BSRAT MEZGEBO GEBREYOHANS

STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 07 JULY 2024

Notes 2024 2023

ETB ETB

REVENUE 3 545,140,864 186,710,746

COST OF SALES 4 486,154,788 146,300,641

GROSS PROFIT 58,986,076 40,410,105

Interest income

EXPENSES
Administration 5 11,688,408 5,702,341
11,688,408 5,702,341

PROFIT BEFORE TAX 47,297,668 34,707,764

Income tax expense 6 (16,536,184) (12,129,717)

PROFIT FOR THE YEAR 30,761,484 22,578,046

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BSRAT MEZGEBO GEBREYOHANS
STATEMENT OF FINANCIAL POSITION
AT 07 JULY 2024
Notes 2024 2023
ETB ETB
ASSETS
NON-CURRENT ASSETS

Property, plant and equipment 8 41,259,797 10,199,775

41,259,797 10,199,775

CURRENT ASSETS

Trade and other receivables 11 31,486,324 11,693,048

Inventory 9 52,125,916 27,017,980
Cash and bank balances 10 20,960,482 19,120,698
104,572,722 57,831,726

TOTAL ASSETS 145,832,519 68,031,501

EQUITY AND LIABILITIES

CAPITAL AND RESERVES
Registered capital 1 345,000 345,000
Proprietors account 38,890,000
Retained earning 64,059,830 41,481,783
103,294,830 41,826,783

CURRENT LIABILITIES
Trade and other payables 13 26,001,507 14,075,001
Profit tax payable 14 16,536,184 12,129,717
42,537,691 26,204,719

TOTAL EQUITY AND LIABILITIES 145,832,519 68,031,501

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BSRAT MEZGEBO GEBREYOHANS
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 7 JULY 2024

Registered Total
Capital Retained earning
ETB ETB ETB
At 8 July 2023 345,000 345,000

Prior Period adjustments -

Capital increment
Owner withdrawal -
Profit for the year - 30,761,484 30,761,484

At 7 July 2024 345,000 30,761,484 31,106,484

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BSRAT MEZGEBO GEBREYOHANS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 7 JULY 2024
2024 ###
ETB ETB
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year before taxation 47,297,668 ###
Adjustments for:
Prior Period adjustments - ###
Depreciation of property, plant and equipment 7,556,789 ###
Investment - ###
54,854,457 ###
Movements in working capital
(Increase)/decrease in inventory (44,179,813)###
(Increase)/decrease in trade and other receivables (28,348,618)###
Increase in trade and other payables 24,397,682 ###
Increase in profit tax payables 14,106,462 ###
(Decrease)/increase in other taxes payable
Cash generated from operations 20,830,169 ###

Profit tax paid (16,536,184)###

Net cash generated from operating activities 4,293,985 ###

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment 0###
Disposal of property, plant and equipment -
Net cash used in investing activities - ###

CASH FLOWS FROM FINANCING ACTIVITIES

Capital increment 0
proprietetors account 38,890,000 ###
Bank loan repayment - ###
Custom valuation ###
Net cash used in financing activities 38,890,000 ###
Net increase in cash and cash equivalents 43,183,985.15 ###
Cash and cash equivalents at 8 July 1,962,598 ###
Cash and cash equivalents at 07 July 45,146,583 ###

Represented by:
Bank and cash balances 20,960,482 ###
20,960,482 ###

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BSRAT MEZGEBO GEBREYOHANS
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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BSRAT MEZGEBO GEBREYOHANS
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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BSRAT MEZGEBO GEBREYOHANS
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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BSRAT MEZGEBO GEBREYOHANS
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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BSRAT MEZGEBO GEBREYOHANS
NOTES TO THE FINANCIAL STATEMENTS (continued)
2024
ETB
3 REVENUE

Sales 545,140,864
545,140,864

4 COST OF SALES

Beginning inventory 19,571,538

Add; Purchase during the year 518,709,166
538,280,704
Less; Ending inventory (52,125,916)
486,154,788

5 ADMINISTRATION

Wage 1,653,265
Transportation 945,978
Depreciation 7,556,789
Rent 1,086,000
Stationary and printing 67,457
Cleaning and sanitation 34,189
Professional fee 90,564
Bank charge 7,844
License and registration 23,167
Loading unloading 34,578
Utility 23,155
Miscellaneous 165,422
11,688,408

6 TAX EXPENSE COMPUTATION

Profit before taxation 47,297,668

Add: non- allowable expenses
-
-
Less: Tax exempted income
Interest income -
47,297,668

Tax expense for the year 16,536,184

Advance profit tax
At 7 July - Payable/(recoverable) 16,536,184

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BSRAT MEZGEBO GEBREYOHANS
NOTES TO THE FINANCIAL STATEMENTS (continued)

8 PROPERTY, PLANT AND EQUIPMENT

At 8 July 2023 Additions At 7 July 2024

COST ETB ETB ETB

Office furniture and equipment 275,948 5,437,866 5,713,814

Motor vehicle 14,502,500 15,678,435 30,180,935
Other asset 3,759,882 5,241,655 9,001,537
Computer and related 542,377 932,156 1,474,533
19,080,707 27,290,112 46,370,819
DEPRECIATION

Office furniture and equipment 134,663 1,115,830 1,250,493

Motor vehicle 6,613,140 4,713,559
Other asset 1,834,822 1,433,343 3,268,165
Computer and related 298,307 294,056 592,364
8,880,932 7,556,789 5,111,022

NET BOOK VALUE 10,199,775 41,259,797

9 INVENTORY

Stock 52,125,916
52,125,916

10 CASH AND BANK BALANCES

Cash at bank 20,960,482

20,960,482

11 TRADE AND OTHER RECEIVABLES

Trade 17,492,979 41211.881624997

Advance 9,141,223
Deposit and prepayment 2,098,653
VAT 2,753,469
31,486,324
13 TRADE AND OTHER PAYABLES

Trade 12,894,870
Sundry 13,106,637
26,001,507

14 CAPITAL COMMITMENTS

The Proprietor had no significant capital commitments outstanding at 7 July 2023.

15 INCORPORATION
The Proprietor is incorporated in Ethiopia under the Ethiopian Commercial Code and is domiciled in
Ethiopia.
16 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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