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DAAR COMMUNICATIONS PLC
TABLE OF CONTENT
CONTENTS PAGE
Corporate information 2
Financial highlights 4
Statement of directors’ responsibilities 5
Report of audit committee 6
Certificate of pursuant 7
Management’s annual assessment of and report on internal control over financial reporting 8
Certification of Management’s assessment of internal control over financial reporting by
Ag.MD/CEO 9
Certification of Management’s assessment of internal control over financial reporting by
CFO 10
Report of the independent auditors 11-15
Independent auditor’s attestation of management’s assessment of internal control
Over financial reporting 16-18
Statement of profit or loss and other comprehensive income 19
Statement of financial position 20
Statement of changes in equity 21
Statement of cash flows 22
Notes to the financial statements 23-66
Other national disclosures 67
Statement of value added 66
Five-year financial summary 69
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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DAAR COMMUNICATIONS PLC
CORPORATE INFORMATION
Directors: Chief Raymond Paul Dokpesi Jnr. Chairman of the Board
Snr High Chief. Tony A. Akiotu Group Managing (retired
31/October/24)
Alhaji Gambo Lawan Non-Executive
Professor Ralph A. Akinfeleye Non-Executive
Mr. Nornah Awoh Independent Non-Executive
(not re-elected on
11/12/2024)
Mr. Emeka Mba Non-Executive
Mr. Obi Asika – Non-Executive
(Resigned 06/2024)
Hon. Magnus Onyibe Non-Executive
Mr. Femi Ademola CFA Non-Executive
Dr. Ambrose Somide Executive (retired 10/24)
Dr. (Mrs.) Oluwatosin Dokpesi Executive (retired 10/24)
Engr. Tony C. Uyah Executive (retired 10/24)
Chief Stanley Sagboje Executive
Chief Dr Marcellinus Anyalechi, FCA Ag. MD/CEO (appointed
01/11/12024)
Company Secretary Barr Miji Jonah
Registration No: RC. 117587
FRC No: FRC 2013/00000001551
Registered Office: Ladi Lawal Drive Kpaduma Hills,
Off T. Y. Danjuma Street, Asokoro,
FCT Abuja.
Independent Auditors: Baker Tilly Nigeria
(Chartered Accountants),
No 7 Gwandu close, Off Jibia Street,
Off Badagry Street, Area 2, Garki,
Abuja; FCT
Tel: 08023378194, 08030746349
Registrars: First Registrars and Investors Services Ltd.
No. 2 Abebe Village Road Iganmu, Lagos.
Bankers: Fidelity Bank Plc
First Bank Nigeria Plc
First City Monument Bank Ltd
Sterling Bank Plc
Guaranty Trust Bank Plc.
Union Bank of Nigeria Plc
United Bank for Africa Plc
Zenith Bank Plc
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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Free Floating report
DAAR COMMUNICATION PLC
FREE FLOAT REPORT AS AT 31 DECEMBER 2024
Name of Company: DAAR COMMUNICATION PLC
Board Listed:
Year End: 31 DECEMBER
Reporting Period: YEAR ENDED 31 DECEMBER 2024
Share Price as at end of Reporting Period: NGN
DESCRIPTION CURRENT YEAR 2024 PREVIOUS YEAR 2023
Units
Percentage
(In relation
to Issued
Share
Units
Percentage (In
relation to
Issued Share
Capital)
Issued Share Capital 8,000,001,000 100% 8,000,001,000 100%
DETAILS OF SUBSTANTIAL SHAREHOLDINGS (5% AND ABOVE)
DAAR Investment & Holdings Co. Ltd 4,890,523,000 61.13% 4,890,523,000 61.13%
Estate of High Chief R. A. Dokpesi 320,000,000 4% 320,000,000 4%
Total Substantial Shareholdings
5,210,523,000 65.13% 5,210,523,000 65.13%
DETAILS OF DIRECTORS SHAREHOLDINGS (DIRECT & INDIRECT), EXCLUDING DIRECTORS
HOLDING SUBSTANTIAL INTERESTS
Chief Raymond Paul Dokpesi Jnr. 10,000 0.00% 10,000 0.00%
Mr. Tony A. Akiotu 100,000 0.00% 100,000 0.00%
Chief Dr Marcellinus Anyalechi, FCA Nil Nil Nil Nil
Chief Stanley Sagboje Nil Nil Nil Nil
Dr. Ambrose Somide 4,000 0.00% 4,000 0.00%
Dr. (Mrs.) Oluwatosin Dokpesi 120,000 0.00% 120,000 0.00%
Engr. Uyah Anthony Chukwuemeka 100,000 0.00% 100,000 0.00%
Malam Gambo Lawan 15,000 0.00% 15,000 0.00%
Mr. Obi Asika Nil Nil Nil Nil
Professor Ralph A. Akinfeleye Nil Nil Nil Nil
Mr. Nornah Awoh 7,000 0.00% 7,000 0.00%
Mr. Emeka Mba Nil Nil Nil Nil
Palesa Capital Market Association Ltd 205,000 0.00% 205,000 0.00%
Total Directors’ Shareholdings Ltd 561,000 0.00% 561,000 0.00%
Free Float in Unit and Percentage 2,788,917,000 34.86% 2,788,917,000 34.86%
Free Float in Value
DECLARATIONS:
DAAR Communication PLC with a free float percentage of 34.86 % as at 31 December 2024, is in compliant
with The Exchange’s free float requirements for companies listed on the Main Board
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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DAAR COMMUNICATIONS PLC
FINANCIAL HIGHLIGHT
2024
₦’000
2023
₦’000
Absolute
₦’000
Change
%
Revenue 5,250,947 4,510,339 740,608 16
Loss before taxation (2,313,920) (1,578,275) (735,645) 47
Loss after taxation (2,341,715) (1,627,523) (714,192) 44
Non-current assets 24,363,315 25,551,864 (1,188,549) (5)
Current assets 3,129,247 5,354,156 (2,224,909) (42)
Non-current liabilities 726,160 865,375 (139,215) (16)
Current liabilities 10,582,857 12,222,056 (1,639,199) (13)
Issued share capital 4,000,000 4,000,000 – 0
Share premium 13,411,541 13,411,541 – 0
Shareholders’ fund 16,183,546 17,818,589 (1,635,043) (9)

Total equity and liabilities 27,492,563

30,906,020

(3,413,457)

(11)

Loss per share (kobo) (29)

(20)

(10)

(100)

DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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DAAR COMMUNICATIONS PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors of DAAR Communications Plc are responsible for the preparation of the financial
statements that present fairly the financial position of the Company as at 31 December 2024, and
the results of its operations, cash flows and changes in equity for the year ended, in compliance
with International Financial Reporting Standards (“IFRS”).
In preparing the financial statements, the Directors are responsible for:

• Properly selecting and applying accounting policies,
• presenting information, including accounting policies, in a manner that provides relevant,
  reliable, comparable, and understandable information,
• providing additional disclosures when compliance with the specific requirements in IFRSs is
  insufficient, to enable users to understand the impact of particular transactions, and conditions on
  the Company’s financial position and financial performance, and
• making an assessment of the Company’s ability to continue as a going concern.
  The Directors are responsible for:
• Designing, implementing, and maintaining an effective and sound system of internal controls
  throughout the Company,
• Maintaining adequate accounting records that are sufficient to show and explain the
  Company’s transactions and disclose with reasonable accuracy at any time the financial position
  of the Company, and which enable them to ensure that the financial statements of the Company
  comply with IFRS,
• Maintaining statutory accounting records in compliance with the legislation of Nigeria and IFRS,
• Taking such steps as are reasonably available to them to safeguard the assets of the Company,
  and prevent and detect fraud and other irregularities.
  The Directors accept responsibility for the preparation of the annual financial statements which has been
  prepared using appropriate accounting policies supported by reasonable and prudent judgments and
  estimates in conformity with International Financial Reporting Standards and the manner required by
  the Companies and Allied Matters Act (CAMA), 2020 and the Financial Reporting Council of Nigeria
  Act 2011.
  Nothing has come to the attention of the directors to indicate that the Company will not remain a going
  concern for at least twelve months from the date of this statement.
  The directors are of the opinion that the financial statements give a true and fair view of the financial
  position of the Company and of the loss for the year.
  The financial statements of the Company for the year ended 31st December 2024 were approved by
  Management on … March, 2025.
  Signed on behalf of the Directors
  Chief Dr Marcellinus Anyalechi Chief Stanley Sagboje
  Ag MD/CEO Executive Director, Finance & Accounts/CFO
  FRC/2015/ICAN/00000013647 FRC/2016/ICAN/00000015580
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  DAAR COMMUNICATIONS PLC
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  REPORT OF AUDIT COMMITTEE
  Report of the Audit Committee to the members of DAAR Communications Plc for the year ended 31
  December 2024
  In compliance with the provisions of Section 404 (7) of the Companies and Allied Matters Act, 2020,
  the members of the Audit Committee of DAAR Communications Plc have considered the audited
  Financial Statements for the year ended 31 December 2024 together with the Management Report from the
  External Auditors and Management response thereon.
  In our opinion, the scope and planning of the audit for the year ended on 31 December 2024 was
  adequate.
  After due consideration, the Audit Committee accepted the Report of the External Auditors that the
  Financial Statements were prepared in accordance with the International Financial Reporting
  Standards and agreed ethical practices and give a true and fair view of the state of affairs of the
  Company.
  The Committee reviewed Management’s Response to the Auditor’s findings in respect of
  Management matters and is satisfied with Management’s response thereto.
  The Committee also considered and recommends to the Board provision made in the Financial
  Statements with respect to the remuneration of the Auditors.
  The Committee, therefore, recommends that the audited Financial Statements of the Company for the
  year ended 31 December, 2024, and the Auditors’ report thereon be presented for adoption at the
  Annual General Meeting.
  John Adidi, FCA
  FRC/2013/ICAN/00000000742
  Chairman, Audit Committee
  28 March, 2025.
  Members of the Audit Committee are:
  Mr. John Adidi, FCA Chairman – Shareholder’s Representative
  High Chief Vincent Barrah Member- Shareholder’s Representative
  Mr. Ayanwamide Yinka Member – Representative
  Mr. Nornah Awoh Member – Board’s Representative (14 September, 2023- 11
  December, 2024)
  Prof. Ralph Akinfeleye Member Board’s Representative. (14 September, 2023- 11
  December, 2024)
  Dr Femi Ademola CFA Member Board’s Representative (Appointed December 2024)
  Hon. Magnus Onyibe Member Board’s Representative (Appointed December2024)
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  7 | P a g e
  DAAR COMMUNICATIONS PLC
  Certification Pursuant to Section 405 of CAMA 2020
  We, the undersigned hereby certify the following with regards to our Audited Financial
  Statements for the period ended 31 December 2024 that:
  We have reviewed the report:
  (a) to the best of our knowledge, the report does not contain:
  i. Any untrue statement of a material fact, or
  ii. Omit to state a material fact, which would make the statements misleading in
  the light of circumstances under which such statements were made;
  (b) to the best of our knowledge, the financial statement and other financial information
  included in this report fairly present in all material respects the financial condition
  and results of operation of the company as of, and for the periods presented in this
  report.
  (c) We:
• are responsible for establishing and maintaining internal controls.
• have designed such internal controls to ensure that material information
  relating to the Company is made known to such officers by others within the
  entity, particularly during the period in which the periodic reports are being
  prepared;
• have evaluated the effectiveness of the Company’s internal controls as of date
  within 90 days prior to the report;
• have presented in the report our conclusions about the effectiveness of our
  internal controls based on our evaluation as of that date;
  (d) We have disclosed to the auditors of the Company:
  i. All significant deficiencies in the design or operation of internal controls
  which would adversely affect the company’s ability to record, process,
  summarize and report financial data and have identified for the company’s
  auditors any material weakness in internal controls, and
  ii. Any fraud, whether or not material, that involves management or other employees who
  have a significant role in the company’s internal controls;
  We have identified in the report whether or not there were significant changes in internal
  controls or other factors that could significantly affect internal controls subsequent to the date
  of our evaluation, including any corrective actions with regard to significant deficiencies
  and material weaknesses.
  Chief Dr Marcellinus Anyalechi Chief Stanley Sagboje
  Acting MD/CEO Executive Director, Finance & Accounts/CFO
  FRC/2015/PRO/ICAN/00000013647 FRC/2016/PRO/ICAN00000015580
  28 March, 2025 28 March, 2025
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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  MANAGEMENT’S ANNUAL ASSESSMENT OF, AND REPORT ON DAAR
  COMMUNICATIONS’S PLC’S INTERNAL CONTROLOVER FINANCIAL REPORTING FOR
  THE YEAR ENDED 31 DECEMBER 2024.
  To comply with the provisions of Section 1.3 of SEC Guidance of implementation of Sections 60-63 of
  investments and Securities Act 2007, we hereby make the following statements regarding the Internal
  Controls of DAAR Communications Plc for the year ended 31 December 2024.
  i. DAAR Communications Plc’s management is responsible for establishing and maintaining a
  system of internal control over financial reporting (“ICFR”) that provides reasonable assurance
  and regarding the reliability of financial reporting and the preparation of financial statements
  for the external purposes in accordance with International Financial Reporting Standards.
  ii. DAAR Communication Plc’s management used the Committee of Sponsoring Organization
  of the Treadway Commission (COSO) Internal Control-Integrated Framework to conduct the
  required evaluation of the effectiveness of the entity’s ICFR,
  iii. DAAR Communication Plc’s management has assessed that the entity’s ICFR as of the end of
  31 December, 2024 is effective.
  iv. DAAR Communication Plc’s external auditor Messrs Baker Tilly Nigeria that audited the
  financial statements, included in the annual report, has issued an attestation report on the
  management’s assessment of the entity’s internal control over financial reporting. The
  attestation report of Messrs Baker Tilly Nigeria that audited its financial statements will be
  filed as part of DAAR communication Plc’s annual report
  Chief Dr Marcellinus Anyalechi Stanley Sagboje
  Acting MD/CEO Executive Director, Finance & Accounts/CFO
  FRC/2015/PRO/ICAN/00000013647 FRC/2016/PRO/ICAN00000015580
  28 March, 2025 28 March, 2025
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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  CERTIFICATIONOF MANAGEMENT’S ASSESSMENT ON INTERNAL CONTROL OVER
  FINANCIAL REPORTING FOR THE YEAR ENDED 31 DECEMBER 2024
  To comply with the provisions of Section 1.3 of SEC Guidance of implementation of Sections 60-63 of
  investments and Securities Act 2007 we hereby make the following statements regarding the Internal Controls
  of DAAR Communications Plc for the year ended 31 December 2024.
  I Chief Dr Marcellinus Anyalechi, certify that:
  a) I have reviewed this management assessment on Internal Control over financial reporting of DAAR
  Communications Plc.
  (b) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
  state a material fact necessary to make the statements made, in light of the circumstances under which
  such statements were made, not misleading with respect to the period covered by this report;
  (c) Based on my knowledge, the financial statements, and other financial information included in this
  report, fairly present in all material respects the financial condition, results of operations and cash
  flows of the company as of, and for, the periods presented in this report;
  (d) The company’s other certifying officer(s) and I:
  i. are responsible for establishing and maintaining internal controls;
  ii. have designed such internal controls and procedures, or caused such internal controls and
  procedures to be designed under our supervision, to ensure that material information relating
  to the company, and its consolidated subsidiaries, is made known to us by others within those
  entities, particularly during the period in which this report is being prepared;
  iii. have designed such internal control system, or caused such internal control system to be designed
  under our supervision, to provide reasonable assurance regarding the reliability of financial
  reporting and the preparation of financial statements for external purposes in accordance with
  generally accepted accounting principles;
  iv. have evaluated the effectiveness of the company’s internal controls and procedures as of a date
  within 90 days prior to the report and presented in this report our conclusions about the
  effectiveness of the internal controls and procedures, as of the end of the period covered by this
  report based on such evaluation.
  (e) The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation
  of interna control system, to the company’s auditors and the audit committee of the company’s
  board of directors (or persons performing the equivalent functions):
  There were no significant deficiencies and material weaknesses in the design or operation of the
  internal control system which are reasonably likely to adversely affect the company’s ability to
  record, process, summarize and report financial information; and
  There was no fraud, whether or not material, that involves management or other employees who
  have a significant role in the company’s internal control system.
  The company’s other certifying officer(s) and I have identified, in the report whether or not there
  were significant changes in internal controls or other facts that could significantly affect internal
  controls subsequent to the date of their evaluation including any corrective actions with regard to
  significant deficiencies and material weaknesses.
  Chief Dr Marcellinus Anyalechi
  Acting MD/CEO
  FRC/2015/PRO/ICAN/00000013647
  28 March, 2025
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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  CERTIFICATIONOF MANAGEMENT’S ASSESSMENT ON INTERNAL CONTROL OVER
  FINANCIAL REPORTING FOR THE YEAR ENDED 31 DECEMBER 2024
  To comply with the provisions of Section 1.3 of SEC Guidance of implementation of Sections 60-63 of
  investments and Securities Act 2007 we hereby make the following statements regarding the Internal Controls
  of DAAR Communications Plc for the year ended 31 December 2024.
  I Chief Stanley Sagboje, certify that:
  a) I have reviewed this management assessment on Internal Control over financial reporting of DAAR
  Communications Plc.
  (b) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
  state a material fact necessary to make the statements made, in light of the circumstances under which
  such statements were made, not misleading with respect to the period covered by this report;
  (c) Based on my knowledge, the financial statements, and other financial information included in this
  report, fairly present in all material respects the financial condition, results of operations and cash
  flows of the company as of, and for, the periods presented in this report;
  (d) The company’s other certifying officer(s) and I:
  i. are responsible for establishing and maintaining internal controls;
  ii. have designed such internal controls and procedures, or caused such internal controls and
  procedures to be designed under our supervision, to ensure that material information relating
  to the company, and its consolidated subsidiaries, is made known to us by others within those
  entities, particularly during the period in which this report is being prepared;
  iii. have designed such internal control system, or caused such internal control system to be designed
  under our supervision, to provide reasonable assurance regarding the reliability of financial
  reporting and the preparation of financial statements for external purposes in accordance with
  generally accepted accounting principles;
  iv. have evaluated the effectiveness of the company’s internal controls and procedures as of a date
  within 90 days prior to the report and presented in this report our conclusions about the
  effectiveness of the internal controls and procedures, as of the end of the period covered by this
  report based on such evaluation.
  (e) The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation
  of interna control system, to the company’s auditors and the audit committee of the company’s
  board of directors (or persons performing the equivalent functions):
  There were no significant deficiencies and material weaknesses in the design or operation of the
  internal control system which are reasonably likely to adversely affect the company’s ability to
  record, process, summarize and report financial information; and
  There was no fraud, whether or not material, that involves management or other employees who
  have a significant role in the company’s internal control system.
  The company’s other certifying officer(s) and I have identified, in the report whether or not there
  were significant changes in internal controls or other facts that could significantly affect internal
  controls subsequent to the date of their evaluation including any corrective actions with regard to
  significant deficiencies and material weaknesses.
  Chief Stanley Sagboje
  Executive Director, Finance & Accounts/CFO
  FRC/2016/PRO/ICAN/00000015580
  28 March, 2025
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  4
  thFloor- Kresta Laurel Complex,
  376, Ikorodu Road,
  Maryland,
  Lagos.
  Tel: +234 (0) 9031613983 and 08023378194
  E-mail: btnlag@bakertillynigeria.com
  Website: www.bakertilly.ng
  Opinion
  REPORT OF THE INDEPENDENT AUDITOR’S
  TO THE MEMBERS OF
  DAAR COMMUNICATIONS PLC
  We have audited the accompanying financial statements of DAAR COMMUNICATIONS PLC
  (“the Company”) which comprise the statement of financial position as at 31 December 2024,
  and the statement of profit or loss and other comprehensive income, the statement of changes in
  equity, and the statement of cash flows for the year then ended, and notes to the financial
  statements, including a summary of significant accounting policies and other explanatory notes.
  In our opinion, the Company has kept proper accounting records and the financial statements
  are in agreement with the records in all material respects and give in the prescribed manner,
  information required by the Companies and Allied Matters Act (CAMA), 2020. The
  financial statements give a true and fair view of the financial position of DAAR
  COMMUNICATIONS PLC as at 31 December 2024 and of its financial performance and
  its Cash flows for the year then ended in accordance with the International Financial
  Reporting Standard (IFRS) as adopted by the Financial Reporting Council of Nigeria
  (FRC).
  Basis for Opinion
  We conducted our audit in accordance with International Standards on Auditing (ISAs).
  Our responsibilities under those standards are further described in the Auditor’s
  Responsibilities for the Audit of the Financial Statements section of our report. We are
  independent of the Company in accordance with the International Ethics Standards Board
  for Accountants (IESBA), the provisions of the Companies and Allied Matters Act
  (CAMA), 2020, and other independence requirements applicable to performing audits of
  financial statements of DAAR COMMUNICATIONS PLC. We have fulfilled our other
  ethical responsibilities in accordance with the IESBA Code and CAMA applicable to
  performing the audits of DAAR COMMUNICATIONS PLC. We believe that the audit
  evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
  Material Uncertainty Related to Going Concern
  We draw attention to note 35 in the financial statements, which indicates that, although the
  company recorded a loss of N2.3 billion during the year ended December 31, 2024, which
  is about 51% of the prior year’s loss of N 1.578 billion and the accumulated losses from
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  ADVISORY  ASSURANCE 
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  12 | P a g e
  the ordinary course of business has risen to N19 billion (2023- N16.7 billion). However, a
  revaluation of all items of Property Plant and equipment resulted in a revaluation surplus
  of N17.9 billion.
  As of that date, the company’s current liabilities exceeded its current assets by N7.3 billion
  as against N6.8 billion in the preceding year. As stated in note 35, these events or
  conditions, along with other matters as outlined in note 35, indicate that a material
  uncertainty exists that may cast significant doubt on the company’s ability to continue as
  a going concern.
  Our opinion is not modified in respect of this matter
  Key Audit Matters
  Key audit matters are those matters that, in our professional judgment, were of most
  significance in our audit of the financial statements of the current period. These matters were
  addressed in the context of our audit of the financial statements as a whole, and in forming
  our opinion thereon, and we do not provide a separate opinion on these matters. For each
  matter below, our description of how our audit addressed the matter is provided in that
  context.
  We have fulfilled the responsibilities described in the Auditors’ responsibilities for the
  audit of the financial statements section of our report, including in relation to this matter.
  Accordingly, our audit included the performance of procedures designed to respond to our
  assessment of the risks of material misstatement of the financial statements. The results of
  our audit procedures, including the procedures, performed to address the matters below,
  provide the basis for our audit opinion on the accompanying financial statements.
  Key Audit Matters How the matters were addressed in the
  Audit
  Recoverability of Accounts Receivables
  We identified the recoverability of accounts
  receivables as a key audit matter due to the
  significance of the balance to the financial
  statements as a whole, combined with the
  significant degree of judgments made by the
  management in assessing the impairment of
  accounts receivables and determining the
  allowance for doubtful debts.
  As at 31 December 2024, the carrying
  amounts of accounts receivables was N4.9
  billion, net of allowance for lost and
  doubtful debts of about N2.2 billion as
  disclosed in note 18 to the financial
  statements, representing 18% of the total
  assets of the Company. As disclosed in note
  6.1 to the financial statements, the amount of
  allowance for doubtful debts was measured
  as the difference between the carrying
  amounts of accounts receivables and the
  estimated future cash flows by considering
  the credit history including default or delay
  Our procedures concerning the
  recoverability of accounts receivables
  included:
• Obtaining an understanding of how the
  allowance for doubtful debts is estimated
  by the management and assessing the
  management’s process in determining
  the estimated future cash flows of
  accounts receivables;
• Discussing with the management and
  obtaining a list of accounts receivables
  with relevant small amount of settlement,
  during the year or subsequent to the end
  of the reporting period identified by the
  management and their assessment on the
  recoverability of accounts receivables;
• Checking the aging analysis and
  subsequent settlement of the accounts
  receivables, on a sample basis;
• Assessing the reasonableness of
  allowance for doubtful debts for
  accounts receivables with reference to
  the credit history including default or
  delay in payments, settlement records,
  subsequent settlements, and aging
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  13 | P a g e
  in payments, settlement records, subsequent
  settlements, and aging analysis of the
  accounts receivables.
  Repayment of liabilities
  Management’s ability to meet its obligation
  to the company’s Trade and other payables
  is a key audit matter. This amounted to
  N11.309 billion naira (2023 – 13.087
  billion) as at 31 December 2024.
  analysis of the accounts receivables on a
  sample basis;
• Evaluating the historical accuracy of the
  management’s assessment of
  impairment for accounts receivables on a
  sample basis by examining the actual
  write-offs, the reversal of previously
  recorded allowance, and new allowances
  recorded in the current year in respect of
  accounts receivables at the end of the
  previous financial year.
• Confirming the existence of the
  transactions and ascertaining the
  authenticity and accuracy of the balances
  outstanding with respect to the debts.
• Reviewing the repayment pattern during
  the year and ascertaining the accuracy of
  recording of such postings to confirm the
  correctness of outstanding balances.
• Circularized the creditors and received
  responses confirming the debts.
• Tracing the history of outstanding debts to
  confirm the length of time debts have been
  outstanding.
• Enquired about plans to defray a significant
  portion of the outstanding liabilities.
  We noted that Management is consistently and
  systematically repaying the subordinated loan.
  Other Information
  The directors are responsible for the other information. The other information comprises the
  Directors’ Report, Corporate Governance Report, Statement of Directors’ Responsibility,
  Audit Committee Report, Statement of Value Added and Five-Year Financial Summary, which
  we obtained prior to the date of this report, and the Annual Report, which is expected to be
  made available to us after that date. Other information does not include the financial statements
  and our auditor’s report thereon.
  Our opinion on the financial statements does not cover the other information and we do not
  express an audit opinion or any form of assurance conclusion thereon. In connection with our audit
  of the financial statements, our responsibility is to read the other information and, in doing
  so, consider whether the other information is materially inconsistent with the financial
  statements or our knowledge obtained in the audit, or otherwise appears to be materially
  misstated.
  If based on the work we have performed on the other information obtained prior to the date
  of this auditor’s report, we conclude that there is a material misstatement of this other
  information, we are required to report that fact. We have nothing to report in this regard.
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  14 | P a g e
  Responsibilities of the Directors for the Financial Statements
  The Directors are responsible for the preparation and fair presentation of these financial
  statements in accordance with International Financial Reporting Standards and the
  provisions of the Companies and Allied Matters Act (CAMA), 2020, the Financial
  Reporting Council Act No.6, 2011, and forsuch internal control as the Directors determine
  is necessary to enable the preparation of financial statements that are free from material
  misstatement, whether due to fraud or error.
  In preparing the financial statements, the directors are responsible for assessing the Company’s
  ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless the directors either intend to
  liquidate the Company or to cease operations, or have no realistic alternative but to do so:
  Identify and assess the risks of material misstatement of the financial statements, whether due
  to fraud or error, design and perform audit procedures responsive to those risks, and obtain
  audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
  not detecting a material misstatement resulting from fraud is higher than for one resulting from
  error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
  override of internal control.
  Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.
  Evaluate the appropriateness of accounting policies used and the reasonableness of
  accounting estimates and related disclosures made by the directors.
  Conclude on the appropriateness of the directors’ use of the going concern basis of
  accounting and based on the audit evidence obtained, whether a material uncertainty exists
  related to events or conditions that may cast significant doubt on the Company’s ability to
  continue as a going concern. If we conclude that a material uncertainty exists, we are
  required to draw attention in our auditor’s report to the related disclosures in the financial
  statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
  are based on the audit evidence obtained up to the date of our auditor’s report. However,
  future events or conditions may cause the Company to cease to continue as a going concern.
  Evaluate the overall presentation, structure, and content of the financial statements,
  including disclosures, and whether the financial statements represent the underlying
  transactions and events in a manner that achieves fair presentation.
  Obtain sufficient appropriate audit evidence regarding the financial information of the
  entity or business activities within the company to express an opinion on the financial
  statements. We are responsible for the direction, supervision, and performance of the audit.
  We remain solely responsible for our audit opinion.
  We also provide the directors with a statement that we have complied with relevant ethical
  requirements regarding independence, and to communicate with them all relationships and
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  15 | P a g e
  other matters that may reasonably be thought to bear on our independence, and where
  applicable, related safeguards.
  From the matters communicated with the directors, we determine those matters that were
  of most significance in the audit of the financial statements of the current period and are
  therefore the key audit matters. We describe these matters in our auditor’s report unless
  law or regulation precludes public disclosure about the matter or when, in extremely rare
  circumstances, we determine that a matter should not be communicated in our report
  because the adverse consequences of doing so would reasonably be expected to outweigh
  the public interest benefits of such communication.
  Report on Other Legal and Regulatory Requirements
  In accordance with the requirement of the Companies and Allied Matters Act (CAMA),
  2020 we expressly state that:
  i. We have obtained all the information and explanations which to the best of our knowledge
  and belief were necessary for the purpose of our audit
  ii. proper accounting records have been kept by the Company, so far as appears from our
  examination of those accounting records;
  iii. The Company’s statement of financial position and statement of profit or loss
  and other comprehensive income are in agreement with the accounting records.
  Oluwole O. Ogundeji
  FRC/2013/PRO/ICAN/00000002825
  for: Baker Tilly Nigeria
  (Chartered Accountants)
  FRC/2024/COY/096262
  Abuja, Nigeria
  28 March, 2025
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  16 | P a g e
  BAKER TILLY NIGERIA
  4
  th Floor- Kresta Laurel Complex,
  376, Ikorodu Road,
  Maryland,
  Lagos.
  Tel: +234 (0)903-161-3983 and
  08023378194
  E-mail: btnlag@bakertillynigeria.com
  Website: www.bakertilly.ng
  INDEPENDENT AUDITOR’S ATTESTATION REPORT ON MANAGEMENT’S
  ASSESSMENT OF INTERNAL CONTROL OVER FINANCIAL REPORTING
  TO THE MEMBERS OF DAAR COMMUNICATIONS PLC
  Scope
  We have been engaged by DAAR COMMUNICATIONS PLC (‘the Company’) and its subsidiaries
  (together “the Group”), to perform a ‘limited assurance engagement’, based on International
  Standards on Assurance Engagements Other Than Audits or Reviews of Historical Financial
  Information (‘ISAE 3000 (Revised)’) and FRC Guidance on Assurance Engagement Report on
  Internal Control over Financial Reporting, herein referred to as the engagement, to report on DAAR
  Communications Plc Internal Control over Financial Reporting (ICFR) (the “Subject Matter”)
  contained in DAAR COMMUNICATION PLC Management’s Assessment on Internal Control over
  Financial Reporting as of 31 December 2024 (the “Report”).
  A company’s internal control over financial reporting is a process designed to provide reasonable
  assurance regarding the reliability of financial reporting and the preparation of financial statements
  for external purposes in accordance with generally accepted accounting principles. A company’s
  internal control over financial reporting includes those policies and procedures that:
  1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
  the transactions and dispositions of the assets of the Company;
  2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
  of financial;
  3) statements in accordance with generally accepted accounting principles, and that receipts and
  expenditures of the company are being made only in accordance with authorizations of
  management and directors of the company; and
  4) provide reasonable assurance regarding prevention or timely detection of unauthorized
  acquisition, use, or disposition of the company’s assets that could have a material effect on
  the financial statements.
  Because of its inherent limitations, internal control over financial reporting may not prevent or detect
  all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
  to the risk that controls may become inadequate because of changes in conditions, or that the degree
  of compliance with the policies or procedures may deteriorate.
  Criteria applied by DAAR COMMUNICATIONS PLC
  In designing, establishing and operating the Internal Control over Financial Reporting (ICFR)
  and preparing the Management’s assessment of the Internal Control over Financial Reporting
  (ICFR), DAAR COMMUNICATIONS PLC applied the requirements of Internal Control-Integrated
  ADVISORY  ASSURANCE  TAX
  Baker Tilly Nigeria trading as Bakertilly is a member of the global network of Baker Tilly
  International Ltd; the members of which are separate and independent legal entities
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  17 | P a g e
  Framework (2013) of the Committee of Sponsoring Organizations of the Treadway Commission
  (COSO) Framework and SEC Guidance on Management Report on Internal Control Over Financial
  Reporting (Criteria). Such Criteria were specifically designed to enable organizations effectively and
  efficiently develop systems of internal control that adapt to changing business and operating
  environments, mitigate risks to acceptable levels, and support sound decision making and governance
  of the organization; As a result, the subject matter information may not be suitable for another
  purpose.
  Directors’ and Management’s Responsibilities
  The Directors are responsible for ensuring the integrity of the entity’s financial controls and
  reporting.
  Management is responsible for establishing and maintaining a system of internal control over
  financial reporting that provides reasonable assurance regarding the reliability of financial
  reporting, and the preparation of financial statements for external purposes in accordance with the
  International Financial Reporting Standards (IFRS) and the ICFR framework.
  Section 7(2f) of the Financial Reporting Council of Nigeria (Amendment) Act 2023 further requires
  that management perform an assessment of internal controls, including information system controls.
  Management is responsible for maintaining evidential matters, including documentation, to provide
  reasonable support for its assessment of internal control over financial reporting.
  Our responsibilities
  Our responsibility is to express a conclusion on the design and operating effectiveness of the
  Internal Control over Financial Reporting based on our Assurance engagement.
  We conducted our engagement in accordance with the International Standard for Assurance
  Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000
  (Revised)’) and FRC Guidance on Assurance Engagement Report on Internal Control over Financial
  Reporting, those standards require that we plan and perform our engagement to obtain limited
  assurance on the entity’s internal control over financial reporting based on our assurance
  engagement.
  Our independence and quality management
  We have maintained our independence and confirm that we have met the requirements of the Code
  of Ethics for Professional Accountants issued by the International Ethics Standards Board for
  Accountants (IESBA code) and have the required competencies and experience to conduct this
  assurance engagement.
  We also apply International Standard on Quality Management 1, Quality Management for Firms that
  Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services
  engagements, which requires that we design, implement, and operate a system of quality
  management including policies or procedures regarding compliance with ethical requirements,
  professional standards and applicable legal and regulatory requirements.
  Description of procedures performed
  The procedures we performed included obtaining an understanding of internal control over financial
  reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
  and operating effectiveness of internal control based on the assessed risk. Our engagement also
  included performing such other procedures as we considered necessary in the circumstances. We
  believe the procedures performed provides a basis for our report on the internal control put in place
  by management over financial reporting.
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  18 | P a g e
  Conclusion
  In conclusion, nothing has come to our attention to indicate that the internal control over financial
  reporting put in place by management is not adequate as of 31 December 2024, based on the
  requirements of Committee of Sponsoring Organizations of the Treadway Commission (COSO)
  Framework and SEC Guidance on ManagementReport on Internal Control Over Financial Reporting.
  Other Matter
  We also have audited, in accordance with the International Standards on Auditing, the financial
  statements of the DAAR COMMUNICATIONS PLC for the year ended 31 December 2024, and
  we expressed an unmodified opinion in our report dated 26 March 2025. Our conclusion is not
  modified in respect of this matter.
  Oluwole O. Ogundeji
  FRC/2013/PRO/ICAN/00000002825
  for: Baker Tilly Nigeria
  FRC/2024/COY/09626
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  19 | P a g e
  DAAR COMMUNICATIONS PLC
  STATEMENT OF PROFIT OR LOSS AND OTHER
  COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECMBER, 2024
  Note
  2024
  ₦’000
  2023
  ₦’000
  Revenue 7 5,250,947 4,510,339
  Cost of sales 8 (3,772,115) (2,875,513)
  Gross profit 1,478,832 1,634,826
  Other income 9 555,431 445,308
  Selling expenses 10 (146,455) (118, 191)
  Allowance for impairments 10b (1,350,479) (1,157,255)
  Provisions 10c (72,000) (72,000)
  Administrative expenses 11 (2,766,506) (2,300,593)
  Operating loss before finance cost (2,301,177) (1,567,905
  Finance cost 12 (12,743) (10,370)
  Loss before tax 13 (2,313,920) (1,578,275)
  Taxation 14 (27,795) (49,248)
  Loss after tax
  Other Comprehensive Income:

(2,341,715)

(1,627,523)

Items that will not be reclassified to profit or loss:
Gains (losses) on property revaluation 706,673 17,232,806
Other comprehensive income for the year net of taxes 706,673 17,232,806
Total comprehensive income for the year
Loss per share (kobo)

(1,635,042)

(29)

15,605,283

(20)

The accounting policies and notes on pages 18 to 62 form part of these financial statements
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
20 | P a g e
DAAR COMMUNICATIONS PLC
STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECMBER, 2024
Assets
Non-Current Assets Note
2024
₦’000
2023
₦’000
Property, Plant and Equipment 15 24,228,373 24,061,928
Intangible Assets 16 37,943 22,802
Investment 17 97,000 497,893
Deferred Tax Assets 14 – 969,241

24,363,316

25,551,864

Current Assets
Trade Receivables 18 2,607,282 5,005,070
Other Receivables & Prepayments 19 318,970 219,424
Cash and Cash Equivalents 20 202,996 129,662
Total Current Assets 3,129,248 5,354,156
Total Assets
Equity and Liabilities

27,492,564

30,906,020

Equity
Share Capital 21 4,000,000 4,000,000
Share Premium 22 13,411,541 13,411,541
Revaluation Surplus 17,939,479 17,232,806
Retained Earnings 23 (19,167,473) (16,825,758)
Total Equity 16,183,547 17,818,589
Non-Current Liabilities
Accrued Gratuity 26b 726,160 865,375
Total Non-Current Liabilities 726,160 865,375
Current Liabilities
Sub-ordinated Loan 24 144,666 362,029
Payables 25 1,151,541 2,884,999
Other Payables 26 8,538,225 8,254,398
Taxation 14 748,425 720,630
Total Current Liabilities 10,582,857 12,222,056
Total Liabilities
Total Equity and Liabilities

11,309,017

27,492,564

13,087,431

30,906,020

The financial statements were approved by the Board of Directors on 28 March, 2025 and signed on its

behalf by:

Chief Dr Marcellinus Anyalechi

Chief Raymond Paul Dokpesi Jr

Stanley Sagboje
Ag MD/CEO Chairman ED, Finance & Accounts/CFO
FRC/2015/ICAN/PRO/0000013647 FRC/2020/IOD/00000020977 RC/2016/PRO/ICAN/00000015580
The accounting policies and notes on pages 18 to 60 form part of these financial statements
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
21 | P a g e
DAAR COMMUNICATIONS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECMBER, 2024
Share
Capital
Share
Premium
Revaluation
Surplus
Retained
Earnings Total
₦’000 ₦’000 ₦’000 ₦’000 ₦’000
Balance as atJanuary 1, 2024 4,000,000 13,411,541 17,232,806 (16,825,758) 17,818,589
Loss for the year – – – (2,341,715) (2,341,715)
Other Comprehensive Income:
Revaluation Reserve – – 706,673 – 706,673

Balance as at Dec 31, 2024 4,000 ,000

13,411,541

17,931,479

(19,167,473)

16,183,547

Balance as atJanuary 1, 2023 4,000,000 13,411,541 – (15,198,235) 2,213,306
Loss for the year – – – (1,627,523) (1,627,523)
Other Comprehensive Income:
Revaluation Reserve – – 17,232,806 – 17,232,806

Balance as at Dec 31, 2023 4,000 ,000

13,411,541

17,232,806

(16,825,758)

17,818,589

The accounting policies and notes on pages 18 to 62 form part of these financial statements
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
22 | P a g e
DAAR COMMUNICATIONS PLC
STATEMENT OF CASHFLOW
FOR THE YEAR ENDED 31 DECMBER, 2024
Note
2024
₦’000
2023
₦’000
Cash Flows from Operating Activities
Loss for the year before tax (2,313,920) (1,578,275)
Adjustmentsfor:
Depreciation 15 1,202,855 815,573
Amortization of Intangible Assets 16 819 1,764
Write down of deferred tax assets 14.3 969,241 913,423
FinanceCost 12 12,743 10,370
Gratuity 26b (139,215) 48,338

(267,477)

211,193

Changes in Assets & Liabilities
Change in Trade Receivables 18 2,397,788 (2,278,823)
Change in Prepayments and Other Receivables 19 (99,545) (13,803)
Change in Trade and Other Payables 25 & 26 (1,449,632) 2,681,616
Cash Generated from Operating Activities 581,134 600,183
Tax Paid 14.2 – (14,831)
Net Cash inflow from Operating Activities
Cash flows from Investing Activities

581,134

585,352

Acquisition of Intangible Assets 16 (15,960)
Acquisition of Property, Plant and Equipment 15 (662,627) (294,380)
Investment in A IT N E WS 2 4 17 400,893 (400,893)
Net cash outflow from Investing Activities (277,694) (695,273)
Cash Flows from Financing Activities
Addition to Subordinated loan 26 (217,363) 86,154
Interest Paid 12 (12,743) (10,370)
Net Cash inflow /(outflow) from Financing Activities (230,106) 75,784
Net (decrease)/increaseinCash and Cash Equivalents 73,334 (34,137)
Cash and Cash Equivalents atJanuary 1 129,662 163,800

Cash and Cash Equivalents at December 31 20 202,996

129,663

The accounting policies and notes on pages 18 to 62 form part of these financial statement
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
23 | P a g e
DAAR COMMUNICATIONS PLC
NOTES TO THE FINANCIAL STATEMENT

1. Corporate Information
   DAAR Communications Plc. is the foremost independent broadcast organization in Nigeria.
   The Company was incorporated on August 31, 1988, as a limited liability company and
   converted into a public liability Company on April 23, 2007.
   The Company pioneered private/independent broadcasting with the establishment of
   Raypower 100.5 FM radio station in September 1994 upon the deregulation of the broadcast
   sector in 1993 by the Federal Government of Nigeria. The organization also pioneered
   global satellite broadcasting in 1996 with the establishment of African Independent
   Television (AIT).
   2.1 Basis of Presentation
   These financial statements have been prepared on a going concern basis and in accordance
   with International Financial Reporting Standards (“IFRS”), being standards and
   interpretations issued by the International Accounting Standards Board (“IASB”), in force
   on 31 December 2024
   2.2 Statement of Compliance
   The Company’s full financial statements for the year ended 31 December 2024 have been
   prepared in accordance with International Financial Reporting Standards as issued by the
   International Accounting Standards Board (IASB), and interpretations issued by the
   International Financial Reporting Interpretations Committee of the IASB (together “IFRS”)
   that are effective at 31 December 2024 and requirements of the Companies and Allied
   Matters Act (CAMA), 2020 and the Financial Reporting Council (FRC) Act of Nigeria 2011.
   2.3 Composition of Financial Statements
   In accordance with IFRS accounting presentation, the Financial Statements comprise:
   Statement of Profit or Loss and other comprehensive income, Statement of Financial
   Position, Statement of Changes in Equity, Statement of Cashflows and Notes to the Financial
   Statements including accounting policies.
   2.4 Functional and Presentation Currency
   The Financial Statements are drawn up in naira, the functional currency of DAAR
   Communications Plc. All values are rounded to the nearest thousands unless otherwise
   stated.
   2.5. Measurement Bases
   The financial statements have been prepared under the historical cost convention unless
   mentioned otherwise in the accounting policies below (e.g. certain financial instruments that
   are measured at fair value). Historical cost is generally based on the fair value of the
   consideration given in exchange for assets.
   Fair value is the price that would be received to sell an asset or paid to transfer a liability in
   an orderly transaction between market participants at the measurement date. When
   measuring the fair value of an asset or a liability, the Company uses market observable data
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
   24 | P a g e
   to the extent possible.
   If the fair value of an asset or a liability is not directly observable, it is estimated by the
   Company (working closely with external qualified valuers) using valuation techniques that
   maximize the use of relevant observable inputs and minimize the use of unobservable inputs
   (e.g. by use of the market comparable approach that reflects recent transaction prices for
   similar items, discounted cash flow analysis, or option pricing models refined to reflect the
   issuer’s specific circumstances). Inputs used are consistent with the characteristics of the
   asset/liability that market participants would take into account
   Fair values are categorized into different levels in a fair value hierarchy based on the degree
   to which the inputs to the measurement are observable and the significance of the inputs to the
   fair value measurement in its entirety:
   Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active
   markets for identical assets or liabilities.
   Level 2 fair value measurements are those derived from inputs other than quoted
   prices included within Level 1 that are observable for the asset or liability,
   either directly (i.e. as prices) or indirectly (i.e. derived from prices).
   Level 3 fair value measurements are those derived from valuation techniques that
   include inputs for the asset or liability that are not based on observable
   market data (unobservable inputs).
   Transfers between levels of the fair value hierarchy are recognized by the Company at the
   end of the reporting period during which the change occurred.
   2.6. Financial Period
   These Financial Statements cover the financial years ended 31 December 2024 and comparative,
   31 December 2023.
   Application of new and revised International Financial Reporting Standards(IFRSs) effective
   for an accounting period that begins on or after January 1, 2024.
   3.1.1 IFRS S1 General Requirements for Disclosure of Sustainability-related Financial
   Information
   The International Sustainability Standards Board (ISSB) was established in November 2021
   to develop high-quality sustainability disclosure standards that meet investors’ information
   needs with the objective to create a comprehensive global baseline of sustainability-related
   disclosures. IFRS S1 is one of the first IFRS Sustainability Disclosure Standards and result
   from a consultation process started in March 2022.
   IFRS S1 sets out overall requirements for sustainability-related financial disclosures with
   the objective to require an entity to disclose information about its sustainability-related risks
   and opportunities that is useful to primary users of general-purpose financial reports in
   making decisions relating to providing resources to the entity.
   This Standard is effective for annual periods beginning on or after 1 January 2024, with
   substantial transitional reliefs to allow preparers more time to align reporting of
   sustainability related financial disclosures and financial statements
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
   25 | P a g e
   IFRS S2 — Climate-related Disclosures
   The International Sustainability Standards Board (ISSB) was established in November 2021
   to develop high-quality sustainability disclosure standards that meet investors’ information
   needs with the objective to create a comprehensive global baseline of sustainability-related
   disclosures. IFRS S2 is one of the first IFRS Sustainability Disclosure Standards and result
   from a consultation process started in March 2022.
   IFRS S2 sets out the requirements for identifying, measuring and disclosing information
   about climate-related risks and opportunities that is useful to primary users of generalpurpose financial reports in making decisions relating to providing resources to the entity.
   This Standard is effective for annual periods beginning on or after 1 January 2024, with
   substantial transitional reliefs to allow preparers more time to align reporting of
   sustainability related financial disclosures and financial statements.
   New and Revised IFRS Standards in issue but not yet effective
   Table—New requirements effective from 1 January 2024
   Standard/ amendment When issued Effective date (early
   application is possible
   unless otherwise noted)
   Standards/
   Interpretations
   amended
   Classification of
   Liabilities as Current or Noncurrent
   Amendment to IAS 1
   January 2020 1 January 2024 IAS 1
   Lease Liability in a
   Sale and Leaseback
   Amendment to IFRS 16
   September
   2022
   1 January 2024 IFRS 16
   Non-current Liabilities with
   Covenants
   Amendments to IAS 1
   October 2022 1 January 2024 IAS 1
   Table—New requirements effective from 1 January 2024
   Standard/ amendment When issued Effective date (early
   application is possible
   unless otherwise noted)
   Standards/
   Interpretations
   amended
   Classification of
   Liabilities as Current or
   Non-current
   Amendment to IAS 1
   January 2020 1 January 2024 IAS 1
   Lease Liability in a
   Sale and Leaseback
   Amendment to IFRS 16
   September
   2022
   1 January 2024 IFRS 16
   Non-current Liabilities
   with Covenants
   Amendments to IAS 1
   October 2022 1 January 2024 IAS 1
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
   26 | P a g e
   At the date of authorization of these financial statements, the Company has not applied the
   following new and revised IFRS Standards that have been issued but are not yet effective.
   3.1 Lack of Exchangeability – Amendments to IAS 21 The Effects of Changes in Foreign
   Exchange Rates. Effective 1 January 2025
   3.2 Amendments to the Classification and Measurement of Financial Instruments –
   Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments:
   Disclosures
   Annual Improvements to IFRS Accounting Standards – Amendments to:
   IFRS 1 First-time Adoption of International Financial Reporting Standards;
   IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on
   implementing IFRS 7;
   IFRS 9 Financial Instruments;
   IFRS 10 Consolidated Financial Statements; and
   IAS 7 Statement of Cash flows
   Effective date 1 January 2026
   Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7.
   Effective 2026
   IFRS 18 Presentation and Disclosure in Financial Statements effective I January 2027
   IFRS 19 Subsidiaries without Public Accountability: Disclosures effective 1, January 2027
2. Significant Accounting Policies
   A Going Concern
   The directors have, at the time of approving the financial statements, a reasonable expectation
   that the Company has adequate resources to continue in operational existence for the
   foreseeable future. Thus, they continue to adopt the going concern basis of accounting in
   preparing the financial statements.
   B. Fair Value
   Fair value is the price that would be received to sell an asset or paid to transfer a liability in
   an orderly transaction between market participants at the measurement date, regardless of
   whether that price is directly observable or estimated using another valuation technique. In
   estimating the fair value of an asset or a liability, the Company takes into account the
   characteristics of the asset or liability that market participants would take into account when
   pricing the asset or liability at the measurement date. Fair value for measurement and/or
   disclosure purposes in these financial statements is determined on such a basis, except for
   measurements that have some similarities to fair value but are not fair value, such as net
   realisable value in IAS 2 or value in use in IAS 36.
   C. Property, Plant and Equipment
   Property, plant and equipment are stated at cost/revaluation less accumulated depreciation and
   any recognized impairment losses. Costs include expenditures that are directly attributable to
   the acquisition of assets. Subsequent costs are included in an asset’s carrying amount or
   recognized as a separate asset, as appropriate, only when it is probable that future economic
   benefits associated with the item will flow to the Company and the cost of the item can be
   measured reliably. Where an asset retirement obligation exists, this will be included within
   the initial assessment of cost. Borrowing costs directly attributable to a qualifying asset, (that
   takes a substantial period to make ready for the intended use) are added to the cost of such
   assets until they are ready for their intended use.
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   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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   All other repair and maintenance expenditures are charged to the Income Statement during
   the financial period in which they are incurred.
   An item of property, plant and equipment is derecognized upon disposal or when no future
   economic benefits are expected to arise from the continued use of the asset. Any gain or loss
   arising from the disposal or retirement of an item of property, plant and equipment is
   determined as the difference between the sales proceeds and the carrying amount of the asset
   and is recognized in profit or loss
   Subsequent to initial recognition, property, plant and equipment is measured at cost less
   accumulated depreciation and any accumulated impairment losses, they are also stated at
   revalued amounts. The revalued amount is the fair value at the date of revaluation less any
   subsequent accumulated depreciation and impairment losses.
   Revaluations are made with sufficient regularity such that the carrying amount does not differ
   materially from that which would be determined using fair value at the end of the reporting
   year.
   When an item of property, plant and equipment is revalued, the gross carrying amount is
   adjusted consistently with the revaluation of the carrying amount. The accumulated
   depreciation at that date is adjusted to equal the difference between the gross carrying amount
   and the carrying amount after taking into account accumulated impairment losses.
   The revaluation reserve related to a specific item of property, plant and equipment is
   transferred directly to retained income when the asset is derecognised.
   The revaluation reserve related to a specific item of property, plant and equipment is
   transferred directly to retained income as the asset is used. The amount transferred is equal to
   the difference between depreciation based on the revalued carrying amount and depreciation
   based on the original cost of the asset, net of deferred tax.
   D. Depreciation
   Depreciation is calculated on the depreciable amount which is the cost of an asset, or
   revaluation of an asset or other amount substituted for cost, lessits residual value on a straightline basis.
   Each part of an item of PP&E with a cost that is significant in relation to the whole is
   depreciated separately over its expected useful life.
   Expected useful life is the period of use by the enterprise, not the asset’s economic life, which
   could be appreciably longer. The depreciable amount takes account of the expected residual
   value of the assets. Both the useful life and the residual value are reviewed annually and the
   estimates revised as necessary.
   The depreciation is recognized in the income statement on a straight-line basis over the
   estimated useful lives of an item of property, plant and equipment as follows:
   Property Plant and Equipment Range of Years
   Building 50 years
   Plant & Equipment 10 years
   Motor Vehicles 4 years
   Furniture and Fittings 10 years
   Records and Discs 10 years
   No depreciation is provided on freehold land, although, in common with all long-lived assets,
   it is subject to impairment testing, if deemed appropriate.
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   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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   Construction costs and improvements in respect of offices are carried at cost as capital workin-progress. On completion of construction or improvements, the related amounts are
   transferred to the appropriate category of property and equipment.
   Payments in advance for items of property and equipment are included as Prepayments in
   “Other Assets” and upon delivery are reclassified as additions in the appropriate category of
   property and equipment.
   E. Impairment of Property, Plant and Equipment
   Where an item of Property, Plant and Equipment has become impaired, the carrying amount
   of the Property, Plant and Equipment is restated at the recoverable amount if it is lower than
   the carrying amount and the difference is recognized in the Statement of Comprehensive
   Income as an impairment loss. The revised carrying amount is amortized on a straight-line
   basis over the remaining life of the asset. Where there is no recoverable amount, the carrying
   amount is written off to the profit and loss account and recognized as an impairment loss.
   Impairment is tested for when there is an indication of impairment such as:
   a) A decline in the market value of an asset;
   b) Changes in the technological, economic or legal environment resulting in an adverse
   effect on our activities;
   c) Obsolescence or damage of assets;
   d) Worsening performance of assets.
   Where the asset does not generate cash flows that are independent of other assets, the
   recoverable amount of the cash-generating unit to which the asset belongs is determined, and
   impairment losses for the cash-generating units are allocated first against the goodwill of the
   unit (if any) and then pro-rata amongst the other assets of the unit. Subsequent increases in the
   recoverable amount caused by changes in estimates are credited to profit or loss to the extent
   that they reverse the impairment.
   F. Intangible Assets License Fees
   License fees are stated at historical cost less accumulated amortization. The amortization
   period is determined primarily by reference to the unexpired license period. Amortization is
   charged to the income statement on a straight-line basis over the estimated useful life of the
   license.
   Acquired computer software licenses are capitalized based on the costs incurred to acquire
   and bring to use the specific software. These costs are amortized over their estimated useful
   lives. Costs associated with maintaining software programs are recognized as an expense as
   incurred.
   Computer Software
   Computer Software with finite lives is amortized over the useful life and assessed for
   impairment whenever there is an indication that the intangible asset may be impaired. The
   amortization period and the amortization method for an intangible asset with a finite useful
   life are reviewed at each financial year-end. Changes in the expected useful life or the expected
   pattern of consumption of future economic benefits embodied in the asset are accounted for
   by changing the amortization period or method, as appropriate, and are treated as changes in
   accounting estimates on a prospective basis. The amortization expense on intangible assets
   with finite lives is recognized in the income statement in the expense category consistent with
   the function of the intangible asset.
   An intangible asset is derecognized on disposal, or when no future economic benefits are
   expected from use or disposal. Gains or losses arising from the derecognition of an intangible
   asset, measured as the difference between the net disposal proceeds and the carrying amount
   of the asset, are recognized in profit or loss when the asset is derecognized.
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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   For intangible assets with finite useful lives, amortization is calculated to write off the cost of
   the asset, less its estimated residual value, over its useful life as follows:
   Licenses License period
   Computer Software 20%, straight line.
   G. Financial Instruments
   Financial assets and financial liabilities are recognized in the Company’s statement of
   financial position when the Company becomes a party to the contractual provisions of
   the instrument. Financial assets and financial liabilities are initially measured at fair
   value. Transaction costs that are directly attributable the acquisition or issue of
   financial assets and financial liabilities (other than financial assets and financial
   liabilities at fair value through profit or loss) are added to or deducted from the fair
   value of the financial assets or financial liabilities, as appropriate, on initial
   recognition. Transaction costs directly attributable to the acquisition of financial assets
   or financial liabilities at fair value through profit or loss are recognized immediately
   in profit or loss.
   Financial Assets
   All regular-way purchases or sales of financial assets are recognized and derecognized
   on a trade date basis. Regular way purchases or sales are purchases or sales of financial
   assets that require delivery of assets within the time frame established by regulation
   or convention in the marketplace.
   All recognized financial assets are measured subsequently in their entirety at either
   amortized cost or fair value, depending on the classification of the financial assets.
   Classification of Financial Assets
   Debt instruments that meet the following conditions are measured subsequently at
   amortized cost:
   the financial asset is held within a business model whose objective is to hold financial
   assets in order to collect contractual cash flows; and
   the contractual terms of the financial asset give rise on specified dates to cash flows
   that are solely payments of principal and interest on the principal amount outstanding.
   Debt instruments that meet the following conditions are measured subsequently at fair
   value through other comprehensive income (FVTOCI):
   ▪ the financial asset is held within a business model whose objective is achieved
   by both collecting contractual cash flows and selling the financial assets; and
   ▪ the contractual terms of the financial asset give rise on specified dates to cash
   flows that are solely payments of principal and interest on the principal amount
   outstanding.
   ▪ By default, all other financial assets are measured subsequently at fair value
   through profit or loss (FVTPL). Despite the foregoing, the Company may make
   the following irrevocable election/designation at initial recognition of a financial
   asset:
   ▪ the Company may irrevocably elect to present subsequent changes in fair value
   of an equity investment in other comprehensive income if certain criteria are met
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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   (see (iii) below); and
   ▪ the Company may irrevocably designate a debt investment that meets the
   amortized cost or FVTOCI criteria as measured at FVTPL if doing so eliminates
   or significantly reduces an accounting mismatch (see (iv) below).
   Amortized Cost and Effective Interest Method
   The effective interest method is a method of calculating the amortized cost of a debt
   instrument and of allocating interest income over the relevant period.
   For financial assets other than purchased or originated credit-impaired financial assets (i.e.
   assets that are credit-impaired on initial recognition), the effective interest rate is the rate
   that exactly discounts estimated future cash receipts (including all fees and points paid or
   received that form an integral part of the effective interest rate, transaction costs, and other
   premiums or discounts) excluding expected credit losses, through the expected life of the
   debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the
   debt instrument on initial recognition. For purchased or originated credit-impaired financial
   assets, a credit-adjusted effective interest rate is calculated by discounting the estimated
   future cash flows, including expected credit losses, to the amortized cost of the debt
   instrument on initial recognition.
   The amortized cost of a financial asset is the amount at which the financial asset is measured
   at initial recognition minus the principal repayments, plus the cumulative amortisation using
   the effective interest method of any difference between that initial amount and the maturity
   amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is
   the amortized cost of a financial asset before adjusting for any loss allowance.
   Interest income is recognized using the effective interest method for debt instruments
   measured subsequently at amortized cost and FVTOCI. For financial assets other than
   purchased or originated credit-impaired financial assets, interest income is calculated by
   applying the effective interest rate to the gross carrying amount of a financial asset, except
   for financial assets that have subsequently become credit-impaired (see below).
   For financial assets that have subsequently become credit-impaired, interest income is
   recognized by applying the effective interest rate to the amortized cost of the financial asset.
   If in subsequent reporting periods, the credit risk on the credit-impaired financial instrument
   improves so that the financial asset is no longer credit-impaired, interest income is
   recognized by applying the effective interest rate to the gross carrying amount of the
   financial asset.
   For purchased or originated credit-impaired financial assets, the Company recognizes
   interest income by applying the credit-adjusted effective interest rate to the amortized cost
   of the financial asset from initial recognition.
   The calculation does not revert to the gross basis even if the credit risk of the financial asset
   subsequently improves so that the financial asset is no longer credit-impaired. Interest
   income is recognized in profit or loss and is included in the “finance income – interest
   income”.
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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   Debt Instruments Classified as at FVTOCI
   The corporate bonds held by the Company are classified as at FVTOCI. The corporate bonds
   are initially measured at fair value plus transaction costs.
   Subsequently, changes in the carrying amount of these corporate bonds as a result of foreign
   exchange gains and losses impairment gains or losses, and interest income calculated using
   the effective interest method are recognized in profit or loss. The amounts that are
   recognized in profit or loss are the same as the amounts that would have been recognized in
   profit or loss if these corporate bonds had been measured at amortized cost. All other
   changes in the carrying amount of these corporate bonds are recognized in other
   comprehensive income and accumulated under the heading of investments revaluation
   reserve. When these corporate bonds are derecognized, the cumulative gains or losses
   previously recognized in other comprehensive income are reclassified to profit or loss.
   iii) Equity Instruments Designated as at FVTOCI
   On initial recognition, the Company may make an irrevocable election (on an
   instrument-by- instrument basis) to designate investments in equity instruments as
   at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held
   for trading or if it is contingent consideration recognized by an acquirer in a business
   combination.
   A financial asset is held for trading if:
   it has been acquired principally to sell it in the near term; or
   on initial recognition it is part of a portfolio of identified financial instruments that the
   Company manages together and has evidence of a recent
   actual pattern of short-term profit- taking; or
   it is a derivative (except for a derivative that is a financial guarantee contract or a designated
   and effective hedging instrument).
   Investments in equity instruments at FVTOCI are initially measured at fair value plus
   transaction costs. Subsequently, they are measured at fair value with gains and losses arising
   from changes in fair value recognized in other comprehensive income and accumulated in
   the investments revaluation reserve. The cumulative gain or loss is not be reclassified to
   profit or loss on disposal of the equity investments, instead, it is transferred to retained
   earnings.
   Dividends on these investments in equity instruments are recognized in profit or loss in
   accordance with IFRS 9 unless the dividends clearly represent a recovery of part of the cost
   of the investment. The Company has designated all investments in equity instruments that
   are not held for trading as at FVTOCI on the initial application of IFRS 9.
   iv) Financial Assets at FVTPL
   Financial assets that do not meet the criteria for being measured at amortized cost
   or FVTOCI (see (i) to (iii) above) are measured at FVTPL. Specifically:
   Investments in equity instruments are classified as at FVTPL unless the Company
   designates an equity investment that is neither held for trading nor a contingent
   consideration arising from a business combination as at FVTOCI on initial
   recognition (see (iii) above).
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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   Debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria
   (see (i) and (ii) above) are classified as at FVTPL. In addition, debt instruments that
   meet either the amortized cost criteria or the FVTOCI criteria may be designated as
   at FVTPL upon initial recognition if such designation eliminates or significantly
   reduces a measurement or recognition inconsistency (so-called ‘accounting
   mismatch’) that would arise from measuring assets or liabilities or recognizing the
   gains and losses on them on different bases. The Company has not designated any
   debt instruments as at FVTPL.
   Financial assets at FVTPL are measured at fair value at the end of each reporting
   period, with any fair value gains or losses recognized in profit or loss to the extent
   they are not part of a designated hedging relationship).
   Foreign Exchange Gains and Losses
   The carrying amount of financial assets that are denominated in a foreign currency
   is determined in that foreign currency and translated at the spot rate at the end of
   each reporting period. Specifically.
   ▪ for financial assets measured at amortized cost that are not part of a designated
   hedging relationship, exchange differences are recognized in profit or loss in
   the ‘other gains and losses’ line item;
   ▪ for debt instruments measured at FVTOCI that are not part of a designated
   hedging relationship, exchange differences on the amortized cost of the debt
   instrument are recognized in profit or loss in the ‘other gains and losses. Other
   exchange differences are recognized in other comprehensive income in the
   investments revaluation reserve;
   ▪ for financial assets measured at FVTPL that are not part of a designated
   hedging relationship, exchange differences are recognized in profit or loss in
   the ‘other gains and losses; and
   ▪ for equity instruments measured at FVTOCI, exchange differences are
   recognized in other comprehensive income in the investment revaluation
   reserve.
   Impairment of Financial Assets
   The Company recognizes a loss allowance for expected credit losses on investments
   in debt instruments that are measured at amortized cost or at FVTOCI, lease
   receivables, trade receivables, and contract assets, as well as on financial guarantee
   contracts. The amount of expected credit losses is updated at each reporting date to
   reflect changes in credit risk since the initial recognition of the respective financial
   instrument.
   The Company always recognizes lifetime ECL for trade receivables, contract assets,
   and lease receivables. The expected credit losses on these financial assets are
   estimated using a provision matrix based on the Company’s historical credit loss
   experience, adjusted for factors that are specific to the debtors, general economic
   conditions, and an assessment of both the current as well as the forecast direction of
   conditions at the reporting date, including time value of money where appropriate.
   For all other financial instruments, the Company recognizes lifetime ECL when
   there has been a significant increase in credit risk since initial recognition. However,
   if the credit risk on the financial instrument has not increased significantly since
   initial recognition, the Company measures the loss allowance for that financial
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
   33 | P a g e
   instrument at an amount equal to 12-month ECL.
   Lifetime ECL represents the expected credit losses that will result from all possible
   default events over the expected life of a financial instrument. In contrast, 12-month
   ECL represents the portion of lifetime ECL that is expected to result from default
   events on a financial instrument that are possible within 12 months after the
   reporting date.
   i) Significant Increase in Credit Risk
   In assessing whether the credit risk on a financial instrument has increased
   significantly since initial recognition, the Company compares the risk of a default
   occurring on the financial instrument at the reporting date with the risk of a default
   occurring on the financial instrument at the date of initial recognition. In making this
   assessment, the Company considers both quantitative and qualitative information
   that is reasonable and supportable, including historical experience and forwardlooking information that is available without undue cost or effort. Forward- looking
   information considered includes the future prospects of the industries in which the
   Company’s debtors operate, obtained from economic expert reports, financial
   analysts, governmental bodies, relevant think-tanks, and other similar organisations,
   as well as consideration of various external sources of actual and forecast economic
   information that relates to the Company’s core operations.
   In particular, the following information is taken into account when assessing
   whether credit risk has increased significantly since initial recognition:

• an actual or expected significant deterioration in the financial instrument’s
  external (if available) or internal credit rating;
• significant deterioration in external market indicators of credit risk for a
  particular financial instrument, e.g. a significant increase in the credit spread,
  the credit default swap prices for the debtor, or the length of time or the extent
  to which the fair value of a financial asset has been lessthan its amortized cost;
• existing or forecast adverse changes in business, financial or economic
  conditions that are expected to cause a significant decrease in the debtor’s
  ability to meet its debt obligations;
• an actual or expected significant deterioration in the operating results of the
  debtor;
• significant increases in credit risk on other financial instruments of the same
  debtor;
• an actual or expected significant adverse change in the regulatory, economic,
  or technological environment of the debtor that results in a significant decrease
  in the debtor’s ability to meet its debt obligations.
  Irrespective of the outcome of the above assessment, the Company presumes that
  the credit risk on a financial asset has increased significantly since initial recognition
  when contractual payments are more than 30 days past due unless the Company has
  reasonable and supportable information that demonstrates otherwise.
  Despite the foregoing, the Company assumes that the credit risk on a financial
  instrument has not increased significantly since initial recognition if the financial
  instrument is determined to have low credit risk at the reporting date. A financial
  instrument is determined to have low credit risk if:
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  34 | P a g e
  The financial instrument has a low risk of default,
  The debtor has a strong capacity to meet its contractual cash flow obligations in the near
  term, and Adverse changes in economic and business conditions in the longer term may, but
  will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow
  obligations.
  The Company considers a financial asset to have low credit risk when the asset has an
  external credit rating of ‘investment grade’ in accordance with the globally understood
  definition or if an external rating is not available, the asset has an internal rating of
  ‘performing’. Performing means that the counterparty has a strong financial position and
  there are no past due amounts.
  For financial guarantee contracts, the date that the Company becomes a party to the
  irrevocable commitment is considered to be the date of initial recognition for the purposes
  of assessing the financial instrument for impairment. In assessing whether there has been a
  significant increase in the credit risk since the initial recognition of a financial guarantee
  contract, the Company considers the changes in the risk that the specified debtor will default
  on the contract.
  The Company regularly monitors the effectiveness of the criteria used to identify whether
  there has been a significant increase in credit risk and revises them as appropriate to ensure
  that the criteria are capable of identifying a significant increase in credit risk before the
  amount becomes past due.
  ii) Definition of Default
  The Company considers the following as constituting an event of default for internal
  credit risk management purposes as historical experience indicates that financial
  assets that meet either of the following criteria are generally not recoverable:
  when there is a breach of financial covenants by the debtor; or
  information developed internally or obtained from external sources indicates that the
  debtor is unlikely to pay its creditors, including the Company, in full (without taking
  into account any collateral held by the Company).
  Irrespective of the above analysis, the Company considers that default has occurred
  when a financial asset is more than 90 days past due unless the Company has
  reasonable and supportable information to demonstrate that a more lagging default
  criterion is more appropriate.
  iii) Credit-Impaired Financial Assets
  A financial asset is credit-impaired when one or more events that have a detrimental
  impact on the estimated future cash flows of that financial asset have occurred.
  Evidence that a financial asset is credit-impaired includes observable data about the
  following events:
  the significant financial difficulty of the issuer or the borrower;
  a breach of contracts, such as a default or past due event (see (ii) above);
  the lender(s) of the borrower, for economic or contractual reasons relating to the
  borrower’s financial difficulty, having granted to the borrower a concession(s) that
  the lender(s) would not otherwise consider;
  it is becoming probable that the borrower will enter bankruptcy or other financial
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  35 | P a g e
  reorganization; or the disappearance of an active market for that financial asset
  because of financial difficulties.
  iv) Write-off policy
  The Company writes off a financial asset when there is information indicating that
  the debtor is in severe financial difficulty and there is no realistic prospect of
  recovery, e.g. when the debtor has been placed under liquidation or has entered into
  bankruptcy proceedings, or in the case of trade receivables when the amounts are
  over two years past due, whichever occurs sooner. Financial assets written off may
  still be subject to enforcement activities under the Company’s recovery procedures,
  taking into account legal advice where appropriate. Any recoveries made are
  recognized in profit or loss.
  v) Measurement and Recognition of Expected Credit Losses
  The measurement of expected credit losses is a function of the probability of default,
  loss given default (i.e. the magnitude of the loss if there is a default), and the
  exposure at default. The assessment of the probability of default and loss given
  default is based on historical data adjusted by forward-looking information as
  described above.
  As for the exposure at default, for financial assets, this is represented by the assets’
  gross carrying amount at the reporting date; for financial guarantee contracts, the
  exposure includes the amount drawn down as at the reporting date, together with any
  additional amounts expected to be drawn down in the future by default date
  determined based on historical trend, the Company’s understanding of the specific
  future financing needs of the debtors, and other relevant forward- looking
  information.
  For financial assets, the expected credit loss is estimated as the difference between
  all contractual cash flows that are due to the Company in accordance with the
  contract and all the cash flows that the Company expects to receive, discounted at
  the original effective interest rate. For a lease receivable, the cash flows used for
  determining the expected credit losses are consistent with the cash flows used in
  measuring the lease receivable in accordance with IAS 17 Leases.
  For a financial guarantee contract, as the Company is required to make payments
  only in the event of a default by the debtor in accordance with the terms of the
  instrument that is guaranteed, the expected loss allowance is the expected payments
  to reimburse the holder for a credit loss that it incurs less any amounts that the
  Company expects to receive from the holder, the debtor or any other party.
  If the Company has measured the loss allowance for a financial instrument at an
  amount equal to lifetime ECL in the previous reporting period but determines at the
  current reporting date that the conditions for lifetime ECL are no longer met, the
  Company measures the loss allowance at an amount equal to 12-month ECL at the
  current reporting date, except for assets for which simplified approach was used.
  The Company recognizes an impairment gain or loss in the statement of profit or
  loss for all financial instruments with a corresponding adjustment to their carrying
  amount through a loss allowance account, except for investments in debt instruments
  that are measured at FVTOCI, for which the loss allowance is recognized in other
  comprehensive income and accumulated in the investment
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  36 | P a g e
  revaluation reserve, and does not reduce the carrying amount of the financial asset
  in the statement of financial position.
  Derecognition of Financial Assets
  The Company derecognizes a financial asset only when the contractual rights to the
  cash flows from the asset expire, or when it transfers the financial asset and
  substantially all the risks and rewards of ownership of the asset to another entity.
  If the Company neither transfers nor retains substantially all the risks and rewards
  of ownership and continues to control the transferred asset, the Company recognizes
  its retained interest in the asset and an associated liability for amounts it may have
  to pay. If the Company retains substantially all the risks and rewards of ownership
  of a transferred financial asset, the Company continues to recognise the financial
  asset and also recognizes a collateralised borrowing for the proceeds received.
  On derecognition of a financial asset measured at amortized cost, the difference
  between the asset’s carrying amount and the sum of the consideration received and
  receivable is recognized in profit or loss. Also, on derecognition of an investment in
  a debt instrument classified as at FVTOCI, the cumulative gain or loss previously
  accumulated in the investments revaluation reserve is reclassified to profit or loss.
  In contrast, on derecognition of an investment in equity instrument which the
  Company has elected on initial recognition to measure at FVTOCI, the cumulative
  gain or loss previously accumulated in the investments revaluation reserve is not
  reclassified to profit or loss but is transferred to retained earnings.
  Financial Liabilities and Equity Classification as Debt or Equity
  Debt and equity instruments are classified as either financial liabilities or as equity
  in accordance with the substance of the contractual arrangements and the definitions
  of a financial liability and an equity instrument.
  Equity Instruments
  An equity instrument is any contract that evidences a residual interest in the assets
  of an entity after deducting all of its liabilities. Equity instruments issued by the
  Company are recognized at the proceeds received net of direct issue costs.
  Repurchase of the Company’s own equity instruments is recognized and deducted
  directly in equity. No gain or loss is recognized in profit or loss on the purchase,
  sale, issue, or cancellation of the Company’s equity instruments.
  Compound Instruments
  The component parts of convertible loan notes issued by the Company are classified
  separately as financial liabilities and equity in accordance with the substance of the
  contractual arrangements and the definitions of a financial liability and an equity
  instrument. A conversion option that will be settled by the exchange of a fixed
  amount of cash or another financial asset for a fixed number of the Company’s own
  equity instruments is an equity instrument.
  At the date of issue, the fair value of the liability component is estimated using the
  prevailing market interest rate for a similar non-convertible instrument. This amount
  is recorded as a liability on an amortized cost basis using the effective interest
  method until extinguished upon conversion or at the instrument’s maturity date.
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  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
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  The conversion option classified as equity is determined by deducting the amount
  of the liability component from the fair value of the compound instrument as a
  whole. This is recognized and included in equity, net of income tax effects, and is
  not subsequently remeasured.
  In addition, the conversion option classified as equity will remain in equity until the
  conversion option is exercised, in which case, the balance recognized in equity will
  be transferred to [share premium/other equity [describe]]. Where the conversion
  option remains unexercised at the maturity date of the convertible loan note, the
  balance recognized in equity will be transferred to [retained profits/other equity
  [describe]]. No gain or loss is recognized in profit or loss upon conversion or
  expiration of the conversion option.
  Transaction costs that relate to the issue of the convertible loan notes are allocated
  to the liability and equity components in proportion to the allocation of the gross
  proceeds. Transaction costs relating to the equity component are recognized directly
  in equity.
  Transaction costs relating to the liability component are included in the carrying
  amount of the liability component and are amortized over the lives of the convertible
  loan notes using the effective interest method.
  Financial Liabilities
  All financial liabilities are measured subsequently at amortized cost using the
  effective interest method or at FVTPL. However, financial liabilities that arise when
  a transfer of a financial asset does not qualify for derecognition or when the
  continuing involvement approach applies, and financial guarantee contracts issued
  by the Company, are measured in accordance with the specific accounting policies
  set out below.
  Financial Liabilities at FVTPL
  Financial liabilities are classified as at FVTPL when the financial liability is (i)
  contingent consideration of an acquirer in a business combination, (ii) held for
  trading, or (iii) it is designated as at FVTPL.
  A financial liability is classified as held for trading if:
  it has been acquired principally for the purpose of repurchasing it in the near term;
  or on initial recognition it is part of a portfolio of identified financial instruments
  that the Company manages together and has a recent actual pattern of short-term
  profit-taking; or
  it is a derivative, except for a derivative that is a financial guarantee contract or a
  designated and effective hedging instrument.
  A financial liability other than a financial liability held for trading or contingent
  consideration of an acquirer in a business combination may be designated as at
  FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or
  recognition inconsistency that would otherwise arise; or the financial liability
  forms part of a Company’s financial assets or financial liabilities or both,
  which is managed and its performance is evaluated on a fair value basis, in
  accordance with the Company’s documented risk management or investment
  strategy, and information about the Companying is provided internally on that
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  38 | P a g e
  basis; or it forms part of a contract containing one or more embedded
  derivatives, and IFRS 9 permits the entire combined contract to be designated
  as at FVTPL.
  Financial liabilities at FVTPL are measured at fair value, with any gains or losses
  arising on changes in fair value recognized in profit or loss to the extent that they
  are not part of a designated hedging relationship.
  However, for financial liabilities that are designated as at FVTPL, the amount of
  change in the fair value of the financial liability that is attributable to changes in the
  credit risk of that liability is recognized in other comprehensive income, unless the
  recognition of the effects of changes in the liability’s credit risk in other
  comprehensive income would create or enlarge an accounting mismatch in profit or
  loss. The remaining amount of change in the fair value of a liability is recognized in
  profit or loss.
  Changes in fair value attributable to a financial liability’s credit risk that is
  recognized in other comprehensive income are not subsequently reclassified to
  profit or loss; instead, they are transferred to retained earnings upon derecognition
  of the financial liability.
  Gains or losses on financial guarantee contracts issued by the Company that is
  designated by the Company as at FVTPL are recognized in profit or loss.
  Financial Liabilities Measured Subsequently at Amortized Cost
  Financial liabilities that are not (i) contingent consideration of an acquirer in a
  business combination, (ii) held-for-trading, or (iii) designated as FVTPL, are
  measured subsequently at amortized cost using the effective interest method.
  The effective interest method is a method of calculating the amortized cost of a
  financial liability and of allocating interest expense over the relevant period. The
  effective interest rate is the rate that exactly discounts estimated future cash
  payments (including all fees and points paid or received that form an integral part
  of the effective interest rate, transaction costs, and other premiums or discounts)
  through the expected life of the financial liability, or (where appropriate) a shorter
  period, to the amortized cost of financial liability.
  Financial Guarantee Contract Liabilities
  A financial guarantee contract is a contract that requires the issuer to make specified
  payments to reimburse the holder for a loss it incurs because a specified debtor fails
  to make payments when due in accordance with the terms of a debt instrument.
  Financial guarantee contract liabilities are measured initially at their fair values and,
  if not designated as at FVTPL and do not arise from a transfer of an asset, are
  measured subsequently at the higher of:
  the amount of the loss allowance determined under IFRS 9 (see financial assets
  above); and
  the amount recognized initially less, where appropriate, cumulative amortisation
  recognized in accordance with the revenue recognition policies set out above.
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  39 | P a g e
  Foreign Exchange Gains and Losses
  For financial liabilities that are denominated in a foreign currency and are measured
  at amortized cost at the end of each reporting period, the foreign exchange gains and
  losses are determined based on the amortized cost of the instruments. These foreign
  exchange gains and losses are recognized in the ‘other gains and losses, for financial
  liabilities that are not part of a designated hedging relationship. For those which are
  designated as a hedging instrument for a hedge of foreign currency risk, foreign
  exchange gains and losses are recognized in other comprehensive income and
  accumulated in a separate component of equity.
  The fair value of financial liabilities denominated in a foreign currency is
  determined in that foreign currency and translated at the spot rate at the end of the
  reporting period.
  For financial liabilities that are measured as at FVTPL, the foreign exchange
  component forms part of the fair value gains or losses and is recognized in profit or
  loss for financial liabilities that are not part of a designated hedging relationship.
  Derecognition of Financial Liabilities
  The Company derecognizes financial liabilities when, and only when, the
  Company’s obligations are discharged, cancelled, or have expired. The difference
  between the carrying amount of the financial liability derecognized and the
  consideration paid and payable is recognized in profit or loss.
  When the Company exchanges with the existing lender one debt instrument into
  another one with substantially different terms, such exchange is accounted for as an
  extinguishment of the original financial liability and the recognition of a new
  financial liability. Similarly, the Company accounts for substantial modification of
  terms of an existing liability or part of it as an extinguishment of the original
  financial liability and the recognition of a new liability. It is assumed that the terms
  are substantially different if the discounted present value of the cash flows under the
  new terms, including any fees, paid net of any fees received and discounted using
  the original effective rate is at least 10 percent different from the discounted present
  value of the remaining cash flows of the original financial liability. If the
  modification is not substantial, the difference between (1) the carrying amount of
  the liability before the modification; and (2) the present value of the cash flows after
  modification should be recognized in profit or loss as the modification gain or loss
  within other gains and losses.
  h) Inventory
  Inventories are stated at the lower of cost and net realizable value. The cost of
  finished goods and work-in-progress include raw materials, translations, printing,
  and production costs. Raw materials are valued at purchase cost on a first-in, firstout basis. Net realizable value is the estimated selling price in the ordinary course of
  business, less estimated costs of completion, and estimated costs necessary to make
  the sale. Slow-moving and obsolete inventories are written down to their net
  realizable value. Reversals of previous write-downs to net realizable value are
  recorded when there is a subsequent increase in the value of the inventory.
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  40 | P a g e
  i) Borrowing Costs
  Borrowing costs consist of interest and other costs that an entity incurs in connection
  with the borrowing of funds. Borrowing costs directly attributable to the acquisition,
  construction, or production of an asset that necessarily takes a substantial period to
  get ready for its intended use or sale are capitalized as part of the cost of the asset.
  All other borrowing costs are expensed in the period they are incurred.
  j) Foreign Currency Transactions and Translation
  Functional and presentation currency- Items included in the financial statements of
  the Company are measured using the currency of the primary economic environment
  in which the entity operates (the functional currency). The financial statements are
  presented in naira, which is the Company’s functional and presentation currency.
  Foreign currency transactions are translated into the functional currency using the
  exchange rates prevailing at the dates of the transactions.
  Foreign exchange gains and losses resulting from the settlement of such transactions
  and the translation at year-end exchange rates of monetary assets and liabilities
  denominated in foreign currencies are recognized in the statement of profit or loss
  and other comprehensive income.
  Non-monetary assets and liabilities in a foreign currency that are measured in terms
  of historical cost are translated using the exchange rate at the transaction date.
  Non-monetary assets and liabilities denominated in foreign currencies that are stated
  at fair value are translated to the functional currency at foreign exchange rates
  prevailing at the dates the fair value was determined.
  k) Revenue Recognition
  Revenue is measured based on the consideration specified in a contract with a
  customer and excludes amounts collected on behalf of third parties. The Company
  recognizes revenue when it satisfies its performance obligations and transfers
  control over services to a customer.
  Revenue is shown net of value-added tax, returns, rebates, and discounts after
  eliminating sales within the Company. The Company recognized revenue when the
  amount of revenue can be reliably measured; it is probable that future economic
  benefits will flow to the Company and when the significant risks and rewards of
  ownership of the goods and services have been transferred to the customer. The
  amount is not considered to be reliably measurable until all contingencies relating
  to the sale have been resolved. The Company bases its estimates on historical results,
  taking into consideration the type of customer, the type of transaction, and the
  specifics of each arrangement.
  The revenue is booked upon the airing of the advertisement or sponsorship
  programme and after it is confirmed by the advert traffic department. Month-end
  cut-off procedures are performed and pro-rata income is recorded. The cost incurred
  to earn revenue is measured reliably. The cost comprises salaries, depreciation,
  transportation, etc.
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  41 | P a g e
  Product Sales
  Sales relate mainly to decoders and are recognized upon delivery of products and
  customer acceptance, net of sales taxes, VAT, and discounts, and after eliminating
  sales within the Company. Sales of goods are recognized when the Company has
  delivered products to the retailer, the retailer has full discretion over the channel and
  price to sell the products, and there is no unfulfilled obligation that could affect the
  retailer’s acceptance of the products. Delivery does not occur until the products have
  been shipped to the specified location, the risks of obsolescence and loss have been
  transferred to the retailer, and either the retailer has accepted the products in
  accordance with the sales contract, or the Company has objective evidence that all
  criteria for acceptance have been satisfied.
  Sponsorship Revenues
  Sponsorship revenue is recognized at the time sponsored programs are broadcast.
  Amount paid in respect of programs not yet broadcasted is treated as a deposit by
  customers and recognized according to the stage of completion at the reporting date.
  (That is when an obligation is carried out by the company).
  However, when the outcome of the transaction cannot be estimated reliably,
  recoverable contract costs will determine the extent of revenue recognition.
  Advertising Expenses
  Advertising expenses are expensed in the financial period in which they are incurred.
  l) Programme and Film Rights
  Purchased programme and film rights are stated at acquisition costs less
  accumulated amortisation. Programme material rights, which consist of the rights to
  broadcast programmes, series, and films, are recorded at the date the rights come
  into license at the spot rates on the purchase date. The rights are amortized based on
  contracted screenings or expensed where management has confirmed that they
  intend that no further screenings will occur.
  Programme material rights contracted by the reporting date in respect of
  programmes, series, and films not yet in license are disclosed as commitments.
  Programme Production Costs
  Programme Production Costs, which consist of all costs necessary to produce and
  complete a programme to be broadcast, are recorded at the lower of direct cost and
  net realisable value. Net realisable value is set at the average cost of programme
  material rights. Where a prepayment has been made on a right, the right will be
  recorded at the spot rate on prepayment date for the portion of the right prepaid and
  the spot rate on license date for the portion of the licence not prepaid. Programme
  production costs are amortized based on contracted screenings or expensed where
  management has confirmed that they intend that no further screenings will occur.
  All programme production costs above the expected net realisable value of the
  production on completion, are expensed when contracted.
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  42 | P a g e
  Sports Event Rights
  Sports events rights are recorded at the date that the period to which the events relate
  commences, at the rate of exchange ruling at that date. These rights are expensed
  over the period to which the events relate or where management has confirmed that
  it intends that the event will not be screened.
  Payments made to negotiate and secure the broadcasting of sports events are
  expensed as incurred.
  Rights to future sports events contracted by the reporting date, but which have not
  yet commenced, are disclosed as commitments, except where payments have
  already been made, which are shown as prepaid expenses.
  m) Deferred Income (Contract Asset)
  Deferred income represents the part of the amount invoiced to customers that have
  not yet met the criteria for revenue recognition and thus still has to be earned as
  revenues through the delivery of goods and services in the future. Deferred income
  is recognized at its nominal value.
  n) Segment Reporting
  Operating segments are reported in a manner consistent with the internal reporting
  provided to the chief operating decision-maker. The chief operating decision-maker,
  who is responsible for allocating resources and assessing the performance of the
  operating segments, has been identified as the Managing Director.
  o) Employee Benefits
  Defined Contribution Scheme
  The Company operates a defined contribution-based retirement benefits scheme for
  its staff, in accordance with the Pension Reform Act of 2014; each employee
  contributes 8% while the employer contributes 10% of each of the employee’s
  relevant emoluments. Obligations for contributions to the scheme are recognized as
  an expense in the income statement in the period in which they arise.
  Defined Benefit Scheme
  A defined benefit plan is a pension plan that defines an amount of pension benefit
  that an employee will receive on retirement, usually dependent on more than one
  factor such as age, years of service, and compensation. The liability recognized in
  the Statement of Financial Position in respect of defined benefit pension plans is the
  present value of the defined benefit obligation at the date of the Statement of
  Financial Position less the fair value of plan assets.
  p) Taxes
  Tax expense comprises current and deferred tax. Tax expense is recognized in the
  Statement of Comprehensive Income unless it relates to items recognized outside
  the statement of income. Tax expense relating to items recognized outside of the
  Statement of Comprehensive Income is recognized in correlation to the underlying
  transaction in either other comprehensive income or equity.
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  43 | P a g e
  Current Income Tax
  Current income tax assets and liabilities for the current and prior periods are
  measured at the amount expected to be recovered from or paid to the taxation
  authorities. The tax rates and tax laws used to compute the amount are those that are
  enacted or substantively enacted at the reporting date.
  Deferred Tax
  Deferred tax is provided using the liability method for temporary differences
  between the tax bases of assets and liabilities and their carrying amount for financial
  reporting purposes. Deferred tax assets and liabilities are measured using
  substantively enacted tax rates and laws at the reporting date that are expected to be
  in effect when the temporary differences arise on initial recognition of assets and
  liabilities other than in a business combination.
  Deferred tax assets are recognized for all deductible temporary differences, carry
  forward of unused tax credits and unused tax losses to the extent that sufficient
  taxable profit will probably be available against which they can be utilized.
  The carrying amount of deferred tax assets is reviewed at the end of each reporting
  period 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.
  q) Provisions
  Provisions are recognized if the Company has a present legal or constructive
  obligation as a result of the past event if it is probable that an outflow of resources
  will be required to settle the obligation, and a reliable estimate can be made of the
  amount of the obligation. The amount recognized as a provision is the best estimate
  of the consideration required to settle the present obligation as of the date of the
  Statement of Financial Position, taking into account the risks and uncertainties
  surrounding the obligation.
  Provisions are discounted and measured at the present value of the expenditure
  expected to be required to settle the obligation, using a pre-tax rate that reflects the
  current market assessments of the time value of money and the risks specific to the
  obligation. The increase in the provision due to the passage of time is recognized as
  an interest expense.
  r) Share Capital and Share Premium
  Ordinary shares are recognized at par value and classified as share capital in equity.
  Any amounts received from the issue of shares in excess of the par value are
  classified as share premium in equity.
  s) Earnings Per Share
  Basic and diluted earnings per share are presented even if the amounts are negative
  (a loss per share). Diluted earnings per share also are presented even if it equals basic
  earnings per share and this may be accomplished by the presentation of basic and
  diluted earnings pershare in one line item. The calculation of basic earnings per share
  is based on the profits attributable to ordinary shareholders using the weighted
  average number of shares outstanding during the year after deduction of the average
  number of treasury shares held over the period. The calculation of diluted earnings
  per share is consistent with the calculation of basic earnings per share while giving
  effect to all dilutive potential ordinary shares that were outstanding during the
  DAAR COMMUNICATIONS PLC
  ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
  44 | P a g e
  period, that is:
• The net profit for the period attributable to ordinary shares is increased by the
  after-tax amount of dividends and interest recognized in the period in respect
  of the dilutive potential ordinary shares and adjusted for any other changes in
  income or expense that would result from the conversion of the dilutive
  potential ordinary shares.
• The weighted average number of additional ordinary shares that would have
  been outstanding assuming the conversion of all dilutive potential ordinary
  shares increases the weighted average number of ordinary shares outstanding.
  t) Investments in Subsidiaries, Joint Ventures and Associated Companies
  Investments in subsidiaries, joint ventures and associated companies are carried at
  cost, less accumulated impairment losses in the Company’s balance sheet. On
  disposal of investmentsin subsidiaries, joint ventures and associated companies, the
  difference between disposal proceeds and the carrying amounts of the investments
  are recognized in profit or loss.
  u) Contingent Liabilities
  A contingent liability is a possible obligation that arises from past events and whose
  existence will be confirmed only by the occurrence or non-occurrence of one or more
  uncertain future events not wholly within the control of the Company, or a present
  obligation that arisesfrom past events but is not recognized because it is not probable
  that an outflow of resources embodying economic benefits will be required to settle
  the obligation, or the amount of the obligation cannot be measured with sufficient
  reliability. Contingent assets and contingent liabilities are not recognized.
  Contingencies are disclosed in note 31.

1. Critical Accounting Judgments and Key Sources of Estimation Uncertainty
   In the application of the Company’s accounting policies, which are described in note 5, the
   directors are required to make judgments, estimates, and assumptions about the carrying
   amounts of assets and liabilities that are not readily apparent from other sources. The
   estimates and associated assumptions are based on historical experience and other factors
   that are considered to be relevant. Actual results may differ from these estimates.
   The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
   accounting estimates are recognized in the period in which the estimate is revised if the
   revision affects only that period or in the period of the revision and future periods if the
   revision affects both current and future periods.
   6.1 Critical Judgments in applying the Company’s Accounting Policies
   The following are the critical judgments, apart from those involving estimations (which are
   dealt with separately below), that the directors have made in the process of applying the
   Company’s accounting policies and that have the most significant effect on the amounts
   recognized in financial statements.
   DAAR COMMUNICATIONS PLC
   ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
   45 | P a g e
   Estimated useful lives of property, plant and equipment
   Management estimates the useful lives of various categories of property, plant and
   equipment according to the industrial experiences over the usage of property, plant and
   equipment and also by reference to the relevant industrial norm. If the actual useful lives of
   property, plant and equipment are less than the original estimated useful lives due to changes
   in the commercial and technological environment, such difference will impact the
   depreciation charge for the remaining period. As at 31
   December 2024, the carrying amount of property, plant and equipment of the Company
   amounted to N24.228 billion (2023: N24 billion).
   Estimated Impairment of Accounts Receivables
   The Management determined the carrying amount of accounts receivables by considering
   the credit history including default or delay in payments, settlement records, subsequent
   settlement, and aging analysis of the accounts receivables. The amount of the allowance for
   doubtful debts is measured as the difference between the asset’s carrying amount and the
   estimated future cash flows based on the above consideration. Where the actual future cash
   flows are less than expected, a material impairment loss may arise. As at 31st DECEMBER
   2023, the carrying amounts of accounts receivables was N2.75 billion, net of allowance for
   lost and doubtful debts of about N1.75 billion.
   6.2 Key Sources of Estimation Uncertainty Valuation of Financial Liabilities
   Financial liabilities have been measured at amortized cost in line with the guidance
   provisions of IFRS 9. The effective interest rate used in determining the amortized cost of
   the individual liability amounts has been estimated using the contractual cash flows on the
   loans. IFRS 9 requires the use of the expected cash flows but also allows for the use of
   contractual cash flows in instances where the expected cash flows cannot be reliably
   determined. However, the effective interest rate has been determined to be the rate that
   effectively discounts all the future contractual cash flows on the loans including processing,
   management fees, and other fees that are incidental to the different loan transactions.
   2024
   ₦’000
   2023
   ₦’000
2. Revenue
   Television 4,600,346 4,134,905
   DNS Service 261,256 –
   Radio 389,345 375,434

5,250,947

4,510.339

The Company earns a major part of its revenue from providing media services.
7.1 Segment information
7.2 Products and services from which reportable segments derive their revenues
An operating segment is a component of an entity that engages in business activities from
which it may earn revenues and incur expenses whose operating results are regularly
reviewed by the entity’s chief operating decision-maker to make decisions about resources
to be allocated and assess its performance for which discrete financial information is
available.
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
46 | P a g e
DAAR’s business structure is divided among the following segments:
i). Raypower FM
ii). AIT / Television
iii). DAAR News
Each of these businesses is managed separately by its designated Managing Director and the
team, with a different set of accounts prepared for each of these. However, Property, Plant
& Equipment (PP&E) for each of the segments are not separately identifiable.
The ‘AIT / Television’ is the predominant segment of DAAR, as the same contributes about
90% of the total revenue.
The ‘Raypower FM’ contributes about 10% of the revenue. No information is available on
PP&E separately for segments.
The Company also has operations in the United Kingdom and Sierra Leone (closed down in
2013), while having bureau offices in the United States of America and Ghana. However,
operations, except Sierra Leone, are managed under the AIT /Television segment. Based on
previous years’ information, the management believes UK operations to be very
insignificant. US and Ghana operations serve as news collection agencies and hence, are not
significant considering DAAR’s size of operations.
7.3 Segment Revenue and Result
The following is an analysis of the Company’s revenue and results by reportable segment
for the year ended 31 December 2024:
Segment
Revenue
Cost of
Sales
Cost of
Profit
N’000 N’000 N’000
Television 4,600,346 2,723,417 1,876,929
DNS Service 261,256 581,910 (320,654)
Radio 389,345 466,788 (77,443)

5,250,947

3,772,115

1,478,832
Selling and administration cost (4,335,440)
Other income 555,431
Operating loss before interest (2,301,177)
Finance cost (12,743)
Loss before tax (2,313,920)
Provision for tax –

Loss for the year (2,313,920)

DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
47 | P a g e
The following is an analysis of the Company’s revenue and results by reportable segment
for the year ended 31 December 2023:
Segment
Revenue
Cost
Sales
Segment
Profit
N’000 N’000 N’000
Television 4,134,905 2,503,181 1,631,724
Radio 375,434 372,332 3,102

4,510,339

2,875,513

1,634,826
Selling and administration cost (3,648,039)
Other income 445,308
Operating loss before interest (1,567,905)
Finance cost (10,370)
Loss before tax (1,578,275)
Provision for tax –

Loss for the year (1,578,275)

The segment revenue reported above represents revenue generated from external customers.
There were no inter-segment sales in the current year.
The accounting policies of the reportable segments are the same as the Company’s
accounting policies. Segment profit represents the profit earned by each segment without
allocation of central administration costs, investment revenue, other gains and losses,
finance costs, and income tax expense. The business segments are determined by
management based on the Company’s internal reporting structure.
7.4 Segment Assets and Liabilities
The Managing Director does not make use of information on segment assets and segment
liabilities for resource allocation and assessment of segment performance.
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
48 | P a g e
7.5 Revenues from Major Products and Services
The Company’s revenues from its major services for the year ended 31 December, 2024
were as follows:
Television Radio DNS
Services
Total
₦’000 ₦’000 ₦’000 ₦’000
Sales – agency sales 1,309,204 181,391 – 1,490,595
Sales – personal paid advert 80,322 110,005 540 190,867
Sales – outside broadcast 2,134,029 35,774 107,240 2,277,043
Sales – in house program 39,398 31,728, 6,977 78,103
Sales – program appearance 15,484 2,451 1,116 19,051
Sales – independent programme joint venture 53,322 11,402 – 64,724
Sales – independent programme sponsored 490,752 11,367 – 502,119
Sales – documentary 152,723 – – 152,723
Sales – dedicated Media coverage 206,504 93 132,280 338,877
Sales – event news coverage 97,048 1,581 7,968 106,597
Sales – scroll message 1,302 – 5135 6,437
Sales – special 14,713 3,838 – 18,551
Sales -rental 4,884 – 4,884
Sales – Int’l 672 – – 672
Total 4,600,357 389,630 261,256 5,251,243
Less sales refund (11) _ ( 285) – (296)

Total 4,600,346

389,345

261,256

5,250,947

7.6 Geographical

8. Direct cost
   2024
   ₦’000

5,250,947

2023
₦’000

4,510,399

Depreciation 820,978 690,653
Salary and wages 724,465 669,211
Diesel and oil 768,525 622,466
Programme cost 80,498 123,357
Satellite expenses 209,009 164,059
Equipment repairs 140,483 156,573
License fees 100,000 100,000
NBC annual operating levy 84,933 67,655
New services 91,178 61,201
Internet access 42,542 41,186
Website cost 37,874 33,290
Plant repairs & hire 53,615 26,392
Amortisation 819 1,764
BON expenses 1,000 1,420
Events and production 501,770 –
Outside broadcast costs 114,426 116,826

3,772,115

2,875,513

DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
2024 2023
49 | P a g e

9. Other income ₦’000 ₦’000
   Other incomes 7,568 401,264
   Profit on disposal of assets – 11,252
   Provision no longer required
   Discount received

547,863

–
32,796
555,431 445,308
====== =======

10. Selling/distribution expenses
    Sales commission 146,455 118,191
    ====== ======
    10b. Impairment allowance
    Specific bad debt written off 140,221 24,084
    Allowance for impairment of receivables 241,017 219,748
    Allowance for impairment of deferred tax assets* 969,241 _913,423

1,350,479

1,157,255

*An allowance of 20% was made on the impairment of deferred tax assets in 2024 in line
with the requirement of IAS 12 on Income Taxes.
10c. Provision
Provision for gratuity 72,000 72,000
===== =====

11. Administrative expenses
    Other admin expenses (note 11.1) 1,762,676 1,409,153
    Salaries 598,518 619,500
    Exchange loss 384,135 264,341
    Bank charges 21,177 7,599
    2,766,506 2,300,593
    ======= =======
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    2024 2023
    50 | P a g e
    11.1 Other admin expenses ₦’000 ₦’000
    Transport & travelling 142,626 192,902
    Fuel/motor running expenses 140,150 110,112
    Staff welfare 194,440 108,675
    Death benefit 15,366 88,863
    Vehicle repairs 73,800 78,949
    Board expenses 96,897 76,430
    Rent and service charge 42,110 70,094
    Consultancy 116,239 64,576
    Printing & stationaries 40,012 59,826
    Regulatory fee 22,647 58,570
    Office maintenance 59,025 50,450
    Legal fee 31,475 50,200
    Security expenses 35,648 38,720
    Building repairs 29,459 35,924
    Staff training & development 18,540 29,186
    NHIS 26,180 27,911
    Medical 26,778 20,331
    Office entertainment 24,967 20,148
    AGM expenses 34,798 16,151
    Audit fee 18,000 15,000
    Insurance 963 14,314
    Telephone 12,606 10,023
    Public relation expenses 34,257 8,883
    Industrial Training Fund 9,049 8,728
    NSITF 8,150 8,728
    Dues and subscription 14,825 7,016
    Postages 5,763 5,437
    Fines and penalty 1,700 1,700
    Furniture repairs 2,419 1,531
    Advert and publicity 5,266 1,978
    Discount allowed 83,104 1,058
    Newspapers and periodicals 12,730 1,004
    Plant and vehicle hire 810 816
    Depreciation _381,877 124,919
    1,762,676 1,409,153
    ======= =======
12. Finance cost
    Subordinated loan interest 12,743 10,370
    ===== =====
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    51 | P a g e
13. Profit before taxation
    2024
    ₦’000
    2023
    ₦’000
    The profit before taxation is stated after charging/ crediting
    Depreciation 1,202,855 815,572
    Amortisation 819 1,764
    Provision for gratuity 72,000 72,000
    Audit fee 18,000 15,000
    Impairment allowance on receivable and bad debts 381,238 219,748
    Impairment allowance on deferred tax assets 969,241 913,423
    ====== ======
    Apart from the audit service, the external auditors of DAAR Communications Plc, Baker
    Tilly Nigeria also provided financial reporting over internal control service for N3,000,000
    fee. Other than that, we did not provide any other professional service to the company.
    2024
    ₦’000
    2023
    ₦’000
14. Taxation
    14.1 Per profit or loss account
    Company income tax 26,255 45,460
    Education tax 1,540 3,788
    Current tax expense 27,795 49,248
    Deferred tax – –
    Net income tax expense as per profit or loss
    14.2 Per statement of financial position

27,795

49,248

Balance brought forward 720,630 686,213
Tax provision for the year 27,795 49,248
Adjustment of income tax prior periods – –
Tax payment during the year – (14,831)

748,425

720,630

14.3 Deferred tax assets
As at January 1 969,241 1,882,664
Reversal of temporary difference (969,241) (913,423)

Balance as at 31 December –

969,241

A provision of 20% has been made on the deferred tax assets in line with the requirement
of IAS 12 Income Taxes. We have not recognized deferred tax assets as it is.
14.4 Effective tax
Income tax relating to continuing operations:
Education tax payable 1,540 3,788
Company income tax payable 26,255 45,460
Deferred tax expenses recognized in the period – –
Total income tax expenses relating to the current 27,795 49,248
===== =====
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
52 | P a g e
2024
₦’000
2023
₦’000
Tax expense computation reconciliation
Loss for the year before tax (2,313,920) (1,578,275)
Tax charge (27,795) (49,248)

Loss after tax (2,341,715)

(1,627,523)

Expected income tax expense calculated at 30% (2020) (694,176) (473,482)
Education tax expense at 2.5% (2020:2%) of 1,540 3,788
Adjusted for:
Expenses not deductible for tax purposes (at 30%) 749,603 609,863
Tax incentive recognized (at 30%) (29,172) (90,921)
Deferred tax – –
Additional tax paid due to under-provision/minimum tax – –

Income tax expenses for the year 27,795

49,248

Effective tax rate 1%

3%

50 | P a g e
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024

15. Property, plant and equipment Capital
    Total
    Land &
    Building
    Plant &
    Equipment
    Furniture
    & fittings
    Records
    Disc
    Motor
    & vehicle
    work in
    Progress
    Cost N’000 N’000 N’000 N’000 N’000 N’000 N’000
    As at 01/01/2024 20,802,300 3,023,000 895,700 – 156,500 – 24,877,500
    Disposal – – – – – – –
    Current year addition 214,574 423,619 14,434 10,000 662,627
    Revaluation – 684,566 22,107 – – – 706,673
    As at 31/12/2024 21,016,874 4,131,185 932,241 – 166,500 26,246,800
    ======== ======= ====== ======= ======= ======== ========
    Depreciation
    As at 01/01/2024 85,286 690,653 13,510 – 26,123 – 815,572
    Disposal – – – – – – –
    Charge for current year 146,411 820,978 181,299 – 54,167 – 1,202,855
    Revaluation – – – – – – –
    As at 31/12/2024 231,697 1,511,631 194,809 – 80,290 – 2,018,427
    ======= ======= ====== ======= ======= ==== =======
    Carrying amount
    As at 31/12/2024 20,785,177 2,619,554 737,431 – 86,210 – 24,228,373
    ======== ======== ====== ==== ====== ==== ========
    As at 01/01/2023 4,382,508 25,011,189 581,330 378,313 647,269 2,124,905 33,125,513
    Disposal – – – – – – –
    Current year addition 78,675 148,595 10,184 – 56,925 – 294,380
    Revaluation 16,341,117 (22,136,784) 304,186 (378,313) (547,694) (2,124,905) (8,542,393)
    As at 31/12/203 20,802,300 3,023,000 895,700 – 156,500 – 24,877,500
    ======== ========= ====== ======= ======= ======== ========
    Depreciation
    As at 01/01/2023 2,405,865 21,914,900 451,335 378,313 624,787 – 25,775,200
    Disposal – – – – – – –
    Charge for current year 85,286 690,653 13,510 – 26,123 – 815,572
    Revaluation (2,405,865) (21,914,900) (451,335) (378,313) (624,787) – (25,775,200)
    As at 31/12/2023 85,286 690,653 13,510 – 26,123 – 815,572
    ======= ======= ====== ======= ======= ==== =======
    Carrying amount As at 31/12/2023 20,717,014 2,332,347 882,190 – 130,377 – 24,061,928
    ======== ======== ====== ==== ====== ==== ========
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    51 | P a g e
    Property, Plant and Equipment is carried at revaluation less subsequent accumulated
    depreciation and subsequent impairment losses to reflect the fair value of the assets. The
    assets were revalued by Messrs. Jide Taiwo and Company (Estate Surveyors and Valuers)
    on 20 December, 2023. The revaluation resulted to a surplus of N17.2 billion as shown
    above; in 2024, some items were discovered to have been omitted from the revaluation and
    were subsequently revalued. The cumulative revaluation surplus is N17.9 billion.
    15.1 Impairment Test
    Asset impairment refers to a sudden decline in the usability of non-current assets. The
    impairment could be triggered by such issues as asset damage, obsolescence, or legal
    restrictions on asset use.
    The regulations for the conduct of impairment tests are summarized by the International
    Accounting Standards Board especially in International Accounting Standard (IAS) 36
    Impairment of Assets. Impairment testing is carried out to bring the carrying value of an
    entity in line with its recoverable value; this is the higher of the fair value less cost to sell
    and the value in use.
    Indicators of possible impairment include an increase in the cost of borrowing and the
    carrying amount of the net assets of an entity exceeding its market capitalization. Significant
    adverse changes in the business climate may also be an indicator of impairment.
    Significant judgment is required by management in determining the impairment PPE, which
    constitutes a material portion of the Company’s assets. The result showed that the PPEs were
    not impaired. However, the Company analysed and reviewed the non-current assets for the
    year 2024 for impairment and found no indicator for impairment of non-current assets. With
    this observation, the Company believes that the level of impairment charge as applied in
    2023 is adequate as at December 31, 2024, and does not see any need for a further charge for
    the year 2024.
    15.2 Land and Buildings
    Management has elected to adopt the cost/revaluation model as its accounting policy. Land
    and Buildings are carried at cost/revaluation less any accumulated depreciation and any
    accumulated impairment loss.
    15.3 Plant and Equipment
    The cost/revaluation model was used in recognition of Plant and Machinery in line with the
    requirements of the International Financial Reporting Standards (IFRS).
    15.4 Furniture and Fittings/Motor Vehicles
    The cost/revaluation model was used in recognition of Furniture and Fittings/Motor
    Vehicles in line with the requirements of the International Financial Reporting Standards
    (IFRS).
    15.5 Lien on Property Plant and Equipment
    The Subordinated loan was secured against all existing assets of the company as at
    September 30, 2008, and future assets of the company.
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    52 | P a g e
    2024
    ₦’000
    2023
    ₦’000
16. Intangible assets
    TV & radio license and accounting software
    At 1 January 2,131,250 2,131,250
    Addition 15,960 –
    Disposals – –

As at 31 December 2,147,210

2,131,250

Accumulated amortisation 2,108,448 2,106,684
Amortisation charge for the year 819 1,764
Total accumulated amortisation 2,109,267 2,108,448

Carrying amount 31 December, 37,943

22,802

Amortization of intangible assets with finite useful lives is calculated to write off the cost
of the asset, less its estimated residual value, over its useful life as follows:
Licenses:
Computer Software:
License
20%
period
straight line

17. Investment at FVTPL
    Investment in MTS 97,000 97,000
    AIT News 241 – 400,893

97,000

497,893

National Broadcasting Commission recently flagged off the digitization regime which will
usher in a Digital Terrestrial Television (DTT) in Nigeria consequent upon a global
transition from the analogue transmission of television signals to a digital mode of
transmission. This migration will change the structure of television broadcasting
fundamentally with the separation of content carriers from signal distributors/carriers. This
means that two categories of players will now be recognized in the television industry viz.
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
53 | P a g e
content providers and signal distributors. The legal regime is that companies who were
licensed to distribute contents will not be allowed to distribute signals.
Pursuant to a new policy, all television stations in Nigeria, whether private or state-owned
shall lose rights to operate their masts, transmitters, and any other transmission equipment
and services, except by a licence from the NBC. The NBC in actualizing this mandate called
for bids from interested parties to operate the DTT.
The Nigerian Television Authority (NTA) was given an automatic license while other
operators were directed to go and apply, individually or in partnership for a Network, license
to operate DDT. Considering the enormity of issues at stake, the stakeholders under the
auspices of the Independent Broadcasters Association of Nigeria (IBAN) and Broadcasting
Organisation of Nigeria (BON), agreed to jointly apply for a licence under the name-MTS
Communications Limited (Media Transmission Service).
Based on the decision, MTS Communications Limited was duly registered.
The NBC policy is to license any two signal distribution carriers and an unlimited number
of content distributors. To this end, the NTA had an automatic award of a license while MTS
Communications Limited went through a bid process that was eventually approved. All
stakeholders as a matter of urgency must contribute their equity in terms of equipment and
financial contribution as a working and operational capital for the newly created company.
All owners of broadcasting infrastructures who do not join MTS or are unable to produce a
signal distribution licence to operate the same shall be required to sell them outright to NBC
or forfeit them, as it will amount to a crime to own any broadcasting equipment without a
licence to operate same.
The balance represents the initial investment of DAAR Communications Plc in MTS
Communications Limited.
2024 2023

18. Trade receivable ₦’000 ₦’000
    Account receivables 4,955,930 6,972,482
    Specific receivable written off (140,220) –
    4,815,710 6,972,482
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    54 | P a g e
    Less: allowance for doubtful debts (note 18.1) (2,208,428) (1,967,412)
    2,607,282 5,005,070
    ======== ========
    18.1 Movement in provision for doubtful receivables
    As at 1 January 1,967,412 1,747,663
    Movement during the year –
    Expected credit losses written off bad debts – –
    Additional provision during the year 241,016 219,749
    2,208,428 1,967,412
    ======= =======
    The Directors consider that the carrying amount of trade and other receivables is
    approximately equal to their fair value.
19. Other receivables and prepayment
    Staff loans and advances 4,310 7,075
    Prepayments 70,562 55,189
    DAAR Global Music 91,003 91,004
    Others 153,094 66,156
    318,969 219,424
    ====== ======
20. Cash and cash equivalents
    For the purpose of statement of cash flows, cash and cash equivalents include cash on hand
    and in banks, net of outstanding bank overdrafts. Cash and cash equivalent at the end of the
    reporting period as shown in the statement of cash flows can be reconciled to the related
    items in the statement of financial positions as follows:
    2024
    ₦’000
    2023
    ₦’000
    20.1 Cash and bank balances
    Cash in hand 2,707 639
    Bank balances 200,289 129,023
    202,996 129,662
    ====== ======
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    55 | P a g e
21. Share capital
    2024
    ₦’000
    2023
    ₦’000
    Issued and fully paid
    8,000,000,000 ordinary shares of N0.50each 4,000,000 4,000,000
    ======= =======

22. Share Premium 13,411,541

13,411,541

The share premium was derived following the series of movement in share capital from
2007 to 2008. Since then, there has not been any issue and allotment of new shares by the
company. The movement in share capital and premium can be summarized as follows:
At 1 January 13,411,541 7,727,784
Additions based on new share issues – 8,232,651
13,411,541 15,960,435
Share issue expenses – (2,548,894)
At 31 December 13,411,541 13,411,541
======== =======

23. Retained earnings
    As at 1 January (16,825,758) (15,198,235)
    Loss for the year (2,341,715) (1,627,523)
    (19,167,473) (16,825,758)
    ========= =========
24. Subordinated loan
    Subordinated loan 3,664,010 3,664,010
    Balance as at 1 January 362,029 275,875
    Liquidation/repayment 209,807 (227,138)
    Additions during the year (427,170) 313,292
    144,666 362,029
    ======= ======
    DAAR Investment Limited, parent company of DAAR Communications Plc, provided
    ₦4,200,000,000 (Four billion, two hundred million naira) subordinated loan facility to
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    56 | P a g e
    DAAR Communications Plc during the year 2008 at an interest rate of 5% per annum. The
    tenor of the loan is 5 years. The interest was not required to be paid until the year 2011. The
    interest rate charged by the parent company is below the interest rate prevailing in the market
    for a company of similar size & risk characteristics and for a similar amount and tenor to
    that of DAAR Communications Plc.
    The original maturity date of the loan was 31 December 2013 but on 30 September 2013,
    the maturity date of the loan with a principal balance of ₦3,220,715,000 (Three billion, two
    hundred and twenty million, seven hundred and fifteen thousand naira) was extended to
    December 31, 2015, based on the original terms and conditions. Repayment of ₦427.170M,
    (Four hundred and twenty seven million, one hundred and seventy thousand Naira) was
    made in 2024. An addition loan of ₦209.807M, (Two hundred and nine million, eight
    hundred and seven thousand Naira) was added in 2024.
    The balance of ₦144.666M (One hundred and forty four million, six hundred sixty-six
    thousand Naira) represents the unpaid portion of the loan as at December 31, 2024.
    2024
    ₦’000
    2023
    ₦’000
25. Payable
    Suppliers’ account 1,151,541 2,884,999
    ======= =======
    Trade payable comprises the amount outstanding in Suppliers’ accounts for trade purchases.
    For supplies, no interest is charged on the trade payables. The directors consider that the
    carrying amount of trade payables approximates their fair value.
26. Other payables
    Accrued salary 1,119,059 1,335,469
    PAYE 674,294 612,656
    Pension Fund 1,917,169 1,809,342
    Exited staff terminal benefit 1,116,456 774,177
    NHF 61,496 71,183
    NHIS 354,559 391,413
    ITF accrued 113,370 105,221
    NSITF accrued 107,407 100,725
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    57 | P a g e
    Audit fee 18,000 15,000
    VAT payable 1,125,190 1,385,398
    Cooperative Society 14,636 14,636
    Withholding tax payable 135,324 115,910
    NBC charges* 498,238 480,961
    Director’s fee 52,280 67,884
    DAAR Investment Holding Limited** 198,030 185,287
    Accrued staff rent (2,576) 647
    Union dues 16,487 15,209
    Director’s Loan account 222,410 –
    Deferred receipts & other commitments*** 796,396 442,118
    8,538,225 8,254,398
    ======= =======
    *NBC Charges: Section 14 paragraph 2(a) of the Nigerian Broadcasting Commission (NBC)
    Act empowers the Commission to impose a levy on the annual income of licensed
    broadcasting stations.
    Consequently, NBC imposed a levy of 2.5% of the revenue of broadcasting stations as an
    operating levy. However, with effect from January 1, 2012, the levy was reduced from 2.5
    percent to 1.5 percent. The balance on the account represents a provision for the levy.
    **DAAR Investments Holding: This represents accrued interest on Subordinated Loan. The
    balance as of December 2024 represents accrued interest less payments made to DAAR
    Investments.
    ***Deferred Receipts and Other Commitments represent those services already provided by
    the company for which payment had been received from customers not yet identified as well
    as amounts received in advance from clients for services and obligations yet to be discharged
    by the company as of December 31, 2024.
    2024 2023
    ₦’000 ₦’000
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    58 | P a g e
    26b. Staff gratuity
    Balance as at 1 January 865,375 817,037
    Payment to staff during the year (211,215) (23,662)
    Addition during the year 72,000 72,000
    Balance as at 31 December, 726,160 865,375
    ====== ======
27. Earnings Per Share
    The earnings and weighted average number of ordinary shares used in the calculation of
    Basic earnings per share are presented below.
    Net loss for the year attributable to
    equity shareholders (2,341,715) (1,627,523)
    ======== ========
    Number of ordinary shares outstanding
    during the period 8,000,000 8,000,000
    ======= =======
    Basic earnings per share (kobo) (29) (20)
    ==== ====
28. Related Party Transaction
    The Company carried out transactions with the parent company DAAR Investments
    Limited. DAAR Investments provided the Company with a loan at a rate that is below the
    market rate (See note 24). The balance on DAAR Investments’ current account with DAAR
    Communications was shown in note 26.
    28.1 Balance due to related party
    Subordinated loan
    Subordinated loan 3,664,010 3,664,010
    Balance as at 1 January, 2024 362,029 275,875
    Addition during the year 209,807 313,292
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    59 | P a g e
    Liquidation/repayment (427,170) (227,138)
    Balance AS AT 31 DECEMBER, 2024 144,666 362,029
    28.2 Remuneration of Key Management Personnel
    ======= =======
    Key management personnel are those persons having authority and responsibility for
    planning, directing and controlling the activities of the entity, directly or indirectly,
    including any director (whether executive or otherwise) of that entity (IAS 24.9). The
    remuneration of the Directors who are the key Management personnel of the Company is
    set below in the aggregate for each of the categories specified in IAS 24, Related Party
    Disclosures. Further information about the remuneration of individual directors is also
    provided.
    2024
    ₦’000
    2023
    ₦’000
    28.3 Remuneration of key management personnel
    Director emolument
    Chairman’s fee 4,500 4,500
    Non-executive directors fee 24,500 28,000
    Executive directors’ emoluments 55,719 125,570
    84,719 158,070
    ====== ======
    28.4 The number of Directors excluding the Chairman whose emoluments were within the
    following ranges:
    N 2024 2023
    Number Number
    Less than 1,000,000 – –
    1,000,001 – 5,000,000 7 –
    5,000,001 – 10,000,000 1 9
    10,000,001 – 20,000,000 5 1
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    60 | P a g e
    Above 20,00,001 – –
    13 10
    == ===
29. Employees Costs
    29.1 The related staff costs including Directors’ emoluments are as follows:
    2024
    ₦’000
    2023
    ₦’000
    Staff salaries and allowances 1,191,237 1,094,867
    Directors’ emoluments (note 28.3) 84,719 158,070
    Other staff costs (Medical, welfare,
    training & development) 212,980 157,570
    1,488,936 1,410,507
    ======= =======
    29.2. The Number of employees excluding Directors with gross emoluments within the bands
    stated below are:
    2024 2023
    N Number Number
    200,000 – 400,000 – –
    400,001 – 600,000 – 1
    600,001 – 800,000 63 22
    800,001 – 1,000,000 26 32
    1,000,001 – above 522 351
    611 434
    === ===
    29.3 Number of persons employed at the end of the were:
    Managerial 28 29
    Senior 100 102
    Junior 483 455
    611 586
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    61 | P a g e
30. Notes to the statement of cash flow
    The Cash Flow Statement has been drawn up using the indirect method. Working capital
    comprises inventories, receivables, and current liabilities. Cash flows from investing
    activities relate to the net amount of investments and disposals. The cash flows from
    financing activities relate to the net amount of payments made for financing business
    activities in the year and changes in short-term borrowings. The net cash position consists
    of cash in hand, cash at the bank, and overdraft.
31. Contingent liability
    Some service providers and individuals lodged claims separately against DAAR
    Communications Plc for breach of contractual agreements in the ordinary course of
    business. The suites were in various stages of litigation.
    The total amount of claims against the Company is estimated at ₦3.3 billion (December 31,
    2023: ₦7.2 billion).These actions are being contested and the Directors are ofthe opinion that
    none of the aforementioned cases is likely to have a material adverse effect on the Company
    and are not aware of any other pending or threatened claims and litigations.
    No provision has been made in these financial statements for these contingent liabilities in
    respect of litigations against the Company.
32. Capital risk management
    The company manages its capital by ensuring an adequate mix of debt and equity resulting
    in the maximum return on capital and going concern of the business. This is reviewed
    periodically to accommodate changes in the economic forces, the operations of the company.
    The capital structure of the company is made up of net debt (borrowings net of cash and
    bank balances) and equity (issued shares and retained earnings) as detailed below:
    2024 2023
    N’000 N’000
    Net debt (58,330) 232,367
    Equity 16,211,340 17,867,837
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    62 | P a g e
    33.1. Debt to Equity Ratio
    The company’s debt to equity ratio is reported below;
    Subordinated Loan (note 24) 144,666 362,029
    Total Debt 144,666 362,029
    ====== ======\
    2024 2023
    Cash and Cash Equivalents (note 20)
    ₦000 ₦000
    129,662
    Net Debt (58,330) 232,367
    Equity 16,211,340 17,867,837
    ======== =======
    Net Debt to Equity (0.36) % 1%
    ====== ===
    33.2 Financial Instruments
    As at 31 December 2024
    Loans and Receivables
    Total Carrying amount
    Financial Assets
    Cash and Cash Equivalents 202,996 202,996
    Trade and Other Receivables ** 2,926,251 2,926,251
    Total Financial Assets 3,129,247 3,129,247
    ======= =======
    Financial Liabilities Amortised Total carrying
    cost amount
    Borrowings (Subordinated Loan)
    ₦000
    144,666
    ₦000
    144,666
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    63 | P a g e
    Trade and Other Payables ** 5,838,032 5,838,032
    Total Financial Liabilities 5,982,698 5,982,698
    ======= =======
    **Other Receivables and Payables exclude non-contractual assets and liabilities
    33.3 Fair Valuation of Financial Instruments
    The carrying amounts of Cash and Cash Equivalents, Trade and other Receivables, Trade
    and other Payables approximate their fair values. Their carrying amounts are valued at
    amortized cost.
33. Financial Risk Management
    The company has a risk management structure that identifies and manages the impact of its
    risk exposure. The financial risks faced by the company are credit risk, liquidity risk, and
    market risk (interest rate risk and foreign currency risk).
    34.1 Credit Risk
    Credit risk is the risk of financial loss to the company if a customer or counterparty to a
    financial instrument fails to meet its contractual obligations. This arises primarily from the
    company’s receivables from clients and other related parties. However, the company
    manages its credit risks by ensuring that a large percentage of its sales are on a cash basis,
    and when credit sales transactions are carried out, the company ensures that only customers
    with a good and clean credit record are transacted with. The company’s carrying amount of
    financial assets represents the maximum credit exposure at the reporting date.
    2024 2023
    34.1.1 Maximum Exposure to Credit Risk ₦’000 ₦’000
    Cash and Cash Equivalents 202,996 129,662
    Trade and Other Receivables 2,926,251 5,224,494
    3,129,247 5,354,156
    ======== ========
    Liquidity risk is the risk that the Company will encounter difficulty in meeting the
    obligations associated with its financial liabilities. However, the Company manages its
    liquidity risks by ensuring that liabilities are within the scope of the Company’s projected
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    64 | P a g e
    cash outflows, by maintaining adequate banking and borrowing facilities.
    34.1.2 Liquidity Maturity Table
    The contractual maturities of financial liabilities, including estimated interest payments are
    as follows:
    As at 31 December 2024
    < 1 year
    <1 year
    ₦000
    1 – 3years
    1 – 3years
    ₦000
    3 – 5years
    3 – 5years
    ₦000
    Bank Loans – – –
    Borrowings (Subordinated Loan) 144,666 – –
    Trade and Other Payables 5,838,032 – –

5,982,698

–

–

As at 31 December 2023
Borrowings (Subordinated Loan) 362,029 – –
Trade and Other Payables 5,212,079 – –

5,574,108

–

–

34.3 Market Risk
Market risk is the risk that changes in market prices (foreign exchange rates, interest rates,
and equity prices) will result in a fluctuation in the value of financial instruments in terms
of fair value or future cash flows. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters while optimizing the return.
The company manages its market risks (foreign exchange rates and interest rates risks) by
frequent monitoring of the market developments, thereby controlling costs exposed to the
market risk.
34.4 Currency Risk
Since the Company operates internationally (United Kingdom), the business is exposed to
foreign currency fluctuations risk. The company undertakes transactions that are
denominated in foreign currencies particularly, the pound sterling. In respect of its monetary
assets which are denominated in foreign currencies, the company mitigates the exposure
risks by buying or selling foreign currencies at spot rates when necessary.
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
65 | P a g e
34.5 Interest Rate Risk
The company’s exposure to interest rate risk covers its fixed-rate financial liabilities (Bank
Loan and Subordinated Loan), as well as interest rate risk from Bank Overdrafts.
The carrying amount reflects the fair values of the instruments and the company’s exposure
to interest rate risk as at the reporting date.
2024
₦’000
2023
₦’000
Financial Liabilities
Borrowings (Subordinated Loan) 144,666 362,029
====== ======

35. Going Concern
    The financial state of the Company as of December 31, 2024, raises the issue of the ability
    of the company to continue in business in the nearest future. Some of the going concern
    indicators are as follow:
    The company incurred a loss of ₦2.3 billion in 2024 (2023: ₦1.578 billion million).
    As at 31 December 2024, the company’s current liabilities exceeded its current assets by ₦7
    billion.
    Accrued staff salary and exited staff Terminal benefits as at 31 December 2024 was ₦2.235
    billion.
    Accrued Statutory Charges; Pension, PAYE, VAT, etc. as at 31 December 2024 was over
    ₦4.86 billion.
    As a result, there is significant uncertainty whether the Company will continue as a going
    concern and, therefore, whether it will realize its assets and settle its liabilities and
    commitments in the normal course of business and at the amounts stated in the financial
    statements.
    36 Other Comprehensive Income
    Items that will not be reclassified to profit (loss)
    Gross Tax Net
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    66 | P a g e
    Revaluation of property, plant and equipment 706,673 – 706,673
    ====== ==== ======
36. Capital Commitments
    There are no material commitments for capital expenditure not provided for in these
    financial statements.
37. Events after Reporting Date
    No events or transactions have occurred since the balance sheet date, which would have a
    material effect upon the financial statements at that date or which need to be mentioned in
    the financial statements in order not to make them misleading as to the financial position or
    result of operations at the balance sheet date.
38. Comparative figures
    No comparative figures have been restated.
39. Approval of Financial Statements
    The Financial Statements were approved by the Board of Directors on 28 March 2025
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    67 | P a g e
    OTHER NATIONAL DISCLOSURES
    DAAR COMMUNICATIONS PLC
    ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
    68 | P a g e
    DAAR COMMUNICATIONS PLC
    STATEMENT OF VALUE ADDED
    2024
    ₦’000 %
    2023
    ₦’000 %
    Turnover 5,250,947 4,510,339
    Other Income 555,431 445,308
    5,806,378 4,955,647
    Bought in materials and services:
    Local (5,102,560) (4,037,157)
    Foreign (338,061) (258,551)

Value added 365,757

100

659,939

100

Distributed as follows:
Employees
Salaries, Pension and Welfare 1,463,260 400 1,410,507 214
Provider of Capital
Finance Cost 12,743 3 10,370
To Government 2
Taxation 27,795 8 49,248 7
Provided for Asset Replacement
Depreciation of Property Plant 1,202,855 329 815,573 124
and Equipment
Amortization, Impairments and Provisions 819 – 1,764 –
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
69 | P a g e
Loss for the year (2,341,715) (640) (1,627,523) (247)
Value added 365,757 100 659,939 100
======= === ======= ===
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024
70 | P a g e
DAAR COMMUNICATIONS PLC
FIVE YEAR FINANCIAL SUMMARY
Assets Employed
2024
₦’000
2023
₦’000
2022
₦’000
2021
₦’000
2020
₦’000
Property, plant & equipment 24,228,373 24,061,928 7,350,313 7,898,412 8,486,467
Intangible Assets 37,943 22,802 24,566 26,793 29,027
Investment 97,000 497,893 97,000 171,295 166,172
Deferred tax asset – 969,241 1,882,664 2,796,087 3,653,692
Net Liabilities (8,179,771) (7,733,275) (7,141,238) (7,911,216) (8,694,593)

Net Assets 16,183,547

17,818,589

2,213,306

2,981,371

3,640,765

Funds Employed
Share Capital 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Share Premium 13,411,541 13,411,541 13,411,541 13,411,541 13,411,541
Revaluation surplus 17,939,479 17,232,806 – – –
General Reserve (19,167,473) (16,825,758) (15,198,235) (14,430,170) (13,770,776)

Shareholders’ Fund 16,183,547

17,818,789

2,213,306

2,981,371

3,640,765

Turnover 5,250,947

4,510,339

4,787,259

4,806,011

3,553,526

Loss before tax (2,313,920) (1,578,275) (755,824) (641,942) (2,554,036)
Tax provision (27,795) (49,248) (12,241) (91,521) 207,925

Loss after tax (2,341,715)

(1,627,523)

(768,065)

(733,463)

(2,346,111)

Loss Per Share (Kobo) (29) (20) (10) (9) (29)
==== ==== ==== ==== ===
DAAR COMMUNICATIONS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2024