Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698075375883.pdf (Guyana)
Gunn =Iona' PRIATERS UMITED 1n11•11111111 Annual Report 2008 Contents Corporate Information Notice of Annual General Meeting Chairman's Report Report of the Auditor General Report of the Chartered Accountants Profit & Loss Account Statement of Changes in Equity Balance Sheet Cash Flow Statements Notes On the Accounts Page ii i ii iv - vi vii - viii l (a)... 3 4 5 6 - 23 CORPORATE INFORMATION BOARD OF DIRECTORS Cecil Cyril Percival Clive Mark Mama' Don Ramsingh - Chairman Belgrave Boyce (Jnr) Harrison Harris Bacchus Grenardo - Worker Representative REGISTERED OFFICE 1 Public Road La Penitence Georgetown Tele # 225-1242 MANAGEMENT Marlyn David Errol Denise Shawn Nedd Collins Chan Souvenir Victorine - General Manager/Director/Company Secretary - Sales Manager - Production Manager - (resigned) - Finance Manager (ag) BANKERS Republic Bank (Guyana) Ltd — Water.
Street, Georgetown New Building Society — Avenue of the Republic AUDITORS Auditor General - 63 High Street Kingston, Georgetown ii • NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the 28th Annual General Meeting of Guyana National Printers Limited will be held on 2010 April 21, in the Company's Boardroom, 1 Public Road.
La Penitence Georgetown at 10:00 Hours for the following purposes: 1 To receive and consider the Company's Accounts for the year- ended 2008 December 31, and the reports of the Directors and Auditors thereon.

To approve dividends in respect of the year ended 2008 December 31, as recommended by the directors.

3.

To appoint Auditors 4.

To authorize the Directors to fix the remuneration of the Auditors 5 To transact any other business of an Annual General Meeting.
BY ORDER OF THE BOARD .24 Marlyn Nedd (Mrs) Company Secretary GUYANA NATIONAL PRINTERS LIMITED iii CHAIRMAN'S REPORT I have great pleasure in presenting the Annual Report for the year ended 2008 December 31.

Performance The Guyana National Printers Limited recorded a pre tax profit of $12.3M compared with $25.3M in 2007.

Sales of $220M were recorded for the year compared with $218.7M for 2007.

Cost-of-Sales were recorded at 83% of sales as against 75% reported for 2007.
This increase was mainly as a direct result of increases in price of raw materials caused by the steep increases in the price of fuel on the world market.

In addition, in order to remain competitive, GNPL was forced to reduce the mark-up on some of its products.

Employment cost rose to $26.9M from $26.3 in 2007, however as a whole.

administrative costs moved to $49.3M from $37.8M in 2007, thus reflecting a 30% increase.
This increase is attributed in the main to the write-off of bad debts in the sum of $6.5M.

Systems have since been put in place to minimize any recurrence.

Profits retained for the year ending 2008 December 31, was $8.9M compared with $19.4M in the previous year.

This performance reflects a decline by approximately fifty percent (50%) against 2007's.

The decline was due mainly to the bad debt write-off and a reduction in the mark-up.

Nevertheless.

after taking these adjustments into consideration.


Guyana National Printers Limited is still above normal in terms of retained earnings/shareholders equity as shown below: 2008 S3.17: $1 2009 $6.92: $1 iv Staff Matters The Company boasted a staff strength of 83 at 2008 January 01, the numbers were reduced to 79 at 2008 December 31.

The Exercise Book section with a staff establishment of 9 experienced regular turnovers during the year with 7 operators resigning or walking-out.
Poor wages was the main reason given by the employees for their departure.

An across-the-board increment of 5% as declared by the Ministry of Finance, was paid to both management and non-management employees.

Workers with between one (1) and three (3) years of service received a 29% increase in vacation allowance, upon representation made by their Union, the Printing Industry and Allied Workers Union.

The Company also provided uniforms to employees, free of cost.
In keeping with its commitments, the Company awarded four (4) bursaries to children of employees who were successful at the grade six examinations.

The Company continued with its programme of on-the-job training especially in factory operations.

Supervisors also received training in the area of Organisational Behaviour.

Industrial & Other Relations The Industrial Relations climate was stable throughout the year with management and union working together to promote an enabling environment for production.
The Company continued to accommodate schools on educational tours.

Five (5) secondary school students completed their work study stints and six (6) Ministry of Labour trainees were on work attachment with the Company for a six month period.

V. Equipment A capital budget of 514M was proposed however approval for capital expenditure was denied by the Ministry of Finance on the ground that the Company would have been merged with the Guyana National Newspapers Limited.
In order to enhance production capacity, the MOZP (two-colour press) and GTO (one-colour press) were refurbished in the respective sums of 53.7M and $.9111.

The sum of $IAM was also expended to refurbish the wire- stitching machine.

Equipment breakdowns were regular and our maintenance personnel were challenged to keep them running at times improvising because the manufacturers (of equipment) no longer stocked the required parts.
The Company's ability to attract a higher sales volume is impeded by the lack of necessary equipment which has placed it at a significant disadvantage to compete in an environment where the private printers were equipped with state-of the art equipment.

Conclusion The year 2008 was a challenging one and 2009 is expected to bring further challenges since due to budget constraints we have not been able to re-tool the factory as planned.
We are however optimistic that our results would once again be favourable, moreso since the price of paper stock has fallen with the reduction in the price of crude oil.

Also, we have an experienced and committed workforce which is determined to ensure the continued success of the Company.

I therefore take this opportunity to recognize their efforts and to thank them on behalf of the Board of Directors.
I also say "thanks" to our faithful customers for their patronage throughout the year and look forward to their continued support in the future.

vi.

I • AG:91!2009 - (--(5 .


_ =‘; „ 4 December 2009 REPORT OF THE AUDITOR GENERAL, TO THE MEMBERS OF THE BOARD OF DIRECTORS OF THE GUYANA NATIONAL PRINTERS LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 Chartered Accountants Deloitte and Touché have audited on my behalf the financial statements of Guyana National Printers Limited for the year ended 31 December 2008, as set out on pages 2 to 23.

The audit was conducted in accordance with the Audit Act 2004.
Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these fmancial statements in accordance with the International Financial Reporting Standards.
This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing.

Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud and error.

In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances.
but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In October 2009, the company received a tax liability statement of G$32,815,514 from the Guyana Revenue Authority which was not settled or provided for.

The company is disputing this liability but is unable to provide valid objections for each year in dispute.

We are therefore unable to express an opinion on the tax recoverable of G$23,405,190 and tax payable of G$19,664,763.

The company did not accrue for interest and penalty on outstanding taxes as stated above.
We are therefore unable to ascertain whether the liability and profit for the year is correctly stated.

The necessary information was not provided for the disclosures of the company's defined benefit pension plan as required by 1AS 19 - Employee benefits.

In our opinion, as a result of this the company did not comply with 1AS 19 - Employee benefits and therefore did not comply with I FRS.
In my opinion, except for these matters stated in the preceding paragraphs, the financial statements give a true and fair view, in all material respects of the financial position of Guyana National Printers Limited as at 31 December 2008 and of its financial performance and its cash flows for the year then ended in conformity with International Financial Reporting Standards and the Companies Act 1991.
Emphasis Without further qualifying our opinion, we wish to emphasise that the financial statements have been prepared using principles applicable to a going concern which contemplate the realization of assets and liquidation of liabilities in the normal course of business.

However, as explained in Note 23 in the financial statements the Government of Guyana has taken a decision to privatise the company.

No adjustment to assets or liabilities has been made as a result of this.
in addition, we wish to further emphasise that the terms and conditions of the Government of Guyana loan in the sum of $25.807M was not made available to us.

This loan is stated as a non- current, interest free liability in the financial statements of the company.

.

 • 7 "D. SHARMA ' AUDITOR GEN kL (ag.)
- ; AUDIT OFFICE 63 HIGH STREET KINGSTON GEORGETOWN GUYANA M il REPORT OF THE CHARTERED ACCOUNTANTS DELOITTE & TOUCHE TO THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF GUYANA NATIONAL PRINTERS LIMITED FOR THE YEAR ENDED 31 DECEMBER 2008 Report on the Financial Statements We have audited the accompanying financial statements of Guyana National Printers Limited which comprise the balance sheet as at 31 December 2008 and the income statement, statements of changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes as set out on pages 2 to 23.
Directors' illanagement 's Responsibility for the Financial Statements The Directors/ Management are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards.
This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing.

Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

• • We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

/1(a) .
/1(a) .

- 1(a) - In October 2009 the company received a tax liability statement of G$32,815,514 from the Guyana Revenue Authority which was not settled or provided for.

The company is disputing this liability but is unable to provide valid objections for each year in dispute.

We are therefore unable to express an opinion on the tax recoverable of G$23,405,190 and tax payable of G$19,664,763.

The company did not accrue for interest and penalty on outstanding taxes as stated above.
We are therefore unable to ascertain whether the liability and profit for the year is correctly stated.

2.

The necessary information was not provided for the disclosures of the company's defined benefit pension plan as required by LAS 19 — Employee benefits.

In our opinion, as a result of this the company did not comply with LAS 19 — Employee benefits and therefore did not comply with 1FRS.
Opinion In our opinion except for the matters stated in the preceding paragraphs, the financial statements give a true and fair view, in all material respects of the financial position of Guyana National Printers Limited as at 31 December 2008 and of its financial performance and its cash flows for the year then ended.
Emphasis Without further qualifying our opinion, we wish to emphasise that the financial statements have been prepared using principles applicable to a going concern which contemplate the realization of assets and liquidation of liabilities in the normal course of business.

However, as explained in Note 23 in the financial statements the Government of Guyana has taken a decision to privatise the company.

No adjustment to assets or liabilities has been made as a result of this.
We wish to further emphasise that the terms and conditions of the Government of Guyana loan was not made available to us.

This loan is stated as a non-current, interest free liability in the financial statements of the company.

Report on Other Legal and Regulatory Requirements The financial statements comply with the requirements of the Companies Act 1991.
• DELOITTE & TOUCHE CHARTERED ACCOUNTANTS December 2, 2009 77 Brickdam, Stabroek, Georgetown, Guyana GUYANA NATIONAL PRINTERS LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2008 Revenue Cost of sales Gross profit Other income Notes 2008 G$ 2007 G$ 220,299,427 (182,836,874) 218,782,496 (164,911,814) 37,462,553 53,870,682 5 24,224,896 9,335,305 61,687,449 63,205,987 Administrative expenses 6 (49,385,652) (37,847,910) Profit before tax 12,301,797 25.358,077 Taxation Profit for the year Earnings per share in dollars 7 8 (3,368,072) (5,878,961) 8,933,725 19,479,116 31.74 69.20 "The accompanying notes form an integral part of these financial statements" GUYANA NATIONAL PRINTERS LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2008 Share capital Accumulated earnings Capital reserve G$ G$ G$ Total G$ As at 31 December 2006 2,814,850 59,327,062 12,873,199 75,015,111 Profit for the year 19,479,116 19,479,116 Total recognised income and expense for the year 19,479,116 19,479,116 As at 31 December 2007 2,814,850 78,806,178 12,873,199 94,494,227 Revaluation of fixed assets 165,378,537 165,378,537 Total income and expense recognised directly in equity 165,378,537 165,378,537 Loss for the year 8,933.725 8,933,725 Total recognised income and expense for the year 8,933,725 165,378,537 174,312,262 As at 31 December 2008 2,814,850 87,739,903 178,251,736 268,806,489 "The accompanying notes form an integral part of these financial statements".
3 GUYANA NATIONAL PRINTERS LIMITED BALANCE SHEET AT 31 DECEMBER 2008 Non Current Assets Fixed assets Current assets Inventories Trade debtors Other debtors and prepayments Taxes recoverable External payments deposits Cash on hand and at bank TOTAL ASSETS EQUITY AND LIABILITIES Capital and reserves Share capital Accumulated earnings Capital reserve Non-current liabilities Loans Current liabilities Trade creditors Other creditors and accruals Advance payments Taxation Bank overdraft (unsecured) Notes 2008 G$ 2007 G$ 9 180,969,263 15,177,819 • 10 11(a) 11(b) 12 55,971,182 24,946,589 1,972,995 23,405,190 100,977 69,239,872 67,603,901 28,295,432 1,592,255 17,863,976 100,977 71,283,493 175,636,805 186,740,034 356,606,068 201,917,853 14(a) 14(b) 2,814,850 87,739,903 178,251,736 2,814,850 78,806,178 12,873,199 268,806,489 94,494.227 15 25,807,272 25,807,272 16 13 17 18 3,067,836 9,077,443 30,182,265 19,664,763 - 9,473,325 8,397.504 33.905,086 22,606,224 7,234,215 61,992,307 81,616,354 TOTAL EQUITY AND LIABILITIES 356,606,068 201,917,853 These financial statements were approved by the Board of Directors on On behal7f-t e BodaryiTh "The accompanying notes form an integral part of these financial statements" --t Director GUYANA NATIONAL PRINTERS LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2008 4 a Operating activities Profit before tax Adjustment for: Adjustment to fixed assets Depreciation 2008 G$ 2007 G$ 12,301,797 25,358,077 (1,237,926) 2,247,216 1,688,672 Operating profit before working capital
 changes 13,311,087 27.046,749 Decrease in inventories (Increase)/decrease in debtors and prepayments Decrease in creditors and accruals Increase/(decrease) in advance payments 11,632,719 2,968,103 (5,725,550) (3,722,821) 9,706,278 (5,879,548) (9,214,808) 15,315,705 Cash generated from operations 18,463,538 36,974,376 Taxes paid (11,850,748) (3,944,807) Net cash provided by operating activities 6,612,790 33,029,569 Investing activities: Purchase of fixed assets (1,422,196) (8,233,538) Net cash used in investing activities (1,422,196) (8,233,538) Increase in cash and cash equivalents Cash and cash equivalents at beginning of year 5,190,594 64,049,278 24,796,031 39,253,247 Cash and cash equivalents at end of year 69,239,872 64,049,278 Comprising: Cash on hand and at bank Bank overdraft 69,239,872 71,283,493 (7,234,215) 69,239,872 64,049,278 • "The accompanying notes form an integral part of these financial statements".
GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS.

Incorporation and activities The Guyana National Printers Limited was formerly known as the Guyana Lithographic Company Limited which was incorporated on May 26, 1976.

It was then registered as Guyana National Lithographic Company Limited.

From 1980 the Company merged with Guyana Printers Limited and the merged company was renamed Guyana National Printers Limited.

The Company's principal activities are to provide printing and packaging services.
2.
Adoption of new and revised standards and interpretations Effective for the current period New Interpretations Effective for annual periods beginning on or after 1 March 2007 1 January 2008 IFRIC 11 IFRIC 12 IFRIC 14 IFRS 2 — Group and Treasury Share 'Transactions Service Concession Arrangements IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 1 January 2008 Available for early adoption for the current period New Standards IFRS 8 Operating Segments Amendments to Standards IAS 23 Borrowing Costs IAS 1 Presentation of Financial Statements [FRS 3 Business Combinations IAS 27 Consolidated and Separate Financial Statements [FRS 2 Vesting Conditions and Cancellations 6.
Effective for annual periods beginning on or after 1 January 2009 1 January 2009 January 2009 1 July 2009 1 July 2009 1 January 2009 \ N.'.

"1.10NAL PRINTERS LIMITED NOTES ON THE ACCOUNTS.

2.
Adoption of new and revised standards and interpretations — cont'd Available for early adoption for the current period - cont'd Amendments to Standards — cont'd IAS 32 & IAS 1 Puttable Financial Instruments and Obligations Arising on Liquidation IFRS 1 & IAS 27 Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate Various Improvements to IFRSs IAS 39 Eligible Hedged Items IAS 39 & IFRS 7 Reclassification of Financial Assets IFRS I First-time Adoption of Financial Reporting Standards New interpretations IFRIC 13 Customer Loyalty Programmes IFRIC 13 Agreements for the Construction of Real Estate I January 2009 1 January 2009 Varies (mostly January 2009) 1 July 2009 1 July 2008 1 July 2009 1 July 2008 1 January 2009 IFRIC 16 Hedges of a Net Investment in a Foreign Operation 1 October 2008 IFRIC 17 Distributions of Non-cash Assets to Owners 1 July 2009 None of the above new standards, interpretations and amendments to standards is expected to have a significant impact to the Guyana Bank for Trade and Industry Limited accounting policies.
3.

 Summary of significant accounting policies (a) Accounting convention The financial statements have been prepared under the historical cost convention as modified for the revaluation of certain fixed assets and the accounting policies conform with International Financial Reporting Standards adopted by the Institute of Chartered Accountants of Guyana.

(b) Revenue and expense recognition Revenue and expense are recognized on an accrual basis.

7.
7.

GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 3.

 Summary of significant accounting policies — cont'd (c) Fixed assets and depreciation Freehold land and buildings held for use in the supply of services or for administrative purposes are stated in the balance sheet at their revalued amounts.

Revalued amounts are taken as the fair value at the date of revaluation less any subsequent accumulated impairment losses.
Any revaluation increase arising on the revaluation of such land, buildings and equipment is credited to revaluation reserve.
Depreciation of other fixed assets other than freehold land is calculated on the straight line method at rates sufficient to write off the cost or revaluation of these assets to their residual values over their estimated useful lives as follows: Buildings Plant, machinery and equipment Motor vehicles 2% 10% -1 1% ,5% The gain or loss arising on the disposal or retirement of an item of fixed assets is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the profit or loss.
(d) Inventories These are valued at the lower of cost and net realizable value using primarily the weighted average cost method.

() Translation of foreign currencies Transactions in foreign currencies other than Guyana dollars are recorded at the rates of exchange prevailing on the dates of the transactions.

At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date.
Non-monetary assets and liabilities carried at the fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined.

Gains and losses arising on retranslation are included in net profit or loss for the period, except for exchange differences arising on non-monetary assets and liabilities where the changes in fair value are recognized directly in equity 8.

 NATIONA.L PRINTERS LIMITED NOTES ON THE ACCOUNTS 3.
Summary of significant accounting policies — cont'd (f) Taxation Income tax expense represents the sum of tax currently payable and deferred tax.

Income tax The tax currently payable is based on taxable profit for the year.

Taxable profit differs from profit as reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Company's liability for current tax is calculated using tax rates that have been enacted in Guyana at the balance sheet date.

Deferred tax Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realized.

Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, and when they relate to income taxes levied by the same taxation authority, and the company intends to settle its current tax assets and liabilities on a net basis.

At December 31, 2007 deferred tax assets not taken up due to uncertainties with respect to recoverability was approximately G$ 63,755,700.
At December 31, 2008 deferred tax liability of G$8,888,015 was not taken up.

• • GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 3.

 Summary of significant accounting policies — cont'd (g) Capital reserve Surplus on revaluation of fixed assets is credited to this account.

This reserve is not distributable.

(h) Pension funding The Company participates in a defined benefit pension plan for its employee's retirement benefits depending on length of service.
The contributions are held in trustee administered funds which are separate from the company's resources.

The plan covers all permanent employees.

The last actuarial valuation was done as at 31 December 2003.

The valuation was done using the Projected Unit Credit Method, as required by the Standard and the company recognizes gains or losses immediately.

(i) Cash and cash equivalents Cash and cash equivalents are comprised of cash on hand and at bank and hank overdraft.
(j) Financial instruments Financial assets and liabilities are recognized on the company's balance sheet when the company becomes a party to the contractual provisions of the instruments.

Trade receivables Trade receivables are measured at amortised cost.

Appropriate allowances for estimated unrecoverable amounts are recognized in profit or loss when there is objective evidence that the asset is impaired.
The allowance recognized is based on management's evaluation of the collectibility of the receivables.

Bank borrowings Bank overdrafts are recognized at amortised cost.

Trade payables Trade payables are recognized at amortised cost.

10.

GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 4.
Critical accounting judgments and key sources of estimation uncertainty It is the directors' responsibility to select suitable accounting policies and to make judgments and estimates that are reasonable and prudent.
The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period.

Actual results could differs from those estimates.


Key sources of estimation uncertainty The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(i) Debtors and other receivables On a regular basis, management reviews debtors and other receivables to assess impairment.
Based on the information available as to the likely impairment in cash flows, decisions are taken in determining appropriate provisions to be made for bad and doubtful debts.

(ii) Useful lives of fixed assets Management reviews the estimated useful lives of fixed assets at the end of each year to determine whether the useful lives should remain the same.
(iii) Other financial assets In determining the fair value of investments in the absence of a market, the Directors estimate the likelihood of impairment by using discounted cash flows.

4 11.
GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 5 Other income Interest income Others 6 Administrative expenses Employment cost: Salaries and wages Pensions Other staff costs Adminstrative expenses Depreciation (a) Auditor's remuneration Interest Directors' emoluments (b) Bad debts (a) Depreciation charges Administration Overhead (b) Directors' emoluments C.Ramsingh M.Sahadeo A.Collins C Belgrave D.Grenardo M.Gordon P,Boyce C. Harrison M. Harris M. Bacchus 2008 G$ 2007 G$ 1,999,525 22,225,371 1,144,305 8,191,000 24.224,896 9,335,305 20,792,963 992,998 5,193,783 19,807,939 1,746,454 4,828,933 26,979,744 26,383,326 12,682,968 1,077,673 1,465,000 - 660,000 6,520,267 8,706,566 948,018 1,150,000 - 660,000 49,385,652 37,847,910 948,018 740,654 1,688,672 120,000 90,000 90,000 90,000 90,000 90,000 90,000 1,077,673 1,169,543 2,247,216 120,000 90,000 90,000 90,000 90,000 90,000 90,000 660,000 660,000 12 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 7 Taxation Reconciliation of tax expenses and accounting profit 2008 G$ 2007 G$ Accounting profit 12,301,797 25,358,077 Corporation tax at 35% 4,305,629 8,875,327 Add: Tax effect of expenses not deductible in determining taxable profit Depreciation for accounting purposes Others 786,526 591,035 57,700 Deduct: Tax effect of depreciation for tax purposes Other Loss relief Corporation tax Property tax 5,092,155 9,524,062 1,530,124 699,833 2,862,198 (1,431,099) 968,238 611,280 7,944,544 (4,000,585) 1 ,431 ,099 3,943,959 1,936,973 1,935,002 3,368,072
 5,878,961 Current tax 3,368,072 5,878,961 8 Earnings per share 2008 G$ 2007 G$ Profit for the year after taxation 8,933,725 19,479,116 Number of shares issued 281,485 281,485 Earnings per share in dollars 31.74 69.20 9 Fixed assets (ai Cost/valuation GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS Land and building Freehold Leasehold Plant, machinery and equipment Motor vehicles G$ GS G$ G$ Ai 1 January 2008 Additions Disposal
 Adjustment Revaluation 8,259,956 - - - 112,189,087 957 .. - - 70,564,230 1,422,196 (5.408,692) (7,577,945) 31,930,014 6,916,015 (165,500) Total G$ 85,741,158 1,422,196 (5,574,192) (7,577,945) 144,119,101 At 31 December 2008 120,449,043 957 90,929,803 6.750.515 218,130,318 Comprising: Cost Valuation Depreciation At 1 January 2008 Charge for the year Adjustment Write back on Disposal Revaluation 8,259,956 112,189,087 957 70,564,230 20,365,573 6,916,015 85,741,158 (165,500) 132,389,160 120,449,043 957 90,929,803 6,750,515 218,130,318 4,064,781 162 (301,738) (3,763,044) (162) 59.582,381 2,247,216 (936,188) (12.986.637) (15,896,231) 6,916,015 (165.5001 (1,600.000) 70.563,339 2,247,216 (1,237.926) (13.152.137) (21,259,437) At 31 December 2008 (1) 32.010,541 5.150,515 37.161.055 Net book values: At 31 December 2008 120.449,044 957 58,919,262 1,600,000 180,969.263 At 31 December 2007 4,195,175 795 10.981,849 15,177,819 (a) Property, plant and equipment vested on May 26, 1976 were stated at the book values of the previous owners (which were in excess of compensation prices) less provison for depreciation computed on those values until 1982 and 2008 when revaluation was done by professional valuators.
The surplus on the revaluation has been credited to capital reserve.

10 Inventories Raw materials Finished goods Work-in-progress Spares 2008 G$ 19.425,058 15,458,882 13,672,208 7,415.034 2007 G$ 30,251,160 15.977.132 14.563,170 6,812,439 55,971.182 67,603.901 The costs of inventory recognised as expense during the period with respect to the operations was G$ 116,850,410 ( 2007.

G$ 120.369,907).

Cost of sales includes labour cost and depreciation charges.
The costs of inventory recognised as expense includes G$ 1,565,410 In respect of material written off (2007: G$ 1,228,894) Inventories of G$ 55,971,182 (2007: G$67,603,901 ) are expected to be recovered within twelve months.
14 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 11 (a) Trade debtors 2008 G$ 2007 G$ Trade debtors Less: Provision for impairment individually assessed (i) 26,814,673 1,868,084 32,598,616 4,303,184 At 31 December 24,946,589 28,295,432 (i) At 1 January Provision for the year 4,303,184 (2,435,100) 4,303,184 At 31 December 1,868,084 4,303,184 (b) Other debtors and prepayments Prepayments Other debtors 1,700,949 272.046 656,249 936,006 1,972,995 1,592,255 12 External payments deposits 100,977 100,977 These represents amounts deposited with commercial banks under External Payments Deposit Scheme for payments of amounts due to foreign suppliers.
Such funds are restricted within the Scheme awaiting premission from Bank of Guyana to remit to foreign suppliers.
13 Other creditors and accruals Accruals Other creditors 2008 G$ 7,072,157 2,005,286 2007 G$ 5,892,217 2,505,287 9,077,443 8,397,504 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 14 Share capital (a) Authorised Number of ordinary shares Issued and fully paid 281,485 ordinary shares These shares are of G810 par value and have equal voting rights and rights to dividend (b) Capital reserve At 1 January Movement during the year At 31 December 15 Loan Ministry of Finance 2008 2007 300,000 G$ 300,000 G$ 2,814,850 2,814,850 2008 G$ 12,873,199 165,378,537 178,251,736 2007 G$ 12,873,199 12,873,199 25,807,272 25,807,272 This represents monies borrowed from the Government terms and agreement are yet to be finalised.
of Guyana for which the 16 Trade creditors Local Foreign 17 Advance payments Local 2008 G$ 1,140 321 1,927,515 3,067,836 2007 G$ 8,099,661 1,373,664 9,473,325 30,182,265 33,905,086 This represents amounts received for jobs to be done on behalf of various customers.
2008 G$ 18 Bank overdraft Republic Bank Limited - salary account Republic Bank Limited - current account Interest rate This was an unsecured overdraft held at Republic Bank (Guyana) Limited 2007 G$ 44,511 7,189,704 7,234,215 18.25 16 19 (a) Analysis of financial assets and liabilities by measurement basis GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 2007 ASSETS Trade debtors Other debtors and prepayments Taxes recoverable External payments deposit Cash on hand and at bank Total assets LIABILITIES Loans Trade creditors Other creditors and accruals Advance payments Taxation Bank overdraft Total liabilities 2007 ASSETS Trade debtors Other debtors and prepayments Taxes recoverable External payments deposit Cash on hand and at bank Total assets LIABILITIES Loans Trade creditors Other creditors and accruals Advance payments Taxation Bank overdraft Total liabilities (b) Fair value Loans and receivables G$ 24,946,589 1,972,995 23,405,190 Financial assets and liabilities at amortised cost G$ - 100,977 69,239,872 Total G$ 24,946,589 1,972,995 23,405,190 100,977 69,239,872 50,324,774 69,340,849 119,665,623 - - - 25,807,272 3,067,836 9,077,443 30,182,265 19,664,763 - 25,807,272 3,067,836 9,077,443 30,182,265 19,664,763 87,799,579 87,799,579 Loans and receivables G$ 28,295,432 1,592,255 17,863,976 Financial assets and liabilities at amortised cost G$ 100,977 71,283,493 Total G$ 28,295,432 1,592,255 17,863,976 100,977 71,283,493 47,751,663 71,384,470 119,136,133 25,807,272 9,473,325
 8,397,504 33,905,086 22,606,224 7,234,215 25,807,272 9,473,325 8,397,504 33,905,086 22,606,224 7,234,215 107,423,626 107,423,626 Fair values have been determined as follows: (i) Loans and receivables and Financial assets and liabilities The directors consider that the caning amounts of loans and receivables and financial assets and liabilities recorded at amortised cost in the financial statements approximate their fair values.
17 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 20 Capital risk management The company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance The company overall strategy remains unchanged from 2006 The capital structure of the company consists of cash equivalents and equity comprising of share capital, accumulated earnings and capital reserve.
21 Financial risk management Financial risk management objectives The Company manages its financial risks through internal risk reports which analyse exposure by degree and magnitude of risks.

These risks include market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.
The Company seeks to minimise the effects of these risks by the use of techniques that are governed by management's policies on foreign exchange risk, interest rate risk and credit risk which are approved by the board of directors.
Market risk Market risk is the risk that the value of the financial instruments will fluctuate as a result of changes in market prices whether those changes are caused by factors specific to the individual security or its issuer or factors affecting all securities traded in the market.

The company's exposure to market risk is minimal.


18 GUYANA NATIONAL PRINTERS LIMITED' NOTES ON THE ACCOUNTS 21 Financial risk management - cont'd (a) Market risk - cont'd (i) Interest rate risk The company is exposed to various risks that are associated with the effects of variations in interest rates.

This impacts directly on its cash flows.


The company's management continually monitors and manages these risks through the use of appropriate tools and implements relevant strategies to hedge against any adverse effects.
Interest sensitivity gap 69,239,872 Assets Trade debtors Other debtors and prepayments Taxes recoverable External payment deposits Cash at bank and on hand Liabilities Loans Trade creditors Other creditors and accruals Advance payments Taxation Assets Trade debtors Other debtors and prepayments Taxes recoverable External payment deposits Cash at bank and on hand Liabilities Loans Trade creditors Other creditors and accruals Advance payments Taxation Bank overdraft Average Interest rate Within 1 year G$ 2.3 69,239,872 Maturing 2008 Non interest bearing G$ 24,946,589 1,972,995 23,405,190 100,977 Total G$ 24,946,589 1,972,995 23,405,190 100,977 69,239,872 69,239,872 50,425,751 119,665,623 25,807,272 3,067,836 9,077,443 30,182,265 19,664,763 25,807,272 3.067,836 9,077,443 30,182,265 19,664,763 87,799,579 87,799,579 Maturing 2007 Non interest bearing G$ 28,295,432 1,592,255 17,863,976 100,977 13,052,767 Total G$ 28.295,432 1,592,255 17,863,976 100,977 71,283,493 Average Interest rate Within 1 year G$ 2.3 58,230,726 58,230,726 60,905,407 119,136,133 25,807,272 9,473,325 8,397,504 33,905,086 22,606,224 25,807,272 9,473,325 8,397,504 33,905,086 22,606,224 7,234,215 18.25 7,234,215 7,234:215 100,189,411 107,423,626 Interest sensitivity gap 50,996,511 19 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 21 Financial risk management - cont'd (a) Market risk - cont'd (ii) Price risk Price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices whether
 those changes are caused by factors specific to the individual security or its issuer or factors affecting all securities traded in the market.
The company's exposure to price risk arises is minimal as the Company does not actively trade in equities.

Management continually identifies, evaluates, underwrites and diversifies risk in order to minimize the total cost of carring such risk.

(iii) Foreign currency risk The company is exposed to foreign currency risk due to fluctuations in exchange rates on balances that are denominated in foreign currencies.
Assets Liabilities Assets Liabilities T&T$ Sterling Euro US$ 2008 Total G$ 20,653 2 35 4,741 41,696 2,996,252 2,094 22,562,971 T&T$ Sterling Euro US$ 2007 Total G$ 4,095 884 22,162 5,062.844 9,308 18,364 10,182.047 Foreign currency sensitivity analysis The following table details the company's sensitivity to a a 1.5% increase or decrease in the Guyana dollar against the relevant currencies.
Although a rate is not formally adopted and used as a measure, 1.5% gives a prudent possibility of a change in rate.

The sensitivity analysis shows the impact of all assets and liabilities that are held in foreign currencies per the preceding table.

A positive number below indicates an increase in profit if the currencies were strengthened 1.5% against the Guyana dollar.
If the currencies were weaken 1.5% against the Guyana dollar, there would be equal and opposite impact on the profit and loss account and the balances would be negative.
Profit/(loss) 2008 G$ 2007 G$ (293,500) (76,788) 20 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 21 Financial risk management - cont'd (b) Credit risk Credit risk refers to the risk that a customer or counterparty will default on its contractual obligations resulting in financial loss to the company.

The company faces credit risk in respect of its cash at bank, trade and other receivables.
However, this risk is controlled by close monitoring of these assets by the company.

The maximum risk faced by the company is the balance reflected in the financial statements.
Trade and other receivables (excluding prepayments) 25,218,635 29,231,438 2008 G$ 2007 G$ The above balances are classified as follows: Current Past due but not impaired Impaired 16,094,118 3,493,433 5,631,084 12,986,166 7,868,108 8,377,164 25,218,635 29,231,438 Ageing of trade and other receivables which were past due but not impaired 30-59 days 60-89 days Over 90 days but less than 1 yr Ageing of trade and other receivables which are impaired Balances over 1 year Provision for impairment individually assessed 2008 G$ 1,546,878 1,512,777 433,788 2007 G$ 2,211,061 533,722 5,123,325 3,493,443 7,868,108 2008 G$ 2007 G$ 5,631,084 8,377,164 1,868,084 4,303,184 21 GUYANA NATIONAL PRINTERS LIMITED' NOTES ON THE ACCOUNTS 21 Financial risk management - cont'd (c) Liquidity risk Liquidity risk is the risk that the company will encounter difficulty in raising funds to meet its commitments associated with financial instruments.
The company manages its liquidity risk by maintaining an appropriate level of resources in liquid or near liquid form.
Maturing 2008 Within 1 year On Demand G$ Due 3 - 12 mths G$ Over 1 year G$ Total G$ 24,946,589 1,972,995 23,405,190 100,977 50.425,751 3,067.836 9,077,443 19.664,763 69,239 872 69 239,872 30.182,265 24,946,589 1,972,995 23,405,190 100,977 69,239,872 119,665,623 25,807,272 3,067,836 9,077,443 30,182.265 19,664,763 25,807 272 Assets Trade debtors Other debtors and prepayments Taxes recoverable External payments deposit Cash on hand and at bank Liabilities Loans Trade creditors Other creditors and accruals Advance payments Taxation Bank overdraft (unsecured) Net assets 39,057,607 18,615,709 (25.807,272) 31,866,044 30,182,265 31,810,042 25,807,272 87,799,579 2007 Within 1 year On Demand G$ Due 3 - 12 mths G$ Over 1 year G$ Total G$ Assets Trade debtors Other debtors and prepayments Taxes recoverable External payments deposit Cash on hand and at bank Liabilities Loans Trade creditors Other creditors and accruals Advance payments Taxation Bank overdraft (unsecured) Net assets - - 71,283,493 71,283,493 - 33,905.086 7,234,215 41,139,301 30,144,192 22 28,295,432 1,592,255 17,863,976 100.977 - 47,852,640 - 25.807,272 9,473,325 8,397,504 22,606,224 - 40,477,053 25,807,272 28,295,432 1,592,255 17,863,976 100,977 71,283,493 119,136,133 25,807,272 9,473,325 8,397,504 33,905,086 22,606,224 7,234,215 107,423,626 7,375,587 (25,807,272) 11.712,507 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 22 Related party transactions and balances Parties are considered to be related if one party has the ability to control the other
 party or exercise significant influence over the other party in making financial or operating decisions.
Listed below are transactions and balances with related parties: 2008 G$ 2007 G$ 16,621,982 24,198,129 (30,081,166) (31,794,786) (i) Balances with Ministries and other Government agencies Due from Due to Key management personnel (ii) Compensation The company key management personnel comprises of its Chief Executive Officer and Managers.
The remuneration paid to key management personnel for the year was as follows:- Short-term employee benefits 13,616,596 13,215,019 Post-employment benefits 444,853 482,258 (iv) Directors emoluments (note 6 (b)) 660,000 660,000 23 Privatization The Government of Guyana has listed the company to be privatised.

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