Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694838761591.pdf (Guyana)
GUYAI111 ARTIORM PRIRTERS UMITED Annual Report 2005 About the Company The business was established during 1939 by Leon Schuler, and he traded under the name of B.G.

Lithographic as Sole Trader.

He was joined in 1942 by Messrs. Booker Mc Connell & Co. Ltd. and a Company was incorporated and named Guyana Lithographic Co. Ltd.

The reason for Leon Schuler and Bookers joining hands was to expand and modernise the printing plant to meet the growing needs of Guyanese and West Indian customers.
When the country gained its independence from Britatn in 1966, it was renamed Guyana Lithographic Co. Ltd. and when its assets were acquired by the State in May 1976, it was registered as Guyana National Lithographic Co. Ltd. From 1980, the Company merged with Guyana Printers Ltd. and the two Companies were renamed Guyana National Printers Ltd. A planned rationalisation programme was put in train for greater effectiveness and efficiency at both plants.
Operations were completely consolidated at the La Penitence Plant in 2003 at which time the Industrial Site property was sold.
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 iii iv - vi vii 1 (a)... - 19 I.NF913N BOARD OF DIRECTORS REGISTERED OFFICE Farhaud Cecil Percival Cyril Maharaj is Michael Aubrey Don Amin Ramsingh Boyce (Mr) Belgrave Sahadeo Gordon Collins Grenardo MANAGEMENT - Chairman 1 Public Road La Penitence Georgetown Tele # 225-1242 - Worker Representative Marlyn David Errol Denise Nedd Collins Chan Souvenir - General Manager/Director/Company Secretary - Sales Manager - Production Manager - Finance Manager BANKERS Republic Bank (Guyana) Ltd — Water Street, Georgetown New Building Society — Avenue of the Republic AUDITORS Auditor General - 63 High Street Kingston, Georgetown tl NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the 23rd 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.
2.

3.

4.

5 To receive and consider the Company's Accounts for the year ended 2005 December 31, and the reports of the Directors and Auditors thereon.

To approve dividends in respect of the year ended 2005 December 31, as recommended by the directors.

To appoint Auditors To authorize the Directors to fix the remuneration of the Auditors To transact any other business of an Annual General Meeting.
BY ORDER OF THE BOARD Marlyn Ncdd (Mrs) Company Secretary GUYANA NATIONAL PRINTERS LIMITED CHAIRMAN'S REPORT Operations The year 2005 was another year of significant challenges for Guyana National Printers Limited.

The reduced workforce of 78, following the severing of thirty-three percent (33%) of the work-force, proved to be rather lean, to the extent that at times the absence of just one (1) employee, had a noticeable effect on production.
Managers were at times required to work alongside workers in order to meet customers' demands.

The year began with approximately 336,000 exercise books yet to be produced for the Ministry of Education to fulfill the 2004 contract.

This situation was due mainly to the erratic performance of the exercise book machine.

In order to alleviate the situation, the Company was forced to contract a Trinidadian Company to produce some of the books.
Trading results for 2005 reflected turnover of $184.7M and pre-tax profits of $9.6M.

This performance compares with 2004's (performance) of $175.8M and ($26.7M), respectively.

Cost of Sales was recorded at 72% compared with 88% in 2004.

The year's performance is considered to be reasonable in light of the fact that there was no upgrade of capital equipment at a time when the competition was growing at rapid pace.
The Company saw reasonably good support from its private sector customers with actual sales surpassing budget even though by a mere seven percent (7%).

Performance could have been much better if the exercise book contract with the Ministry of Education was completed In addition, sales of the GNPL brand of exercise books fell short of the budgeted amount by approximately 45%.

The absence of the margin was a factor here.


Equipment In March of 2005 the services of an engineer from Schiebeler and Company (Germany) were contracted to assess the state of the exercise book machine and carry out minor adjustments as necessary.

Upon his return to Germany the engineer submitted a report which recommended that the machine be iv rehabilitated to the tune of Euro 182,405 or approximately (G)$46M.
That report also informed that the machine was out-of-line by approximately 7mm which the engineer considered to be nominal, however he was non- committal as to the effect on the performance of the machine.

The Company was unable to meet the required outlay however a few of the more critical parts were changed during the latter part of the year.
A used plate making machine was purchased from another printer who had upgraded his equipment, at a cost of $500,000.00., this piece of equipment was previously loaned to the Company with the option of purchasing same.

Expenses Administrative expenses were reduced by approximately 13% when compared with the 2004 figure.

Wages and salaries were reduced by approximately 10%.

Training Training of employees both theoretical and practical continued throughout the year.
In-house job skill-training and training in Supervisory Management were intensified moreso because some of those skills were lost during the downsizing exercise in December 2004.

Industrial & Other Relations The industrial climate was fairly stable during the year, however during the first quarter Managers were hard pressed to manage a workforce which seemingly had difficulties responding to additional demands made upon them following the reduction in the workforce.
Workers, especially those on the factory floor were disheartened by the reduced order intake and as a result a group of seventeen (17) workers wrote the Board requesting that the Company should sever them because they saw no future in its existence.

The Board and Management were able to quell this situation.

v. The Company continued to accommodate schools and other interested organizations who requested to visit to observe the Company's operations.
Legal Action The Company was taken to court by the Mayor and City Councillors (M&CC) for purportedly owing $81,277,935.00 with $47,051,757 being interest, for the period 1997 January to 2004 December.

Judgement was granted to the M&CC when the matter was heard.

GNPL however was of the view that the Company was being over-assessed and requested that the Chief Valuation Officer re-assesses the property.

The re-assessment revealed that the Company was being assessed on property it did not own.
resulting in the Company being asked to pay $4.5M per annum instead of $1.4M.

The National Industrial & Commercial Investments Limited (NICIL) intervened in the matter with the City Council, through the honourable Minister of Local Government.

The matter remained unresolved at the end of the year, however the Company commenced payment on the basis of a payment plan computed by N1CIL.
Conclusion: The Company's modest success in 2005 is attributed to the indefatigable efforts of all workers and the confidence of those of our customers who despite the trying circumstances continued to patronize our business.

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"W., (dela/9,a 057;7 5,92 -75911, C)5. ;727.. 592-226-7 57, ,444 Pailaw.aat AG:23/2007 14 March 2007 REPORT OF THE AUDITOR GENERAL TO THE MEMBERS OF THE BOARD OF DIRETORS OF THE GUYANA NATIONAL PRINTERS LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 Chartered Accountants, Deloitte & Touche, have audited on my behalf the financial statements of Guyana National Printers Limited for the year ended 31 December 2005, as set out on pages 2 to 19.
The audit was conducted in accordance with the Audit Act 2004.

The preparation of the financial statements, including assertions relating to their completeness, accuracy and validity, and compliance with applicable laws, regulations and contractual obligations, is the responsibility of Management.

My responsibility is to express an independent opinion on the statements based on these assertions and to report my opinion to you.
As required by the Audit Act 2004, I have reviewed the audit plan and procedures, work papers, report and opinion of the Chartered Accountants.

I have also had detailed discussions with the Chartered Accountants on all matters of significance to the audit.

I concur with the opinion, as attached hereto, of Chartered Accountants, Deloitte & Touche.

.$ ‘4ttifgliTC}R. CR:ARAL (ag.)


AUDIT OFFICE 63 HIGH STREET KINGSTON GEORGETOWN GUYANA vii 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 2005 We have audited the accompanying balance sheet of Guyana National Printers Limited as at 31 December 2005 and the related income statement, statements of changes in equity and cash flows for the year then ended as set out on pages 2 to 19.
These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with Audit Office's auditing standards and International Standards on Auditing.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis for our opinion.

We were unable to verify the valuation for stock totalling G$54,666,051 due to lack of supporting documentation.
Also there was a write-off of G$12,098,803 which could not be verified.

We are therefore uncertain whether the stocks balance of G$54,666,051 and cost of sales of G$132,957,279 are fairly stated at 31 December 2005.

The necessary information was not provided for disclosures of the company's defined benefit pension plan as required by IAS 19 - Employee Benefits.
In our opinion, except for the matters mentioned in the preceding paragraphs, the financial statements give a true and fair view, in all material respects, of the financial position of the Company as at 31 December 2005 and of the results of its operations and cash flows for the year then ended and comply with the Companies Act 1991.
/ 1 (a) ... - 1 (a) - Without further qualifying our opinion, we wish to emphasise that the financial statements have been prepared using International Financial Reporting Standards 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 20 in the financial statements the Government of Guyana has taken a decision to privatize 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.
47' --(1:41t7-C'Lgic-Ce-t-Q., DELOITTE & TOUCHE CHARTERED ACCOUNTANTS 77 Brickdam, Stabroek, Georgetown, Guyana February 28, 2007 GUYANA NATIONAL PRINTERS LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2005 Revenue Cost of sales Gross profit Other income Notes 2005 G$ 2004 G$ 184,716,752 (132,957,279) 175,843,115 (154,159,071) 51,759,473 21,684,044 3 1,960,423 2,047,961 53,719,896 23,732,005 Administrative expenses 4 (44,081,535) (50,500,939) Profit/(loss) before tax 9,638,361 (26,768,934) Taxation 5 (3,096,184) (1,278,508) Profit/(loss) for the year 6,542,177 (28,047,442) Earnings/(loss) per share in dollars 6 23.24 (99.64) "The accompanying notes form an integral part of these financial statements" 2 GUYANA NATIONAL PRINTERS LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2005 Share capital G$ Accumulated earnings Capital reserve G$ G$ Total G$ Balance at 31 December 2003 2,814,850 42,819,055 12,873,199 58,507,104 Loss for the year (28,047,442) (28,047,442) Balance at 31 December 2004 2,814,850 14,771,613 12,873,199 30,459,662 Profit for the year 6,542,177 6,542,177 Balance as at 31 December 2005 2,814,850 21,313,790 12,873,199 37,001,839 "The accompanying notes form an integral part of these financial statements".
3 GUYANA NATIONAL PRINTERS LIMITED BALANCE SHEET AT 31 DECEMBER 2005 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 2005 G$ 2004 G$ 7 8,865,462 5,664,192 8 9(a) 9(b) 10 54,666,051 16,948,220 1,961,916 14,269,388 100,977 42,011,877 55,360,229 13,855,563 1,337,211 14,269,388 100,977 69,061,997 129,958,429 153,985,365 138,823,891 159,649,557 12(a) 13 12(b) 2,814,850 21,313,790 12,873,199 2,814,850 14,771,613 12,873,199 37,001,839 30,459,662 14 25,807,272 25,807,272 15 11 16 17 12,474,275 19,353,486 31,534,696 12,411,386 240,937 7,173,509 16,172,579 38,384,450 10,593,710 31,058,375 76,014,780 103,382,623 TOTAL EQUITY AND LIABILITIES 138,823,891 159,649,557 These financial statements were approved by the Board of Directors on On behalf of the pard: ... ... 4JLA+ ... ..... Director Director "The accompanying notes form an integral part of these financial statements" GUYANA NATIONAL PRINTERS LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 Operating activities Profit/(loss) before tax Adjustment for: Depreciation Fixed assets adjustment Gain on disposal of fixed assets 2005 G$ 2004 G$ 9,638,361 (26,768,934) 1,744,859 (3,697,306) 1,358,535 (203,500) Operating profit before working capital changes 7,685,914 (25,613,899) Decrease in stocks (Increase)/decrease in debtors and prepayments Increase/(decrease) in creditors and accruals Increase/(decrease) in advance payments 694,178 (3,717,362) 8,481,673 (6,849,754) 28,451,384 11,092,738 (12,356,794) 3,238,338 Cash generated from operations (1,391,265) 4,811,767 Taxes paid (1,278,508) (4,681,601) Net cash provided by operating activities 5,016,141 130,166 investing activities: Purchase of fixed assets Proceeds from sale of fixed assets (1,248,823) (526,439) 203,500 Net cash used in investing activities (1,248,823) (322,939) Increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year 3,767,318 38,003,622 (192,773) 38,196,395 Cash and cash equivalents at end of year 41,770,940 38,003,622 Comprising: Cash on hand and at bank Bank overdraft 42,011,877 (240,937) 69,061,997 (31,058,375) 41,770,940 38,003,622 "The accompanying notes form an integral part of these financial statements".
5 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS.

I .

 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.

 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.

(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.

6.

GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS.

2.
Summary of significant accounting policies — cont'd (c) Fixed assets and depreciation — cont'd 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% -11% 25% 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.

(e) 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 7.

GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS.

2.
2.

 Summary of significant accounting policies — cont'd (f) Taxation Income tax expense represents the sum of tax currently payable and deferred 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 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, 2005 deferred tax assets not taken up due to uncertainties with respect to recoverability was approximately G$49,470,242 (2004 — G$48,521,005).

8.
8.

GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS.

2.

 Summary of significant accounting policies — cont'd (g) Capital reserve Surplus on revaluation of fixed assets (land and buildings) 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 bank overdraft.
(j) Fair value The amount included in the financial statements for receivables and payables reflect their approximate fair value because of the short term maturity of these instruments.
(k) Use of estimates 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.

9.

GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS.
Summary of significant accounting policies — cont'd In the current year the company adopted several revised and new standards that are now effective and relevant to its operations.

The adoption of the revised and new standards did not result in substantial changes to the company's financial statements.

POTENTIAL IMPACT OF CHANGES IN STANDARDS NOT YET EFFECTIVE (i) (ii) IAS 19 (Amendment), Employee Benefits (effective for annual periods beginning on or after 1 January 2006).
This amendment introduces the option of an alternative recognition approach for actuarial gains and losses and introduces additional disclosures.

The company will consider whether it will adopt this amendment in the financial year ending 31 December 2006.

IFRS 7, Financial Instruments (effective for annual periods beginning on or after 1 January 2007).
This standard will replace IAS 30, Disclosures in the financial statements of Banks and similar Financial Institutions, and the disclosure requirements of IAS 32, Financial Instruments: Disclosure and presentation.

The standard will introduce new disclosures to improve information about financial instruments.
IFRS 7 requires the disclosure of qualitative and quantitative information about exposure to risks arising from financial instruments, including specified minimum disclosures about credit risk, liquidity risk and market risk, including sensitivity analysis to market risk.

IFRS 8 — Operating Segment This becomes effective for period beginning on or after January 1, 2009.

IFRS 8 replaces IAS 14 Segment reporting.


IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria.

Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by chief operating decision maker in deciding how to allocate resources and in assessing performance.
Other standards and interpretations issued but not yet effective are not expected to have a material impact on the company's financial statements when adopted.
10 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 3 Other income Bad debts recovered Interest income Gain on exchange Others 4 Administrative expenses Employment cost: Salaries and wages Pensions Others staff cost Adminstrative expenses Depreciation (a) Auditor's remuneration Interest Directors' emoluments (b) (a) Depreciation charges Administration Overhead (b) Directors' emoluments F.Amin C.Ramsingh R.Forde M.Sahadeo A.Collins N. John C.Belgrave D.Grenardo M.Gordon P.Boyce 2005 G$ 2004 G$ - 90,000 45,000 - 90,000 90,000 90,000 90,000 90,000 90,000 30,000 90,000 7,500 7,500 82,500 82,500 55,832 82,500 630,000 618,332 11 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 5 Taxation Property tax Corporation tax Prior period adjustment Reconciliation of tax expenses and accounting profit 2005 G$ 1,500,960 1,411,288 183,936 3,096,184 2005 G$ 2004 G$ 1,278,508 1,278,508 2004 G$ Accounting profit/(loss) 9,638,361 100.0 (26,768,934) 100.0 Corporation tax at 35% 3,373,426 35.0 (9,369,127) (35.0) Add: Tax effect of expenses not deductible in determining taxable profit Depreciation for accounting purposes Others 610,701 31,038 6.3 0.3 693,400 30,000 2.6 0.1 Deduct: Tax effect of depreciation for tax purposes Gain on disposal of fixed assets Other Loss relief Corporation tax 4,015,165 41.6 (8,645,727) (32.3) 774,192 - 418,399 2,822,574 (1,411,287) 8.0 - 4.4 29.2 (14.6) 1,079,465 596,438 4.0 2.2 (10,321,630) (38.5) - 1,411,287 14.6 (10,321,630) (38.50) 6 Earnings/(loss) per share 2005 G$ 2004 G$ Profit/(loss) for the year after taxation 6,542,177 (28,047,442) Number of shares issued 281,485 281,485 Earnings/(loss) per share in dollars 23.24 (99.64) 12 7 Fixed
 assets GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS Land and building Freehold Leasehold Plant, machinery and equipment G$ G$ G$ Motor vehicles G$ Total G$ (a) Cost/valuation At 1 January 2005 Additions 8,259,956 At 31 December 2005 8,259,956 Depreciation At 1 January 2005 Charge for the year Adjustment 3,595,647 156,378 - 957 - 957 162 59,949,592 1,248,823 6,916,015 - 75,126,520 1,248,823 61,198,415 6,916,015 76,375,343 59,450,504 1,088,481 (3,697,306) 6,416,015 500,000 - 69,462,328 1,744,859 (3,697,306) At 31 December 2005 3,752,025 162 56,841,679 6,916,015 67,509,881 Net book values: At 31 December 2005 4,507,931 At 31 December 2004 4,664,309 795 795 4,356,736 - 8,865,462 499,088 500,000 5,664,192 (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 when revaluation was done by professional valuators.
The surplus on the revaluation has been credited to capital reserve.
8 Inventories Raw materials Finished goods Work-in-progress Goods in transit 2005 G$ 2004 G$ 21,401,715 22,883,006 10,381,330 18,917,254 16,926,965 13,093,736 6,422,274 54,666,051 55,360,229 13 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 2005 G$ 2004 G$ 9 (a) Trade debtors Trade debtors Less: Provision for bad debts (1) 21,949,818 5,001,598 18,432,782 4,577,219 At 31 December 16,948,220 13,855,563 (i) At 1 January Provision for the year At 31 December (b) Other debtors and prepayments Prepayments Other debtors 4,577,219 424,379 4,911,946 (334,727) 5,001,598 4,577,219 318,190 1,643,726 317,731 1,019,480 1,961,916 1,337,211 10 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.
11 Other creditors and accruals Accruals Other creditors 2005 G$ 13,348,200 6,005,286 2004 G$ 9,167,293 7,005,286 19,353,486 16,172,579 14 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 12 Share capital (a) Authorised Number of ordinary shares Issued and fully paid 281,485 ordinary shares (b) Capital reserve 2005 300,000 G$ 2004 300,000 G$ 2,814,850 2,814,850 At 1 January and 31 December 12,873,199 12,873,199 13 Accumulated earnings Balance at 1 January Movement for the year Balance at 31 December 14 Loan 14,771,613 6,542,177 21,313,790 42,819,055 (28,047,442) 14,771,613 Ministry of Finance 25,807,272 25,807,272 This represents monies borrowed from the Government of Guyana for which the terms and agreement are yet to be finalised.
15 Trade creditors Local Foreign 16 Advance payments 2005 G$ 7,891,299 4,582,976 12,474,275 2004 G$ 6,001,671 1,171,838 7,173,509 Local 31,534,696 38,384,450 This represents amounts received for jobs to be done on behalf of various customers.

15 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 17 Bank overdraft Interest rate This is an unsecured overdraft held at Republic Bank (Guyana) Limited.
18 Financial risk management (a) Price risk (i) Foreign currency risk 2005 G$ 2004 G$ 240,937 31,058,375 19.25 19.25 The company is exposed to foreign currency risk due to fluctuations in exchange rates on balances that are denominated in foreign currencies.
T&T$ Sterling Euro US$ 2005 Total G$ 2004 G$ Assets 2,291 2,937 2,224 2,071,788 5,306,843 Liabilities 35,164 16,778 4,583,217 4,135,049 (ii) 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 (b) Credit risk The company faces credit risk in respect of its receivables.

However, this risk is controlled by close monitoring of these assets by the company.

The maximum credit risk faced by the company is the balance reflected in the financial statements.
16 GUYANA NATIONAL PRINTERS LIMITED' NOTES ON THE ACCOUNTS 18 Financial risk management - cont'd (c) 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.
Assets Trade debtors Other debtors and prepayments External payment deposits Cash at bank and on hand Liabilities Loans Trade creditors Other creditors and accruals Advance payments Bank overdraft Within 1 year G$ Over 1 year G$ Maturing 2005 Non interest bearing Total G$ .. 42,011,877 42,011,877 16,948,220 1,961,917 100,977 - 16,948,220 1,961,917 100,977 42,011,877 19,011,114 61,022,991 25,807,272 - - 12,474,275 19,353,486 31,534,695 - 25,807,272 12,474,275 19,353,486 31,534,695 240,937 - 240,937 240,937 25,807,272 63,362,456 89,410,665 Interest sensitivity gap 41,770,940 (25,807,272) Within 1 vear G$ Over 1 year G$ Maturing 2004 Non interest bearing Total G$ Assets Trade debtors Other debtors and prepayments External payment deposits Cash at bank and on hand Liabilities Loans Trade creditors Other creditors and accruals Advance payment Bank overdraft 69,061,996 69,061,996 31,058,375 13,855,563 1,337,211 100,977 13,855,563 1,337,211 100,977 69,061,996 15,293,751 84,355,747 7,173,509 16,172,579 38,384,450 25,807,272 7,173,509 16,172,579 38,384,450 31,058,375 25,807,272 - Interest sensitivity gap 38,003,621 (25,807,272) 31,058,375 25,807,272 61,730,538 118,596,185 17 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 18 Financia risk management - cont'd (d) 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.
At 31 December 2005 Assets Liabilities At 31 December 2004 Assets Liabilities 1 to 12 months G$ Over 12 months G$ Total G$ 129,958,429 129,958,429 (76,355,313) (25,807,272) (102,162,585) 53,603,116 (25,807,272) 27,795,844 153,985,364 153,985,364 (103,382,622) (25,807,272) (129,189,894) 50,602,742 (25,807,272) 24,795,470 18 GUYANA NATIONAL PRINTERS LIMITED NOTES ON THE ACCOUNTS 19 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: 2005 G$ 2004 G$ Key management personnel 0 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 10,024,469 9,818,993 Post-employment benefits 423,394 465,815 (ii) Loan - Mr. D. Collins Balance at end of year Interest income 40,000 7,917 Interest is charged at a rate of 16% per annum.

20 The Government of Guyana has listed the company to be privatised.

19