UMEME LIMITED

INTERIM CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

FOR THE SIX-MONTH PERIOD ENDED

30 JUNE 2023

UMEME LIMITED

INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023

TABLE OF CONTENTS

Page

List of abbreviations

i

Statement of directors' responsibilities

1

Report on review of interim condensed financial statements

2

Interim condensed financial statements:

Interim condensed statement of profit or loss

3

Interim condensed statement of comprehensive income

4

Interim condensed statement of financial position

5

Interim condensed statement of changes in equity

6

Interim condensed statement of cash flows

7

Notes to the interim condensed financial statements

8 - 34

Supplementary information to the interim condensed financial statements

35 - 39

UMEME LIMITED

INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023

Abbreviation

In full

ADB

African Development Bank

CWIP

Capital Work-in-Progress

EBITDA

Earnings Before Interest, Tax, Depreciation and Amortisation

ECL

Expected Credit Losses

ECP

Electricity Connection Policy

EPS

Earnings Per Share

ERA

Electricity Regulatory Authority

DFI

Development Finance Institutions

GOU

Government of Uganda

GOU-TOU

Government of Uganda Time of Use

IAS

International Accounting Standard

ITA

Income Tax Act

IFRIC

International Financial Reporting Interpretations Committee

IFRS

International Financial Reporting Standard

IVA

Independent Verification Agency

LAA

Lease and Assignment Agreement

No.

Number

NRCC

Non-Refundable Capital Contributions

NSE

Nairobi Securities Exchange

OBA

Output Based Aid

REP

Rural Electrification Program

SBU

Stanbic Bank Uganda Limited

SCB

Standard Chartered Bank

SIC

Standards Interpretations Committee

UDB

Uganda Development Bank

UEDCL

Uganda Electricity Distribution Company Limited

UETCL

Uganda Electricity Transmission Company Limited

URA

Uganda Revenue Authority

USD

United States Dollars

USE

Uganda Securities Exchange

Ushs

Uganda Shillings

WACC

Weighted Average Cost of Capital

i

UMEME LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023

The Uganda Securities Exchange Rules, 2003 require the directors to prepare interim financial reports for the first six months of a financial year, which show the state of the financial affairs of Umeme Limited (the ''Company") as at the end of the six-month period and of its operating results for that period.

The directors are ultimately responsible for the internal control of the Company. The directors delegate responsibility for internal control to management. Standards and systems of internal control are designed and implemented by management to provide reasonable assurance as to the integrity and reliability of the financial statements and to adequately safeguard, verify and maintain accountability of the Company's assets. Appropriate accounting policies supported by reasonable and prudent judgements and estimates are applied on a consistent basis and using the going concern basis. These systems and controls include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties.

The directors accept responsibility for the interim condensed financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with IAS 34 Interim Financial Reporting. The directors further accept responsibility for the maintenance of accounting records which may be relied upon in the preparation of interim condensed financial statements, as well as maintenance of adequate systems of internal financial control.

In line with the concession agreements, on 22 November 2022, GOU communicated to the Company that the concession which commenced on 1 March 2005 will continue to its natural end in March 2025, after which there will be no renewal. This is in line with the natural term of the concession agreement which ends on 28 February 2025 and the additional contractually allowed transition period of 30 days. The directors have assessed the Company's ability to continue as a going concern and are satisfied that the Company has the contractual rights and resources to continue in business for the remaining period until termination of the concession. Furthermore, the directors are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern for the foreseeable future. Therefore, the financial statements continue to be prepared on the going concern basis.

The interim condensed financial statements were approved by the Board of Directors on …………………...

2023 and signed on its behalf by:

.........................……………..

………………………..……

Director

Director

1

REPORT ON REVIEW OF INTERIM CONDENSED FINANCIAL STATEMENTS

TO THE DIRECTORS OF UMEME LIMITED

INTRODUCTION

We have reviewed the accompanying interim condensed statement of financial position of Umeme Limited (the ''Company'') as at 30 June 2023, and the related interim condensed statements of profit or loss, comprehensive income, changes in equity and cash flows for the six-month period then ended, and notes to the interim condensed financial statements, which include a summary of significant accounting policies and other explanatory notes as set out on pages 3 to 34. The directors are responsible for the preparation and presentation of this interim condensed financial information in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this interim condensed financial information based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity''. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial information is not prepared, in all material respects, in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting.

………………………………….

Ernst & Young

Certified Public Accountants

Kampala, Uganda

......................................2023

2

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Umeme Ltd. published this content on 21 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2023 06:56:01 UTC.