MAZARS COTE D'IVOIRE PEG COTE D'IVOIRE Auditor's report This Auditor's report has been issued for the consolidation purposes and it has to be used exclusively by Mazars Maurice, for the consolidated financial statements of PEGAFRICA BRM MazarsPEG COTE D'IVOIRE Mazars Maurice Auditor's reportIndependent Auditors To Mazars - Port Louis, Mauritius Inaccordance with your instructions dated 20 April 2018, we have audited, for purposes of your audit of the consolidated financial statements of PEGAFRICA LTD, the accompanying special purpose financial information of PEG COTE D'IVOIRE for the year ending December 2018. Management's Responsibility for the Special Purpose Financial Information Management is responsible for the preparation of this special purpose financial information in accordance with the group instructions issued by PEGAFRICA LTD's management and the group policies contained in the PEGAFRICA LTD’s accounting manual, and for such internal control as management determines is necessary to enable the preparation of special purpose financial information that is free from material misstatement, whether due to fraud or error; applying appropriate accounting policies ; and making accounting estimates that are reasonable in the circumstances. This special purpose financial information has been prepared solely to enable PEGAFRICA LTD to prepare its consolidated financial statements. Auditor's Responsibility Our responsibility is to express an opinion on this special purpose financial information based on our audit. We conducted our audit in accordance with the International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the special purpose financial information is free from material misstatement. As requested by you, we planned and performed our audit using the materiality level specified in your instructions, which is different than the materiality level that would have the audit to express an opinion on the financial information of the component alone. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special purpose financial information. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the special purpose financial information, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the special purpose financial information in order to design audit procedures that are appropriate in the circumstances, but net 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 special purpose financial information. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. The conclusions reached in forming our opinion are based on the component materiality level specified by you in the context of the audit of the consolidated financial statements of the group.Basis for Qualified Opinion We draw your attention to the following facts: > We have not received our selection of contracts below : e__| Sontracts Customer Name ‘Account Number 7) 1423559 [ALLA NGUESSAN (958325018 2| 1369567 | ANGHU BOUADOU HERVE 879184305 3] 1367401 | BABAKAN KOUADIO NIAMIEN EMILE ASSASY 816873917 4] 1353015 | COULIBALY MAMADOU 1753898759 5| 1303402 | DABIRE LABLIN "748958691 6| 1396280 | DAGLOIHIMATIN 945612423 7| 1503833 | DAH HIMATE (65823386 | 1424991 | DIAME BAKARY 47383857 9| 1367654 | IBO SAMBA (NOUVELLE BATTERIE) POLICE MARITIME 3407127002 10| 1503832 | KANBOUR BISILE 874862929 11] 1493645 _| KOFFI YAO SACRE 629166317 a] tat KONAN N'GUESSAN BRICE co104245169 43) 1309817 | KONE HILAIRE GBELE 160580804 14] 1404957 | KONE MAMADOU 79147450 45] 1420540 | KONGO KOUADIO BRUNO. 118467916 16| 1475759 | KOUADIO KOFI BRUNO 647206664 47] 1395763 | KOUAKOU KOFFI BRAHIMAN 1596825390 18| 1266087 | KOUAME KONAN YAO MAXIMIN ‘806560574 19| 1422888 | PHOTO AMANI 195965843 20]1323331 | SADIA SIBIZOE 642640541 21] 1381653 | SAWADOGO RAMONGUEENDE ABEL 856590794 22|1384613 | SEKONGO SEYDOU 38086481 23]1987627 | SIMI BERTIN 1560030807 2a}1471109 | SORO AMARA 948000152 25] 1963888 | TOH KESSA SERGE 423030434 26] 1340776 | WOKANOUAN TOHOUEU HUBERT décembre 154486929 27|1985729 | ZEBANGOLALLE 412479784 28] 1413865 | zoma BANGBA 694711642 > Responses to our circularisation addressed to the following entities - Bank: ECOBANK; = Mobile Money Operators : MIN Cote d'Ivoire, Orange Cote d'Ivoire; - Lawyer: NIAMKEY Qualified opinion In our opinion, except the effects of the points described above in the Basis for Qualified Opinion paragraph, the accompanying special purpose financial information for PEG COTE D'IVOIRE for the year ending 2018 has been prepared, in all material respects, in accordance with the group instructions issued by PEGAFRICA LTD's management and the policies contained in the PEGAFRICA LTD's accounting manual.Restriction on Use and Distribution ‘This special purpose financial information has been prepared for purposes of providing information to PEGAFRICA LTD to enable it to prepare the consolidated financial statements of the group. As a result, the special purpose financial information is not a complete set of financial statements of PEG COTE D'IVOIRE in accordance with PEGAFRICA LTD accounting principles and are not intended to give a true and fair view in all material respects of financial position of PEG COTE D'IVOIRE and its financial performance, and its cash flows for the year ending 2018 in accordance with PEGAFRICA LTD’s accounting manual. This special purpose financial information may, therefore, not be suitable for another purpose. This report is intended to you solely for your information and use to assist you in your audit of the group financial statements of PEGAFRICA LTD for the year ended 31 December 2018 and should not be used by (or distributed to) other parties. Abidjan, June 7th, 2019 MAZARS Cote d’Ivoire: | Amari LATH Partnerpaaiaie aime ieee ieee eePEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 Yi, a coreSgo'wore PEG COTE D'IVOIRE SOCIETE PAR ACTIONS SIMPLIEES UNIPERSONNELLE (SASU) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 MAZARS COTE D'IVOIRE Visa pour IdentificationPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 CONTENTS Page(s) Corporate information 3 Report of directors 4 Statement of directors' responsibilities 5 Financial statements: Statement of financial position 6 Statement of profit or loss and other comprehensive income 7 Statement of changes in equity 8 Statement of cash flow 9 Notes to the financial statements 10-17 MAZARS COTE D'IVOIRE Visa pour icationPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 ‘CORPORATE INFORMATION FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2018 Board of Directors Registered Office Principal place of business Independent Auditors Company's Lawyer Bankers Company registration number Tax Identification Number Hugh Robert WHALAN [Abidjan - Cocody Angré 8igme tranche BP 368 ABIDIAN CIDEX 03 - Cote d'ivoire Cote d'ivoire Mazars Céte d'Ivoire 01 BP 3989 Abidjan 02 4225 2031700, Marie-tréne NIAMKEY (OL BP $081 Abidjan 02 4225 2021.84.49, Ecobank Céte d'ivoire Société Générale des Banques de Céte d'ivoire Cl-ABI-B-13915 1626708 L MAZARS COTE D'IVOIRE Visa pour IdentificationPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 Report of the Director to the members of PEG COTE D'IVOIRE SASU The director is pleased in presenting the report together with the audited statement of profit or loss and other comprehensive income statement of financial position and statement of cash flow of PEG COTE D'IVOIRE for the year ended 31 December 2018. Nature of business: ‘The nature of business which the Company is authorized to carry on are; Building, installing and operating solar micro grids and mini grids that will provide electricity based services, installing and operating individual solar home systems. Engaging in such other business activities that are incidental to or in furtherance of any of the foregoing business. ical results of operations: ‘The results of the operation are set out on page 03. Independent auditors : In accordance with Article 853 of ACTE UNIFORME REVISE RELATIF AU DROIT DES SOCIETES COMMERCIALES ET DU GROUPEMENT D'INTERET ECONOMIQUE, Mazars is acting Auditors of the Company. On behalf of the Board a COTE D'IVOIRE Name of Director: KLAR QNNA...AMLALLRMET Identification Signature: a Date: Bo DW QAP.PEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 STATEMENT OF DIRECTOR'S RESPONSIBILITIES Director's responsibilities in respect of the financial statements ‘The Director is required to ensure that adequate accounting records are maintained so as to discloseat reasonable adequacy, the financial position of the Company. He Is also responsible for steps to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. They must present financial statements for each financial year, which give a true and fair view of the affairs of the Company, and the results for that period. In preparing these financial statements, they are required to: ‘+ Select suitable accounting policies and apply them on a consistent basisusing reasonable and prudent judgment. ‘* State whether or not the Article 853 of Acte Uniforme OHADA related to Droit des Sociétés Commerciales ot du GIE and International Financial Reporting Standards ("IFRS") have been adhered to and explain material departures thereto ‘© Use the going concern basis unless itis inappropriate, The Board acknowledges its responsibility for ensuring the preparation of the annual financial statements in ‘accordance with IFRS and the responsibilty of external auditors to report on these financial statements. The Board is responsible for ensuring the maintenance of adequate accounting records and an effective system of Internal controls and risk management. Nothing has come to the Board's attention, to indicate any material breakdown in the functioning of the internal controls and systems during the period under review, which could have a material impact on the business. ‘The financial statements are prepared from the accounting records on the basis of consistent use of appropriate records supported by reasonable and prudent judgments and estimates that fairly present the state of affairs of the Company ‘The financial statements have been prepared on a going concern bess and theres no reason to believe that the Company will not continue a a going concern in the next financial year 7 MAZARS COTE D'ivoRE ‘The Director confirm that in preparing the financial statements, they have: Visa pour selected suitable accounting poles and applied them consistent. Ilentification + made judgments and estimates that are reasonable and prudent. + folowed the International Financial Reporting Standards prepared the financial statements on the going concern bal The Director is responsible for keeping proper accounting records which disclose with reasonable accuracy at ‘any time the financial position of the Company and to enable them ensure that the financial statements comply ‘with the Article 853 of Acte Uniforme OHADA related to Droit des Sociétés Commerciales et du GIE. He is also responsible for safeguarding the assetsof the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Name of Director: HARO.V.NA...M Atta Slnature Date: .§.JUiN... WOAS, GivounePEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 STATEMENT OF FINANCIAL POSITION (All amounts are expressed in US Dollars unless otherwise stated) ‘As at 31 December Note 2018 2017 Non-Current Assets Property, plant and equipment Ba 147 536 28313 Other Long-Term Assets 10588 5.030 Total Current Assets 158 124 33 343 Current Assets Current Tax asset 155.815 1778 Inventory 32 1045416 1265912 Trade Receivables 333080926 1257 088 Intercompany receivables 109 665 Prepayments and other receivables 13.272 5944 Cash & Cash equivalent 34 429 284 382.835, Total Current Assets 5 83437 2.913 557, Total ASSETS: 5992502 2946 900, UnBIUY equi MAZARS COTE D'IVOIRE 7 ean Visa pour wer A share cpt 1736 cae Current Year Earnings as (711.789) (264.010) lentification Retained Earnings (309011) (45 002) Currency translation ajustement (64 695) (20.507) Total Equity, (1083 758) (327 782) curren abies Trade ond othe payables 36 seeaat oats? intercompany Paybtes 317699 Tota curren uabs 31640 SELF Non current usbties raraunt det tte companies 63557072347 205 Penson benef obligation haa ea Tota Non current Taso ra) 7353 6 Total uABLTY Tor6260 3274082 TOTALUABIUTY 8 EQUITY sare rs 0 Notes 1 to 20 form an integral part of these financial statementsPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 ‘STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (All amounts ore expressed in US Dollars unless otherwise stated) FOR THE PERIOD ENDED December 31, 2018 December 31, 2017 Revenue 37 4.636 850 1576636 Cost of sales 38 (3.005 854) -846 553 ‘GROSS PROFIT 1.630 996 731123 Operating Expenses 39 (1.344 221) (987961) OPERATING PROFIT/EBITDA (213 225) (216818) Non-operating income 16910 61252 Other non-operating expenses 310 (492 664) (73034) corr {688 976) (229640) INET LOSS BEFORE TAX (688 976) (229640) Corporate income tax e2si2) (34370), INET LOSS AFTER TAX (711789) (264010) Notes 1 to 20 form an integral part of these financial statements. COTE D'IVOIRE MAL Sa pour IdentificatiorPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 Statement of changes in equity (All amounts are expressed in US Dollars unless otherwise stated) e year ended December3i, State Gio oe) Creo ec ee peas Balance as at January 01, 2018 (264009) (45.002) (20 508) Profity/{loss forthe year (711 789) Retained earnings 264008 (264008) Currency Translation Ajustement (68695) Prior year adjustment 20508 Balance as at December 31,2018 1736 (71179) (309011) (68.695) 1.083 758) ee ea Se Se Bd ctu See ta Ajustement Balance as at January 01, 2017 (45.002) (43 266) Profit/{loss) for the year (24 009) (264009) Retained earnings 45 002 (45 002) Currency Translation Ajustement (20508) (20 508) Prior year adjustment : Balance as at December 31,2017 1736 (264.009) (45 002) (20 508) (327 783) ARS COTE D'IVOIRE. ~ Visa pour IdentificationPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 ‘Statement of cash-flow for the year ended 31 December, 2018 (All amounts are expressed in US Dollars unless otherwise stated) Cash generated from operations Cash Outflows for Operations Net cash-flow from operating activities Investing activities Acquisition of property, plant and equipment Proceeds from disposal of property, plant equipment Net cash flow in investing activities Financing activities Loan repayment Stated capital Deposit for shares Due from related party Increase in amount due to related companies Net cash flow from financing activi Net increase in cash and cash equivalents Cash and cash equivalents as at 2 January* Cash and cash equivalents as at 31 December * The conversion gap reported in Cash Outflows for Operations Note 2018 1831 156 (294 037) 162 881) (22011) (220 311) 1439 641 1.429 642 46449 3e2835 429 284 MAZARS COTE D'WOIRE Visa pour IdentificationPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 SIGNIFICANT ACCOUNTING POLICIES AND NOTES Notes to the financial statement (All omounts are expressed in US Dollars unless otherwise stated) 1. Corporate information PEG COTE D'IVOIRE SASU is a company incorporated and domiciled in Céte d’Woire CDI under the articles 853 of Acte Uniforme OHADA related to Droit des Sociétés Commerciales et du GIE asa « Société par Actions Simplifiées Unipersonnelle » PEG COTE D'IVOIRE SASU was incorporated on 20 May 2016. ‘Approval ofthe audited financial statements ‘The financial statements were approved by the Board of Directors on the date signed under the financial position Principal activity The nature of business which the Company is authorized to carry to: + Building, installing and operating solar micro grids and mini grids that will provide electricity based services, installing and operating individual solar home systems. Engaging in such other business ‘activities that are incidental to or in furtherance of any of the foregoing business. 2. Summary of significant accounting policies 2.1. Basis of preparation ‘The principal accounting policies applied in the preparation of the financial statements are set out below. The financial statements have been prepared with the requirements by the articles 853 of Acte Uniforme OHADA related to Droit des Sociétés Commerciales et du GIE and retreated in accordance with International Financial Reporting Standards (IFRS). The particular accounting policies adopted by the director are stated below: 2.2 Basis of measurement The financial statements have been prepared under the historical cost convention as modified by the ‘adoption of fair value measurement basis, in compliance with IFRS requirements for Investments and Financial Assets and Financial liabilities measured at fair value, 2.3 Use of estimates and judgments ‘The preparation of financial statements in confor with IFRS requires the use of certain cr accounting estimate. It also requires the directors to exercise judgment in the process of applying the Company's accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed, Areas involving higher degree of judgment or complesity are reviewed on an ongoing basis inline with current tend. The Impact of such revisions is recognized in the period in which the estimates ae reviseé anc any future period impacted, _ AZARS COTE DIVOU: Visa pour Tefinancil statements have been prepared under he historical cost conventions 44 fic Atl 244 Accounting convention Mt. 10PEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 25 Foreign currency translations a} Transactions and balances Transactions in foreign currencies are translated at rates ruling on the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into US Dollars at the rate of exchange ruling at tthe balance sheet date. All exchange differences are included in the statement ofincome for the period. b) Functional and presentation currency ‘The currency of primary economic environment (Céte d'ivoire) in which the Company operates is Francs CFA. The financial statements of the Company are presented in US Dollars. 2.6 Accounts receivable Receivables are stated after providing for specific debts considered to be doubtful 2.7 Inventory Inventory is valued at lower of cost and net realizable value. 28 Fixed assets 2.8.1 Property, plant and equipment Property, plant and equipment consist mainly of furniture, fittings and equipment, software and motor vehicle, Property, plant and equipment are shown at cost less deprec ion, Depreciation is calculated on the straight line method to write off the cost or deemed cost of each property, Plant and equipment to its residual value over its estimated useful life as follows: Asset Depreciation rate Motor vehicle 20% Call centre equipment 1036 Computer equipment 15% Office equipment & systems 15% Foxtures & fittings 15% Capitalised software (Over the licence period ‘Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on disposal are determined by comparing proceeds of sale with the carrying amount and the net result is included in other income, All property plant and equipment, are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the asset. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only to the extent that It is probable that future economic being amount or recognised as a separate asset, as appropriate, only to the extent that it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be reliably measured. The carrying amount of the replaced part/component is derecognised. All other repairs and maintenance costs are charged to profit or loss during the financial period to which they relate. The residual value and useful lives of the assets are reviewed and adjusted, if appropriate, at each reporting. COTED IVOIRE MAZARS CO pour ua icationPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 2.8.2 Intangible assets ‘An intangible asset is recognisedwhen it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity, the cost of the asset can be measured reliably and the asset is identifiable. intangible assets are initially recognised at cost. Intangible assets are carried at cost less any ‘accumulated amortization and any impairment losses. Amortisation is recognised on a straight line basis over the estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period with the effect of any changes in estimates being accounted for on a prospective basi. Intangible assets with indefinite useful lfe are subject to an impairment review. Aan intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognised in profit or loss when the asset is derecognized, 29 Impairment of assets [At each reporting date, the Company reviews the carrying amounts of its tangible and Intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. if any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss if any). Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit (CGU) to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessingvalue in use, the estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or CGU) Is estimated to be less than the carrying amount, the carrying amount of the asset (CGU} is reduced to its recoverable amount. An Impairment loss is recognised as an expense immediately. 2.10Inventory Inventory is stated at the lower of cost and net realisable value. Cost is determined by the weighted average method and represents the value of stocks plus all incidental expenses necessarily incurred to bring them to their present location. The cost of finished goods comprises raw materials, direct labour, other direct costs and related production overheads, but excludes interest expense. Work-in-progress Is valued at raw material cost plus direct overheads. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. The value of technical and sundry stocks purchased in the period for specific machine maintenance/projects are fully charged to the plant maintenance/project account they relate to. 2.12 Trade and other receivables ‘Trade and other receivables are recognised initially at fair value and subsequently at amortised cost less any provision for impairment. A provision for impairment is made on a case by case tasis when there is evidence that the amount due will not be fully recovered at the original terms. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate. The amount of the provision is recognisedin profit or loss. rE D'IVOIn MAZARS CO pee 2 icatio:PEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 2.12Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost. Cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments with maturities of three months or less and bank overdrafts 2.,13Income tax Income tax comprises current and deferred tax. 2.13.1 Current tax Current tax assets and liabilities for the current and prior periods are measured et the amount expected to be recovered from or paid to the taxation authorities, The tax rate and tax laws used to compute the amount are those enacted by the reporting date. 2.13.2 Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Tax rates enacted by the reporting date are used to determine deferred income tax. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary difference can be utilised, 2.14Provisions Provisions are recognised when a legal or constructive obligation as a result of past transactions exists at the reporting date and when the amount of the obligation can be reliably estimated. 2.16Long-term employee benefits 2.18.1 Pension obligation ‘The Company participates in a defined contribution plan where both the emplayer and employee contribute fixed amounts on monthly basis to the Social Security National Insurance Trust. ‘There is also a Tier 2 contribution made on behalf of the employee to a designated Pensions Fund Trustee. The ppension plans are funded by contribution from both employees and the Company. The Company's contribution to the defined contribution pension plan is charged to the income statement in the period to which the contribution relate. A defined contribution plan is a pension under which the Company pays fixed contributions into @ separate entity (the trustees of the fund). The Company has no legal or constructive obligation to pay any further contributions if the fund does not hold sufficient assets to pay employees the benefits relating to employees service in the current and prior period. 2.16 Revenue recognition 2.16.1Sale of goods Revenue from product sales is recognised when the risks and rewards of the underlying products/services have been substantially transferred to the customer. This is when the products have been delivered to and accepted by the customer. Revenue is shown net of discounts and taxes. 2.16.2 Other revenue MAZARS COTE pivoll vi a pour ificatic! identifi iPEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 Other revenues earned by the Company, with the exception of dividend income, are recognised on an accrual basis in accordance with the substance of the relevant transaction or agrezment. Dividend income is recognised when the Company's right to receive payment is determined. 2.47Borrowings Borrowings are recognised intially at fair value, net of transactions cost incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the profit or loss account over the period of the borrowings using the effective interest method. 2.A8Critical accounting estimates and judgements Estimates and judgements are continually made and evaluated and are based on past experiences and other relevant factors, including the expected effect of possible future events that are believed to be reasonable under the circumstances. The estimate and assumption that has a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period Is discussed below: 2.18.1 Property, plant and equipment Critical assumptions are made by directors in determining depreciation rates for property, plant and ‘equipment. The rates used are set out in note 2.8 2.18.2 Income Taxes Significant judgement is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination Is uncertain during the course of business. The Company recognises liabilities for the anticipated final tax assessment by the tax authorities. Where the final tax determination is different from the amounts that the Company has provided in the financial statements, such differences will impact the income tax and deferred tax provisions in the period in which the final determination is made by the tax authorities. 2.18.3 Trade receivables Critical estimates are made by the directors in determining the recoverable amount of Impaired receivables. 2.18.4 Contingent liabilities Contingent liabilities are potential liabilities that arise from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events which are not wholly within the control of the Company. Provisions for liabilities are recordec when a loss is considered Probable and can be reasonably estimated. The determination of whether or not a provision should be recorded for any potential liabilities is based on management's judgement. MATARS COTED'IVOIRE Visa pour Identification 14PEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 3.1. Property Plant and equipement For the period ended December 31, 2018 Cost/valuation - Cost/valuation as at 1 January ceaon. Devoeal as at 31 December Capitalized Software ° 7008 0 7008 Computer equipment 17742 43 096 (10 708) 50130 Feeures and fittings ° 47694 ° 47694 Motor Vehicles 2669 2831 ° 39695 Office Equipment and Systems __ 10864 19.490 ° 22159 31275 166 682 3.2 Inventory 2018 2017 Inventory 426671 287 088 Goods in transit 618 745 101824 Total inventory 1045 416 1265 912 3.3 Trade receivables MAZARS COTE DIVOK Visa pour 2018 a Identificatior Trade receivables (gross) 4141713 1278241 Provisions for doubtful debt (60 787) (21 153) Trade receivables (net) 4050926 1257 088 Provisions for doubtful debt Outstanding Percentage of Amount of provision pars in arreats: balance, provision 2018 21-60days 125 176 20% 23.885 61-50days 51756 50% 24.690 s1-azodays 25599 50% waz Total provision for doubtful debts e078 ‘The intercompany receivables amounting 109 665 USD are defined as below : - PEG GHANA: 61770 USD - PEG SENEGAL: 47 895 USD 3.4 Cash and Cash Equivalents 2o1s 2017 Petty cash 186 2943 ‘SGBCI CFA Operations 58870 209072 ECOBANK CFA Operations 155365 122.950 Transit Cash o 2824 Mobile money wallets 214.863 45.045 15PEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 Total Cash and Cash Equivalents 429 284 382835 3.5 Equity The state capital amounting 1 736 is divided into one hundred (100) shares with 2 nominal value of seventy (a7) uso, 3.6 Trade and other payables 2018 2017 ‘Trade and other payables 598 441 921197 Intercompany Payables _—_—317699 Total Current Liabilities 916 140 921.197 ‘Trade and other payables represent operational lease payable and accruals include withholding tax, social security and payroll tax payable. intercompany payables amounting 317 699 USD is due to PEG GHANA. : MAZARS CGTE D'IVOIRE. Visa pour Boy evo Identification Sales revenue represents sale of PAY AS YOU GO for the year under review. 2018 2017 Product sales D-light 4.094 308 1.283.120 Product sales Mkopa 267 342 Product sales Angaza - 26175 Product sales Mobisol 389.957 : Product sales Sunculture 54946 - Producs sales to related parties, 97638 4.636.850, 1576 636 3.8 Cost of sales This comprises commissions, inventory purchased and other direct cost incurred in the period under review. 2018 2017 Direct sales Commissions (189 572) (46 861) Other Direct Expenses (285 683) (477) Vehicle lease payments (75695) (53643) Custom duties oO (220891) Cost of products sold (2.454 904) (524 681) (3.005 854) (846 553) 16PEG COTE D'IVOIRE SASU FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2018 3.9 Operating Expenses Travel, Accomodation, Meals, Bank Fees Cleaning and Sanitation Commission -other Consulting Expenses Depreciation Amortization Donation Employer Payroll Taxes General Expenses Insurance IT/ Hosting Services Legal expenses License, Registration and Permits Marketing Motor Vehicle Expenses - Cars / Trucks Office Expenses-HQ Printing & Stationery Rent (Building) Repairs and Maintenance Security expense Software Subscriptions / Support Staff training expense Telephone & internet Tools & equipment expense Wages and Salaries Total OPEX 3.10 Other non-operating expense & income 2018 2017 (266263) (318991) (53814) (26898) (395) (1124) (5120) (4.446) (40391) (11321) (22.269) (2752) (7.869) 0 (228) (37) (66196) (34.461) (234) (447) (19985) (5770) (8.234) (27 734) (2240) (36211) (10278) (165235) (13.648) (31.492) (167) (30900) (45801) (5279) (73) (33359) (17438) (6 883) (9969) (7.475) (3 706) (1.796) (7.498) (2.388) (232352) (30919) (6618) (860208) __(405 016) 22204 2a) MAZARS CGTE D'IVOIRE. Bad debts recovered 7765 ° ther income sa84 1080 (Gain)/loss on asset aisposal 260 ° Unrealized Currency (Gainsy/losses 60212 ‘Total Non-operating Income 16910 61252 Provision for doubtful debt OL (26645) (48 642) write-off expense DL (232796) (18 386) (ther non operating expense ° (6007) Unrealized Currency (Gains)/losses (173.220) ‘Total Other non-operating expenses (292.61) (73034) Visa pour ication "Unrealized loss of change related to the transactions in foreign currency amounting USD 173 220 in 2018 but in 2016 we have recorded an unrealized gain of change amounting 60 212 USD due to the fluctuation of the FX rate USD /xOF. 7