Page 91 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Notes to the Financial Statements

For the Year Ended 31 March, 2021 cont’d

20. Operating Expenses by Nature

The total of selling and distribution expenses, and administrative expenses, are analysed by nature as follows:

2021 2020
N'000 N'000
Directors' fees and other emolument 55,349 53,186
Employees cost 1,857,393 1,687,240
Delivery expenses 2,628,553 1,954,878
Insurance 94,052 94,147
Audit fees 20,000 20,000
Consulting and other professionals fee 141,676 244,374
Subscriptions 119,241 127,355
Travelling and accommodation expenses 373,991 377,054
Entertainment 111,238 103,420
Lease expenses 81,613 68,365
Bank charges 141,329 87,590
Uniform expenses 132,888 116,646
Drivers' expenses 52,543 48,676
Motor vehicle maintenance and running expenses 87,495 94,677
Depreciation and amortization 385,407 377,039
Other expenses 1,833,169 3,025,769
8,115,937 8,480,416

Selling and distribution expenses 5,543,372 6,035,317
Administrative expenses 2,572,565 2,445,099
8,115,937 8,480,416

21. Finance cost

Interest on borrowings and overdraft 6,069,303 4,227,396

22. Police Trust Fund Levy

Profit for the year after taxation before levy 1,125,920 650,525

0.005% thereof 56 33

The Police Trust Fund Development levy represents the contribution of the company to the development of the Police Force. This is
in compliance with the Nigeria Police Trust Fund Act passed by National Assembly in April 2019 and signed into law by the President
on 24 June, 2019. The levy represents 0.005% of the net profit after company income tax of the companies operating business in
Nigeria.

92 HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 World of Possibilities