(Chartered Accountants) (BN 2566769)

January 10th, 2023

The Managing Director

KOKAMAVIC NIG LTD
Founder Plaza, Off Anambra Plaza,
Trade Fair Market.
Lagos State.

Dear Sir,

LETTER OF ENGAGEMENT
In furtherance to our meeting, with respect to provision of professional services to the business, we
hereby bring to your attention our understanding of the terms of our engagement; and the respective
areas of responsibilities of the business and ourselves.

Basis of Engagement
Our service covers the following:
• Accounting Services
• 2022 Financial Year Audit
• 2023 Tax clearance Certificate.
• Monthly VAT Returns
• Statutory Registrations and Returns
• Other Consultancy Services.

Scope of our Assignment: The engagement covers the Review of necessary books and records of the
business for 2022 Accounting year and also to generate the business set of management accounts for
2022 Accounting year which will be used to process your 2023 Tax Clearance Certificate.
The engagement also includes Monthly VAT (Value Added Tax Returns), Accounting Services, Statutory
Registrations and returns, Taxation and other Consultancy Services.

Our Responsibilities
The overall thrust of our responsibility will be to conduct our Audit assignment and Tax compliance
Services professionally in respect of the following:-

Accounting Services
• Review of the necessary books of Accounts to record the business daily financial activities.
• Ensuring proper recording of these financial transactions into different accounting heads to
include,
• Inventory Management records which involve the recording of products acquisition and sales.
• Product Valuation. Sales Reconciliation with Bank Deposits
• Staff/Payroll records.
• Cash management system.
 • Analysis of fixed assets.
• Drawing up a trial balance and preparation of Audited accounts.

The Business would be required to provide us the following documents:

• Invoices, cash receipt reports and deposit slips.
• Payment vouchers, cash disbursements, bank statements.
• Copies of purchase/lease contracts, loan agreements, other contract and service agreements.
• The detailed list of business asset (description, date of acquisition, original cost, and current value).
• Other documents necessary for correct account reporting.

Your Responsibilities: In order to assist us in the effective discharge of our service, your business would
be responsible for the following:-
• Keeping proper books of accounts and putting in place a sound internal control system to check
errors, irregularities and fraud.
• Providing all information (complete and accurate) relevant to our engagement.
• Compliance with our advice as may be required from time to time.
• Consult us on any area of your operation that may require clarification.
• Inform us when there is a review of salary

Representation by Management: Whilst most of our facts will be obtained from company’s record,
we shall necessarily have to rely in certain instances, on representations made to us by Senior Management
where judgments are involved or where the information is not readily made available from your records.

Reporting to Management:
We shall send a copy of the draft Audited accounts to you for your comments before finalization.

We shall subsequently make available to you copies of financial statements of the business at the end of
the exercise.

We shall report to management, usually in writing, any significant matters which come to our notice which
we think should be brought to the company’s attention in form of management letters.

Restrictions
We shall ensure that our conduct does not in any manner, conflict with the company’s policy especially
as it may relate to corporate governance and best practice.

We shall not, during or after the termination of our engagement (except in the course of performing our
duties) disclose to any person whosoever, any information relating to the business or trade secrets of
which we shall possess during the course of our engagement.

Any advice we give to the company is based on the facts and circumstances of the company. Therefore
such advice shall be given for the sole use of the company and may be relied on only by the company.
No third party shall be entitled to rely on such advice for any purpose whatsoever.

Our Fee
We propose a global fee of N150, 000 (One Hundred and Fifty Thousand Naira) only and 100% of
the global fee upon commencement of our professional services for 2022 Audit and Tax Professional
Services.

However the company will be responsible for reimbursable expenses incurred during the course of our
duty.
MONTHLY VAT RETURNS.
The monthly VAT Returns has become a pivotal service offering to your Company by our FIRM of
Chartered Accountants, this is no doubt the most talked about tax responsibility of the Tax payer to the
Federal Government of Nigeria and every stage of the VAT cycle is the life of the Nigerian Taxation
system, hence the emphasis is placed on VAT. In recent times, the Federal Inland Revenue Service
constantly beams it's searchlight on VAT and its complexities;
• Determining what constitutes Input your companies INPUT VAT
• Determination of VATABLE ITEMS
• Determination of Portion of Turnover/Revenue that is VATABLE
• VAT Rendition on Taxpromax
• Proper Filling and Documentation of VAT Receipts and PRN Generated.
• VAT LRP (late Returns Penalties) we experienced a huge amount of LRP charged to Tax Payers
Taxpromax Account in the Last quarter of 2022. Your guess is as good as mine that the SERVICE
will continue to make more money from VAT even in 2023 because of the Complexities of VAT
ACT as stipulated in the extant laws of the Federal Republic of Nigeria.
We would like you to consider outsourcing this Service to us at a fee of N10, 000 monthly which should
be paid in advance bi-annually or annually depending on your Preference. This is the decision reached by
the management of the firm.
To this end we have resolved to either file strictly for clients who have outsourced this service to us
or train the Accountants of such companies to take up the VAT burden at our supervision. Rest
assured we would respect your choice of the options available and support you as much as we can. Once
again we say a Happy New Year to you from all of us at Innocent Onwugbonu & Co Chartered
Accountants.

Kindly confirm, your agreement to the terms of this letter which shall remain effective for the fiscal year
under review, until otherwise advised by either parties. Please do not hesitate to contact us for any
clarification on the content of the letter.

Yours faithfully,

Samson Olubode
Audit & Tax Partner
For: Innocent Onwugbonu & Co

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ACCEPTANCE OF LETTER OF ENGAGEMENT

We the undersigned, being the duly authorized representative of KOKAMAVIC NIGERIA LIMITED
hereby confirm your understanding of the engagement and its scope as intended by us. We accept the
terms and conditions herein stated in your engagement letter

The common seal of the within named is hereby affixed in the presence of:

PRINCIPAL OFFICER: .………………………………………………...……….…..

SIGNATURE: …………..……………………………………….……..………………

TITLE: …………………………...…………………………….………………..……..

DATE: ………………………………………………………….………………………

3, Araoti/ Bode Thomas 08091376030

Street,Yaba, Lagos. 09069387282 innocentonwugbonuandco@yahoo.com