Meeting of our Group and pleased to present to you our Annual Report and Financial Statements for the year ended 31 March, 2022.
THE ECONOMIC OPERATING ENVIRONMENT IN YEAR 2021
The year 2021 started and ended with varied waves of CORONAVIRUS Pandemic with the second one called DELTA VARIANT and followed thereafter by OMICRON VARIANT during 4th Quarter of year 2021.
Conversely, our Organization was faced with disruptions in supply chain and massive increase in prices of Raw Materials and Finished goods with attendant surge in inflation rate while struggling to meet customers’ demands at competitive prices. We suffered continuously with the Ban of Dairy Products and sourcing of Forex for opening of Letters of Credit for imports of Raw Materials.
However, with global roll-out of COVID-19 Vaccines, there emerged gradual flexible relaxations of some of the strict measures introduced by Governments globally on travel regulations.
The National Bureau of Statistics indicated that Nigeria’s Gross Domestic Products (GDP) grew by 3.4% in 2021 as against deficit of 1.92% recorded in the year 2020 while inflation rate for the year ended 31 March 2022 peaked at 16.17%. Therefore, the gradual recovery of Nigeria’s Economy which started in the 4th Quarter of 2020 was sustained in the year 2021 as non-oil Sector drove the growth by contributing 92.8% to GDP while Oil Sector contributed 7.2%. In order to check-mate the lingering Foreign Exchange (FOREX) challenges, the CENTRAL BANK OF NIGERIA introduced various Policy measures by the adoption of NAFEX as its Official Rate and stopped allocation of FOREX to Bureau-De-Change Operators in addition to rationing of Forex to the Manufacturing and Retail businesses. On top of it all, the insecurity across the Nation prevailed throughout the year 2021, thus eroding the Investors’ confidence as well as restricted severely free movement of goods and services.
OPERATING RESULTS AND PERFORMANCE
Due to COVIC-19 PANDEMIC which persisted in the year 2021 and commenced gradual relaxation in First Quarter of Financial year ended 31 March 2022, the operating results of our Group’s turnover improved from N4.8 billion as at 31 March, 2021 to N9.7 billion by 31 March, 2022 while Group’s profit before tax amounted to N1.2 billion as at 31 March, 2022 as against loss of N3.6 billion as at 31 March, 2021.
DIVIDEND
As a result of the accumulated losses, your Directors could not recommend payment of Dividend for the year ended 31 March 2022.
CORPORATE SOCIAL RESPONSIBILITIES (CSR)
Because your Organization cannot continue to operate in a given environment without making an impact, we incurred undermentioned outlay on CSR:-
N
(a) Scholarships for various Scholars whose programme were yet to be concluded
325,000
(b) Bursary awards to Sons/Daughters of Employees
3,375 339
(c) Funeral Assistance for Employees’ Parents
350,000
(d) Medical Assistance to needy Nigerians
827,240
Grand Total
4,877,579
CHELLARAMS PLC AND ITS SUBSIDIARY COMPANIES
iii
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
CHAIRMAN’S STATEMENT (Cont’d)
OUTLOOK
The outlook for year 2022, even though it is likely to continue to record weaknesses on part of Oil Sector contribution to GDP because of lower output on export of crude oil but on a happy note, there is continuous growth in the non-oil sector like Agriculture, Non-oil Exports, Trade and Digital Communications which should give credence to year to year prediction by International Monetary Fund of 3.4% while NIGERIAN BUREAU OF STATISTICS predicted 4%. Equally envisaged, is the determination of Governments all over the World to remove all impediments on COVID-19 Pandemic travel rules, which should aid envisaged macroeconomic recovery expected to be marginally better in year 2022. The volatile financial markets with regular MPR increase by Bankers Committee via CBN will, of course, affect performances of Manufacturing and Retail businesses during the year 2022 in addition to unresolved power infrastructural deficit.
BOARD, MANAGEMENT AND STAFF
Please join me in expressing my gratitude to my Colleagues on the Board for the sacrifices extended to our Organisation by giving their time without reward in the last two financial years. I just cannot thank you enough. Also let me express my profound gratitude to Management and Staff of our Organisation for their loyalty and steadfastness in the face of inflationary trend that may not end soon.
Thank you all for your rapt attention.
ASIWAJU DR SOLOMON K. ONAFOWOKAN, OON
Chairman
FRC /2013/IODN/00000005337
CHELLARAMS PLC AND ITS SUBSIDIARY COMPANIES
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
CHIEF EXECUTIVE OFFICER’S REPORT
Dear Shareholders,
The last year has followed the challenging trends of the preceding two years with marked decline in key national economic indicators, such as inflation, which has a direct impact on our operating expenses. In this context, we continue to focus on utilizing available capacities and resources to generate additional income and managing the relationships with our suppliers and other stakeholders in efforts to ensure business continuity. I can firmly say that the company is moving in a forward trajectory.
Our subsidiaries Dynamic Industries Ltd and United Technical Services Ltd are exploring new business opportunities in their respective sectors in packaging and industrial equipment. Devyani International Nigeria Ltd continues to establish new KFC outlets across the country to serve its ever growing clientele.
We are positive that with the measures already in place the company will continue to bring marked improvement in its operating results.
Sincerely,
Aditya Chellaram
Chief Executive Officer
FRC/2013/IODN/00000005335
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Chellarams plc published this content on 12 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2022 18:39:01 UTC.