ABAY DESALE TESEMA

BALANCE SHEET
AT 30 MEGABIT 2016 E. C. (8 APRIL 2024)

30.10.15
(07.07.23)
Note Birr Birr Birr

ASSETS EMPLOYED

FIXED ASSETS 1a, 2 1,036,198 1,301,000

INVESTMENT - -
GOVERNMENT SAVING BONDS - -

1,036,198 1,301,000
CURRENT ASSETS
Stocks 1a, 3 1,329,907 6,936,884
Accounts receivable 4 443,865 4,641,202
Cash on hand and at bank 653,390 1,995,001

2,427,162 13,573,087
CURRENT LIABILITIES
Accounts payable 5 195,437 1,996,676
Provision for profit tax 841,933 878,024

1,037,370 2,874,700

NET CURRENT ASSETS 1,389,792 10,698,387

SHAREHOLDERS ACCOUNT - -

2,425,990 11,999,387

REPRESENTED BY:

CAPITAL 100,000 100,000

LEGAL RESERVE - -

CUSTOMS VALUATION RESERVE - -

PROFIT AND LOSS ACCOUNT 2,325,990 11,899,387

2,425,990 11,999,387
ABAY DESALE TESEMA
PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)

30.10.15
(07.07.23)
Note Birr Birr Birr
SALES 24,557,525 42,340,560
COST OF SALES 6 19,891,595 33,872,448
GROSS PROFIT 4,665,930 8,468,112
OTHER INCOME 7 - -
4,665,930 8,468,112
GENERAL AND ADMINISTRATION EXPENSES
Salaries, wages and allowances 894,102 725,000
Pension 196,702 159,500
Communications 65,990 55,700
Utility 116,490 150,000
Printing and stationery 26,994 66,500
Fuel 78,044 56,900
Rent 336,000 396,000
License, municipality and other taxes 1,200 1,200
Insurance - -
Repair and maintenance 24,328 60,200
Depreciation 264,801 582,765
Service charge - -
Travel and transport 19,044 35,449
Miscellaneous - -
Other
2,023,696 2,289,214
NET PROFIT 2,642,234 6,178,898
PROVISION FOR PROFIT TAX 8 906,782 2,144,614

1,735,452 4,034,284
TRANSFER TO LEGAL RESERVE - -

1,735,452 4,034,284
BALANCE BROUGHT FORWARD 11,899,387 8,744,870
Owners Account (11,308,849) (879,767)
Retained earnings transferred to capital - -
Additional tax, penalty and interest on assessment - -
590,538 7,865,103

BALANCE CARRIED FORWARD 2,325,990 11,899,387

ABAY DESALE TESEMA
STATEMENT OF CHANGE IN EQUITY
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)

LEGAL RETAINED
CAPITAL TOTAL
RESERVE EARNINGS
Birr Birr Birr Birr

Balance at 1 Hamle 2013 E. C. 100,000 - 7,075,242 7,175,242

Change during the year:

Owner’s to
Transfer withdrawal
capital - (980,611) (980,611)
Additional tax, penalty and interest on assessment
- - - -
Current year transfer - - 2,650,238 2,650,238

Balance at 30 Sene 2014 E. C. 100,000 - 8,744,870 8,844,870

Balance at 1 Hamle 2014 E. C. 100,000 - 8,744,870 8,844,870

Change during the year:

Owner’s to
Transfer withdrawal
capital - (879,767) (879,767)
Additional tax, penalty and interest on assessment
- - - -
Current year transfer - - 4,034,284 4,034,284

Balance at 30 Sene 2015 E. C. 100,000 - 11,899,387 11,999,387

Balance at 1 Hamle 2015 E. C. 100,000 - 11,899,387 11,999,387

Change during the year:

Owner’s to
Transfer withdrawal
capital - (11,308,849) (11,308,849)
Additional tax, penalty and interest on assessment
- - - -
Current year transfer - - 1,735,452 1,735,452

Balance at 30 Megabit 2016 E.C. 100,000 - 2,325,990 2,425,990

ABAY DESALE TESEMA
CASH FLOW STATEMENT
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)

30.10.15
(07.07.23)
NOTES Birr Birr Birr

NET CASH INFLOW / (OUTFLOW) FROM

OPERATING ACTIVITIES 9 (398,738) 1,645,295

RETURNS ON INVESTMENTS AND

SERVICING OF FINANCE
Interest paid - -
Interest received - -
Dividend received - -

- -

TAXATION
Profit tax paid (942,873) (1,743,246)
Additional tax, penalty and interest on assessment - -

(942,873) (1,743,246)

(1,341,611) (97,951)

INVESTING ACTIVITIES
Purchase of fixed assets - -

NET CASH INFLOW / (OUTFLOW) BEFORE

FINANCING (1,341,611) (97,951)

FINANCING - -

(1,341,611) (97,951)

INCREASE / (DECREASE) IN CASH 10 (1,341,611) (97,951)

ABAY DESALE TESEMA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)

ABAY DESALE TESEMA established in Ethiopia. The address of its registered office and
Principal place of business is Lemi kur Addis Ababa Region and Company TIN is 0065355278 .
The Company is established to engage in Wolesales and retail trade ,repair hotels and restaurant .

1. ACCOUNTING POLICIES

The principal accounting policies adopted by the Company, which are consistent with those
applied in the preceding years are stated below:

(a) Fixed assets

Fixed assets are stated at cost less accumulated depreciation. Depreciation is charged
as a percentage of net book value at the following rates per annum.

Store 5
Motor vehicles 20
Office furniture and equipment 20
Computers and accessories 25

(b) Stocks

Stocks are valued at moving average cost.

ABAY DESALE TESEMA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)
2. FIXED ASSETS

Balance at Balance at
01.11.15 30.07.16
(08.07.23) Additions (08.04.24)
Birr Birr Birr

COST

Store - - -
Office furniture 2,146,362 - 2,146,362
Office equipment 231,861 - 231,861
Computers and accessories 215,000 - 215,000

2,593,223 - 2,593,223

DEPRECIATION

Store - - -
Office furniture 1,054,977 218,277 1,273,254
Office equipment 114,275 23,517 137,792
Computers and accessories 122,972 23,007 145,979

1,292,223 264,801 1,557,025

NET BOOK VALUE 1,301,000 1,036,198

3. STOCK

30.10.15
(07.07.23)
Birr Birr

Wisky 506,649 2,970,174

Vodka 407,735 1,404,900
Wine 270,217 776,300
Water 90,553 145,880
Soft drink 15,290 204,661
Oil 25,119 1,190,452
Vagitables 6,904 122,740
Cleaning materials 6,392 99,077
Others 1,048 22,700

1,329,907 6,936,884
ABAY DESALE TESEMA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)
4. ACCOUNTS RECEIVABLE

30.10.15
(07.07.23)
Birr Birr

Trade debtors 304,270 3,279,985

Sundry trade 119,037 1,205,427
Advance prepayment 20,558 155,790
Ethiopian Revenues and Customs Authority - withholding tax - -

443,865 4,641,202
5. ACCOUNTS PAYABLE
30.10.15
(07.07.23)
Birr Birr

Trade creditors 88,520 948,588

Sundary creditors - 425,010
Ethiopian Revenues and Customs Authority - VAT 1,106 342,280
Accural 28,903 189,905
Ethiopian Revenues and Customs Authority - income tax 37,891 43,887
Pension contribution payable 39,017 47,006

195,437 1,996,676
6. COST OF SALES
30.10.15
(07.07.23)
Birr Birr

Total Opening Balance 6,936,884 4,681,364

Add:- Purchase During the year 12,597,356 34,444,747

Available for sales 19,534,240 39,126,111

Less: - Ending Balance 1,329,907 6,936,884

Total 18,204,333 32,189,227

Add:- House rent 784,000 924,000

Add:- Salary 894,102 725,000
Add:- Transport 9,160 34,221
Consumption for the year 19,891,595 33,872,448
ABAY DESALE TESEMA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)
7. OTHER INCOME

30.10.15
(07.07.23)
Birr Birr

Interest income - -
Others - -

- -

8. PROVISION FOR PROFIT TAX

30.10.15
(07.07.23)
Birr Birr

Net profit 2,642,234 6,178,898

Less: Interest income - -

2,642,234 6,178,898
Add: Non taxable - -
Add: Entertainment - -

Taxable profit 2,642,234 6,178,898

Provision for profit tax 906,782 2,144,614

Less:- Current year withholding tax (64,849) (1,266,590)

Provision for profit tax after withholding 841,933 878,024

ABAY DESALE TESEMA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDAT 30 MEGABIT 2016 E. C. (8 APRIL 2024)

9. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW / (OUTFLOW)

FROM OPERATING ACTIVITIES

30.10.15
(07.07.23)
Birr Birr

Net profit 2,642,234 6,178,898

Interest expense - -
Interest income - -

Operating profit 2,642,234 6,178,898

Depreciation 264,801 582,765
Decrease / (Increase) in stocks 5,606,977 (2,255,520)
Decrease / (Increase) in accounts receivable 4,197,337 (1,392,081)
(Decrease) in accounts payable (1,801,239) (589,000)
Retained earnings - -
Owner’s withdrawal (11,308,849) (879,767)
Increase in capital - transfer from retained earnings - -

NET CASH INFLOW / (OUTFLOW) FROM OPERATING

ACTIVITIES (398,738) 1,645,295

10. ANALYSIS OF THE BALANCES OF CASH AS SHOWN IN THE BALANCE SHEET

01.11.15 30.07.16 Change in

(08.07.23) (08.04.24) the year
Birr Birr Birr

Cash on hand and at bank 1,995,001 653,390 (1,341,611)