SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 07 JULY 2024
2024 2023
Notes ETB ETB
REVENUE 3 14,861,239 10,304,802
COST OF SALES 4 12,086,532 8,063,476
GROSS PROFIT 2,774,707 2,241,326
Other income - -
2,774,707 2,241,326
EXPENSES
Administration 5 854,194 750,565
Borrowing cost 6 0 0
854,194 750,565
PROFIT BEFORE TAX 1,920,513 1,490,762
Income tax expense 7 (654,180) (503,767)
PROFIT FOR THE YEAR 1,266,334 986,995
4
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
STATEMENT OF FINANCIAL POSITION
AS AT 07 JULY 2024
2024 2023
Notes
ETB ETB
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8 7,824,730 9,205,565
7,824,730 9,205,565
CURRENT ASSETS
Trade and other receivables 9 5,746,824 2,490,139
Inventory 10 1,365,791 1,027,358
Cash and bank balances 544,773 756,344
7,657,388 4,273,841
TOTAL ASSETS 15,482,118 13,479,406
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
Registered Capital 1 10,000 10,000
Proprietor account 3,110,285 2,685,779
Retained earning 7,978,631 7,114,259
11,098,916 9,810,038
NON-CURRENT LIABILITIES
Long term loan - -
- -
CURRENT LIABILITIES
Trade and other payables 11 3,562,504 3,061,298
Current Porsion Bank Loan 0 0
Profit tax payables 7 333,978 183,565
Other taxes payable 11 486,721 424,506
4,383,203 3,669,369
TOTAL EQUITY AND LIABILITIES 15,482,118 13,479,407
5
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 07 JULY 2024
Registered Proprietor Retained Total
Capital account earning
ETB ETB ETB ETB
At 8 July 2023 10,000 2,685,779 7,114,259 9,810,038
Prior period adjustment - 424,506 (401,962) (401,962)
Profit for the year - - 1,266,334 1,266,334
As at 7 July 2024 10,000 3,110,285 7,978,631 11,098,916
6
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 07 JULY 2024
2024 2023
ETB ETB
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year before taxation 1,920,513 1,490,762
Adjustments for:
Prior period adjustment (401,962) 6,127,264
Depreciation of property, plant and equipment and Amortization 1,380,835 1,624,511
2,899,387
### 9,242,537
Movements in working capital
(Increase)/decrease in inventory (338,433) (1,027,358)
(Increase)/decrease in trade and other receivables (3,256,685) (2,490,139)
Increase in trade and other payables 501,206.00 3,061,298.00
Increase/(decrease)in profit tax payable 150,413 183,565
(Decrease)/increase in other taxes payable 486,721 424,506
Cash generated from operations 442,609
### 9,394,409
Profit tax paid (654,180) (503,767)
Net cash generated from operating activities (211,571)
### 8,890,642
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment - (12,741,267)
Net cash used in investing activities -### (12,741,267)
CASH FLOWS FROM FINANCING ACTIVITIES
Owner withdrawal investment 0 -
Settlement of loan during the period - -
Net cash used in financing activities -### -
Net increase in cash and cash equivalents (211,571)
### (3,850,625)
Cash and cash equivalents at 8 July 756,344 4,606,969
Cash and cash equivalents at 07 July 544,773
### 756,344
Represented by:
Bank and cash balances 544,773 756,344
544,773
### 756,344
7
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
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
7
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
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
8
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
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.
9
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
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.
10
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
NOTES TO THE FINANCIAL STATEMENTS (continued)
2024 2023
ETB ETB
3 REVENUE
Sales Income 14,861,239 10,304,802
14,861,239
### 10,304,802
4 COST OF SALES
Beginning inventory 1,027,358 954,163
Add Purchase during the year 8,653,172 5,085,633
9,680,530
### 6,039,796
Less ending inventory (1,365,791) (1,027,358)
Construction material consumed during the year 8,314,739
### 5,012,438
Deprecation 1,338,876 1,575,148
Direct labor 2,432,917 1,475,890
12,086,532 8,063,476
5 ADMINISTRATION
Salary and Benefits 203,559 190,430
Travel and perdiem 54,120 72,100
Communication 37,500 33,100
Stationery and Printings 4,352 3,348
Repair and maintenance 12,838 9,875
Utility 15,066 11,589
Machine rent 195,000 150,000
Transportation 92,359 71,045
Fuel and lubricants 109,138 85,795
Bank charges 46,865 36,452
License and registration 102 102
Insurance 9,813 7,714
Loading unloading 8,815 7,180
Depercation Expense 42,196 49,364
Miscellaneous 22,471 22,471
854,194
### 750,565
6 BORROWING COST
Interest - -
###
- -
. .
7 TAX EXPENSE COMPUTATION
Profit before taxation 1,920,513
### 1,490,762
Add: non- allowable expenses - -
11
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
NOTES TO THE FINANCIAL STATEMENTS (continued)
- -
Less: Tax exempted income
Interest income on government bond
1,920,513
### 1,490,762
Tax expense for the year 654,180
### 503,767
Advance profit tax (320,202) (320,202)
At 7 July - Payable/(recoverable) 333,978
### 183,565
12
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
NOTES TO THE FINANCIAL STATEMENTS (continued)
8 PROPERTY, PLANT AND EQUIPMENT
At 8 July 2023 Additions At 7 July 2024
COST ETB ETB ETB
Plant and machineries 4,250,346 - 4,250,346
Motor vehicles 8,103,754 - 8,103,754
Office Furniture and equipment 275,715 - 275,715
Computer and accessories 111,452 - 111,452
12,741,267 - 12,741,267
DEPRECIATION
Plant and machineries 1,179,471 460,631 1,640,102
Motor vehicles 2,248,792 878,244 3,127,036
Office Furniture and equipment 76,511 29,881 106,392
Computer and accessories 30,928 12,079 43,007
3,535,702 1,380,835 4,916,537
.
NET BOOK VALUE 9,205,565 7,824,730
2024 2023
ETB ETB
9 TRADE AND OTHER RECEIVABLES
Retention receivables 2,729,778 1,346,271
Withholding tax receivables 532,478 212,276
Deposit and Prepayments 52,126 52,126
VAT receivables 2,432,442 879,466
5,746,824
### 2,490,139
10 INVENTORY
Stock 1,365,791
### 1,027,358
1,365,791
### 1,027,358
11 CASH AND BNK BALANCE
Cash on hand - -
Cash at bank 544,773 756,344
544,773
### 756,344
11 TRADE AND OTHER PAYABLES
Construction Advance 3,562,504 3,061,298
3,562,504
### 3,061,298
11 TRADE AND OTHER TAX PAYABLES
Employment tax payables 9,565
### 8,829
Pension Contribution Payables 15,421 12,248
13
SEID ABDULKADIR (TIHASAD GENERAL CONTRACTOR)
NOTES TO THE FINANCIAL STATEMENTS (continued)
Provision for taxtion 461,735 403,429
486,721
### 424,506
12 CAPITAL COMMITMENTS
The Proprietors had no significant capital commitments outstanding at 07 July 2024.
13 INCORPORATION
The Proprietors is incorporated in Ethiopia under the Ethiopian Commercial Code and is domiciled in
Ethiopia.
14 EVENTS AFTER THE REPORTING PERIOD
There are no significant events after the reporting period which has been reported in these financial
statements.
14
