Sage Final Accounts Pty Ltd. Company registration number: 2001/827345/89

Transcription

1 Company registration number: 2001/827345/89 Financial Statements for the year ended 28 February 2017

2 Financial Statements CONTENTS PAGE Company Information 1 Directors eport 2-3 Accountant s eport 4-5 Statement of Financial Position 6-7 Statement of Comprehensive Income and etained Earnings 8 Statement of Cash Flows 9-10 Notes to the Financial Statements The following pages do not form part of the financial statements Detailed Statement of Comprehensive Income 28-31

3 Company Information Country of principle operations South Africa Directors Ms S Smith Mr B Brown Company secretary Ms S Smith egistered office address 1 Blue Street Main Building Durban Kwa-Zulu Natal 4000 South Africa Accountant Accountant SA CA(SA) 2 Green Street Main Buliding Durban Kwa-Zulu Natal 4500 South Africa egistration number 2001/827345/89 Income tax number VAT number Preparer Miss S Smith CA(SA) 1

4 Directors eport The directors present their report and the annual financial statements of the company for the year ended 28 February MAIN BUSINESS AND OPEATIONS The company is engaged in Software Development and operates principally in South Africa. The operating results and state of affairs of the company are fully set out in the attached annual financial statements and do not in our opinion require any further comment. Net profit / (loss) of the company was (1,226,893) (2016: (70,277)) DIECTOS The directors of the company during the year and to the date of this report were as follows: Ms S Smith Mr B Brown COMPANY SECETAY The company secretary during the year was: Ms S Smith GOING CONCEN The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. AUTHOISED AND ISSUED SHAE CAPITAL There were no changes in the authorised or issued share capital of the company during the year under review. LIQUIDITY AND SOLVENCY The Directors have performed the required liquidity and solvency tests required by section 4 of Companies Act of South Africa. 2

5 Directors eport (continued) This report was approved by the board of directors on 30 April 2017 and signed on behalf of the board by: Mr B Brown Director Ms S Smith Director 3

6 Accountant s eport INDEPENDENT AUDITO S EPOT EPOT ON ANNUAL FINANCIAL STATEMENTS We have audited the financial statements of Sage Final Accounts Pty Ltd, as set out on pages 1to 11, which comprise the statement of financial position as at 28 February 2017, and the statement of comprehensive income and retained earnings and statement of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information. DIECTO S ESPONSIBILITY FO THE ANNUAL FINANCIAL STATEMENTS The company s directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial eporting Standards for Small to Medium-sized Entities and in the manner required by the Companies Act of South Africa. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. AUDITO S ESPONSIBILITY 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. OPINION In our opinion, the financial statements present fairly, in all material respects, the financial position of the company as of 28 February 2017, and of its financial performance and its cash flows for the year then ended in accordance with International Financial eporting Standards for Small to Medium-sized Entities and in the manner required by the Companies Act of South Africa. SUPPLEMENTAY INFOMATION The supplementary schedules set out on pages # to # do not form part of the annual financial statements and are presented as additional information. We have not audited these schedules and accordingly we do not express an opinion on them. 4

7 Accountant s eport (continued) ACCOUNTING AND SECETAIAL DUTIES Without qualifying our opinion, we draw attention to the fact that with the written consent of the directors, we have performed certain accounting and secretarial duties. Accountant SA CA(SA) 2 Green Street Main Buliding Durban Kwa-Zulu Natal 4500 South Africa Date: 30 April

8 Statement of Financial Position 28 February 2017 Note Assets Non Current Assets Property, plant and equipment 2 1,881,370 31,959 Intangible assets 3 23,230 7,069 Investments 4 64,648 1,930 Deferred tax asset , ,869,248 41,194 Current assets Inventories 5 1,794 1,249 Trade and other receivables 6 8,634,869 2,277 Cash and cash equivalents 7 1,208,500 1,413 Investments 4 178,407 2,018 Current tax receivable 600, ,623,570 7,415 Total Assets 13,492,818 48,609 Equity and Liabilities Equity Share capital 8 205,150 (2,072) etained earnings 1,777,433 66,730 1,982,583 64,658 Non Current Liabilities Long term borrowings 9 2,055,054 (2,711) Non Current portion of finance leases 10 56,546 (301) Deferred tax liability 11 56,666 (577) 2,168,266 (3,589) Current Liabilities Trade and other payables 12 5,572,046 (7,995) Provisions 1,617,789 (1,593) Current portion of finance leases 10 87,975 (480) Short term borrowings 13 74,159 (1,496) The notes on pages 11 to 27 form part of these financial statements. 6

9 Statement of Financial Position (continued) 28 February 2017 Current tax payable 790,000 (749) Dividends payable 1,200,000 (147) 9,341,969 (12,460) Total Equity and Liabilities (13,492,818) (48,609) The notes on pages 11 to 27 form part of these financial statements. 7

10 Statement of Comprehensive Income and etained Earnings Note evenue 14 1,224,697 (1,751) Cost of sales (468,488) (4,221) Gross profit/(loss) 756,209 (5,972) Other income 15 2,182,687 (4,504) Distribution costs (118,297) (4,209) Administrative expenses (113,039) (4,217) Other expenses (1,271,536) 92,374 Profit before Finance Costs 1,436,024 73,472 Finance costs (13,352) (2,201) Profit before taxation 16 1,422,672 71,271 Taxation 17 (195,779) (994) Net Profit for the year 1,226,893 70,277 Other comprehensive income (39,460) (2,111) Total comprehensive income 1,187,433 68,166 etained earnings at the start of year 500,000 (948) Dividends (per share 2017 ( 70.00), 2016 ( 50.00)) 90,000 (488) etained earnings at the end of year 1,777,433 66,730 The notes on pages 11 to 27 form part of these financial statements. 8

11 Statement of Cash Flows Note Cash Flows From Operating Activities Cash receipts from customers 1,378,739 63,755 Cash paid to suppliers and employees (54,663) (705,236) Cash generated by operations 18 1,324,076 (641,481) Interest received (50,000) 832 Interest paid (13,352) (2,201) Dividends received (890) 985 Dividends paid 90,000 (488) Current tax paid (130,000) (466) Dividends tax paid (65,779) (528) Net cash flow from operating activities 1,154,055 (643,347) Cash Flow From Investing Activities Purchase of property, plant and equipment (358,000) (3,206) Proceeds from sale of property, plant and equipment 400, ,000 Acquisition of investments (7,000) (2,000) Other 5,900 7,000 Net cash flow from investment activities 40, ,794 Cash Flows From Financing Activities Payment of finance lease liabilities (456) (67) Proceeds from long-term borrowings Proceeds from short-term borrowings 573 3,457 epayment of long-term borrowings (457) (547) epayment of short-term borrowings (575) (3,457) Other 13,000 (6,767) Net cash flow from financing activities 12,132 (7,034) The notes on pages 11 to 27 form part of these financial statements. 9

12 Statement of Cash Flows (continued) Net increase / (decrease) in cash and cash equivalents 1,207,087 (448,587) Cash and cash equivalents at beginning of period 1, ,000 Cash and cash equivalents at end of period 1,208,500 1,413 The notes on pages 11 to 27 form part of these financial statements. 10

13 Notes to the Financial Statements 1 Accounting policies BASIS OF PEPAATION The Annual Financial Statements are prepared in accordance with the International Financial eporting Standard for Small to Medium-sized Entities and the Companies Act. The measurement basis used is historical cost and incorporate the principle accounting policies set out below (except for certain investment properties and certain financial instruments assets which were revalued). SIGNIFICANT JUDGEMENTS In preparing the Annual Financial Statements, management is required to make estimates and assumptions that affect the amounts represented in the Annual Financial Statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates, which may be material to the Annual Financial Statements. Significant judgements include: Taxation Judgement is required in determining the provision for income taxes due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The company recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax assets requires the company to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the company to realise the net deferred tax assets recorded at the end of the reporting period could be impacted. Trade receivables The company assesses its trade receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in profit or loss, the company makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the contract debtor is impaired. The amount of the provision is the difference between the debtor s carrying amount 11

14 Notes to the Financial Statements (continued) and the present value of estimated future cash flows, discounted at the effective interest rate. Impairment testing The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of value-in-use calculations and fair values less costs to sell. These calculations require the use of estimates and assumptions. It is reasonably possible that the key assumptions may change which may then impact our estimations and may then require a material adjustment to the carrying value of intangible and tangible assets. The company reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. In addition, intangible assets are tested on an annual basis for impairment. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets. Expected future cash flows used to determine the value in use of intangible and tangible assets are inherently uncertain and could materially change over time. esidual values and useful lives The company estimates that the useful life of property, plant and equipment, being the period of time for which the assets can be utilised without significant modifications, replacements or improvements per the accounting policy below. The carrying value of intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. FIXED ASSETS - POPETY, PLANT AND EQUIPMENT Property consists of land and buildings. Land is carried at cost while buildings are carried at cost less depreciation. Plant and equipment consist of plant & equipment, computer equipment, office equipment, furniture & fittings and motor vehicles. Plant and equipment are measured at cost less depreciation. Assets are written down to their recoverable amounts if the recoverable amounts are lower than the carrying amounts. Depreciation is calculated on a straight line bases over the expected useful lives of the assets by taking into account their residual values. The expected useful lives are: 12

15 Notes to the Financial Statements (continued) Land and buildings Plant and machinery Office equipment Furniture and fittings Computer equipment Motor vehicles Straight line over 20 years 25% straight line Straight line over 3 years Straight line over 6 years 20% straight line 25% straight line The cost of an item of property, plant and equipment is recognised as an asset when: - It is probable that future economic benefits associated with the item will flow to the company; and - the cost of the item can be measured reliably. Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. GOODWILL Goodwill arises only from business take-overs and internally developed goodwill is not recognised as an asset. Goodwill is not depreciated but is written down when a permanent reduction in value occurs. Goodwill is initially measured at cost, being the excess of the business combination over the company s interest of the net fair value of the identifiable assets, liabilities and contingent liabilities. Subsequently goodwill, acquired in a business combination, is carried at cost less any accumulated impairment and accumulated amortisation. Goodwill is amortised over XX years The excess of the company s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of the business combination is immediately recognised in profit or loss. INTANGIBLE ASSETS Intangible assets are initially recognised at cost. Certain intangible assets are carried at cost less any accumulated amortisation and impairment losses. All intangible assets are amortised over the expected useful life of the asset. [Disclose details of amortisation method here] INVESTMENT IN SUBSIDIAIES Group financial statements 13

16 Notes to the Financial Statements (continued) The group financial statements include those of the holding company and its subsidiaries. The results of the subsidiaries are included from the effective date of acquisition. On acquisition the group recognises the subsidiary s identifiable assets, liabilities and contingent liabilities at fair value, except for assets classified as held-for-sale, which are recognised at fair value less costs to sell. Company financial statements In the company s separate financial statements, investments in subsidiaries are carried at [insert details / value] The cost of an investment in a subsidiary is the aggregate of: - The fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the company, Plus - any costs directly attributable to the purchase of the subsidiary. An adjustment to the cost of a business combination contingent on future events is included in the cost of the combination if the adjustment is probable and can be measured reliably. INVESTMENT IN OTHE GOUP COMPANIES [User defined and complying with IFS for SME] LOANS TO/FOM GOUP COMPANIES These financial instruments are classified as held to maturity and are carried at amortised cost. TAXATION Current taxation Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset. Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the tax authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the statement of financial positon date. No provision for taxation will be made if an assessed loss was incurred in the current year or brought forward from previous years. South African normal taxation is calculated at the current rate of taxation. 14

17 Notes to the Financial Statements (continued) Deferred taxation Deferred taxation is determined on all temporary differences between the carrying values and tax bases of assets and liabilities. The company recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. LEASES AS LESSEE Financial leases are capitalised and finance charges are recognised using the effective interest rate method. Finance leases are recognised as assets and liabilities in the balance sheets at amounts equal to the fair value of the leased property, incorporating the present value of the minimum lease payments in measurement. The discount rate used in calculating the present value of the minimum lease payments is the - [Enter details.] Any initial direct costs are added to the amount recognised as an asset. The lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability. Any contingent rents are expensed in the period they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. Operating lease payments are recognised as an expense based on the minimum lease payments as structured to compensate the lessor for expected general inflation. LEASES AS LESSO A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. Operating leases Operating lease income is recognised as an income on a straight-line basis over the lease term. Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease income. Income for leases is disclosed under other income in the statement of comprehensive income. INVENTOIES aw materials, work in progress and finished goods are stated at the lower of cost or net realisable value. The cost price is determined on a first-in-first-out basis. TADE AND OTHE ECEIVABLES [Insert description and accounting policy(s)] 15

18 Notes to the Financial Statements (continued) CASH AND CASH EQUIVALENTS Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk in change in value. EQUITY An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. EMPLOYEE BENEFITS Short-term employee benefits The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted. The expected cost of compensated absences is recognised as an expense as the employee render service that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The expected cost of profit sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance. Defined contribution plans Payments to defined contribution retirements benefit plans are charged as an expense as they fall due. Payments made to industry-managed [or goverment plans] retirement benefit schemes are dealt with as defined contribution plans where the company s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan. Defined Benefit plans For defined benefit plans the cost of providing the benefits is determined using the projected credit method. Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan. Consideration is given to any event that could impact the funds up to statement of financial position date where the interim valuation is performed at an earlier date. Past service costs are recognised immediately to the extent that the benefits are already vested, and are otherwise amortised on a straight line basis over the average period until the amendment benefits become vested. To the extent that, at the beginning of the financial year, any cumulative unrecognised actuarial gain or loss exceeds ten percent of the greater of the present value of the projected benefit obligation and the fair value of the plan assets (the corridor), that portion is recognised in the statement of comprehensive income over the expected average remaining service lives of participating employees. Actuarial gains or losses within the corridor are not recognised. Gains or losses on the curtailment or settlement of a defined benefit plan is recognised when the company is demonstrably committed to curtailment or settlement. When it is virtually certain that another party will reimburse some or all of the expenditure required to settle a defined benefit obligation, the right to reimbursement is recognised as a separate asset. The asset is measured at fair value. In all other respects, the asset is treated in the same way as plan assets. In the statement of comprehensive income, the expense relating to a defined benefit plan is presented as the net of the amount recognised for a reimbursement. The amount recognised in the statement of financial position represents the present value of the defined benefit obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past 16

19 Notes to the Financial Statements (continued) service cost, and reduces by the fair value of plan assets. Any asset is limited to unrecognised actuarial losses, plus the present value of available refunds and reduction in future contributions to the plan. TADE AND OTHE PAYABLES [Insert description and accounting policy(s)] EVENUE ECOGNITION evenue from the sale of goods is recognised when all the following conditions have been satisfied: - the risks and rewards of ownership are transferred to the purchaser; - it is probable that the economic benefits associated with the transaction will flow to the company; - the costs incurred or to be incurred in respect of the transaction can be measured reliably. - the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; evenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax. Service fees included in the price of the product are recognised as revenue over the period during which the service is performed. 17

20 Notes to the Financial Statements (continued) 2 Property, plant and equipment Cost Land and buildings Plant and equipment Furniture and Fittings Total At 29 February ,500, , ,000 4,400,000 Additions 160,000 80,000 30, ,000 Disposals (60,000) (6,000) (20,000) (203,000) Transfers (18,000) (7,000) 500 (75,600) Other movements - (900) 200 (2,470) At 28 February ,582, , ,700 4,476,930 Accumulated depreciation Depreciation for the year 110,000 50,000 45, ,900 Disposals 14, , ,300 Impairment 1,000 6,000 2,000 11,400 eversal of past impairment (600) (2,000) (100) (4,150) Transfers (90) - - (90) Other movements (7,000) (700) (300) (8,800) At 28 February ,217, , ,600 2,595,560 Carrying amount At 28 February ,364, , ,100 1,881,370 18

21 Notes to the Financial Statements (continued) Cost Land and buildings Plant and equipment Furniture and Fittings Total At 1 March ,582 Transfers 1, ,012 Other movements ,803 At 29 February ,934 2,352 2,165 14,344 Accumulated depreciation Depreciation for the year (664) (972) (854) (4,154) Disposals (742) (46) (346) (2,918) Impairment (845) (231) (592) (3,530) eversal of past impairment (511) (20) (525) (2,679) Transfers (133) - - (133) Other movements (45) (142) (324) (1,680) At 28 February 2017 (3,750) (2,118) (2,793) (17,615) Carrying amount At 29 February ,684 4,470 4,958 31,959 19

22 Notes to the Financial Statements (continued) 3 Intangible assets Cost Goodwill Other intangible assets Total At 29 February ,000 8,000 33,000 Additions 2, ,700 Disposals (8,000) (400) (8,400) Transfers - (100) (100) At 28 February ,000 8,200 27,200 Amortisation At 29 February ,500 2,500 Charge Disposals Impairment losses ,100 eversal of past impairment losses (80) (100) (180) At 28 February ,150 3,970 Net book value At 28 February ,180 5,050 23,230 At 29 February ,626 5,443 7,069 20

23 Notes to the Financial Statements (continued) 4 Investments Investment in group companies 27,677 1,622 Loans to group companies 203,034 1,514 Other investments 12, ,055 3,948 Non-current Asset 64,648 1,930 Current Asset 178,407 2, ,055 3,948 5 Inventories aw materials Work in progress Finished goods ,794 1,249 6 Trade and other receivables Trade receivables 7,698, Prepaid expenses and accrued income 181, Vat receivable 67, Other receivables 1,359, ,634,869 2,277 21

24 Notes to the Financial Statements (continued) 7 Cash and cash equivalents Cash in hand 2, Cash at bank 1,206,000 1,023 1,208,500 1,413 1,208,500 1,413 8 Share capital AUTHOISED SHAE CAPITAL 50,000 Ordinary par value shares of 2.00 each 100, ,000 5, Preference shares of 5.00 each 25,000 25,000 ISSUED SHAE CAPITAL Ordinary shares 2,000 (393) Preference shares 1,000 (196) Total Share premium 202,150 (1,483) 205,150 (2,072) ECONCILIATION OF NUMBE OF SHAES ISSUED Ordinary Shares No. Preference Shares eported as at 29 February , Shares issued during the year 10,000 5 eported as at 28 February , No. 22

25 Notes to the Financial Statements (continued) 9 Long term borrowings Loans to group companies (90,900) 635 Bank (1,500,000) 756 Other long term borrowings (464,154) 1,320 (2,055,054) 2, Finance leases The future minimum lease payments are as follows: Within one year 1, Between two to five years 3, After five years 140, (144,521) 781 Current liability 87, Non-current liability 56, (144,521)

26 Notes to the Financial Statements (continued) 11 Deferred tax The deferred tax balance consists of temporary differences in respect of: Accelerated capital allowances for tax purposes 69,000 8,907 Provisions for liabilties 8,900 8,908 Other timing differences 765,434 (17,002) (843,334) (813) Non-current Asset (900,000) (236) Non-current Liability 56,666 (577) (843,334) (813) 12 Trade and other payables Trade payables (1,568,368) 484 Vat liability (30,000) 795 Accruals (349,574) 1,474 Payroll accruals (3,535,908) 3,279 Government grants (81,432) 1,363 Other payables (6,764) 600 (5,572,046) 7,995 24

27 Notes to the Financial Statements (continued) 13 Short term borrowings Loans from group companies (5,475) 432 Short term borrowings - bank (67,684) 897 Directors loan (1,000) 167 (74,159) 1, evenue Sales 1,200,000 (792) Discount allowed 1,254 (348) Other income 23,443 (611) 1,224,697 (1,751) 15 Other income ental income 2,000,000 (714) Other operating income 91,780 (1,844) 2,182,687 (4,504) 25

28 Notes to the Financial Statements (continued) 16 Profit before taxation Profit before taxation after taking into account the following: Depreciation of property, plant and equipment 9,267 1,134 Amortisation of intangible assets Forex (gains) / losses 1,981 1,525 Loss on the disposal of property, plant and equipment 1,108 1, Taxation Current Current normal taxation 130, Deferred Origination and reversal of timing differences 65, ,

29 Notes to the Financial Statements (continued) 18 Cash generated by operations Profit before taxation 1,422,672 71,271 Adjusted for: Depreciation 20 3,243 Amortisation of intangible assets 545 4,545 Dividends received 20 4,545 Interest received 202 5,454 Interest paid Impairment losses 643 4,646 Other 79,000 4,646 80,884 27,123 Working capital changes Movement in inventories 43,657 6,767 Movement in trade receivables 6,776 57,575 Movement in trade payables 5,574 5, ,007 75,853 Cash generated by operations 1,638, ,247 27

30 Detailed Statement of Comprehensive Income Note evenue?? 1,224,697 (1,751) Cost of sales (468,488) (4,221) Gross profit/(loss) 756,209 (5,972) Other income 15 2,182,687 (4,504) Distribution costs (118,297) (4,209) Administrative expenses (113,039) (4,217) Other expenses (1,271,536) 92,374 Profit before Finance Costs 16 1,436,024 73,472 Finance costs (13,352) (2,201) Profit before taxation 1,422,672 71,271 OTHE INCOME ental income 2,000,000 (714) Interest received 50,000 (832) Bad debts recovered 40,000 (774) Other operating income 90,000 (28) Government grant income 890 (831) Dividends received 890 (985) Other finance income 907 (340) 2,182,687 (4,504) 28

31 Detailed Statement of Comprehensive Income (continued) DISTIBUTION COSTS Wages and salaries 45, Subcontracted staff 45, Transport 4, Freight and carriage 4, Packaging and materials 6, Insurance Equipment hire 5, Other distribution costs Depreciation 4, ,297 4,209 ADMINISTATIVE EXPENSES Wages and Salaries 4, Subcontracted staff 5, Transport 43, Courier and postage Packaging and materials 3, Insurance 3, Equipment hire 46, Other administrative expenses 4, Depreciation ,039 4,217 OTHE EXPENSES 29

32 Detailed Statement of Comprehensive Income (continued) Wages and salaries 3,468 2 Subcontracted staff Other staff costs Staff training Directors remuneration Defined benefit pension costs 5, ent paid 635, ates 3, Electricity and water 86, Motor expenses 63, Travel expenses 3, Subsistence Staff welfare 5, Client entertainment 3, Marketing 36, Advertising 35, Discounts allowed 98, Printing, postage and stationery 8, Telephone and internet 8, Computer expenses 85, Insurance Legal fees 6, Consulting fees 56, Accounting and audit fees 98, Operating lease rentals Motor vehicle leasing Equipment hire 66, epairs and maintenance 7, Cleaning Bank charges Credit card charges 6,

33 Detailed Statement of Comprehensive Income (continued) Fines and penalties Interest and Penalties paid to SAS esearch and development expenditure written off Depreciation 4, Amortisation Loss on disposal of tangible fixed assets Loss on disposal of intangible fixed assets Loss on sale of fixed asset investments Donations Bad debts 46, Bad debt provision Subscriptions Forex Gains/Losses - Banks Forex realised gains/losses Forex unrealised gains/losses Security 5, Other expenses Amounts written off fixed asset investments (678) 463 Expected return on pensions scheme assets (6,856) 98 Interest on pension scheme liabilities (3,466) 393 Suspense account (Profit and loss account) (116,396) (115,485) 1,271,536 (92,374) 31