Your

ref
Phyto-Riker
(GIHOC)
Pharmaceuticals Limited
Mile 7, Off Nsawam Road,
P. O. Box AN 5266,
Dome, Accra, Ghana
+233 (0) 302 400984/ 400482 Fax:
400998
Tel:

Web:

+233 (0)302

www.phyto-riker.com.gh Email: info@phyto-riker.com.gh

John Kay and Co.

7th Floor, Trust Towers
Adabraka
P O Box 16088
Accra
5 May 2014
Dear Sirs
Representation Letter
We are providing this letter in connection with your audit of the financial statements of Phyto-Ricker
(GIHOC) Pharmaceuticals Ltd for the year ended 31 December 2013, for the purpose of expressing an
opinion as to whether the financial statements fairly present, in all material respects, the financial position
of Phyto-Ricker (GIHOC) Pharmaceuticals Ltd and its financial performance and cash flows in accordance
with Ghana National Accounting Standards and in the manner required by the Companies Code, 1963 (Act
179).
Certain representations in this letter are described as being limited to matters that are material. We
understand items are considered material if they involve an omission or misstatement of accounting
information that could influence the economic decisions of users taken on the basis of the financial
statements. Materiality depends on the size and nature of the item or error judged in the particular
circumstances of its omission or misstatement.

Notes (continued)
We have made appropriate enquiries of the directors and management of Phyto-Ricker (GIHOC)
Pharmaceuticals Ltd with the relevant knowledge and experience. Accordingly, we confirm, to the best of our
knowledge and belief, the following representations:
Financial Statements
The financial statements present fairly the financial position, and its financial performance and cash flow
information in accordance with Ghana National Accounting Standards and in the manner required by the
Companies Code, 1963 (Act 179). The financial statements have been prepared on bases consistent with
those of the prior year, except where separately disclosed in the financial statements.
We acknowledge our responsibility for the preparation and fair presentation of the financial statements in
accordance with Ghana National Accounting Standards and in the manner required by the Companies Code,
1963 (Act 179) and we approve the financial statements. This responsibility includes; designing,
implementing and maintenance of internal controls relevant to the preparation of financial statements that are
free from material misstatements, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the circumstances.

Disclosure of information
We have made available to you:

All financial records and supporting documentation; and

All minutes of the meetings of shareholders, management, directors and committees of directors.

Fraud
We understand that the term fraud includes misstatements resulting from fraudulent financial reporting
and misstatements resulting from misappropriation of assets. Misstatements resulting from fraudulent
financial reporting involve intentional misstatements or omissions of amounts or disclosures in financial
statements to deceive financial statement users. Misstatements resulting from misappropriation of assets
involve the theft of an entitys assets, often accompanied by false or misleading records or documents in
order to conceal the fact that the assets are missing or have been pledged without proper authorisation.
We acknowledge responsibility for the design and implementation and operation of accounting and
internal control systems to prevent and detect fraud and error.
We have disclosed to you our knowledge of fraud or suspected fraud affecting the Ghana National
Accounting Standards involving:

management
employees who have significant roles in internal control; or
others where the fraud could have a material effect on the financial statements

We have disclosed to you our knowledge of any allegations of fraud, or suspected fraud, affecting the
companys financial statements communicated by employees, former employees, analysts, regulators or
others.
We have disclosed to you the results of our assessment of the risks that the financial statements may be
materially misstated as a result of fraud.
Uncorrected audit differences

Notes (continued)
We believe the effects of uncorrected financial statement misstatements, are immaterial, both individually
and in aggregate, to the financial statements taken as a whole.
Compliance with laws and regulations
There has been no known actual or possible non-compliance with laws and regulations that could have a
material effect on the financial statements in the event of non-compliance.
Related party transactions
We confirm the completeness of information provided to you regarding the identification of related parties
and regarding transactions with such parties that are material to the financial statements. The identity of,
and balances and transactions with, related parties have been properly recorded and when appropriate,
adequately disclosed in the financial statements. Related party transactions are transfers of resources or
obligations between related parties, regardless of whether a price is charged. Transactions or agreements
with related parties such as subsidiaries, associates, principal shareholders, directors or management were
conducted on terms equivalent to those that prevail in arms length transactions.
Going concern
The financial statements disclose all of the matters of which we are aware that are relevant to the
companys ability to continue as a going concern, including significant conditions and events that may
cast doubt upon this ability, as well as our plans regarding the future of the Company.
The company has neither the intention nor the need to liquidate or curtail materially the scale of its
operations and has no plans or intentions that may materially alter the carrying value or classification of
assets and liabilities reflected in the financial statements.
Litigation and claims
The estimated financial effect of pending or threatened litigation and claims against the company has been
accurately recorded or disclosed in the financial statements. Except as disclosed, we are not aware of any
additional claims that have been or are expected to be received.
General
We believe that the carrying amounts of all material assets will be recoverable and that there have
been no:

accounts, transactions or material agreements not fairly described and properly recorded in the
financial and accounting records underlying the financial statements

communications from regulatory agencies concerning non-compliance with, or deficiencies in,

financial reporting practices

material transactions that have not been properly recorded in the accounting records underlying
the financial statements

formal or informal compensating balance arrangements with any of our cash and investments
accounts

significant matters that have arisen that would require a restatement of the corresponding
figures

Notes (continued)
Accounting policies and estimation techniques
We confirm that we have reviewed the companys accounting policies and estimation techniques and,
having regard to the possible alternative policies and techniques, the accounting policies and estimation
techniques selected for use in the preparation of the financial statements are the most appropriate to give a
fair presentation in the Companys particular circumstances.
Liabilities
We have recorded or disclosed, as appropriate, all liabilities, both actual and contingent and have
recognised or disclosed as appropriate in notes to the financial statements, all guarantees that we have
given to third parties.
Provisions
Provision, when material, has been made for losses to be sustained in the fulfilment of the companys
business.
Contingent Liabilities
Except as disclosed in the financial statements or notes to the financial statements, there are no:

other gain or loss contingencies or other liabilities that are required to be recognised or disclosed in
the financial statements, including liabilities or contingencies arising from environmental matters or
possible violation of human rights legislation
other environmental matters that may have a material impact on the financial statements

Non-current Assets
We have no non-current assets that are required to be classified as held for sale.
Current Assets
Current assets have a value, on realisation in the normal course of business or an expected cost benefit,
at least equal to the amounts at which they are stated in the balance sheet.
Loans and advances reported in the financial statements represent valid claims against the company for
facilities obtained or other charges arising on or before the balance sheet date and appropriate provisions
have been made for any losses that may be sustained.
The financial statements include all cash and bank accounts of the company.

Notes (continued)
Property and equipment and intangible assets
The carrying values at which the property, plant and equipment are stated in the balance sheet were
arrived at after:

taking into account, as additions, all expenditure (excluding expenditure of a revenue nature)
during the year, which represented capital outlay on these assets

writing off all amounts relating to items which have been sold and scrapped by the balance sheet
date

providing for depreciation/ amortisation on a scale sufficient to cover obsolescence as well as

wear and tear and thus to reduce the net book values of the assets to their estimated residual
values over the economically useful lives thereof.
Financial Instruments
Financial assets and financial liabilities were offset and the net amount reported in the balance sheet
only where the Company:
*0
*1

has a legal enforceable right to offset the recognised amounts; and

the Company intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.

Employee Benefits
The Company has complied with all its obligations in terms of the rules of the pension fund and/or
provident fund, and these together with all other employee benefits have been disclosed.
Income Tax
The deferred tax valuation has been determined pursuant to the provisions of the Ghana National
Accounting Standards, including the Companys estimation of future taxable income, where necessary,
and is adequate to reduce the total deferred tax asset to an amount that will more likely than not be
realised.
The deferred tax valuation has been recognised for all deductible temporary differences to the extent that
it is probable that taxable profit will be available against which the deductible temporary difference can
be utilised, except where the deferred tax asset arises from:
*0 negative goodwill, and

Information reg
policies has been

Notes (continued)
Reporting currencies
We have considered which currency reflects the economic substance of the underlying events and
circumstances relevant to the Company (the functional currency). We have concluded that the
functional currency of the company is the US Dollars.
Contractual agreements
The company has complied with all aspects of contractual agreements that could have a material effect
on the financial statements in the event of non-compliance. All contractual arrangements entered into by
the company have been properly reflected in the accounting records and where material or potentially
material to the financial statements, have been disclosed.
Encumbrances
The Company has satisfactory title to all owned assets, and there are no liens or encumbrances on such
assets.
Commitments
At the balance sheet date, there were no material commitments under contracts concluded for capital
expenditure, forward contracts of purchase and sale of foreign exchange or amounts of capital
expenditure authorised by the board of directors which had not been contracted for, other than those
provided for or disclosed in the financial statements.
Financial statement disclosure
The following have been properly recorded and when appropriate, adequately disclosed in the financial
statements:
*1

assets pledged as collateral

*2
*3

off balance sheet activities, including transactions with special purpose entities, non
consolidation and revenue recognition
significant common ownership or management control relationships

*4

changes in accounting principles affecting consistency

Subsequent events
There have been no events that have occurred subsequent to the balance sheet date which require
adjustment of, or disclosure in the financial statements or note.
Yours faithfully

Notes (continued)