YETI MACHINERY COMPANY LIMITED

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31STDECEMBER 2023

Prepared by: Laghe Consult

Certified Accountants and Auditors (In Public Practice)
Dar es Salaam

1
Table of Contents

Company information ....................................................................................... 3

Director’s Report ............................................................................................................................... 4-5

Statements of Directors responsibilities .................................................................. 6

Report of the Independent Auditor ..................................................................... 6-9

Financial statements

Statement of Financial Position ......................................................................... 10

Statement of Comprehensive income .................................................................... 11

Statement of Changes of Equity ..........................................................................12

Cash flow statement ....................................................................................... 13

Notes .................................................................................................... 14-18

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COMPANY INFORMATION

Company name: YETI MACHINERY COMPANY LIMITED

Board of Directors: AHMED SAMIR ALLY

RAMEZ ELSHAFII OMARA

Registered office: Near Mwalimu Nyerere Pension Fund,

Dar es salaam
Tanzania

Independent Auditor: Laghe Consult

Certified Accountants and Auditors (In Public Practice)
Dar es Salaam

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DIRECTORS REPORT FOR THE YEAR ENDED 31STDECEMBER, 2023

1. REPORT AND ACCOUNTS

The Directors presents this report together with audited financial statements for the year
ended 31stDECEMBER, 2023 which disclose the situation of YETI MACHINERY COMPANY
LIMITED the “COMPANY”. The financial statements for the year ended 31stDECEMBER,
2023 were authorized for issue in accordance with a resolution of the Board at the
meeting held on 16thFebruary, 2023.

2. PRINCIPAL ACTIVITIES

The Company’s principal business is Leasing of machines and sell of spare parts.

3. EFFORTS TO SECURE NATIONAL BENEFITS AND SEEK NATIONAL GOAL

The Company strives to fulfill its targeted goals by providing the best services to benefit
its clients to the highest satisfaction.

4. RESULT AND APPROPRIATION OF PROFITS

During the year under review (2023) the Company made a loss . The financial results are set out
at page 10 – 13 of this report. The Directors do not recommend payment of any dividend for
this year.

5. SOLVENCY

The business Situation is set out on page 8 of these audited financial statements. The
Board considers the Company to be solvent within the meaning described by the Company
Act 2002. The Director has reasonable expectations that the Company has adequate
resources to exist for the foreseeable future.

6. FUTURE DEVELOPMENT PLAN

The Directors/Shareholder plan to set up a famous giant company in providing security
services to the people.

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7. DIRECTORS

The company directors at the date of the report, all of whom have served since its
incorporation are: -
Name of director Position

AHMED SAHIR ALLY Director

RAMEZ ELSHAFII OMARA Director

9. RELATED PARTY TRANSACTIONS

There is no related party transaction.

10. POLITICAL AND CHARITABLE DONATIONS

The Company did not make any political donations during the year. Neither donation
nor contributions were made to charitable organizations during the existing and
previous year.

11. AUDITORS

The Auditor LAGHE CONSULT has expressed their willingness to continue in office as
auditors and are eligible for re-appointment. A resolution proposing the appointment of
LAGHE CONSULT as auditors of the Company for the year 2023 will be put to the Annual
General Meeting.

By order of Board,

……………………………….

AHMED SAMIR ALLY

Date: 21st October 2024

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 STATEMENT OF DIRECTORS RESPONSIBILITIES

The Tanzanian Companies Act, no 12 of 2002 requires the directors to prepare financial
statements for each financial year that give and fair view of the state of affairs of the company
as at the end of the financial year and of its statements of comprehensive income for that year.
It also requires the directors to ensure that the company maintains proper accounting records
that disclose, with reasonable accuracy, the financial position of the company. They also accept
responsibility for:

(i) Designing, implementing and maintaining internal control relevant to the preparation
and fair presentation of the financial statements.
(ii) Selecting and applying appropriate accounting policies; and
(iii) Making accounting estimates and judgments that are reasonable in the
circumstances.
(iv) Safeguarding the assets of the Company and hence taking reasonable steps for the
prevention and detection of fraud, error and other irregularities.
(v) Maintenance of accounting records that may be relied upon in the preparation of
financial statements.

The Directors are of the opinion that financial statements give a true and fair view of the state
of the financial affairs of the company as of 31 DEC, 2023 and of its statements of
comprehensive income and cash flows for the year then ended.

Nothing has come to the attention of the directors to indicate that the company will not remain
a going concern for at least twelve months from the date of this statement.

Approved by the board of directors on 16th APRIL, 2024 and signed on its behalf by:

………………………

AHMED SAMIR ALLY

MANAGING DIRECTOR

DATE : 21st October 2024

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 LAGHE CONSULT
Professional Consultants, Certified Public Accountants, Auditors & Tax Consultants

REPORT OF THE INDEPENDENT AUDITORS

To the shareholders of YETI MACHINERY COMPANY LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the Financial Statements of YETI MACHINERY COMPANY LIMITED set out on pages
7 to 14, which comprise the Statement of Financial Position as at 31 December, 2023, and the Statement
of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of
Cash Flows for the year then ended, and notes to the Financial Statements, including a summary of
significant accounting policies.

In our opinion, the Financial Statements present fairly, in all material respects, the financial position of
YETI MACHINERY COMPANY LIMITED as at 31 December, 2023, and its financial performance and
cash flows for the year then ended in accordance with International Financial Reporting Standards and
the requirements of the Companies Act 2002.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the company in accordance with the International
Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B)
(IESBA Code) and other independence requirements applicable to performing audits of financial
statements in Tanzania, United Republic of. We have fulfilled our other ethical responsibilities in
accordance with the IESBA Code and in accordance with other ethical requirements applicable to
performing audits in Tanzania, United Republic of. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.

Other information

The directors are responsible for the other information. The other information comprises the Directors'
Report as required by the Companies Act 2002 of Tanzania, United Republic of, which we obtained prior
to the date of this report. Other information does not include the Financial Statements and our auditor's
report thereon.

Our opinion on the Financial Statements does not cover the other information and we do not express an
audit opinion or any form of assurance conclusion thereon.

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Report of the Independent Auditors

To the shareholders of YETI MACHINERY COMPANY LIMITED

In connection with our audit of the Financial Statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the Financial
Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other
information; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the Financial Statements

The directors are responsible for the preparation and fair presentation of the Financial Statements in
accordance with International Financial Reporting Standards and the requirements of the Companies Act
2002, and for such internal control as the directors determine is necessary to enable the preparation of
Financial Statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, the directors are responsible for assessing the company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with International Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these Financial Statements.
As part of an audit in accordance with International Standards on Auditing, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit 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 company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report
to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the Financial Statements, including the
disclosures, and whether the Financial Statements represent the underlying transactions and events
in a manner that achieves fair presentation.
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Report of the Independent Auditors

To the Shareholders of YETI MACHINERY COMPANY LIMITED

We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.

Report on other legal and regulatory requirements

This report, including opinion, has been prepared for, and only for, the company’s members as a body in
accordance with the Companies Act 2002 and for no other purposes. As required by the Companies Act 2002,
we report to you, based on our audit, that

• We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
• In our opinion proper books of accounts have been kept by the company, so far as appears for our
examination of the books.
• The company’s statement of finance position and statement of comprehensive income are in
agreement with the books of accounts
• The directors’ report is consistent with the financial statements; and
• Information specified by law regarding directors’ remuneration and transactions with the company is
disclosed.

Date: 18th October, 2024 .

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 YETI MACHINERY COMPANY LIMITED

Statement of Financial Position as at 31stDecember, 2023

NOTES 2023 2022

TZS TZS
ASSETS
Non Current Assets
Plant, Property & Equipment 2 197,486,770.38 217,276,232.00
197,486,770.38 217,276,232.00
Current Assets
Cash in hand & bank 6 559,201.02 99,747,841.00
Trade & other receivables 8 179,189,856.33 121,811,927.00
Inventory 883,822,100.00
Tax paid 200,000.00 1,080,000.00
1,063,771,157.35 222,639,768.00
Total Assets 1,261,257,927.73 439,916,000

EQUITY AND LIABILITIES

EQUITY
Share Capital 3 1,000,000,000.00 500,000,000.00
Retained earnings - 190,971,451.15 - 160,083,999.42
Total equity 809,028,548.85 339,916,000.58

LIABILITIES
CURRENT LIABILITIES
Trade & Other payables 7 452,229,378.88 100,000,000.00
Current Income Tax payable - -
452,229,378.88 100,000,000.00
Total equity and liabilities 1,261,257,927.73 439,916,001

……………………………………

AHMED SAMIR ALLY

MANAGING DIRECTOR

DATE: 21st October 2024

10
 YETI MACHINERY COMPANY LIMITED
Statement of Comprehensive Income for the year ended 31stDecember, 2023.

NOTES 2023 2022

TZS TZS
INCOME
Sales 4 358,749,000.00 31,450,000.00
Cost of sales 6 289,538,400.00 29,389,287.69
Gross profit 69,210,600.00 2,060,712.31
Other Income -
Gross Income 69,210,600.00 2,060,712.31

Payroll Costs 9 7,078,300.00 7,200,000.00

General administrative expenses 10 55,230,290.00 123,905,250.00
Depreciation 2 37,789,461.73 31,039,461.73
Total Operating Expense 100,098,051.73 162,144,711.73

Profit/loss before Tax - 30,887,451.73 - 160,083,999.42

Income Tax credit charge
Total Comprehensive income - 30,887,451.73 - 160,083,999.42

The financial statements and the notes on pages 8 to 11, were approved by the director on the
date of this statement and were signed on its behalf by:

The notes on pages 12 to 15 form an integral part of the financial statement.

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 YETI MACHINERY COMPANY LIMITED
Statement of Changes in Equity as at 31stDecember, 2023

Share Capital Retained Earnings Total Equity

Balance as at 1/1/2022 500,000,000.00 - 500,000,000.00
Profit for the year - 160,083,999.42 - 160,083,999.42
Balance as at 31/12/2022 500,000,000.00 - 160,083,999.42 339,916,000.58
Balance as at 1/1/2023 500,000,000.00 - 160,083,999.42 339,916,000.58
Profit for the year - 30,887,451.73 - 30,887,451.73
Balance as at 31/12/2023 500,000,000.00 - 190,971,451.15 309,028,548.85

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 YETI MACHINERY COMPANY LIMITED
Statement of Cash Flow for the year ended 31stDecember, 2023.
NOTES 2023 2022
TZS TZS
Operation Expense
Net Operating Profit/loss before tax - 30,887,451.73 - 160,083,999.42
Adjustment Depreciation 37,789,461.73 31,039,461.73
6,902,010.00 - 129,044,537.69
Changes in Working Capital
Inventory - 883,822,100.00
Receivables - 57,377,929.33 - 121,811,927.00
Payables 352,229,378.88 100,000,000.00
Tax paid - 200,000.00 - 1,080,000.00
Prior period tax receivable 1,080,000.00

Net Cashflow from Operation Activities A - 581,188,640.45 - 151,936,464.69

Financing activities
Share Capital 500,000,000.00 500,000,000.00
Net Cashflow from Financing Activities B 500,000,000.00 500,000,000.00

Cashflow from Investing Activities

Acquisition of fixed assets - 18,000,000.00 - 248,315,693.84
Net Cashflow from Investing Activities C - 18,000,000.00 - 248,315,693.84

Net increase/decrease in cash and cash

- 99,188,640.45 99,747,841.47
equivalents
Cash and cash equivalent at the begininng of the
99,747,841.47 -
year
Cash and cash equivalent at the end of the year 559,201.02 99,747,841.47

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 YETI MACHINERY COMPANY LIMITED

Notes to the Financial Statements for the Year Ended 31stDecember2023.

2.12 PRINCIPAL ACCOUNTING POLICIES

The principal accounting policies adopted in preparation of these financial statements are set
out below
(a) Basic of preparation
International Financial Reporting Standards (IFRS) have been applied. The Financial
Statements have been prepared under the historical cost convection and on the going
concern basis. No other adjustments. The presentation of these Financial Statements is
other adjustments with International Accounting Standards (IAS1).

(b) Income Recognition

Income comprises the fair value of interest earned issued micro credit to Borrows.

(c) Property, Plant and Equipment

Items of property, Plant and Equipment are recorded at cost, which includes expenditure
that is directly attributes to the acquisition of the items.

Depreciation is calculated to write off the cost of fixed assets over their estimated live
on the reducing method.
Item Rate
Furniture, Fixtures and Fittings 12.5%
Offices Equipment’s 37.5%
Motor Vehicles 25%

(d) Trade Receivables

Receivables are recognized initially at the fair value and subsequently measured at cost
less provision for bad doubtful receivables made at the following rates:
Age of Debt Percentage
Less than one year 0%
1-2 year 50%
Over 2 years 100%

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(e) Translation for Foreign Currencies
Item includes the Financial Statements are measured in Tanzania Shillings (TZS) at rates
ruling at the transaction. Monetary asset and liabilities at the balance sheet date which are
expressed in foreign currencies are translated in Tanzania Shillings at rates ruling at that
date.

The foreign exchange gains or losses resulting from such transactions are recognized in the
income statement.

(f) Cash and Cash Equivalents

Cash and Cash equivalents are carried in the balance sheet at cost. For the purpose of the
cash flow statement, cash and cash equivalents comprise cash on hand and cash deposit at
banks.

1.2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENT

Estimates and judgement are continually evaluated and are based on historical experience and
other factors including experience of future events that are believed to be reasonable under
the circumstances.

(i) Critical accounting estimates and assumptions:

Critical estimates are made by the DIRECTORS in determining depreciation rates for
Property, Plant and their residuals values.
The rates used are set out in note 1

(ii) Critical judgement in applying the entity’s accounting policies.

In the process of applying the company’s accounting policies, management has made
judgement in determining the value of assets.

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 YETI MACHINERY COMPANY LIMITED

Notes to the Financial Statements (Cont.) for the Year Ended 31stDecember2023.

Note 2: Movement Of Fixed Assets and Depreciation Schedule as at 31stDecember,2023

Plant & machinery Computer Motor vehicle Total

12.50% 37.50% 37.50%
TSHS TSHS TSHS TSHS
Balance as at 01.01.2023 248,315,693.84 - - 248,315,693.84
Additions - 4,000,000.00 14,000,000.00 18,000,000.00
Balance as at 31.12.2023 248,315,693.84 4,000,000.00 14,000,000.00 266,315,693.84
Depreciation
Balance as at 01.01.2023 31,039,461.73 - - 31,039,461.73
Charge for the year 31,039,461.73 1,500,000.00 5,250,000.00 37,789,461.73
Balance as at 31.12.2023 62,078,923.46 1,500,000.00 5,250,000.00 68,828,923.46
Net book value as at 31.12.2023 186,236,770.38 2,500,000.00 8,750,000.00 197,486,770.38

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 Notes to the Financial Statements
NOTES
2023 2022
3 Capital
Share Capital 1,000,000,000.00 500,000,000.00

Total 1,000,000,000.00

4 Sales Revenue
Sales 358,749,000.00 31,450,000.00
Total 358,749,000.00 31,450,000.00

5 Cash & Bank Balance

Cash at hand - 0.00
Cash at bank 559,201.02 99,747,841.00
559,201.02 99,747,841.00
6 Cost of sales
Opening stock 40,000,000.00 -
Purchases 856,460,600.00 69,389,287.69
Spare parts 240,918,900.00
Oil & lubricants 22,850,000.00
Tools 4,501,000.00
Repairs service 8,630,000.00
Closing stock - 883,822,100.00 - 40,000,000.00
289,538,400.00 29,389,287.69

7 Trade & Other Payables

Trade & Other Payables 452,229,378.88 100,000,000.00
Total 452,229,378.88 100,000,000.00

8 Trade & other receivables

Sundry debtors - 121,811,927.00
Receivable from shareholders 160,900,000.00
Vat receivables 18,289,856.33 -
Total 179,189,856.33 121,811,927.00
Tax paid
Provision tax 200,000.00 1,080,000.00
Total 200,000.00 1,080,000.00

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 9 Payroll Costs
Salaries & wages 1,850,000.00 7,200,000.00
casual wages 5,228,300.00
NSSF
WCF
Total 7,078,300.00 7,200,000.00

10 General administrative expenses

Bank charges 1,500,000.00 627,250.00
Security services 8,400,000.00 350,000.00
Lubricants 1,550,000.00
Hardwares 550,000.00
Business license costs 5,300,000.00 22,000.00
Machine scrap 118,706,000.00
Office rent 1 4,500,000.00 2,100,000.00
Office rent 2 9,000,000.00 0.00
Water DAWASCO 167,290.00 0.00
Electricity 2,443,000.00 0.00
Office upgrade 5,230,000.00 0.00
ERP system 2,100,000.00 0.00
Website 1,500,000.00 0.00
Domain 500,000.00 0.00
Communication 1,390,000.00 0.00
Fuel 13,200,000.00 0.00

55,230,290.00 123,905,250.00

Depreciation 37,789,461.73 31,039,461.73

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