SHGER PLASTIC PLC

STATEMENT OF PROFIT OR LOSS

FOR THE THREE MONTH ENDED 31 OCTOBER 2024

Notes 31 Oct. 2024

ETB

REVENUE 3 13,320,822
COST OF SALES 4 11,961,610

GROSS PROFIT 1,359,212

Interest income 0

EXPENSES
Administration 5 332,640
332,640

PROFIT BEFORE TAX 1,026,571

Income tax expense 6 (341,300)

PROFIT FOR THE YEAR 685,271

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SHGER PLASTIC PLC
STATEMENT OF FINANCIAL POSITION
AT 31 OCTOBER 2024
Notes 31 Oct. 2024
ETB
ASSETS
NON-CURRENT ASSETS

Property, plant and equipment 8 1,203,468 1,267,220

1,203,468 1,267,220
CURRENT ASSETS

Trade and other receivables 11 13,925,798 6,729,695

Inventory 9 2,926,005 12,521,741
Cash and bank balances 10 1,152,852 3,508,049
18,004,655 22,759,485

TOTAL ASSETS 19,208,123 24,026,705

EQUITY AND LIABILITIES

CAPITAL AND RESERVES
Registered capital 1 10,000,000 10,000,000
-3,500,000 -5,000,000
Retained earning 12,314,061 16,628,790
18,814,060 21,628,790

CURRENT LIABILITIES
Trade and other payables 13 52,762 0
Profit tax payable 14 341,300 2,397,917
394,062 2,397,917

TOTAL EQUITY AND LIABILITIES 19,208,123 24,026,706

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SHGER PLASTIC PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 7 JULY 2023

Registered Total
Capital Retained earning
ETB ETB ETB
At 8 July 2022 1,000,000 767,106 1,767,106

Prior Period adjustments -

Capital increment 2,000,000
Owner withdrawal -
Profit for the year - 46,375 46,375

At 7 July 2023 3,000,000 813,481 1,813,481

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SHGER PLASTIC PLC
STATEMENT OF CASH FLOWS
FOR THE THREE MONTH ENDED 31 OCTOBER 2024
31 Oct. 2024
ETB
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year before taxation 1,026,571
Adjustments for:
Prior Period adjustments -
Depreciation of property, plant and equipment 63,752
Investment -
1,090,323
Movements in working capital
(Increase)/decrease in inventory (2,926,005)
(Increase)/decrease in trade and other receivables (13,925,798)
Increase in trade and other payables 52,762
Increase in profit tax payables 341,300
(Decrease)/increase in other taxes payable
Cash generated from operations (15,367,418)
Profit tax paid (341,300)

Net cash generated from operating activities (15,708,718)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (1,267,220)
Disposal of property, plant and equipment -
Net cash used in investing activities (1,267,220)
CASH FLOWS FROM FINANCING ACTIVITIES
Capital increment 9,199,819
proprietetors account -
Bank loan repayment -
Custom valuation -
Net cash used in financing activities 9,199,819
Net increase in cash and cash equivalents (7,776,119)
Cash and cash equivalents at 8 July -
Cash and cash equivalents at 07 July (7,776,119)
Represented by:
Bank and cash balances 1,152,852
1,152,852

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SHGER PLASTIC PLC
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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SHGER PLASTIC PLC
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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SHGER PLASTIC PLC
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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SHGER PLASTIC PLC
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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SHGER PLASTIC PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
31-Oct-24
ETB
3 REVENUE

Sales 13,320,822
13,320,822

4 COST OF SALES

Beginning inventory 10,521,741

Add; Purchase during the year 4,365,874
14,887,615
Less; Ending inventory (2,926,005)
11,961,610

5 ADMINISTRATION

Transportation 113,019
Depreciation 63,752
Stationary and printing 16,600
Cleaning and sanitation 1,993
Professional fee 8,052
Bank charge 1,184
License and registration 1,620
Loading unloading 111,763
Miscellaneous 14,657
332,640

6 TAX EXPENSE COMPUTATION

Profit before taxation 1,026,571

Add: non- allowable expenses

-
Less: Tax exempted income
Interest income -
1,026,571

Tax expense for the year 341,300

Advance profit tax -

At 7 July - Payable/(recoverable) 341,300

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SHGER PLASTIC PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)

8 PROPERTY, PLANT AND EQUIPMENT

At 31 October
At 8 July 2024 Additions 2024
COST ETB ETB ETB

Other asset 2,145,789 2,145,789

Computer and related 63,484 - 63,484
2,209,273 - 2,209,273
DEPRECIATION

Other asset 909,815 61,799 971,614

Computer and related 32,238 1,953 34,191
942,053 63,752 1,005,805

NET BOOK VALUE 1,267,220 1,203,468

9 INVENTORY

Stock 2,926,005
2,926,005

10 CASH AND BANK BALANCES

Cash at bank 1,152,852

1,152,852

11 TRADE AND OTHER RECEIVABLES

VAT 13,925,798
13,925,798
13 TRADE AND OTHER PAYABLES

Trade 52,762
Sundry
52,762

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