MOSES ANDREW MWAKIPESILE T/A MABONDE

GARAGE

PROPRIETOR’S REPORT AND

FINANCIAL STATEMENTS

31 DECEMBER 2022

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 MOSES ANDREW MWAKIPESILE T/A MABONDE
GARAGE

Opinion
In our opinion, the accompanying financial statements give a true and fair view of the
state of the proprietors affairs as at 31st December,2022 and of its profit and cash
flows for the year the ended in accordance with International Financial Reporting
Standards and have been properly prepared in accordance with the Tanzania
Companies Act 2002.

Report on the Financial Statements

We have audited the attached accounting statements Moses Andrew Mwakipesile as
at 31.12.2022. The accounting statements consist of: Balance Sheet; Profit and Loss
Statement; Cash Flow Report; Other appendices to the Balance Sheet and Profit and
Loss Statement for 2022 Explanatory Note to the Balance Sheet.

Owners’ responsibility for the financial statements

The owners are responsible for the preparation and fair presentation of these financial
statements in accordance with International Financial Reporting Standards and with
the requirements of the Tanzanian Companies Act 2002.

Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with International Standards on Auditing.

Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance whether the financial statements
are free from material misstatement.
We planned our audit work so as to obtain the information and explanations from the
management in order to enable us assess the evidence before us and be able to form
our opinion basing on the data collected by our team of Auditor during the course of
audit work, vis-à-vis the freedom of the Financial Statements from material miss-
statements whether caused by fraud or other irregularities or errors. In forming our
opinion, we also evaluated the overall accuracy of the presentation of the information
in the financial statements

BOSTON CONSULTING GROUP

CERTIFIED ACCOUNTANTS & AUDITORS
(IN PUBLIC PRACTICE)
DAR ES SALAAM

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 MOSES ANDREW MWAKIPESILE T/A MABONDE
GARAGE
STATEMENT OF PROPRIETORS’ RESPONSIBILITES FOR THE YEAR ENDED 31ST DECEMBER, 2022

The proprietors are required by the Tanzania Companies Act, 2002 to prepare financial

statements for each financial period that give a true and fair view of the state of affairs

of the proprietors as at the end of financial year and its profit or loss for the year. The

proprietors are also obliged to ensure that he/she keeps proper accounting records that

disclose, with reasonable accuracy, the financial position of the proprietor. They are

also responsible for safeguarding the assets of the proprietors.

The proprietors accept responsibility for the financial statements, which have been

prepared using appropriate accounting policies supported by reasonable and prudent

judgments and estimates, in conformity with International Financial Reporting

Standards (IFRS). The proprietors are of the opinion that the financial statements give

a true and fair view of the state of the financial affairs of the proprietor and of its

profit or loss. The proprietors further accept responsibility for the maintenance of

accounting records that may be relied upon in the preparation of financial statements,

as well as adequate systems of internal financial control.

Nothing has come to the attention of the proprietor to indicate that the proprietors will

not remain a going concern for at least twelve months from the date of this statement.

The Auditors, Boston consulting group having expressed their willingness are hereby

recommended for re-appointment at the forthcoming proprietors meeting.

BY ORDER OF THE PROPRIETOR

………………………………… ……………..
PROPRIETOR DATE

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 MOSES ANDREW MWAKIPESILE T/A MABONDE
GARAGE

STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2022

2022
ASSET NOTE TZS
Property, Plant and Equipment’s 20,357,813
Capital in progress
TOTAL NON CURRENT ASSETS 20,357,813
CURRENT ASSETS
Debtors 4 2,730,250
Cash &Cash at bank 1 2,929,499
Total Current Assets 5,659,749
TOTAL ASSETS 26,017,562
EQUIT AND LIABILITIES
Share capital 10,000,000
Accumulated profit/ (deficit) 16,017,562
Advance Capital -
Retained Earnings
TOTAL EQUITY 26,017,562
CURRENT LIABILITIES
Trade Creditors -
Tax Liability -
Total Current Liabilities -
TOTAL EQUITY AND LIABILITIES 26,017,562

………………………………… ……………..
PROPRIETOR DATE

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 MOSES ANDREW MWAKIPESILE T/A MABONDE
GARAGE
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 2022

INCOME NOTE 2022

Sales Income 5 106,857,551
Gross profit 106,857,551
LESS:ADMINISTRATIVE EXPENSES
Operation expenses 3 79,640,302

Depreciation 2 11,199,688

TOTAL ADMINISTRATIVE EXPENSES 90,839,990

NET PROFIT /(LOSS) BEFORE TAXATION 16,017,562
Income Tax 4,805,268
NET PROFIT /(LOSS) AFTER TAXATION 11,212,293

………………………………… ……………..

PROPRIETOR DATE

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 MOSES ANDREW MWAKIPESILE T/A MABONDE
GARAGE
1. GENERAL INFORMATION

The business is incorporated as a proprietor in Tanzania and is domiciled in Tanzania. The address of its
registered office is:
Moses Andrew Mwakipesile
Dar es Salaam

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all periods presented, unless otherwise stated.

a) Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS) as issued by IASB and amended from time to time.

The financial statements have been prepared under the historical cost convention, except where otherwise stated in
the accounting policies below. The financial statements are presented in Tanzanian Shillings, except where
otherwise indicated. The following accounting policies had been applied.

I. IAS 18: Revenue Recognition

11. IAS 16: PPE- Depreciation Policy
III. IAS 36: Impairment of assets
iv. IAS 37: Provision – Bad debts

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the Company’s
accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in Note 4.

b) Revenue

Revenue is recognized from the business of provision of Contractor

c) Premises and Equipment

Premises and equipment are stated at historical costs less depreciation. Depreciation is provided on the straight line
basis so as to write down the cost of assets to their residual values over their useful economic lives at the following
rates:

Motor Vehicles 25%

Furniture, fittings and equipment 12.5%

Computers 37.5%

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GARAGE
The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at each balance sheet date. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater that its estimated recoverable amount. The recoverable amount is the higher of the assets fair value less
costs to sell and value in use. Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in other operating expenses in the profit and loss account.

d) Cash and Cash equivalent

NOTE 1 NOTES OF ACCOUNTS 2022

CASH AND BANK TZS
Cash & cash equivalent 2,929,499
Total 2,929,499

NOTE 3 OPERATING EXPENSES

Transport 2,796,000
Wages 15,758,542
House rent 8,230,000
purchases of materials 41,931,900
security charges 2,400,000
Audit fee 500,000
Business Licence 174,300
Electricity Expenses 328,000
Consultation fee 250,000
breakdown 2,200,000
Water &sanitation 254,800
Cleaning charges 840,000
Financial charges 1,042,360
Office repair 2,500,000
staff walfare 253,000
stationary 181,400
Total 79,640,302

NOTE 4 Trade debtors

Debtors 2,730,250
Total Trade debtors 2,730,250

NOTE 5 INCOME
Revenue 106,857,551
less VAT -
Total income 106,857,551

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GARAGE
MOVEMENT OF FIXED ASSETS AS AT 31 DECEMBER 2022

COSTS ADDITION DEPRECIATION NET BOOK VALUE

CHARGE
AS AT DURING AS AT TOTAL AS AT
ACCUMULATED FOR THE
1.1.2022 THE YEAR 1.12.2022 TSHS 31.12.2022
YEAR
TYPES OF ASSETS TSHS. TSHS. TSHS TSHS. TSHS.
mechanical
machine 18,780,000 - 18,780,000 7,042,500 7,042,500 11,737,500
Electronic &
Electrical machine 10,240,000 10,240,000 3,840,000 3,840,000 6,400,000
Furniture and
Fittings 2,537,500 - 2,537,500 317,188 317,188 2,220,313
TOTAL
31,557,500 - 31,557,500 - 11,199,688 11,199,688 20,357,813

STATEMENT OF CASHFLOW
FOR THE YEAR ENDED 31ST DECEMBER 2022
31.12.2022
TZS
Cash flow from operating activities
Net profit before taxation 16,017,562
Adjustment for non-cash item
Depreciation 11,199,688
Operation profit/(loss) before w/capital changes 27,217,249
WORKING CAPITAL CHANGES
Increase/ (decrease) in Debtors & Prepayment 2,730,250
Increase/ (decrease) in Creditors & accruals
Tax paid
Net Inflow From operating Activities 29,947,499
CASH FLOW FROM INVESTING ACTIVITIES
Borrowings (28,000,000)
Acquisition of fixed asset/Property -
CASH FLOW FROM FINANCING ACTIVITIES
Net increase in cash and cash equivalents 1,947,499
Cash and cash equivalent January 982,000
Cash and cash equivalent December 2,929,499

STATEMENT OF CHANGE IN EQUITY

FOR THE YEAR ENDED 31ST DECEMBER 2022
TOTAL
CAPITAL RETAIN EARNINGS EQUITY
TZS TZS TZS

BALANCE 1 .1 .2022 10,000,000 10,000,000

PROFIT FOR THE YEAR - 16,017,562 16,017,562

BALANCE AS AT 31.12.2022 10,000,000 16,017,562 26,017,562

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 MOSES ANDREW MWAKIPESILE T/A MABONDE
GARAGE

PREPARED BY

BOSTON CONSULTING GROUP

P.O.BOX 14162 DAR ES SALAAM- TANZANIA

Mobile: 0742222600/0658318484

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