ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2014
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2014 Contents: Page: Accounting Officer's Report 1. Statement of Comprehensive Income 2. Statement of Financial Position 3. Statement of Cash Flows 4. Notes to the Annual Financial Statements 5. - 9. PREPARATION OF THE FINANCIAL STATEMENTS The responsibility of the members with the preparation of the financial statements is described in the accounting officer's report. The individual who prepared or supervised the preparation of the financial statements is: David Romero Professional Accountant SAIPA Practice No. 3552 APPROVAL BY THE MEMBERS The attached Annual Financial Statements have been approved by the members and are signed to that effect hereunder R. L. De Mendonca 23 MAY 2014
64 Garfield Road Claremont 7708 Cell: 074 118 7125 To the Members of Branbon Trading CC ACCOUNTING OFFICER'S REPORT I have performed the duties of Accounting Officer to Branbon Trading CC for the year ended 28 February 2014 as required by Section 62 of the Close Corporations Act 1984, as amended. The Annual Financial Statements as set out on pages 1 to 9 are the responsibility of the members. I have determined that the Annual Financial Statements are in agreement with the accounting records and have done so by adopting procedures and conducting such enquiries in relation to the books of account and records as I considered necessary in the circumstances. I have also reviewed the accounting policies which have been presented to me as having been applied in the preparation of the Annual Financial Statements and I consider that they are appropriate to the business. David Romero Professional Accountant SAIPA Practice No. 3552 23 MAY 2014 1.
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2014 NOTE Turnover 88 530 526 110 881 193 Cost of Turnover 8 75 275 057 97 638 785 Gross Margin 13 255 469 13 242 408 Other Income 9 827 622 594 179 14 083 091 13 836 587 Operating Expenses 10 13 150 015 13 263 963 Net income for the year 933 076 572 624 Taxation 261 261 237 235 Net income after taxation 671 815 335 389 Retained income at beginning of year 2 741 357 2 405 968 Retained income at end of year 3 413 172 2 741 357 2.
STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2014 NOTE Assets Non-current assets Fixed Assets 2 216 453 394 590 Investments 3. 500 000 500 000 Loans Receivable 4. - 1 336 072 Current assets 17 240 003 28 234 040 Inventories 5 13 712 548 16 046 428 Trade Debtors 3 350 426 11 584 352 Cash and cash equivalents 90 497 554 765 Taxation prepaid - 21 963 Deposits 86 532 26 532 Total Assets 17 956 456 30 464 702 Equity and Liabilities Equity 3 413 272 2 741 457 Members' Contributions 6 100 100 Retained Income 3 413 172 2 741 357 Non-current liabilities 7 795 089 2 160 340 Current liabilities 13 748 095 25 562 905 Trade creditors 13 706 182 25 425 697 Provisions and accruals - 137 208 Taxation 41 913 - Total Liabilities 17 956 456 30 464 702 3.
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 28 FEBRUARY 2014 Net income for the year - after tax 671 815 335 389 Add back : Depreciation 217 780 245 980 Interest and finance charges 1 051 117 1 624 240 Net income from operating activities 1 940 712 2 205 609 Net Interest -1 051 117-1 624 240 889 595 581 369 Increase in working Capital -1 225 041-498 324 Inventory 2 333 880-1 429 335 Taxation 63 876-80 866 Trade debtors 8 233 926-597 704 Trade creditors -11 856 723 1 609 581 Net effect of investment activities Fixed assets movements -39 643-61 016 Movement in loans receivable 1 336 072 63 928 Net effect of financing activites Increase in long term borrowing -1 365 251 46 543 Net cash flow -404 268 132 500 4.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 28 FEBRUARY 2014 1. Accounting policies The financial statements have been prepared on the historical cost basis. the main accounting policies are as follows: 1.1. Turnover Turnover represents the net value of sales raised against external clients and excludes Valued Added Taxation. 1.2. Fixed assets Fixed assets are depreciated over their expected useful economic lives. Depreciation is calculated using the straight-line method at the following applicable rates: Motor vehicles 20% per annum Computer equipment 33% per annum Machinery & Equipment 20% per annum Furniture and Fittings 20% per annum 2. Fixed Assets 2.1. Computers Cost 370 092 370 092 Accumulated Depreciation 370 091 337 719 Book Value 1 32 373 5.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 28 FEBRUARY 2014 2.2. Machinery & Equipment Cost 992 888 992 888 Accumulated Depreciation 917 111 778 592 Book Value 75 777 214 296 2.3. Motor Vehicles Cost 227 389 227 389 Accumulated Depreciation 227 388 204 425 Book Value 1 22 964 2.4. Furniture and Fittings Cost 278 893 239 250 Accumulated Depreciation 138 219 114 293 Book Value 140 674 124 957 Total Fixed Assets 216 453 394 590 6.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 28 FEBRUARY 2014 3. INVESTMENTS 25% Benefit Textiles (Pty) Ltd 500 000 500 000 4. LOANS RECEIVABLE Brandgroup International (Pty) Ltd - t/a Tiger of Sweden - 1 173 572 Podocrapus Trading CC - 162 500-1 336 072 These loans are unsecured and Interest bearing at varying rates. There are no fixed dates of repayment 5. INVENTORY Raw Materials 2 708 940 3 170 000 Work in progress 11 003 608 12 876 428 There were no significant differences between the 13 712 548 16 046 428 replacement cost and the values shown for other stock categories. Where necessary, specific provision is made for obsolete, damaged and slow-moving stock. 6. MEMBERS' CONTRIBUTIONS R. L. De Mendonca 51 51 G. Z. Rose 49 49 100 100 7.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 28 FEBRUARY 2014 7. LONG TERM LIABILITIES 7.1. Members' Loans R. L. De Mendonca 401 694 1 422 409 G. Z. Roze 393 395 700 893 795 089 2 123 302 7.2. Unsecured Gido Family Trust - 37 038 Total Long Term Liabilities 795 089 2 160 340 8. COST OF TURNOVER Opening Stock 16 046 428 14 617 093 Purchases 72 941 177 99 068 120 88 987 605 113 685 213 Less : Closing Stock -13 712 548-16 046 428 75 275 057 97 638 785 9. OTHER INCOME Discounts Received 787 245 404 365 Interest Received - Bank 16 242 - Unsecured Loans 40 377 173 572 827 622 594 179 8.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS - 28 FEBRUARY 2014 10. OPERATING EXPENSES Accounting Officer's Remuneration 207 000 204 244 Bank Charges 36 660 30 468 Consultancy Fees - 18 500 Computer Expenses 328 544 205 298 Depreciation - Machinery and Equipment 138 519 138 519 - Motor Vehicles 22 963 45 478 - Furniture and Fittings 23 926 23 926 - Computers 32 372 38 057 Entertainment Expenses 25 353 23 595 General Expenses - Gifts 5 574 7 397 - Legal Costs tax deductible 23 779 64 054 - Legal Costs non tax deductible - 274 643 - Subscriptions 18 688 - Operating Leases 149 915 152 166 Insurance 143 331 126 320 Interest paid - Unsecured Loans 144 858 204 179 - Factoring Costs 227 283 323 062 - Interest on Factoring 678 595 1 096 999 - Secured Loans 381 - Members' Salaries - R. L. De Mendonca 1 030 200 1 030 200 - G. Z. Rose 1 030 200 1 030 200 Motor Vehicle Expenses 105 839 92 733 Printing and Stationery 46 226 47 887 Rent, Electricity and Water 884 632 624 828 Repairs and Maintenance 18 743 4 070 Salaries and Wages 7 666 099 7 300 058 Security Costs 5 444 4 228 Staff Training and Welfare 53 192 62 490 Telephone 46 720 70 773 Travelling Costs 55 261 19 591 13 150 015 13 263 963 9.