ALEMAYEHU BEKELE AUDIT REPORT 2015
ALEMAYEHU BEKELE AUDIT REPORT 2015
ALEMAYEHU BEKELE AUDIT REPORT 2015
2023
Notes ETB
REVENUE 3 42,417,292
Other income -
12,022,134###
EXPENSES
Administration 5 4,277,075
Borrowing cost 6 6,161,344
10,438,419
###
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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
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
###
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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
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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###
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
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.
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 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 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.
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 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
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
4 COST OF SALES
Beginning inventory -
Add Purchase during the year 34,941,596 34,941,596
34,941,596 34,941,596
###
Hotel &
5 ADMINISTRATION Building Detergent TOTAL
-
Less: Tax exempted income
Interest income on government bond
1,583,714
###
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ALEMAYEHU BEKELE AZIMERA
NOTES TO THE FINANCIAL STATEMENTS (continued)
2023
9 TRADE AND OTHER RECEIVABLES ETB
10 INVENTORY
Stock 6,976,371
6,976,371
###
Accrual 1,866,905
1,866,905
###
13 CAPITAL COMMITMENTS
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)
There are no significant events after the reporting period which has been reported in these financial statements.
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