ALEMAYEHU BEKELE AUDIT REPORT 2015

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ALEMAYEHU BEKELE AZIMERA

STATEMENT OF PROFIT OR LOSS


FOR THE YEAR ENDED 07 JULY 2023

2023
Notes ETB

REVENUE 3 42,417,292

COST OF SALES 4 30,395,158

GROSS PROFIT 12,022,134###

Other income -
12,022,134###

EXPENSES
Administration 5 4,277,075
Borrowing cost 6 6,161,344
10,438,419
###

PROFIT BEFORE TAX 1,583,714###


Income tax expense 7 (536,300)

PROFIT FOR THE YEAR 1,047,414###

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ALEMAYEHU BEKELE AZIMERA
STATEMENT OF FINANCIAL POSITION
AS AT 07 JULY 2023
Notes 2023
ETB
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8 36,430,308
36,430,308

CURRENT ASSETS
Trade and other receivables 9 341,737
Inventory 10 6,976,371
Cash and bank balances 11 1,303,997
8,622,105

TOTAL ASSETS 45,052,414

EQUITY AND LIABILITIES


CAPITAL AND RESERVES
Registered Capital 1 10,000
Proprietor account 19,519,298
Retained earning (12,729,224)
6,800,075
###

NON-CURRENT LIABILITIES
Long term loan 35,849,135
35,849,135

CURRENT LIABILITIES
Trade and other payables 12 1,866,905
Profit tax payables 7 536,300
2,403,205
###

TOTAL EQUITY AND LIABILITIES 45,052,414


###

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ALEMAYEHU BEKELE AZIMERA
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 07 JULY 2023

Registered Total
Capital Proprietor account Retained earning
ETB ETB ETB ETB

At 7 July 2022 10,000 10,000

Prior period adjustment - (3,850,023) (13,776,638) (3,850,023)


-
Profit for the year - 23,369,321 1,047,414 1,047,414

As at 7 July 2023 10,000 19,519,298 (12,729,224) 6,800,075

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ALEMAYEHU BEKELE AZIMERA
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 07 JULY 2023
2023
ETB
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year before taxation 1,583,714

Adjustments for:
Prior period adjustment (3,850,023)
Depreciation of property, plant and equipment and Amortization 3,073,370
807,061
###
Movements in working capital
(Increase)/decrease in inventory (471,591)
(Increase)/decrease in trade and other receivables 325,464
Increase in trade and other payables (2,555.00)
Increase/(decrease)in profit tax payable 6,631,761
(Decrease)/increase in other taxes payable -
Cash generated from operations 7,290,140###

Profit tax paid (536,300)


###

Net cash generated from operating activities 6,753,840


###

CASH FLOWS FROM INVESTING ACTIVITIES


Purchase of property, plant and equipment -
Purchase of property, plant and equipment disposal -
Net cash used in investing activities -###

CASH FLOWS FROM FINANCING ACTIVITIES


Owner withdrawal investment 0
Settlement of loan during the period (5,985,647)
Net cash used in financing activities (5,985,647)
###

Net increase in cash and cash equivalents 768,193


Cash and cash equivalents at 8 July 535,804
Cash and cash equivalents at 07 July 1,303,997
###

Represented by:
Bank and cash balances 1,303,997
1,303,997
###

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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS

1 ESTABLISHMENT

Kasahun Kefyalew Alaba is a Proprietors’ engaged in the following activities;

General import and export;


Building of complete constructions or parts thereof, civil engineering
Supporting and auxiliary transport activities of transport agencies
Other land transport

The business is located in Addis Ababa

2 ACCOUNTING POLICIES

Statement of compliance

The financial statements have been prepared in accordance with the company reporting framework.

For the purpose of reporting under the Commercial code of Ethiopia, the balance sheet in these
financial statements is represented by the statement of financial position and the profit and loss
account is presented in the statement of profit or loss.

Basis of preparation

The financial statements are prepared under the historical cost basis of accounting . The preparation
of financial statements in conformity with the company reporting framework requires the use of
certain critical accounting estimates. It also requires management to exercise judgment in the
process of applying the company’s accounting policies. Areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimations are significant to the financial
statements are disclosed in note 3.

Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods or
providing service on the ordinary course of the company’s activities. Revenue is shown net of
value-added tax, returns, rebates and discounts.

The company recognizes revenue when the amount of revenue can be reliably measured, it is
probable that future economic benefits will flow to the company and when specific criteria have
been met for each of the company’s activities as described below.

Revenue is recognized as follows:

i. Sale of goods
Sales of goods are recognized in the period in which the company has delivered products and
rendering service to the customer, delivery does not occur until the products have been accepted by
the customer.
ii. Other income

All other income is recognized on the accrual basis on the services provided

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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. ACCOUNTING POLICIES (Continued)

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated
impairment losses. Depreciation is charged in accordance with Income Tax Proclamation
286/2002, on the straight-line basis for buildings and on the written down value for other assets, at
the following rates per annum.
%
Buildings and greenhouses 5
Computer and accessories 25
Other plant and equipment 20

Leasehold land
Leasehold land is presented separately on the face of the balance sheet and is stated at cost less
accumulated amortization. The costs are amortized over the period of the leases.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, cash at bank in current and deposit accounts and
short term, highly liquid investments with maturity periods of three months or less. Cash and cash
equivalents are carried at their nominal values.

Trade and other receivables

Receivables arise in the normal course of business and do not bear interest. At the end of each
reporting period, the carrying amounts of trade and other receivables are reviewed to determine
whether there is any objective evidence that the amounts are not recoverable. If so, an impairment
loss is recognized immediately through profit or loss.

Government Securities

These are fixed interest bonds issued by the Government of the Federal Democratic Republic of
Ethiopia. The bonds are held to maturity and carried at amortized cost.

Trade and other payables

Trade payables are obligations on the basis of normal credit terms and do not bear interest. Trade
payables are carried at their nominal values

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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. ACCOUNTING POLICIES (Continued)
Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortized cost using the effective interest method; any differences between
proceeds (net of transaction costs) and the redemption value is recognized in the profit or loss over
the period of the borrowings. Borrowing are classified as current liabilities unless the Company has
an unconditional right to defer settlement of the liability for at least 12 months after the end of the
reporting period.

Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the
average cost formula.

Legal reserve

This is a statutory reserve set by the commercial code of Ethiopia, 1960 where no less than one-
twentieth of the annual net profit of the company shall be transferred to the legal reserve fund until
such fund amounts to one-tenth of the capital of the company. It is utilized up on the decision of the
supervising authority, to cover losses incurred by the company and to expand the activities of the
Company.

Taxation

Current taxation is provided on the basis of the results for the year as shown in the financial
statements adjusted in accordance with the Ethiopian tax legislation. The tax liability is calculated
on the taxable profit at currently enacted tax rates.

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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. ACCOUNTING POLICIES (Continued)

Employee benefits

Retirement benefit obligations

The company and all its employees contribute to the National Social Security Fund, which is a
statutory defined contribution scheme.

Provisions

Provisions are recognized when the company has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation, and a reliable estimate of the amount can be made.

Comparatives

Where necessary, comparative figures have been adjusted to conform to changes in presentation in
the current year.

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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (continued)

2023
ETB
3 REVENUE

Hotel Building
Income Rent Income Detergent
Sales Income From 814,996 5,010,190 36,592,106 42,417,292

814,996 5,010,190 36,592,106 42,417,292


###

4 COST OF SALES

Beginning inventory -
Add Purchase during the year 34,941,596 34,941,596
34,941,596 34,941,596
###

Less ending inventory (6,976,371) (6,976,371)


27,965,225
###
Salary Expense 73,957 73,957
Deprecation 17,625,571 2,298,941
Maintenance Expense 57,035 57,035
30,395,158
###

Hotel &
5 ADMINISTRATION Building Detergent TOTAL

Salary and Benefit Expense - 39,823###


### 39,823
Wage - 42,170 42,170
Employee Benefit Programs Exp - 7,425 7,425
Fuel & Lubricant Expense - 66,685 66,685
Printing & Stationary 2,926 41,072 43,999
Rent Expense - 150,000 150,000
Maintenance & Repairs Expense 37,220 57,035 94,255
Utilities Expense 36,744 1,000 37,744
Office Supplies Expense 39,496 20,478 59,974
Telephone Expense 34,967 1,716,607 1,751,574
Spare part Expense - 11,304 11,304
Miscellneous Expense - 5,958 5,958
Bank Service Charge Expense - 1,000,000 1,000,000
Cleaning Expense 22,673 - 22,673
Depreciation 774,428 23,862 798,290
Accountancy Service fee - 10,000 10,000
Vehicle Rent Exp - 105,267 105,267
Loading un loading expense - 10,485 10,485
Parking Expense - 2,450 2,450
Pediem exp. - 15,200 15,200
Annual support fee 1,800 - 1,800
950,255 3,326,821 4,277,075
###
6 BORROWING COST

Interest 6,161,344 6,161,344


6,161,344
###
.
7 TAX EXPENSE COMPUTATION

Profit before taxation 1,583,714


###
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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (continued)

Add: non- allowable expenses -

-
Less: Tax exempted income
Interest income on government bond
1,583,714
###

Tax expense for the year 536,300


###
Advance profit tax -
At 7 July - Payable/(recoverable) 536,300
###

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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (continued)

8 PROPERTY, PLANT AND EQUIPMENT

At 8 July 2022 Additions At 7 July 2023


COST ETB ETB ETB

Furniture & Fixiture 3,403,941.63 3,403,942


Building 42,950,732.00 - 42,950,732
Office Equpment 907,008.22 - 907,008
Vehicels 5,695,652.17 - 5,695,652
Constraction In Prog 5,037,205.72 5,037,206
57,994,540 - 57,994,540
DEPRECIATION

Furniture & Fixiture 1,384,395.53 255,323 1,639,719


Building 17,391,309 2,233,898 19,625,207
Office Equpment 234,262.38 65,043 299,306
Vehicels 2,334,952.27 519,105
21,344,919 3,073,370 21,564,231

NET BOOK VALUE 36,649,621 36,430,308

2023
9 TRADE AND OTHER RECEIVABLES ETB

Deposit and per payment 201,385


Sundry 140,352
341,737
###

10 INVENTORY

Stock 6,976,371
6,976,371
###

11 CASH AND BNK BALANCE

Cash on hand 99,632


Cash at bank 1,204,365
1,303,997
###

12 TRADE AND OTHER PAYABLES

Accrual 1,866,905
1,866,905
###

13 CAPITAL COMMITMENTS

The Proprietors had no significant capital commitments outstanding at 07 July 2023.

14 INCORPORATION

The Proprietors is incorporated in Ethiopia under the Ethiopian Commercial Code and is domiciled in Ethiopia.

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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (continued)

15 EVENTS AFTER THE REPORTING PERIOD

There are no significant events after the reporting period which has been reported in these financial statements.

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