endsmeet 2012 draft accounts

ENDSMEET LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2012

Endsmeet Limited

Annual report and financial statements

For the year ended 31st December 2012

CONTENTS

Company information

Report of the directors

Statement of directors' responsibilities

Report of the independent auditor

Financial statements:

Profit and loss account

Balance sheet

Statement of changes in equity

Statement of cash flows

Notes

Supplementary information:

Schedule of operating expenditure

Alternative presentation:

Tax Computation

2

3

4

5

6

7

8

9 - 13

Appendix I

Appendix II

1

Endsmeet Limited



Board of directors : Gerald Gateru Gakundi: Damaris Wanjiku Gakundi

Registered office : Total Service Station Magadi Road: P.O. Box 15593 - 00100 (GPO): Nairobi

Independent auditor : Stephen Kanyonyo and Associates: Certified Public Accountants: Kedong House, 4th floor Suite 20: Lenana Road: P.O. Box 68644, 00622: Nairobi

Principal bankers : NIC Bank Ltd.: Galleria (Bomas) Branch: Nairobi

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Endsmeet Limited



Report of the Directors

Principal activities

The principal activities of the company are develooing and letting out of residential properties

Results and dividends

Directors

The directors who held office during the year and to the date of this report are set out on page 1.

Auditor

…………………………………..

Director

Nairobi …………..…………………... 2013

The directors submit their report together with the audited financial statements for the year ended 31st December 2012, which disclose the state of affairs of the company.

The (loss) for the year of KES(1,892,165) has been added to/deducted from retained earnings. The directors do not recommend the declaration of a dividend for the year.

The company's auditors, Stephen Kanyonyo and Associates, have expressed their willingness to continue in office in accordance with Section 159 (2) of the Kenyan Companies Act.

2

The directors who held office during the year and to the date of this report are set out on page 1.

The directors submit their report together with the audited financial statements for the year ended 31st December 2012, which disclose

has been added to/deducted from retained earnings. The directors do not recommend the

The company's auditors, Stephen Kanyonyo and Associates, have expressed their willingness to continue in office in accordance with

4(a)

Kalamu LimitedFinancial statementsFor the year ended 31st December 2000

2000Notes Shs

Work done

Cost of work done ( )

Gross profit

Other operating income

Administrative expenses ( )Other operating expenses ( )

Operating profit/(loss) 3

Finance costs 5 ( )

Profit/(loss) before tax

Tax 6 ( )

Profit/(loss) from ordinary activities

Extraordinary item 7 ( )

Net profit/(loss)

Earnings per share 8

The notes on pages 8 to 21 form an integral part of the financial statements.

Report of the auditors - page 3.

PROFIT AND LOSS ACCOUNT (For construction companies)

4(a)

1999Shs

( )

( )( )

( )

( )

( )

( )

4(b)

Premier Foods Industries LimitedFinancial statementsFor the year ended 31st December 2001

2000Notes Shs

Produce sales

Production costs ( )

Gross profit


Distribution costs ( )Administrative expenses ( )Other operating expenses ( )


Finance costs 5 ( )


Tax 6 ( )



Net profit/(loss)




PROFIT AND LOSS ACCOUNT (For horticultural companies)

4(b)

1999Shs

( )

( )( )( )

( )

( )

( )

( )

( )

( )

3

REPORT OF THE AUDITORSTO THE MEMBERS OF....................................................................

We have audited the financial statements set out on pages 4 to 21 which have been prepared on the basis of the accounting policies set out in note 1. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and to provide a reasonable basis for our opinion. The financial statements of the company are in agreement with the books of account.

Respective responsibilities of directors and auditors

The directors are responsible for the preparation of the financial statements which give a true and fair view of the state of affairs of the company and of the operating results. Our responsibility is to express an independent opinion on the financial statements based on our audit and to report our opinion to you.

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement. An audit includes an examination on a test basis, ofevidence supporting the amounts and disclosures in the financial statements. It also includes anassessment of the accounting principles used and significant estimates made by the management, as well as an evaluation of the overall presentation of the financial statements.

Going concern basis

The balance sheet as at 31st December 2000 indicates an excess of current liabilities over current assetsof Shs..............(1999: Shs...............) and a deficiency in shareholders' funds of Shs.............(1999: Shs.......... ). Therefore the company is technically insolvent. However, the financial statements have been prepared on a going concern basis on the assumption that continued financial support will be made available to the company by its shareholders/directors/creditors/bankers/parent company.

Opinion

Subject to the foregoing, and to the effect of any adjustments that may be necessary, should the going concern basis not be appropriate, in our opinion proper books of account have been kept and the financial statements give a true and fair view of the state of financial affairs of the company as at 31st December 2000 and of its results/profit and cash flows for the year then ended and comply with the Companies Act and the International Accounting Standards.

Certified Public AccountantsNairobi

………………………2001

......./01

3

We have audited the financial statements set out on pages 4 to 21 which have been prepared on the basis of the accounting policies set out in note 1. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and to provide a reasonable basis for our opinion. The financial statements of the

The directors are responsible for the preparation of the financial statements which give a true and fair view of the state of affairs of the company and of the operating results. Our responsibility is to express an independent opinion on the financial statements based on our audit and to report our

We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement. An audit includes an examination on a test basis, ofevidence supporting the amounts and disclosures in the financial statements. It also includes anassessment of the accounting principles used and significant estimates made by the management, as

The balance sheet as at 31st December 2000 indicates an excess of current liabilities over current assetsof Shs..............(1999: Shs...............) and a deficiency in shareholders' funds of Shs.............(1999: Shs.......... ). Therefore the company is technically insolvent. However, the financial statements have been prepared on a going concern basis on the assumption that continued financial support will be made available to the company by its shareholders/directors/creditors/bankers/parent company.

Subject to the foregoing, and to the effect of any adjustments that may be necessary, should the going concern basis not be appropriate, in our opinion proper books of account have been kept and the financial statements give a true and fair view of the state of financial affairs of the company as at 31st December 2000 and of its results/profit and cash flows for the year then ended and comply with the

3

Endsmeet Limited



Statement of Directors' Responsibilities

i)

ii) selecting and applying appropriate accounting policies; and

iii) making accounting estimates and judgements that are reasonable in the circumstances.

Approved by the board of directors on ………………………………….. 2013 and signed on its behalf by:

…………………………………… ……………………………………

Director Director

The Kenyan Companies Act requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for that year. It also requires the directors to ensure that the company maintains proper accounting records that disclose, with reasonable accuracy, the financial position of the company. The directors are also responsible for safeguarding the assets of the company.

The directors accept responsibility for the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error. They also accept responsibility for:

designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements;

The directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the company as at 31st December 2012 and of its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Kenyan Companies Act.

Nothing has come to the attention of the directors to indicate that the company will not remain a going concern for at least twelve months from the date of this statement.

3

selecting and applying appropriate accounting policies; and

making accounting estimates and judgements that are reasonable in the circumstances.

The Kenyan Companies Act requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for that year. It also requires the directors to ensure that the company maintains proper accounting records that disclose, with reasonable accuracy, the financial position of the

The directors accept responsibility for the preparation and fair presentation of financial statements that are free from material

designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial

The directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the company as at 31st December 2012 and of its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Kenyan Companies Act.

Nothing has come to the attention of the directors to indicate that the company will not remain a going concern for at least twelve

4

Endsmeet Limited



Report on the financial statements

Directors' responsibility for the financial statements

Auditor's responsibility

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

Report on other legal requirements

As required by the Kenyan Companies Act we report to you, based on our audit, that:

i)

ii)

iii) the company's balance sheet and profit and loss account are in agreement with the books of account.

Certified Public AccountantsPIN NO. P051130467R

………………………………….. 2013

We have audited the accompanying financial statements of Endsmeet Limited, set out on pages 5 to 13, which comprise the balance sheet as at 31st December 2012, the profit and loss account, statement of changes in equity, and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Kenyan Companies Act, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

In our opinion the accompanying financial statements give a true and fair view of the state of financial affairs of the company as at 31st December 2012 and of its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the Kenyan Companies Act.

we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

in our opinion proper books of account have been kept by the company, so far as appears from our examination of those books; and

4

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

As required by the Kenyan Companies Act we report to you, based on our audit, that:

the company's balance sheet and profit and loss account are in agreement with the books of account.

We have audited the accompanying financial statements of Endsmeet Limited, set out on pages 5 to 13, which comprise the balance sheet as at 31st December 2012, the profit and loss account, statement of changes in equity, and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Kenyan Companies Act, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are

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.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

In our opinion the accompanying financial statements give a true and fair view of the state of financial affairs of the company as at 31st December 2012 and of its financial performance and cash flows for the year then ended in accordance with the International

we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the

in our opinion proper books of account have been kept by the company, so far as appears from our examination of those

5

Endsmeet Limited



PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST December 2012

2011 2012

Note KES KES

Rental Income 3 - 1,300,500

Administrative expenses 4 - (517,632)

Establishment expenses 5 - (2,675,033)

Loss before tax - (1,892,165)

Taxation 6 - 0

Loss for the year - (1,892,165)

6

Endsmeet Limited



BALANCE SHEET AT 31ST December 2012

2011 2012

Note KES KES

EQUITY

Share capital 7 20,000 20,000

Retained earnings 8 - (1,892,165)

Total equity 20,000 (1,872,165)

Non-current liabilitiesLoan from shareholders 9 123,916 19,559,237

143,916 17,687,072

REPRESENTED BY

Non-current assets

Unquoted Investments 14 - 50,000

Property and equipment 10 - 17,032,087

- 17,082,087

Current assets

Receivables and prepayments 11 - 1,446,706

Cash at bank and in hand 12 143,916 371,569

143,916 1,818,275

Current liabilities

Trade and other payables 13 - 1,163,290

Net current assets/(liabilities) 143,916 654,985

143,916 17,687,072

…………………… ……………………

Director Director

The financial statements on pages 5 to 13 were approved for issue by the board of directors on …………………... 2013 and were signed on their behalf by:

4(d)

Kalamu LimitedFinancial statementsFor the year ended 31st December 2000

2000Notes Shs

Income


Administrative expenses ( )Other operating expenses ( )


Finance costs 5 ( )


Tax 6 ( )



Net profit/(loss)




PROFIT AND LOSS ACCOUNT (For educational institutions)

4(d)

1999Shs

( )( )

( )

( )

( )

( )

( )

( )

7

Endsmeet Limited

Financial statements


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST December 2012

TotalNote

KES KES KESAt 1st January 2010

Profit/(loss) for the year - - - Shares issued for cash 7 20,000 - 20,000

At 31st December 2011 20,000 - 20,000

At 1st January 2012 20,000 - 20,000

Profit/(loss) for the year - (1,892,165) (1,892,165)Shares issued for cash 7 - - -

At 31st December 2012 20,000 (1,892,165) (1,872,165)

Share Capital

Retained Earnings

8

Endsmeet Limited



STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST December 2012

2011 2012

Note KES KES

Cash flows from operating activities

Loss for the year - (1,892,165)

Adjustments for:

Depreciation of property, plant and equipment 10 - 555,621

Changes in operating assets and liabilities

Decrease (increase) in receivables - (1,446,706)Increase (decrease) in payables - 1,163,290

Cash generated from operations

Interest paid

Income tax paid

Net cash from operating activities - (1,619,959)

Cash flows from investing activities

Purchase of equipment and property 10 - (17,587,708)

Net cash used in investing activities - (17,587,708)

Cash flows from financing activities

Share capital 20,000 -

Loan from directors 123,916 19,435,321

Net cash used in/generated from financing activities 143,916 19,435,321

Net increase (decrease) in cash and cash equivalents 143,916 227,653

Cash and cash equivalents at start of year - 143,916.0

Cash and cash equivalents at end of year 11 143,916 371,569

9

Endsmeet Limited



NOTES

1. General information

2. Basis of preparation and summary of significant accounting policies

Revenue recognition

Rental income from investment properties is recognised on a straight-line basis over the respective lease term.

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

Income tax

Tax expense represents the aggregate amount included in profit or loss for the period in respect of current tax and deferred tax.

Endmeet Limited (the Company) is domiciled in Kenya where it is incorporated under the Kenyan Companies Act as a private company limited by shares.

These financial statements have been prepared on a going concern basis and in compliance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) issued by the International Accounting Standards Board. They are presented in Kenya Shillings (KES). The measurement basis used is the historical cost convention except where otherwise stated in the accounting policies below.

Current tax is the amount of income tax payable or refundable in respect of the taxable profit or loss for the current and prior periods, determined in accordance with the Kenyan Income Tax Act.

9

NOTES

Rental income from investment properties is recognised on a straight-line basis over the respective lease term.

Tax expense represents the aggregate amount included in profit or loss for the period in respect of current tax and deferred tax.

Endmeet Limited (the Company) is domiciled in Kenya where it is incorporated under the Kenyan Companies Act as a private

These financial statements have been prepared on a going concern basis and in compliance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) issued by the International Accounting Standards Board. They are presented in Kenya Shillings (KES). The measurement basis used is the historical cost convention except where

Current tax is the amount of income tax payable or refundable in respect of the taxable profit or loss for the current and prior

11

Premier Foods Industries LimitedFinancial statementsFor the year ended 31st December 2001NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2. Segmental reporting

The predominant business of the company is .............................. The other activities do not come within the "significant" parameters as set out in the International Accounting Standard No. 14 and accordingly have not been separately reported.

In case of multinational or transnational companies, the following information is required foreach separable segment:

i) the total carrying amount of segment assets;ii) the segment liabilities;iii) the capital expenditure;iv) the depreciation and amortisation expense;v) any revenue or expense whose disclosure might be relevant to the company;vi) the total amount of non-cash expenditure other than depreciation or amortisation.(Note: inter-segmental transfers must be eliminated).

11

The predominant business of the company is .............................. The other activities do not come within the "significant" parameters as set out in the International Accounting Standard

In case of multinational or transnational companies, the following information is required for

10

Endsmeet Limited



NOTES (CONTINUED)

2. Basis of preparation and summary of significant accounting policies (continued)

Share capital

Financial assets

Property, plant and equipment, including investment property*

Electronic Equipment 30.00%

Fixtures and equipment 12.50%

Ordinary shares are recognised at par value and classified as 'share capital' in equity. Any amounts received from the issue of shares in excess of the par value is classified as 'share premium' in equity. Dividends are recognised as a liability in the year in which they are declared. Proposed dividends are accounted for as a separate component of equity until they have been declared at an annual general meeting*.

Trade and other receivables are initially recognised at the transaction price. Most sales are made on the basis of normal credit terms, and the receivables do not bear interest. Where credit is extended beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. 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 recognised immediately in profit or loss.

Investments in quoted shares are initially recognised at the transaction price and subsequently measured at fair value with changes in fair value being recognised in profit or loss. Fair value is determined using the quoted bid price at the reporting date.

Items of property, plant and equipment, including investment property, are measured at cost less accumulated depreciation and any accumulated impairment losses.

Freehold land is not depreciated. For all other assets, depreciation is charged so as to allocate the cost of assets less their residual values over their estimated useful lives, using the straight-line method. The following annual rates are used for the depreciation of property, plant and equipment:

If there is an indication that there has been a significant change in the useful life or residual value of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations.

On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or loss.

10

NOTES (CONTINUED)

Ordinary shares are recognised at par value and classified as 'share capital' in equity. Any amounts received from the issue of shares in excess of the par value is classified as 'share premium' in equity. Dividends are recognised as a liability in the year in which they are declared. Proposed dividends are accounted for as a separate component of equity until they have been declared

Trade and other receivables are initially recognised at the transaction price. Most sales are made on the basis of normal credit terms, and the receivables do not bear interest. Where credit is extended beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. 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

Investments in quoted shares are initially recognised at the transaction price and subsequently measured at fair value with changes in fair value being recognised in profit or loss. Fair value is determined using the quoted bid price at the reporting date.

Items of property, plant and equipment, including investment property, are measured at cost less accumulated depreciation and

Freehold land is not depreciated. For all other assets, depreciation is charged so as to allocate the cost of assets less their residual values over their estimated useful lives, using the straight-line method. The following annual rates are used for the

If there is an indication that there has been a significant change in the useful life or residual value of an asset, the depreciation of

On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or

11

Endsmeet Limited



NOTES (CONTINUED)

2. Basis of preparation and summary of significant accounting policies (continued)

Leases

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease.

Impairment of non-financial assets

Financial liabilities

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the company. All other leases are classified as operating leases.

Rights to assets held under finance leases are recognised as assets of the company at the fair value of the leased property (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. Assets held under finance leases are included in property, plant and equipment, and depreciated and assessed for impairment losses in the same way as owned assets.

At each reporting date, property, plant and equipment, investment property, intangible assets, and investments in associates are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset (or group of related assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

Similarly, at each reporting date, inventories are assessed for impairment by comparing the carrying amount of each item of inventory (or group of similar items) with its selling price less costs to complete and sell. If an item of inventory (or group of similar items) is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount (selling price less costs to complete and sell, in the case of inventories), but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (group of related assets) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Financial liabilities are initially recognised at the transaction price (less transaction costs). Trade payables are obligations on the basis of normal credit terms and do not bear interest. Interest bearing liabilities are subsequently measured at amortised cost using the effective interest method.

11

NOTES (CONTINUED)

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership

Rights to assets held under finance leases are recognised as assets of the company at the fair value of the leased property (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. Assets held under finance leases are included in property, plant and

At each reporting date, property, plant and equipment, investment property, intangible assets, and investments in associates are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset (or group of related assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount,

Similarly, at each reporting date, inventories are assessed for impairment by comparing the carrying amount of each item of inventory (or group of similar items) with its selling price less costs to complete and sell. If an item of inventory (or group of similar items) is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is

If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount (selling price less costs to complete and sell, in the case of inventories), but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (group of related assets) in prior

Financial liabilities are initially recognised at the transaction price (less transaction costs). Trade payables are obligations on the basis of normal credit terms and do not bear interest. Interest bearing liabilities are subsequently measured at amortised cost using

18

Kalamu LimitedFinancial statementsFor the year ended 31st December 2000NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2000Shs

16. Intangible assets

Goodwill

Cost

At 1st JanuaryAdditions

31st December

Amortisation

At 1st JanuaryCharge for the year

31st December

Net book amount

17. Investment in subsidiaries

Shares at cost Holding

ABC Limited 60%XYZ Limited 75%

The following information is given in respect of subsidiary companies whose results havenot been consolidated.

i) ABC Limited is dormant.ii) XYZ Limited constructs bodies for motor vehicles. The results and abridged balance sheet

of the subsidiary at 31st December 2000 were as follows:

2000Shs

Profit/(loss) for the year

Balance sheet as at 31st December 1999

Share capitalRevenue reserveRevaluation reserve

Property, plant and equipment

Current assetsCurrent liabilities

Net current assets/(liabilities)

18

1999Shs

XYZ Limited constructs bodies for motor vehicles. The results and abridged balance sheet

1999Shs

12

Endsmeet Limited



NOTES (CONTINUED)

2011 2012

KES KES

3. Revenue

Rental income from investment property - 1,300,500

4 Administrative expenses - 517,632

5 Establishment expenses - 2,675,033

6 Loss before tax - (1,892,165)

Depreciation of property, plant and equipment - 555,621

Auditor's remuneration - -

7 Share capital No. of ordinary No. of ordinary Issued and fully Issued and fullyshares issued shares issued paid up capital paid up capital

2011 2012 2011 2012KES

At January 2 2 20,000 20,000

Additions - - - -

At 31st December 2 2 20,000 20,000

The total number of authorised ordinary shares is 10 with a par value of KES 10,000/= each.

2011 2012

8 Retained Earnings KES KES

At January - -

Profit/(Loss) - (1,892,165)

At 31 December - (1,892,165)

9 Borrowings

Non-current

Loan from shareholders

At January - 123,916

Additions/Repayment 123,916 19,435,321

Repayment - -

At 31 December 123,916 19,559,237

The loan from shareholders is interest free and has no specified date of repayment.

The following items have been recognised as expenses in determining loss before tax:

13

Endsmeet Limited



NOTES (CONTINUED)

10 Property and equipment

Investment Furniture Electronic Total

Property & fittings Equipment

KES KES KES KES

Cost

At 1st January, 2012 - - - - Additions 14,000,000 2,975,378 612,330 17,587,708

DepreciationAt start of year - - - - Charge for the year - 371,922 183,699 555,621

At December, 2012 - 371,922 183,699 555,621

Net book value 2012 14,000,000 2,603,456 428,631 17,032,087

Net book value 2011 - - - -

2011 201211 Cash and cash equivalents KES KES

Cash on hand 143,916 371,569

12 Receivables and prepayments

Accounts receivable - 67,134 Receivable from related party - 1,312,000 Prepaid insurance - 67,572

- 1,446,706

13 Accruals and other payablesRental deposits - 286,450 Other payables - 876,840

- 1,163,290

14 Unquoted Investments

Shares in Wood Avenue - 50,000

Appendix I

Endsmeet Limited

Supplementary information


SCHEDULE OF OPERATING EXPENDITURE

1. ADMINISTRATIVE EXPENSES 2011 2,012

KES KES

Employment:

Salaries and wages -

Other administration expenses:

Donations - 30,000 Audit fees - -

School fees - 478,467

Bank charges and commissions - 9,165

Accountancy fees -

Total other administration expenses - 517,632

Total administrative expenses - 517,632

2. ESTABLISHMENT EXPENSES

Electricity and water - 18,171

Repairs and maintenance - 1,945,850

Insurance 65,390

Service Charge 90,000

Depreciation of property, plant and equipment - 555,621

Total establishment expenses - 2,675,033

Appendix II

Endsmeet LimitedFinancial statementsFor the year ended 31st December 2012

TAX COMPUTATION

PERIOD COVERED: 12 MONTHSKES.

Loss before tax per financial statements

Add: (Expenditure not allowed for tax purposes)School fees 478,467 Donations 30,000 Depreciation of property, plant and equipment 555,621

Less: Wear and tear allowance (555,621)

Tax Loss

SUMMARY KES.

Taxable Profit for the year (1,383,698)

Tax Loss (415,109)

WEAR AND TEAR SCHEDULEClass (ii) Class (iii) Class (iv)

30.00% 25.00% 12.50%

WDV as at 1st January, 2012 - - - Purchased during the year 612,330 - 2,975,378

612,330 - 2,975,378

Wear and tear allowance (183,699) - (371,922)

WDV as at 31st December, 2012 428,631 - 2,603,456

Appendix II

KES.

(1,892,165)

1,064,088

(828,076)

(555,621)

(1,383,698)

Total

- 2,975,378

2,975,378

(555,621)

3,032,087

23

Kalamu Limited



2000

Shs

PRODUCTION COSTS

Salaries and wages

Pest and disease control

Irrigation running

Motor vehicle and tractor running expenses

Field production expenses

Packaging and grading

Loose tools

Maintenance of farm property, plant and equipment

Depreciation

Total production costs

DISTRIBUTION COSTS

Handling, airport and export expenses

Cold storage rental

Total distribution costs

SCHEDULE OF PRODUCTION AND DISTRIBUTION COSTS (For horticultural companies)

23

1999

Shs

(For horticultural companies)

endsmeet 2012 draft accounts

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