Page 1. Owners' Association - Name: You re Associations Name INCOME AND EXPENDITURE STATEMENT

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1 INCOME AND EXPENDITURE STATEMENT GENERAL FUND to 31 Notes INCOME Service charges Owners' Association 2,300, ,099 Master Community 1,146, ,763 Clubhouse fees 576,840 - Rental Income 13,350 - Total Revenue 4,037, ,862 EXPENDITURE Auditors & Audit Services 11,770 6,500 Insurance Charges 79,170 18,317 Access Control Systems Repairs & Maintenance 1,125 - Clubhouse services 576,840 - Cleaning Charges 160,471 10,268 Cleaning Equipment 1,474 - Consultant Fees 2,727 - Credit Card Commission Fire Protection charges 82,616 12,366 Floral Expenses 3, Furniture & Fixtures (4,500) - General Repairs & Maintenance 13,470 53,960 Generator Maintenance 19,985 - Landscaping Charges 9,755 - Lift Maintenance 35,923 5,574 Management Fees 5 740,444 87,454 MEP Charges 220,866 - Pest Control Charges 22,313 5,242 Fountain Repairs & Maintenance Security - Guards/Life Guards - Contract 224,024 - Signage - Repairs & Maintenance 8, Service Charge - Master community 5 1,146, ,763 Utility - Chilled Water 235,169 10,579 Utility - Electricity 413,882 49,435 Utility - Water & Sewerage 6,766 - Utility - Gas 17,331 - Rubbish Removal 30,150 7,318 Total Expenses 4,060, ,490 Deficit / Surplus for the year / period (23,660) 75,372 Page 1

2 BALANCE SHEET At 31 Notes ASSETS Current assets Accounts receivable and prepayments 3 2,519, ,474 Due from related parties 5 266, ,745 Bank Balances and cash 500, ,209 TOTAL ASSESTS 3,286,023 1,012,428 EQUITY AND LIABILITIES Administrative fund 51,712 75,372 Capital reserve fund 596, ,081 Total Equity 648, ,453 Current liabilities Accounts payable and accruals 4 909, ,063 Service charges received in advance 169, ,484 Due to related parties 5 1,558, ,428 Total liabilities 2,638, ,975 TOTAL EQUITY AND LIABILITIES 3,286,023 1,012,428 The financial statements were authorized for issue by the Association's Manager on May, General Manager Page 2

3 STATEMENT OF CHANGES IN GENERAL FUND to 31 Balance at the beginning of the year / period 75,372 - Deficit / Surplus for the year / period (23,660) 75,372 Balance at the end of the year / period 51,712 75,372 STATEMENT OF CHANGE IN CAPITAL RESERVE FUND to 31 Balance at the beginning of the year / period 110,081 - Income Service charges 512, ,081 Expenditure Maintenance Bldg - Equipment Purchase (18,488) - Maintenance Bldg - General Replacement (7,786) - Balance at the end of the year / period 596, ,081 Page 3

4 Owners Association Name: You re Associations Name NOTES TO FINANCIAL STATEMENTS 1 ACTIVITIES The Owner s Association XXXX (the Association ) consists of 1 building with 150 apartments at XXXX Project, developed by XXXX Co. LLC (the Master Developer ), a 100% owned subsidiary of XXXX. It represents a notional association formed in accordance with the Purchase and Sale Agreement of each apartment owner. The role of the Association is to manage, administer, maintain and control the common use facilities of the Association through the Managing Agent, XXXX, a 100% owned subsidiary of XXXX. The Association is not yet registered with the Real Estate Regulatory Agency (RERA) of the Department of Lands and Properties of the Government of Dubai. The Law No. 27 of 2007 on the Ownership of Common Properties in Dubai took effect on 1 April SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The financial statements have been prepared using the accrual method in accordance with the accounting policies set out below. The financial statements are prepared under the historical cost convention. Revenue recognition Service charges are recognized within the financial period / year to which they relate. Service charges represent the amount levied to the members of the Association for their share of expenses incurred in maintaining the common use facilities and the Master Community. Service charges are a recovery of expenses incurred by the Owners Association in connection with the management, administration, maintenance, service provision and control of the common use facilities and the Master Community. Accounts receivable Accounts receivable are stated at original invoice amount less a provision for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when there is no possibility of recovery. Accounts payable and accruals Liabilities are recognized for amounts to be paid in the future for goods or services received, whether billed by the supplier or not. Provisions Provisions are recognized when the Association has an obligation (legal or constructive) arising from a past event, and the costs to settle the obligation are both probable and able to be reliably measured. Capital Reserve Fund The Purchase and Sale Agreement requires the establishment of a Capital Reserve Fund to accumulate funds for the future renewal and replacement of community facilities. Annual contributions to this fund collected from owners are assessed based on the residual life of each facility component and the projected replacement cost. Future capital expenditure will be charged against this reserve. Page 4

5 Owners Association Name: XXXX NOTES TO FINANCIAL STATEMENTS 3 ACCOUNTS RECEIVABLE AND PREPAYMENTS Service charges receivable 2,460, ,014 Prepaid expenses 16, Cash in Transit 42,649-2,519, ,474 Prepaid expenses represent Insurance prepaid to Insure XXXX a related party. 4 ACCOUNTS PAYABLE AND ACCRUALS Trade payables 65,872 85,958 Accrued expenses 843,869 75, , , ,707 included in accrued expenses is related parties transactions. 4 RELATED PARTY TRANSACTIONS Related parties include the master developer XXXX Co. LLC), the Managing Agent (XXXX), and associated companies and entities controlled, jointly controlled or significant influenced by the master developer or the master developer s ultimate parent company. Transactions with related parties included in the income statement are as follows: - Service Charges - (65,213) - Management Fees 740,444 87,454 - Insurance 79,170 18,317 - Pest Control 22,313 5,242 - Rubbish Removal 30,150 7,318 - Chilled Water 235,169 10,579 Management fees represent the fee payable to Managing Agent for its services rendered and is calculated at the rate of 3.60 per square foot of the total apartment Net saleable area for the financial year ending 31. However this rate has been discounted from 3.2 to 2.00 per square foot for the month of. Due from related parties included in the balance sheet is as follows: - XXXX Co. LLC 266, ,745 Due to related parties included in the balance sheet are as follows: XXXX Corp LLC XXXX FZE 198,626 - XXXX 174,282 10,579 XXXX Master Community 1,146,552 82,763 XXXX LLC - 87,454 XXXX LLC 39,091 12,560 XXXX (Brokers) LLC - 20,072 1,558, ,428 5 Prior year comparatives: Prior year balances have been reclassified to conform to the current year presentation. Page 5