COMPANY A (PRIVATE) LIMITED FINANCIAL STATEMENTS FOR FISCAL YEARS Y2018, Y2019 AND Y2020
COMPANY A (PRIVATE) LIMITED INDEX to the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 Statement of Company Information Schedule 2 Statement of Financial Position Schedule 3 Statement of Comprehensive Income Schedule 4 Statement of Operating Expenses Schedule 5 Statement of Cashflow Statement Schedule 6 Statement of Changes in Equity Schedule 7 Statement of Trading & Profit & Loss Statement Schedule 8 Statement of Accounting Policies Schedule 9 Satement of Fixed Assets and Depreciation Schedule 10 Statement of Capital Allowances Schedule 11 Statement of Income Tax Computation Schedule 12
COMPANY A (PRIVATE) LIMITED Schedule 2 STATEMENT OF COMPANY INFORMATION for the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 1 Company Name : Company A (Private) Limited 2 Nature of Business : Retail - Agricultural, General Hardware & Groceries
COMPANY A (PRIVATE) LIMITED Schedule 3 STATEMENT OF FINANCIAL POSITION 2018 at Fiscal Year End Y2018, Y2019 and Y2020 2020 2019 216,635.06 NOTE 195,000.00 ASSETS 13,746.58 - Non Current Assets 3,171,029.25 1,627,048.32 3,492.00 3,376.80 Land and Buildings ( 4. 0 ) 2,692,290.67 1,018,557.33 1,019.68 Machinery & Equipment ( 4. 0 ) 242,328.49 307,725.03 Motor Vehicles ( 4. 0 ) 112,500.00 142,500.00 100,724.99 Furniture & Fittings ( 4. 0 ) 70,338.85 89,757.09 58,442.00 Computers and Software ( 4. 0 ) 53,041.01 67,733.90 - Small Tools and Serving Equipment ( 4. 0 ) 530.23 774.96 42,282.99 - Current Assets ( 18.0 ) 1,909,460.11 172,528.33 Inventories ( 19.0 ) 1,034,454.96 111,456.32 317,360.05 Trade Receivables ( 20.0 ) Cash Resources - - 138,427.18 Deferred Tax Asset 875,005.15 37,657.92 - 23,414.09 - TOTAL ASSETS - - 1,799,576.65 - 5,080,489.36 76,543.00 EQUITY & LIABILITIES ( 21.0 ) 4,251,693.91 1,236,455.57 61,884.18 - - Equity ( 22.0 ) - - 133,763.32 Ordinary Share Capital ( 23.0 ) - Members Contribution ( 24.0 ) 819,385.91 819,385.91 - Non Distributable Reserves ( 25.0 ) - - Distributable Reserves ( 26.0 ) 133,763.32 Retained Earnings 417,069.66 138,427.18 - Current Year Profits 3,015,238.34 278,642.48 45,169.55 Non Current Liabilities (29,841.14) 488,763.32 - Non Redeemable Preference Shares - - Redeemable Preference Shares - - 927.00 Shareholders Loan Account - Deferred Taxation (29,841.14) 488,763.32 - - 40,632.99 Current Liabilities - Trade Payables 858,636.60 74,357.77 Accrued Expenses - - 3,609.56 Statutory Liabilities - Short Term Borrowings (Overdraft) 1,557.00 317,360.05 Current Portion of Long Term Loan 12,969.07 4,213.13 Income Tax Provision - 68,587.64 - TOTAL EQUITY & LIABILITIES - 845,667.53 - 5,080,489.36 1,799,576.66 Signed Director
COMPANY A (PRIVATE) LIMITED Schedule 4 STATEMENT OF COMPREHENSIVE INCOME for the Fiscal Years Y2018, Y2019 and Y2020 2020 % 2019 % 2018 % 651,300.00 Revenue 23.82% 32,571,241.87 38.84% 2,304,917.56 15.25% 552,009.30 11.61% 10.06% Cost of Sales 11.97% 24,812,297.74 1,409,654.53 99,290.70 Gross Profit 7,758,944.14 10.92% 895,263.03 10.06% 33,796.96 Operating Expenditure ( 17.0 ) 11.93% 3,861,174.66 12.09% 627,661.42 9.50% 65,493.74 Revenue Generated from Operations ( 18.0 ) 9.26% 3,897,769.48 267,601.61 - Interest Income - - - Interest on Long Term Loan 13,449.53 15,982.78 65,493.74 Profit Before Tax 3,884,319.95 251,618.83 3,609.56 61,884.18 Corporate Tax 869,081.61 (27,023.65) Profit for the Year 3,015,238.34 278,642.48
COMPANY A (PRIVATE) LIMITED Shedule 6 CASH FLOW STATEMENT 2018 at Fiscal Year End Y2018, Y2019 and Y2020 $ 2020 2019 65,493.74 $ $ 3,576.96 CASH FLOWS FROM OPERATING ACTIVITIES 251,618.83 - - Net Profit / (Loss) Before Taxation 3,884,319.95 48,136.74 - - Adjustments 156,019.07 - 69,070.70 Depreciation - Loss on Disposal of Fixed Assets - 15,982.78 (58,442.00) Interest Received 315,738.35 - Interest Expense 13,449.53 Operating Profit Before Working Capital Changes 4,053,788.55 (53,014.32) 4,536.56 (23,414.09) 15,165.26 (Increase) / Decrease in Stock (922,998.64) Increase in Debtors 23,414.09 1,233.57 - Increase / (Decrease) in Creditors 240,543.51 (3,609.56) Cash Generated from Operations 852,866.47 11,555.70 4,007,070.47 (15,982.78) 27,023.65 (220,212.02) Interest Paid (13,449.53) - Taxation (869,081.61) 251,584.38 - Net Cash Generated from Operations 3,124,539.33 - (1,458,550.00) Cash Flows from Investing Activities (1,700,000.00) - (220,212.02) Purchase of Fixed Assets - - Proceeds from Sale of Fixed Assets - - (208,656.32) Investements in Subsidiary Cos. - Interest Received (1,458,550.00) 208,789.00 Net Cash Invested (1,700,000.00) - (1,206,965.62) Net Cash Outflows Before Financing Activities 1,424,539.33 40,632.99 1,174,385.91 249,421.99 Cash Outflows From Financing Activities (518,604.46) - Increase / (Decrease) in Shareholder Funding - 40,765.67 Shares Issued 27,954.65 Increase / (Decrease) in Bank Overdraft (68,587.64) 1,202,340.56 1,517.32 Net Cash From Financing Activities (587,192.10) 42,282.99 (4,625.07) Net Change in Cash and Cash Equivalents 837,347.23 - 42,282.99 42,282.99 Cash and Cash Equivalents at Beginning of Year 37,657.92 37,657.92 42,282.99 Cash and Cash Equivalents at End of Year 875,005.15 - Cash and Cash Equivalents Comprise:- 37,657.92 37,657.92 Cash at Bank 322,275.82 Cash in Hand 552,729.33 875,005.15
COMPANY A (PRIVATE) LIMITED Schedule 7 STATEMENT OF CHANGES IN EQUITY 2020 2019 2018 at Fiscal Year End Y2018, Y2019 and Y2020 417,069.66 138,427.18 76,543.00 3,015,238.34 278,642.48 61,884.18 Retained Earnings at 1 January 2020 Current Year Profits - - - Dividend Paid 3,432,308.00 417,069.66 138,427.18 Retained Earnings at 31 December 2020 - - - Add - - - Ordinary Share Capital 819,385.91 819,385.91 - Members Contribution - - - Non Distributable Reserves Distributable Reserves 4,251,693.91 1,236,455.57 138,427.18 Equity
COMPANY A (PVT) LTD Schedule 9 STATEMENT OF ACCOUNTING POLICIES for the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 The principal accounting policies of the company, which are set out below, are consistent with those applied in the previous years except where stated and otherwise, and have been followed in all material respects to conform to the International Financial Reporting Standards. 1.0 GENERAL DISCLOSURES 1.1 Country of Incorporation and Main Activities The company and its associated companies are incorporated in Zimbabwe. The main activity of the company is retail specialising in agricultural supplies, general hardware and groceries. 1.2 Currency The financial statements are expressed in Zimbabwe (ZWL) Dollars. 2.0 ACCOUNTING POLICIES 2.1 Accounting Convention The financial statements are prepared in terms of the historical cost convention. No procedures have been adopted to reflect the impact on the financial statements of specific price changes or changes in the general level of prices. Where the multiple currency other than the US$ is used it is converted into the reporting currency in terms of IAS 21. 2.2 Depreciation of Fixed Assets Fixed assets are depreciated over their anticipated useful lives as follows using the straight line method: Asset Depreciation % Land & Buildings 2.00% Machinery & Equipment 20.00% Motor Vehicles 20.00% Furniture & Fittings 20.00% Computers & Software 20.00% Small Tools & Serving Equipment 20.00% 2.3 Intangible Assets Goodwill is amortised on a straight-line basis over a period not exceeding 5 (five) years. 2.4 Inventories & Work in Progress Inventories and work in progress are valued at the lower of cost on a Weighted Average basis and estimated net realisable value. In the case of finished manufactured goods 1
and work in progress cost includes materials, direct labour and an appropriate proportion of allocated overheads. 2.5 Turnover Turnover comprises the value of goods sold net of value added tax. 2.7 Bad Debts Provision for bad debts is made in the financial statements on a percentage of the book value of all debts such percentage being estimated doubtful debts. 2.8 Multiple Currencies Assets and liabilities denominated in currency other than the reporting currency (US$) are converted at the rates of exchange ruling at the balance sheet date. Transactions during the year are converted at the rates of exchange ruling at the time of the transaction. 2.7 Taxes 2.7.1 Current Tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be received from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the balance sheet date. Current income tax relating to items directly in equity is recognised directly in equity and not in the income statement. 2.7.2 Deferred Taxation Provision for deferred taxation is made in the financial statements on a full liability basis in respect of material temporary differences resulting from the recognition of income and expenses in differing periods for accounting and tax purposes. 3.0 REVENUES / TURNOVER 2020 2019 2018 674,866.34 27,058.24 13,494.74 January 413,126.74 56,706.12 February 363,364.87 137,115.56 8,260.95 March 1,027,590.50 79,553.89 7,265.90 April 821,686.75 82,997.50 20,547.87 May 2,173,922.18 126,933.48 16,430.59 June 3,135,797.18 205,749.74 43,470.11 July 4,824,342.24 131,790.66 62,703.93 August 4,631,524.07 254,755.46 96,468.35 September 5,146,812.02 273,308.89 92,612.73 October 4,383,644.89 359,043.53 102,916.51 November 4,974,564.01 569,904.49 87,656.10 December 32,571,241.79 2,304,917.56 99,472.21 Total 651,300.00 2
4.0 PURCHASES 2020 2019 2018 179,169.13 26,801.14 10,218.46 January 366,068.19 32,868.48 12,531.76 February 243,009.34 53,229.02 20,294.61 March 285,199.50 30,368.25 11,578.49 April 796,150.00 42,589.35 16,238.03 May 1,992,675.71 63,465.35 24,197.41 June 2,828,130.22 76,725.90 29,253.26 July 4,245,421.16 81,267.83 30,984.96 August 3,936,795.40 94,833.48 36,157.13 September 3,310,421.98 114,373.41 43,607.11 October 3,508,244.03 447,458.45 170,602.34 November 4,044,011.99 398,688.19 152,007.72 December 25,735,296.65 1,462,668.85 557,671.30 Total 5.0 FIXED ASSETS AND DEPRECIATION 5.1 Fiscal Year 2020 Depreciation Schedule Depreciation Asset Cost Current Accumulated Net Book Value Land & Buildings 2,730,000.00 26,266.67 37,709.33 Machinery & Equipment 326,982.73 65,396.55 84,654.24 2,692,290.67 Motor Vehicles 150,000.00 30,000.00 37,500.00 242,328.49 Furniture & Fittings 97,091.20 19,418.24 26,752.35 112,500.00 Computers & Software 73,464.48 14,692.90 20,423.47 70,338.85 Small Tools & Serving Equipment 1,223.62 53,041.01 Total 244.72 693.38 530.23 3,378,762.02 156,019.07 207,732.77 3,171,029.25 5.2 Fiscal Year 2019 Depreciation Schedule Depreciation Asset Cost Current Accumulated Net Book Value Land & Buildings 1,030,000.00 9,492.67 11,442.67 Machinery & Equipment 326,982.73 18,521.55 19,257.69 1,018,557.33 Motor Vehicles 150,000.00 307,725.03 Furniture & Fittings 97,091.20 7,500.00 7,500.00 142,500.00 Computers & Software 73,464.48 6,984.91 7,334.11 89,757.09 Small Tools & Serving Equipment 1,223.62 5,392.90 5,730.58 67,733.90 Total 774.96 1,678,762.02 244.72 448.66 48,136.74 51,713.70 1,627,048.32 5.3 Fiscal Year 2019 Depreciation Schedule Depreciation Asset Cost Current Accumulated Net Book Value Land & Buildings 196,950.00 1,950.00 1,950.00 195,000.00 Machinery & Equipment 14,482.73 736.15 736.15 13,746.58 Motor Vehicles 0.00 0.00 0.00 0.00 Furniture & Fittings 3,841.20 349.20 349.20 3,492.00 Computers & Software 3,714.48 337.68 337.68 3,376.80 Small Tools & Serving Equipment 1,223.62 203.94 203.94 1,019.68 Total 216,635.06 220,212.02 3,576.96 3,576.96 3
COMPANY A (PVT) LTD COMENTARY AND FINANCIAL PERFORMANCE Based on the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 1.0 SALES TURNOVER GROWTH, PEFORMANCE & TRENDS 1.1.1 TURNOVER DYNAMICS 2020 2019 2018 674,866.34 27,058.24 13,494.74 January 413,126.74 56,706.12 February 363,364.87 137,115.56 8,260.95 March 1,027,590.50 79,553.89 7,265.90 April 821,686.75 82,997.50 20,547.87 May 2,173,922.18 126,933.48 16,430.59 June 3,135,797.18 205,749.74 43,470.11 July 4,824,342.24 131,790.66 62,703.93 August 4,631,524.07 254,755.46 96,468.35 September 5,146,812.02 273,308.89 92,612.73 October 4,383,644.89 359,043.53 102,916.51 November 4,974,564.01 569,904.49 87,656.10 December 32,571,241.79 2,304,917.56 99,472.21 Total 651,300.00 Year on Year Dollar Growth 30,266,324.23 1,653,617.56 293,621.00 Year on Year % Growth 1313.12% 253.89% 82.09% 1.1.2 YEARLY SALES COMPARISON GRAPH Sales Comparison 35,000,000.00 30,000,000.00 25,000,000.00 20,000,000.00 15,000,000.00 10,000,000.00 5,000,000.00 0.00 2020 2019 2018 Sales at $32.57 million for the year 2020, $2,30 million for year 2019 and $651.3 thousand for year 2018. Sales were up 1,313.12 percentage points in fiscal year 2020 from fiscal year 2019 levels and up 253.89% percentage points in fiscal year 2019 from fiscal year 2018 levels. Average year on year inflation rate for fiscal year 2018 was 10.61%, fiscal year 2019 was
255.29% and fiscal year 2020 was 557.2%. Fiscal year 2020 sales were impressive surpassing rate of inflation by 755.92%. 2.0 PROFITABILITY AND PERFOMANCE METRICS 2.1 EARNINGS DYNAMICS Below are the earnings ratios: - GP% 2020 2019 2018 NPBIT 23.82% 38.84% 15.25% NP 11.97% 11.61% 10.06% 9.26% 12.09% 9.50% The earnings of the company were commendable for the three fiscal years under review. Gross margin at 23.82% ($7.58 million) for fiscal year 2020, 38.84% ($895.2 thousand) for fiscal year 2019 and 15.25% ($99.29 thousand) for fiscal year 2018. Gross margin rose 23.59 percentage points from fiscal year 2018 to fiscal year 2019 and fell 15.02 percentage points in fiscal year 2020. Benchmark margins for similar retail businesses range from 15% to 18%. Margins recorded were within or above industry benchmarks. Growth in fiscal year 2019 from fiscal year 2018 was attributable to introduction of high mark up agricultural and hardware products to the product mix. In fiscal year 2020 management took a deliberate approach to reduce mark ups to stay competitive and combat consumer resistance. This resulted in large sales volumes witnessed in fiscal year 2020. In dollar terms gross margin rose 801.66 percentage points from fiscal year 2018 to fiscal year 2019 and 766.67 percentage points from fiscal year 2019 to fiscal year 2020. Net profit margin at 9.26% ($3.015 million) for fiscal year 2020, 12.09% ($278.64 thousand) for fiscal year 2019 and 9.50% ($61.88 thousand) for fiscal year 2018. The net profit margins recorded by the business were commendable. Benchmark net profit margins for similar retail businesses range from 5% to 6%. Net profit margins recorded were within or above industry benchmarks. In dollar terms net profits rose 350.26 percentage points from fiscal year 2018 to fiscal year 2019 and 982.12 percentage points from fiscal year 2019 to fiscal year 2020. Fiscal year 2019 recorded high net profit margins owing to the high gross profit margins posted for the year. 2.2 EXPENSES 2020 2019 2018 Below are the expense ratios: - 11.85% 27.23% 5.19% Expenses Total expenses at 11.85% ($3.861 million) for fiscal year 2020, 27.23% ($627.661 thousand) for fiscal year 2019 and 5.19% ($33.796 thousand) for fiscal year 2018. Benchmark ratio for total expenses to sales for similar retail businesses range from 10% to 12%. At 5.19% and 11.85% respectively fiscal year 2018 and fiscal year 2020 ratios were below or within industry bench mark range. At 27.23% fiscal year 2018 ratio was way out industry bench mark range. This heavily weighed down the bottom line despite the business having posted healthy gross margins of 38.84%.
2.3 RETURN ON CAPITAL EMPLOYED 2020 2019 2018 Return on Capital Employed 493.67% 20.46% 48.96% Return on capital employed fell 18.46 percentage points from 48.96% in fiscal year 2018 to 20.46% in fiscal year 2019 and rising by 473.21% in fiscal year 2020. 3.0 LIQUID RISK ANALYSIS (LIFE BLOOD ANALYSIS) 2020 2019 2018 3.1 CURRENT ASSETS 27.70 44.06 65.69 3.1.1 INVENTORY DAYS Inventory Stocks held by the business at fiscal end 2020 was in the amount of $1.034 million (27.70 days), at fiscal year end 2019 was in the amount of $111.45 thousand (44.06 days) while that at fiscal year end 2018 was in the amount of $58.44 thousand (65.69 days). The bench mark range for similar businesses is 30 – 45 days as supermarkets need to hold at least 21 days worth of optimum stocks to allow for replenishment and to avoid stock outs. The stock days ratio for fiscal year 2020 was ideal, while that for fiscal year 2019 was still good and that of fiscal year 2018 ratio was way out of range. 3.1.2 TRADE RECEIVABLES (DEBTORS) 2020 2019 2018 Trade Receivables (Debtor) Days 0.00 0.00 0.00 The business had zero trade debtors at the end of all the three fiscal years. Debtors days were thus zero for all fiscal years. 3.2 CURRENT LIABILITIES 3.2.1 TRADE PAYABLES (CREDITORS) Trade Payables (Creditor) Days 2020 2019 2018 0.00 0.00 0.00 The business had zero trade creditors at the end of the three fiscal years. Supplier days were thus zero for all three fiscal years. This was because the business holds no credit lines with its suppliers. The business operates either a pay upfront and pick up or a cash on delivery arrangement with all of its suppliers.
3.3 NET LIQUIDITY (NET CURRENT ASSETS) 3.3.1. Current Ratio Current Ratio 2020 2019 2018 222.38% 232.02% 222.99% The liquidity of the business as measured by the current shows that the business has sufficient liquid assets to meet current liabilities. The liquidity of the business as measured by the current ratio was reasonable at 222.38% at fiscal year end 2020, 232.02% at fiscal year end 2019 and 222.99% at fiscal year end 2018. 3.3.2. Acid Test Ratio 2020 2019 2018 Acid Test Ratio 101.91% 82.13% 93.61% The acid test ratio was 101.91% at fiscal year end 2020, 82.13% at fiscal year end 2019 and 93.61% at fiscal year end 2018. Both the current and the acid test ratios for all the three fiscal years depict a healthy relationship between the business’s current assets against its current liabilities. The business thus has demonstrated that it can meet its obligations with its liquid assets when called to do so. 4.0 SOLVENCY FINANCIAL LEVERAGE 4.1 DEBT CAPACITY (BORROWING/EQUITY RATIO) Debt Capacity (Borrowing / Equity Ratio 2020 2019 2018 0.00% 5.55% 29.35% The business decreased its gearing as measured by the Borrowing to Equity ratio from 29.35% at fiscal year end 2018 to 5.55% at fiscal year end 2019 and finally to 0% at fiscal year end 2020. This has shown that the business is capable of generating enough cash to finance working capital from its own operations. 4.2 TOTAL LIABILITIES / ASSETS & TOTAL LIABILITIES / EQUITY RATIOS 4.2.1 Liabilities / Assets Ratio Liabilities / Assets 2020 2019 2018 16.31% 31.29% 56.38% The business’s Liabilities to Assets ratio was 16.31% at fiscal year end 2020, 31.29% at fiscal year end 2019 and 56.38% at fiscal year end 2018. This shows that the ratio was high at fiscal year end 2018 (56.38%) and had gone down to 16.31% by fiscal year end 2020.
4.2.2 Liabilities / Equity Ratio Liabilities / Equity 2020 2019 2018 19.49% 45.54% 129.26% The business’s Liabilities to Equity ratio was 19.49% at fiscal year end 2020, 45.54% at fiscal year end 2019 and 129.26% at fiscal year end 2018. This shows that the ratio was high at fiscal year end 2018 (126.26%) and had gone down to 19.49% by fiscal year end 2020. Liabilities remained largely controlled and shareholder funds and reinvestment of retained income helped fund operations and resulted in the reduction of the liabilities to assets ratio.
COMPANY B (PVT) LTD T/A BENZ SPARES FINANCIAL STATEMENTS FOR FISCAL YEARS Y2018, Y2019 AND Y2020
COMPANY B (PVT) LTD T/A BENZ SPARES INDEX for the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 Statement of Financial Position Schedule 3 Statement of Comprehensive Income Schedule 4 Statement of Operating Expenses Schedule 5 Cashflow Statement Schedule 6 Statement of Changes in Equity Schedule 7 Trading & Profit & Loss Statement Schedule 8 Statement of Accounting Policies Schedule 9 Assets Schedule Schedule 10 Capital Allowances Schedule 11 Tax Computation Schedule Schedule 12
COMPANY B (PVT) LTD T/A BENZ SPARES COMPANY INFORMATION for the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 1 Company Name : Company B (Pvt) Ltd t/a Benz Spares 2 Nature of Business : Auto Vehicle Parts
COMPANY B (PVT) LTD T/A BENZ SPARES Schedule 3 STATEMENT OF FINANCIAL POSITION at Fiscal Year End Y2018, Y2019 and Y2020 NOTE 2020 2019 2018 ASSETS ( 4. 0 ) 71,106.75 7,502.67 3,574.74 ( 4. 0 ) Non Current Assets ( 4. 0 ) 13,776.62 2,795.71 1,397.08 38,751.76 1,907.98 838.16 Office Furniture 18,578.38 2,798.98 Computers & Equipment 1,339.50 Fixtures & Fittings 1,176,384.85 160,961.03 1,119,756.37 160,677.55 60,194.09 Current Assets 58,934.55 Inventories - - Trade Receivables 56,628.48 283.48 - Cash Resources 1,259.54 Deferred Tax Asset - - - TOTAL ASSETS 1,247,491.60 168,463.70 63,768.83 EQUITY & LIABILITIES 874,008.44 87,481.39 53,237.06 100.00 100.00 Equity 100.00 Ordinary Share Capital 28,144.89 28,144.89 28,144.89 Members Contribution - - Non Distributable Reserves - - - Distributable Reserves - Retained Earnings 59,236.50 24,992.17 2,461.82 Current Year Profits 786,527.05 34,244.33 22,530.35 Non Current Liabilities ( 5. 0 ) 92,228.46 - - Non Redeemable Preference Shares - - Redeemable Preference Shares - - - Shareholders Loan Account - - - Deferred Taxation 92,228.46 - - - Current Liabilities 80,982.31 10,531.77 Trade Payables ( 6. 0 ) 281,254.71 65,006.43 - Accrued Expenses ( 7. 0 ) - Statutory Liabilities - - Short Term Borrowings - 3,375.28 2,056.08 Current Portion of Long Term Loan - - Income Tax Provision - - - - - TOTAL EQUITY & LIABILITIES 281,254.71 12,600.60 8,475.69 1,247,491.60 168,463.70 63,768.83 Signed Director
COMPANY B (PVT) LTD T/A BENZ SPARES Schedule 4 STATEMENT OF COMPREHENSIVE INCOME for the Fiscal Years Y2028, Y2019 and Y2020 2020 % 2019 % 2018 % Revenue 50.17% 4,755,587.72 75.64% 276,564.01 43.92% 182,907.22 Cost of Sales 22.45% 2,369,832.58 16.94% 67,376.08 16.95% 102,581.64 Gross Profit 2,385,755.14 Operating Expenditure 22.45% 1,318,140.04 16.94% 209,187.93 16.95% 80,325.58 Revenue Generated from Operations 16.54% 1,067,615.10 12.38% 162,348.33 12.32% 49,325.95 30,999.63 Interest Income 166.66 46,839.60 Interest on Long Term Loan 0.00 6.41 Profit Before Tax 6.64 - 1,067,781.76 1.31 31,006.04 Corporate Tax 46,844.93 Profit for the Year 281,254.71 8,475.69 786,527.05 12,600.60 22,530.35 34,244.33
COMPANY B (PVT) LTD T/A BENZ SPARES 2020 2019 Shedule 6 $ $ CASH FLOW STATEMENT 2018 1,067,781.76 46,844.93 $ at Fiscal Year End Y2018, Y2019 and Y2020 2,934.67 1,110.39 31,006.04 CASH FLOWS FROM OPERATING ACTIVITIES - - 614.64 Net Loss Before Taxation (166.66) (6.64) - - 1.31 - Adjustments - Depreciation 1,070,549.77 47,949.99 Loss on Disposal of Fixed Assets 31,620.68 Interest Received (959,078.82) (101,743.00) Interest Expense - - (25,453.41) Operating Profit Before Working Capital Changes - 200,272.39 66,325.63 (Increase) / Decrease in Stock 311,743.34 12,532.62 (2,185.18) Increase in Debtors 3,982.09 Increase / (Decrease) in Creditors - (1.31) Cash Generated from Operations (293,855.31) (8,469.05) - (1,145.60) Interest Paid 17,888.03 4,062.27 2,836.49 Taxation Net Cash Generated from Operations (53,771.49) (5,038.33) - - - - Cash Flows from Investing Activities - - - Purchase of Fixed Assets - - - Proceeds from Sale of Fixed Assets - Investements in Subsidiary Cos. (53,771.49) (5,038.33) Interest Received 2,836.49 Net Cash Invested (35,883.46) (976.06) (2,703.81) Net Cash Outflows Before Financing Activities 92,228.46 - - - - - Cash Outflows From Financing Activities - - Increase in Shareholder Funding - (2,703.81) Shares Issued 92,228.46 Increase in Bank Overdraft (976.06) 132.68 Net Cash From Financing Activities 56,345.00 1,259.54 1,126.86 Net Change in Cash and Cash Equivalents 283.48 283.48 1,259.54 56,628.48 Cash and Cash Equivalents at Beginning of Year 1,259.54 Cash and Cash Equivalents at End of Year 56,628.48 283.48 - - - Cash and Cash Equivalents Comprise:- 1,259.54 56,628.48 283.48 Cash at Bank & On Hand Cash on Hand
COMPANY B (PVT) LTD T/A BENZ SPARES Schedule 7 STATEMENT OF CHANGES IN EQUITY 2020 2019 2018 at Fiscal Year End Y2018, Y2019 and Y2020 59,236.50 24,992.17 2,461.82 786,527.05 34,244.33 22,530.35 Retained Earnings at 1 January 2019 Current Year Profits 845,763.55 - - Dividend Paid 59,236.50 24,992.17 Retained Earnings at 31 December 2019 100.00 28,144.89 100.00 100.00 Add 28,144.89 28,144.89 Ordinary Share Capital - Members Contribution - - - Non Distributable Reserves - - Distributable Reserves 874,008.44 87,481.39 53,237.06 Equity
COMPANY B (PVT) LTD t/a Z AUTO PARTS Schedule 9 STATEMENT OF ACCOUNTING POLICIES for the Fiscal Years Y2018, Y2019 and Y2020 The principal accounting policies of the company, which are set out below, are consistent with those applied in the previous years except where stated and otherwise, and have been followed in all material respects to conform to the International Financial Reporting Standards. 1.0 GENERAL DISCLOSURES 1.1 Country of Incorporation and Main Activities The company and its associated companies are incorporated in Zimbabwe. The main activity of the company is retailing of motor vehicle spare parts. 1.2 Currency The financial statements are expressed in ZWL Dollars. 2.0 ACCOUNTING POLICIES 2.1 Accounting Convention The financial statements are prepared in terms of the historical cost convention. No procedures have been adopted to reflect the impact on the financial statements of specific price changes or changes in the general level of prices. Where the multiple currency other than the US$ is used it is converted into the reporting currency in terms of IAS 21. 2.2 Depreciation of Fixed Assets Fixed assets are depreciated over their anticipated useful lives as follows using the straight line method: Asset Depreciation % Office Furniture 10.00% Computers & Equipment 20.00% Fixtures & Fittings 10.00% 1
2.3 Intangible Assets Goodwill is amortised on a straight-line basis over a period not exceeding 5 (five) years. 2.4 Inventories & Work in Progress Inventories and work in progress are valued at the lower of cost on a Weighted Average basis and estimated net realisable value. In the case of finished manufactured goods and work in progress cost includes materials, direct labour and an appropriate proportion of allocated overheads. 2.5 Turnover Turnover comprises the value of goods sold net of value added tax. 2.7 Bad Debts Provision for bad debts is made in the financial statements on a percentage of the book value of all debts such percentage being estimated doubtful debts. 2.8 Multiple Currencies Assets and liabilities denominated in currency other than the reporting currency (US$) are converted at the rates of exchange ruling at the balance sheet date. Transactions during the year are converted at the rates of exchange ruling at the time of the transaction. 2.7 Taxes 2.7.1 Current Tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be received from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the balance sheet date. Current income tax relating to items directly in equity is recognised directly in equity and not in the income statement. 2.7.2 Deferred Taxation Provision for deferred taxation is made in the financial statements on a full liability basis in respect of material temporary differences resulting from the recognition of income and expenses in differing periods for accounting and tax purposes. 2
3.0 REVENUES / TURNOVER 2020 2019 2018 365,072.00 18,480.22 10,675.49 January 360,402.22 14,154.71 February 362,211.31 7,959.44 March 315,731.53 13,590.66 8,785.93 April 441,388.54 15,590.33 7,785.60 May 328,444.85 13,025.01 5,220.28 June 295,842.52 23,503.45 15,698.72 July 351,298.42 25,403.23 17,598.50 August 296,298.64 14,479.55 6,674.82 September 396,298.98 14,368.33 6,563.60 October 546,299.54 22,701.44 14,896.71 November 696,299.21 38,725.78 27,921.05 December 4,755,587.72 68,736.56 46,931.83 Total 276,564.01 182,907.22 4.0 PURCHASES 2020 2019 2018 246,182.30 9,526.48 6,102.81 January 241,512.52 -994.30 9,582.03 February 243,321.61 4,636.92 4,213.25 March 196,841.83 6,636.59 3,212.92 April 322,498.84 4,071.27 May 209,555.15 14,549.71 647.60 June 176,952.82 16,449.49 11,126.04 July 232,408.72 5,525.81 13,025.82 August 177,408.94 5,414.59 September 277,409.28 13,747.70 2,102.14 October 427,409.84 29,772.04 1,990.92 November 577,409.51 59,782.82 10,324.03 December 3,328,911.40 169,119.08 23,348.37 Total 42,359.15 128,035.05 5.0 FIXED ASSETS AND DEPRECIATION 5.1 Fiscal Year 2020 Depreciation Schedule Depreciation Asset Cost Current Accumulated Net Book Office Furniture & Equipment 14,902.92 443.09 1,126.31 Value Computers & Equipment 41,617.17 2,865.41 13,776.62 Fixtures & Fittings 19,872.68 1,870.98 1,294.30 38,751.76 Total 76,392.78 620.60 5,286.02 18,578.38 2,934.67 71,106.75 3
5.2 Fiscal Year 2019 Depreciation Schedule Depreciation Asset Cost Current Accumulated Net Book Value Office Furniture & Equipment 3,478.92 305.29 683.21 2,795.71 Computer Equipment 2,902.42 501.90 994.44 1,907.98 Fixtures & Fittings 3,472.68 303.20 673.70 2,798.98 Total 9,854.03 1,110.39 2,351.35 7,502.67 4
COMPANY B (PVT) LTD COMENTARY AND FINANCIAL PERFORMANCE Based on the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 1.0 SALES TURNOVER GROWTH, PEFORMANCE & TRENDS 1.1.1 TURNOVER DYNAMICS 2020 2019 2018 365,072.00 18,480.22 10,675.49 January 360,402.22 14,154.71 February 362,211.31 7,959.44 March 315,731.53 13,590.66 8,785.93 April 441,388.54 15,590.33 7,785.60 May 328,444.85 13,025.01 5,220.28 June 295,842.52 23,503.45 15,698.72 July 351,298.42 25,403.23 17,598.50 August 296,298.64 14,479.55 6,674.82 September 396,298.98 14,368.33 6,563.60 October 546,299.54 22,701.44 14,896.71 November 696,299.21 38,725.78 27,921.05 December 4,755,587.72 68,736.56 46,931.83 Total 276,564.01 182,907.22 Dollar Growth 4,479,023.71 93,656.79 126,450.22 % Growth 1619.53% 51.20% 223.98% 1.1.2 YEARLY SALES COMPARISON GRAPH 800,000.00 2020 700,000.00 2019 600,000.00 2018 500,000.00 400,000.00 300,000.00 200,000.00 100,000.00 0.00
Sales at $4.75 million for fiscal year 2020, $276.56 thousand fiscal year 2019 and $126.45 thousand for fiscal year 2018. Sales were up 1,619.53 percentage points in fiscal year 2020, 51.20% in fiscal year 2019 levels and 223.98% percentage points in fiscal year 2018. Average year on year inflation rate was 557.2% for fiscal year 2020, 255.29% for fiscal 2019 and 10.61% for fiscal year 2018. Fiscal years 2020 and 2018 traded above inflation while fiscal year 2019 traded below inflation. 2.0 PROFITABILITY AND PERFOMANCE METRICS 2020 2019 2018 2.1 EARNINGS DYNAMICS 50.17% 75.64% 43.92% Below are the earnings ratios: - 22.45% 16.94% 16.95% 16.54% 12.38% 12.32% GP% NPBIT NP The earnings of the company were commendable for the three fiscal years under review. Gross margin at 50.17% ($2.38 million) for fiscal year 2020, 75.64% ($209.18 thousand) for fiscal year 2019 and 43.92% ($80.32 thousand) for fiscal year 2018. Gross margin rose 31.72 percentage points from fiscal year 2018 to fiscal year 2019 and fell 25.47 percentage points in fiscal year 2020. Net profit margin at 16.54% ($786.52 thousand) for fiscal year 2020, 12.38% ($34.24 thousand) for fiscal year 2019 and 12.32% ($22.53 thousand) for fiscal year 2018. The net profit margins recorded by the business were commendable. 2.2 EXPENSES 2020 2019 2018 Below are the expense ratios: - 27.72% 58.70% 26.97% Expenses Total expenses at 27.72% ($1.318 million) for fiscal year 2020, 58.72% ($162.34 thousand) for fiscal year 2019 and 26.97% ($49.32 thousand) for fiscal year 2018. Generally purchases for the company are too high but year 2019 purchases were way out. 2.3 RETURN ON CAPITAL EMPLOYED Return on Capital Employed 2020 2019 2018 886.32% 165.86% 109.78% Return on capital employed rose by 56.08 percentage points from fiscal year 2018 to fiscal year 2019 and rose again by 720.46 percentage points from fiscal year 2019 to fiscal year 2020.
3.0 LIQUID RISK ANALYSIS (LIFE BLOOD ANALYSIS) 3.1 CURRENT ASSETS 3.1.1 INVENTORY DAYS Inventory Days 2020 2019 2018 170.10 858.52 206.82 Inventories held by the business at fiscal end 2020 was in the amount of $1.119 million (170.10 days), at fiscal year end 2019 was in the amount of $160.67 thousand (858.52 days) while that at fiscal year end 2018 was in the amount of $58.93 thousand (206.82 days). Generally the business is holding much stocks which are taking time to convert into stock. Fiscal year 2019 ratio, at 858.52 days, was worse compared to the other fiscal years’ ratios. Fiscal year 2019 recorded a much better ratio as much inventories were converted into cash but there is still room for improvement. If these were perishables the business was going to suffer losses but the stocks held (vehicle parts) do not lose value quickly. 3.1.2 DEBTORS 2020 2019 2018 Trade Receivables (Debtor) Days 0.00 0.00 0.00 The business had zero trade debtors at the end of all the three fiscal years. Debtors days were thus zero for all fiscal years. This was because the business operates strictly on a cash basis. 3.2 CURRENT LIABILITIES 3.2.1 TRADE PAYABLES (CREDITORS) Trade Payables (Creditor) Days 2020 2019 2018 0.00 347.34 0.00 The business had zero trade payables at the end of fiscal years 2020 and 2018. Trade payables (creditor) days were thus zero for the two fiscal years. Fiscal year 2019 trade payables (creditor) days were 347.34. The company performed badly in the management its supplier accounts. The overstocking as reflected in the inventory days affected the business’s ability to pay its creditors in time. 3.3 NET LIQUIDITY (NET CURRENT ASSETS) 3.3.1. Current Ratio 2020 2019 2018 Current Ratio 418.26% 198.76% 571.55% The liquidity of the business as measured by the current shows that the business has sufficient liquid assets to meet current liabilities. 3.3.2. Acid Test Ratio Acid Test Ratio 2020 2019 2018 20.13% 0.35% 11.96%
However signs of stress are revealed if the business is put to the test when the acid test ratio is applied. Should the business fail to liquidate its inventories the business cannot meet its current liabilities. Year 2019 had the worst ratio. 4.0 SOLVENCY FINANCIAL LEVERAGE 4.1 DEBT CAPACITY (BORROWING/EQUITY RATIO) Debt Capacity (Borrowing / Equity Ratio 2020 2019 2018 0.00% 0.00% 0.00% The business had zero borrowings during all the fiscal years. 4.2 TOTAL LIABILITIES / ASSETS & TOTAL LIABILITIES / EQUITY RATIOS 4.2.1 Liabilities / Assets Ratio Liabilities / Assets 2020 2019 2018 29.94% 48.07% 16.52% Liabilities compared to assets ratio was high in fiscal year 2019 compared to the other two fiscal years. Assets were beginning to grow in year 2020 boosted by reploughing retained income back into the business. 4.2.2 Liabilities / Equity Ratio Liabilities / Equity 2020 2019 2018 42.73% 92.57% 19.78% Liabilities compared to equity ratio was high in fiscal year 2019 compared to the other two fiscal years. Equity boosted by retained income was beginning to grow in year 2020.
COMPANY C (PVT) LTD T/A KAYS SUPERMARKET FINANCIAL STATEMENTS FOR FISCAL YEARS Y2018, Y2019 AND Y2020
COMPANY C (PVT) LTD T/A KAYS SUPERMARKET INDEX for the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 Statement of Financial Position Schedule 3 Statement of Comprehensive Income Schedule 4 Statement of Operating Expenses Schedule 5 Cashflow Statement Schedule 6 Statement of Changes in Equity Schedule 7 Trading & Profit & Loss Statement Schedule 8 Statement of Accounting Policies Schedule 9 Assets Schedule Schedule 10 Capital Allowances Schedule 11 Tax Computation Schedule Schedule 12
COMPANY C (PVT) LTD T/A KAYS SUPERMARKET COMPANY INFORMATION for the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 1 Company Name : Company C (Pvt) Ltd t/a Kays Supermarket 2 Nature of Business : Fast Moving Consumer Goods
COMPANY C (PVT) LIMITED T/A KAYS SUPERMARKET Schedule 3 STATEMENT OF FINANCIAL POSITION 2018 at Fiscal Year End Y2018, Y2019 and Y2020 58,658.33 58,658.33 NOTE 2020 2019 479,047.10 79,810.88 ASSETS 52,630.87 137,739.67 25,567.00 Non Current Assets 23,032,116.23 52,630.87 235,929.54 Fixed Assets ( 4. 0 ) 23,032,116.23 3,462,483.16 - 2,805,186.89 537,705.43 Current Assets ( 18.0 ) 57,150,470.19 ( 19.0 ) 422,340.95 Inventories 35,995,412.57 86,560.00 Trade Receivables ( 20.0 ) 8,158,486.58 Prepayments 256,376.00 148,395.32 Cash Resources - Deferred Tax Asset 12,740,195.03 - 3,515,114.03 TOTAL ASSETS 80,182,586.42 EQUITY & LIABILITIES ( 21.0 ) 21,199,447.87 248,068.24 (887,105.34) 100.00 100.00 100.00 Equity ( 22.0 ) - - - Ordinary Share Capital ( 23.0 ) - - Members Contribution ( 24.0 ) 4,927,188.95 - - Non Distributable Reserves ( 25.0 ) - Distributable Reserves ( 26.0 ) (887,205.34) (1,079,744.00) Retained Earnings 247,968.24 1,135,173.59 192,538.66 Current Year Profits 16,024,190.68 887,230.79 828,955.73 Non Current Liabilities 24,443,721.10 - - Non Redeemable Preference Shares - - - Redeemable Preference Shares - Shareholders Loan Account 887,230.79 828,955.73 Deferred Taxation 24,443,721.10 - - - Current Liabilities 2,379,815.00 595,855.04 Trade Payables 34,539,417.45 1,921,101.58 503,539.36 Accrued Expenses 27,191,125.57 Statutory Liabilities - - Short Term Borrowings (Overdraft) - - - Current Portion of Long Term Loan - 56,567.00 25,010.50 Income Tax Provision 1,350,567.00 - - - 402,146.42 67,305.18 TOTAL EQUITY & LIABILITIES 5,997,724.88 3,515,114.03 537,705.43 80,182,586.42 Signed Director
COMPANY C (PVT) LTD T/A KAYS SUPERMARKET Schedule 4 STATEMENT OF COMPREHENSIVE INCOME for the Fiscal Years Y2028, Y2019 and Y2020 2020 % 2019 % 2018 % 31.45% 9,702,538.27 25.75% 2,036,937.41 Revenue 33.70% 109,994,620.39 16.01% 6,651,110.29 12.58% 1,512,396.02 Cost of Sales 19.85% 72,921,846.24 3,051,427.98 Gross Profit 37,072,774.15 15.84% 1,497,901.31 12.76% 524,541.40 Operating Expenditure 20.02% 15,240,445.80 11.70% 1,553,526.68 9.45% 268,208.44 Revenue Generated from Operations 14.57% 21,832,328.35 256,332.96 5,574.07 Interest Income 153,129.79 35,089.82 2,835.74 Other Income 308,969.95 56,870.56 5,721.67 Interest on Long Term Loan 272,512.53 1,537,320.00 5,046.53 Profit Before Tax 22,021,915.56 402,146.42 259,843.83 1,135,173.59 67,305.18 Corporate Tax 5,997,724.88 192,538.66 Profit for the Year 16,024,190.68
COMPANY C (PVT) LTD T/A KAYS SUPERMARKET Schedule 6 CASH FLOW STATEMENT at Fiscal Year End Y2018, Y2019 and Y2020 2020 2019 2018 $ $ $ CASH FLOWS FROM OPERATING ACTIVITIES 22,021,915.56 1,537,320.00 259,843.83 Net Profit / Loss Before Taxation 1,242,483.94 6,027.47 6,027.47 - - - Adjustments Depreciation (153,129.79) (5,574.07) (2,835.74) Loss on Disposal of Fixed Assets 272,512.53 56,870.56 5,046.53 Interest Received 1,594,643.96 Interest Expense 23,383,782.24 268,082.09 Operating Profit Before Working Capital Changes (2,725,376.00) (33,190,225.68) (345,594.28) (829,755.64) Increase in Stock (7,905,961.63) 1,417,562.22 (197,649.04) Increase in Debtors 25,270,023.99 (58,764.10) Increase in Creditors 7,557,618.91 631,750.60 Cash Generated from Operations (56,870.56) (127,571.99) (272,512.53) -67,305.18 Interest Paid - (182,939.84) (5,046.53) Taxation (Over Provision) - Net Cash Generated from Operations 7,285,106.38 (132,618.52) Cash Flows from Investing Activities Purchase of Fixed Assets (24,273,863.34) - - Proceeds from Sale of Fixed Assets - - - Increase in Reserves - - Investments in Subsidiary Cos. 4,927,188.95 - - Interest Received - 5,574.07 2,835.74 Net Cash Invested 5,574.07 2,835.74 153,129.79 Net Cash Outflows Before Financing Activities (19,193,544.60) (177,365.77) (129,782.78) Cash Outflows From Financing Activities (11,908,438.22) Increase in Shareholder Funding Shares Issued 23,206,237.93 58,275.06 192,306.50 Increase in Bank Overdraft - - - Net Cash From Financing Activities 1,294,000.00 31,556.50 25,010.50 Net Change in Cash and Cash Equivalents 24,500,237.93 89,831.56 217,317.00 Cash and Cash Equivalents at Beginning of Year 12,591,799.71 (87,534.21) 87,534.22 Cash and Cash Equivalents at End of Year 148,395.32 235,929.54 148,395.32 Cash and Cash Equivalents Comprise:- 12,740,195.03 148,395.32 235,929.54 Cash at Bank & On Hand 12,740,195.03 148,395.32 235,929.54 Cash on Hand - - - 12,740,195.03 148,395.32 235,929.54
COMPANY C (PVT) LIMITED T/A KAYS SUPERMARKET Schedule 7 STATEMENT OF CHANGES IN EQUITY at Fiscal Year End Y2018, Y2019 and Y2020 2019 2018 2020 (887,205.34) (1,079,744.00) 1,135,173.59 192,538.66 Retained Earnings at 1 January 247,968.24 - Current Year Profits 16,024,190.68 - Dividend Paid 247,968.24 (887,205.34) Retained Earnings at 31 December - 16,272,158.93 100.00 100.00 - - Add 100.00 - - Ordinary Share Capital - - - Members Contribution Non Distributable Reserves 4,927,188.95 248,068.24 (887,105.34) Distributable Reserves - Equity 21,199,447.87
COMPANY C (PVT) LTD T/A KAYS SUPERMARKET Schedule 9 STATEMENT OF ACCOUNTING POLICIES for the Fiscal Years Y2018, Y2019 and Y2020 The principal accounting policies of the company, which are set out below, are consistent with those applied in the previous years except where stated and otherwise, and have been followed in all material respects to conform to the International Financial Reporting Standards. 1.0 GENERAL DISCLOSURES 1.1 Country of Incorporation and Main Activities The company and its associated companies are incorporated in Zimbabwe. The main activity of the company is manufacturing. 1.2 Currency The financial statements are expressed in Zimbabwe (RTGS) Dollars. 2.0 ACCOUNTING POLICIES 2.1 Accounting Convention The financial statements are prepared in terms of the historical cost convention. No procedures have been adopted to reflect the impact on the financial statements of specific price changes or changes in the general level of prices. Where the multiple currency other than the US$ is used it is converted into the reporting currency in terms of IAS 21. 2.2 Depreciation of Fixed Assets Fixed assets are depreciated over their anticipated useful lives as follows using the straight line method: Asset Depreciation % Machinery 10.00% Office Furniture, Fittings 10.00% Computers & Equipment 20.00% Motor Vehicles 20.00% 1
2.3 Intangible Assets Goodwill is amortised on a straight-line basis over a period not exceeding 5 (five) years. 2.4 Inventories & Work in Progress Inventories and work in progress are valued at the lower of cost on a Weighted Average basis and estimated net realisable value. In the case of finished manufactured goods and work in progress cost includes materials, direct labour and an appropriate proportion of allocated overheads. 2.5 Turnover Turnover comprises the value of goods sold net of value added tax. 2.7 Bad Debts Provision for bad debts is made in the financial statements on a percentage of the book value of all debts such percentage being estimated doubtful debts. 2.8 Multiple Currencies Assets and liabilities denominated in currency other than the reporting currency Zimbawe (RTGS$) are converted at the rates of exchange ruling at the balance sheet date. Transactions during the year are converted at the rates of exchange ruling at the time of the transaction. 2.7 Taxes 2.7.1 Current Tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be received from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the balance sheet date. Current income tax relating to items directly in equity is recognised directly in equity and not in the income statement. 2.7.2 Deferred Taxation Provision for deferred taxation is made in the financial statements on a full liability basis in respect of material temporary differences resulting from the recognition of income and expenses in differing periods for accounting and tax purposes. 2
3.0 REVENUES / TURNOVER 2020 2019 2018 8,866,218.35 853,544.86 169,744.78 January 9,166,218.37 763,544.30 184,745.56 February 9,466,218.72 802,755.41 March 8,515,663.02 802,754.80 80,688.78 April 9,816,773.74 965,334.86 126,535.34 May 8,366,218.00 663,335.86 169,066.38 June 9,466,218.76 808,545.79 111,795.40 July 7,666,218.00 308,543.34 215,425.33 August 7,666,218.00 308,544.30 134,955.33 September 8,166,218.01 408,544.19 169,744.78 October 10,666,219.10 1,308,545.75 November 12,166,218.37 1,708,544.86 84,744.78 December 109,994,620.39 9,702,538.27 269,745.45 Total 319,745.45 2,036,937.41 4.0 PURCHASES 2020 2019 2018 8,773,165.46 826,373.85 126,354.92 January 9,073,165.48 736,373.29 141,355.70 February 9,373,165.83 775,584.40 March 8,422,610.13 775,583.79 37,298.92 April 9,723,720.85 938,163.85 83,145.48 May 8,273,165.11 636,164.85 125,676.52 June 9,373,165.87 781,374.78 68,405.54 July 7,573,165.11 281,372.33 172,035.47 August 7,573,165.11 281,373.29 91,565.47 September 8,073,165.12 381,373.18 126,354.92 October 10,573,166.21 1,281,374.74 41,354.92 November 12,073,165.48 1,681,373.85 226,355.59 December 108,877,985.81 9,376,486.17 276,355.59 Total 1,516,259.00 5.0 FIXED ASSETS AND DEPRECIATION 5.1 Fiscal Year 2020 Depreciation Schedule Depreciation Asset Cost Current Accumulated Net Book Equipment 11,135,311.05 371,366.50 371,412.37 Value Motor Vehicles 12,995,047.93 866,409.59 866,454.22 Computers & I.T. Equip 4,257.03 10,763,898.67 Office Furniture & Fittings 131,321.20 4,242.94 499.13 12,128,593.71 Total 13,058.81 464.91 1,242,623 127,064.17 24,274,739 1,242,484 12,559.68 23,032,116 3
COMPANY C (PVT) LTD t/a KAYS SUPERMARKET COMENTARY AND FINANCIAL PERFORMANCE Based on the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 1.0 SALES TURNOVER GROWTH, PEFORMANCE & TRENDS 1.1.1 TURNOVER DYNAMICS 2020 2019 2018 8,866,218.35 853,544.86 169,744.78 January 9,166,218.37 763,544.30 184,745.56 February 9,466,218.72 802,755.41 March 8,515,663.02 802,754.80 80,688.78 April 9,816,773.74 965,334.86 126,535.34 May 8,366,218.00 663,335.86 169,066.38 June 9,466,218.76 808,545.79 111,795.40 July 7,666,218.00 308,543.34 215,425.33 August 7,666,436.00 308,544.30 134,955.33 September 8,166,000.01 408,544.19 169,744.78 October 10,666,219.10 1,308,545.75 November 12,166,218.37 1,708,544.86 84,744.78 December 109,994,620.39 9,702,538.27 269,745.45 Total 319,745.45 2,036,937.41 Year on Year Dollar Growth 100,292,082.12 7,665,600.85 1,157,850.41 Year on Year % Growth 1,033.67% 376.33% 131.71% 1.1.2 YEARLY SALES COMPARISON GRAPH Sales Comparison 15,000,000.00 10,000,000.00 5,000,000.00 0.00 2020 2019 2018 Sales at $109.99 million for the year 2020, $9.702 million for year 2019 and $2.036 million for year 2018. Sales were up 1,033.67 percentage points in fiscal year 2020 from fiscal year 2019
levels and up 376.33% percentage points in fiscal year 2019 from fiscal year 2018 levels. Average year on year inflation rate for fiscal year 2018 was 10.61%, fiscal year 2019 was 255.29% and fiscal year 2020 was 557.2%. Fiscal year 2020 sales were impressive surpassing rate of inflation by 476.47%. 2.0 PROFITABILITY AND PERFOMANCE METRICS 2.1 EARNINGS DYNAMICS Below are the earnings ratios: - GP% 2020 2019 2018 NPBIT 33.70% 31.45% 25.75% NP 20.27% 16.43% 13.00% 14.57% 11.70% 9.45% The earnings of the company were commendable for the three fiscal years under review. Gross margin at 33.70% ($37.02 million) for fiscal year 2020, 31.45% ($3,051 million) for fiscal year 2019 and 25.75% ($524.54 thousand) for fiscal year 2018. Gross margin has been on a growth trend year by year rising 5.70 percentage points from fiscal year 2018 to fiscal year 2019 and rose 2.25 percentage points in fiscal year 2020. The same trend was echoed in the bottom line with net profit margin at 14.57% ($16.024 million) for fiscal year 2020, 11.70% ($1.135 million) for fiscal year 2019 and 9.45% ($192.53 thousand) for fiscal year 2018. 2.2 EXPENSES Below are the expense ratios: - Expenses 2020 2019 2018 13.86% 15.44% 13.17% Total expenses at 13.86% ($15.24 million) for fiscal year 2020, 15.44% ($1.497 million) for fiscal year 2019 and 13.17% ($268.2 thousand) for fiscal year 2018. 2.3 RETURN ON CAPITAL EMPLOYED Return on Capital Employed 2020 2019 2018 75.91% 179.66% 31.95% Return on capital rose by 147.71% percentage points from fiscal year 2018 to fiscal year 2019 and fell down 103.75 percentage points from fiscal year 2019 to fiscal year 2020.
3.0 LIQUID RISK ANALYSIS (LIFE BLOOD ANALYSIS) 3.1 CURRENT ASSETS 3.1.1 INVENTORY DAYS Inventory Days 2020 2019 2018 177.70 151.83 19.00 Inventories held by the business at fiscal end 2020 was in the amount of $35,995 million (177.7 days), at fiscal year end 2019 was in the amount of $2.805 million (151.83 days) while that at fiscal year end 2018 was in the amount of $79.81 thousand (19 days). The is invested heavily in inventory running debtors days above 150 for the fiscal years 2019 and 2020. 3.1.2 TRADE RECEIVABLES (DEBTORS) Trade Receivables (Debtor) Days 2020 2019 2018 26.70 15.67 24.34 Trade receivables were in the amount of $8.158 million (26.70 days) at fiscal year end 2020, $422.34 thousand (15.67 days) at fiscal year end 2019 and $137.67 thousand (24.34 days) at fiscal year end 2018. The trade receivable days were reasonable for the business trading under 30 days. 3.2 CURRENT LIABILITIES 3.2.1 TRADE PAYABLES (CREDITORS) Trade Payables (Creditor) Days 2020 2019 2018 134.24 103.98 119.86 The trade payables (creditors) days are echoing the inventory days trading above 100 days. While heavily invested in stock the business is failing to maintain trade payables under acceptable trading terms. Trade payables were in the amount of $27.191 million (134.24 days) at fiscal year end 2020, $1.921 million (103.98 days) at fiscal year end 2019 and $503.53 thousand (119.86 days) at fiscal year end 2018. Supplier credit lines account for a large chunk of the business’s working capital. 3.3 NET LIQUIDITY (NET CURRENT ASSETS) 3.3.1. Current Ratio Current Ratio 2020 2019 2018 165.46% 145.49% 80.40% The liquidity of the business as measured by the current shows that the business has sufficient liquid assets to meet current liabilities.
The liquidity of the business as measured by the current ratio was reasonable at 165.46% at fiscal year end 2020, 145.49% at fiscal year end 2019 and 80.40% at fiscal year end 2018. 3.3.2. Acid Test Ratio 2020 2019 2018 Acid Test Ratio 61.25% 27.62% 110.31% The acid test ratio was 61.25% at fiscal year end 2020, 27.62% at fiscal year end 2019 and 110.31% at fiscal year end 2018. Both the current ratios for all the three fiscal years depict a healthy relationship between the business’s current assets against its current liabilities while the acid test ratio depicts a worrying position especially for fiscal year 2019. 4.0 SOLVENCY FINANCIAL LEVERAGE 4.1 DEBT CAPACITY (BORROWING/EQUITY RATIO) Debt Capacity (Borrowing / Equity Ratio 2020 2019 2018 6.37% 22.80% -2.82% Borrowing to Equity ratio from -2.82% at fiscal year end 2018 to 22.80% at fiscal year end 2019 and finally to 6.37% at fiscal year end 2020. 4.2 TOTAL LIABILITIES / ASSETS & TOTAL LIABILITIES / EQUITY RATIOS 4.2.1 Liabilities / Assets Ratio Liabilities / Assets 2020 2019 2018 73.56% 92.94% 264.98% The business’s Liabilities to Assets ratio was 73.56% at fiscal year end 2020, 92.94% at fiscal year end 2019 and 264.98% at fiscal year end 2018 showing a growing trend in assets year by year. 4.2.2 Liabilities / Equity Ratio Liabilities / Equity 2020 2019 2018 278.23% 1,316.99% -160.61% The business is coming from a position of negative retained income at 1 January 2018 deriving from losses accumulated in prior years. The business went on to post healthy profits in years 2018 – 2020 thus restoring the equity position to positive. Liabilities to Equity ratios for the fiscal years were thus 278.23% at fiscal year end 2020, 1,316.99% at fiscal year end 2019 and -160.61% at fiscal year end 2018 showing that liabilities are playing a major part in financing working capital.
COMPANY D (PVT) LTD T/A SUPER PAINTS FINANCIAL STATEMENTS FOR FISCAL YEARS Y2018, Y2019 AND Y2020
COMPANY D (PVT) LTD T/A SUPER PAINTS INDEX to the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 Statement of Financial Position Schedule 3 Statement of Comprehensive Income Schedule 4 Statement of Operating Expenses Schedule 5 Cashflow Statement Schedule 6 Statement of Changes in Equity Schedule 7 Trading & Profit & Loss Statement Schedule 8 Statement of Accounting Policies Schedule 9 Assets Schedule Schedule 10 Capital Allowances Schedule 11 Tax Computation Schedule Schedule 12
COMPANY D (PVT) LTD T/A SUPER PAINTS COMPANY INFORMATION for the Financial Statements for Fiscal Years Y2018, Y2019 and Y2020 1 Company Name : Company D t/a Super Paints 2 Nature of Business : Manufacturing
COMPANY D (PVT) LTD T/A SUPER PAINTS Schedule 3 STATEMENT OF FINANCIAL POSITION 2018 at Fiscal Year End Y2018, Y2019 and Y2020 2020 2019 17,267.49 11,750.00 NOTE 1,239,359.91 1,496,360.37 - ASSETS 379,800.00 424,750.00 39.99 751,333.33 947,333.33 5,477.50 Non Current Assets 3.0 16,740.08 21,615.03 209,501.79 Plant & Equipment 91,486.50 102,662.00 5,009.23 Motor Vehicles - Computers & Equipment Furniture & Fittings 198,501.62 5,990.94 Current Assets 6,187,548.40 1,312,370.48 - Inventories Consignment Stock 455,355.23 45,009.23 226,769.28 Trade Receivables Cash Resources 8.0 - 77,398.04 Deferred Tax Asset 9.0 5,057,029.48 1,109,453.00 TOTAL ASSETS 675,163.69 80,510.21 -- 7,426,908.31 2,808,730.85 EQUITY & LIABILITIES 3,689,904.28 1,841,914.43 169,397.77 Equity --- Ordinary Share Capital Members Contribution 163,169.75 163,169.75 163,169.75 Non Distributable Reserves Distributable Reserves 10.0 1,564,405.00 1,564,405.00 34,605.00 Retained Earnings Current Year Profits --- Non Current Liabilities 114,339.68 (28,376.98) (114,825.79) Non Redeemable Preference Shares Redeemable Preference Shares 1,847,989.85 142,716.66 86,448.81 Shareholders Loan Account Deferred Taxation 650,345.00 371,901.17 23,231.98 Current Liabilities --- Trade Payables Accrued Expenses --- Statutory Liabilities Payroll Liabilities 11.0 650,345.00 371,901.17 23,231.98 Short Term Borrowings Current Portion of Long Term Loan --- Income Tax Provision 3,086,659.03 594,915.26 34,139.53 TOTAL EQUITY & LIABILITIES 12.0 459,083.99 200,298.13 6,999.99 - -- 11,533.00 13.0 495,014.51 41,801.26 - 5.0 404,703.66 - 17,583.35 - 6.0 997,843.40 291,911.35 (1,976.80) -- 7.0 730,013.47 60,904.52 7,426,908.31 2,808,730.85 226,769.28 Signed Director
COMPANY D (PVT) LTD T/A SUPER PAINTS Schedule 4 STATEMENT OF COMPREHENSIVE INCOME for the Fiscal Years Y2018, Y2019 and Y2020 2019 2018 2020 3,765,227.27 791,773.28 Revenue 36.55% 37,759,747.44 25.61% 2,800,809.46 32.60% 533,649.88 Cost of Sales 29.58% 23,959,378.73 19.88% 19.96% 258,123.40 Gross Profit 6.97% 13,800,368.72 5.73% 964,417.81 12.64% 158,045.71 Operating Expenditure 11,169,401.95 748,533.47 100,077.69 Revenue Generated from Operations - - 215,884.34 - 0.14% 2,630,966.76 0.11% 0.33% - Interest Income 6.83% 5.62% - 12.31% 2,637.50 Interest on Long Term Loan - 4,185.50 97,440.19 Profit Before Tax 1.93% 52,963.44 1.83% 211,698.84 1.39% 10,991.38 4.89% 2,578,003.32 3.79% 68,982.18 10.92% 86,448.81 Corporate Tax 142,716.66 Profit for the Year 730,013.47 1,847,989.85
COMPANY D (PVT) LTD T/A SUPER PAINTS Shedule 6 STATEMENT OF CASH FLOWS 2020 2019 2018 $ $ $ at Fiscal Year End Y2018, Y2019 and Y2020 2,578,003.32 211,698.84 97,440.19 CASH FLOWS FROM OPERATING ACTIVITIES 257,000.46 50,707.12 3,720.46 Net Loss Before Taxation - - - - - - Adjustments - Depreciation 52,963.44 4,185.50 Loss on Disposal of Fixed Assets 2,887,967.22 266,591.46 101,160.64 Interest Received Interest Expense (410,346.00) (50,018.46) (3,234.00) Operating Profit Before Working Capital Changes (3,870,178.43) (988,349.42) (105,656.89) Increase in Stock 2,491,743.77 560,775.72 15,077.99 Increase in Debtors 1,099,186.56 (211,000.70) 7,347.74 Increase in Creditors Cash Generated from Operations (52,963.44) (4,185.50) (2,637.50) (730,013.47) 12,695.83 (3,204.39) Interest Paid (202,490.36) Taxation (Over Provision) 316,209.65 1,505.85 Net Cash Generated from Operations - (1,565,629.78) - Cash Flows from Investing Activities - - - Purchase of Fixed Assets - - - Proceeds from Sale of Fixed Assets - - - Investements in Subsidiary Cos. - - Interest Received (1,565,629.78) Net Cash Invested 316,209.65 1,505.85 (1,768,120.14) Net Cash Outflows Before Financing Activities 278,443.83 - 1,842,639.41 864.99 Cash Outflows From Financing Activities - - - Increase in Shareholder Funding - - Shares Issued 278,443.83 Increase in Bank Overdraft 1,842,639.41 864.99 Net Cash From Financing Activities 594,653.48 74,519.27 2,370.84 Net Change in Cash and Cash Equivalents 80,510.21 675,163.69 5,990.95 3,619.75 Cash and Cash Equivalents at Beginning of Year 80,510.22 5,990.59 Cash and Cash Equivalents at End of Year 675,163.69 - 80,510.21 5,990.95 Cash and Cash Equivalents Comprise:- - - 675,163.69 Cash at Bank & On Hand 80,510.21 5,990.95 Cash on Hand
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