NARDOS ABABA WOLDETENSAY

RETAIL TRADE OF

LOGS, TIMBER FORESTRY, BRIQUETTES AND CHARCOAL

PROVISIONAL FINANCIAL STATEMENTS

FOR YEAR ENDEED OF JULY 07, 2023

NOTE OF FINANCIAL STATEMENTS

1. ESTABLISHMENT
NARDOS ABABA WOLDETENSAY was established on 2/5/2011 E.C as a Retail trade of
logs, timber forestry, briquettes and charcoal, with a capital of ETB 100,000.00. The address of
the company is Addis Ababa city Addis Ketema Sub city 09 kebele, House No.new:572
2. SUMMARY OF SIGNIFICANT ACCOUNT & POLICES

The financial statement has been prepared in accordance with the owner reporting framework.

For reporting under the commercial code of Ethiopia, the balance sheet in theses financial
statement is represented by the statement of financial position and the profit and loss account is
presented in the statement of profit and loss.

2.1.Basis of preparation

The financial statements have been prepared on a historical cost basis accounting. The
preparation of financial statement is conformity with the owner reporting framework require the
use of certain critical accounting estimates.

It is also requires management to exercise judgment in the process of the applying the company
accounting policies. Areas involving in a higher degree of judgment or complexity or area where
assumption and estimation to the financial statement are disclosed.

2.2.Property Plant, and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is
charged in accordance with income tax proclamation 979/2016 for asset brought from previous
year on the straight line basis for office equipment the written down value of other asset, at the
following rate per annum.
Fixed Asset %
Motor Vehicles 15%
Office equipment 20%
Others asset 15%
2.3 Recognition of Income and Expense
Accrual basis of accounting adopted. Accrual basis accounting recognizes business revenue and
matching expenses when they are generated not when money actually changes hands. This
means companies record revenue when it is earned, not when the company collects the money.
3. Accounting Polices

The owner has recognised revenue when the amount of revenue can be reliably measured, it is
probable that the future economic benefit will follow to the company and when specific criteria
have been met for each of the company activity as described below.
Revenue is recognized as follow:
i. Sales of goods
The sales of good are recognized in the period in which the company has delivered product and
rendering service to the customer, delivery does not occur until the customer has accepted the
products.
ii. Other income
All other income is recognized on the accrual basis on the service provided
3.1.Cash and cash equivalent

Cash in hand and cash on banks in current and deposit account are carried at cost. Cash and cash
equivalent are defined as cash in hand, cash at bank in current and deposit account and short term
finance readily convertible to known amount of cash and subject to insignificant risk of change
in value. For the purpose of cash flow statement, cash and cash equivalent consist of cash on
hand and at banks net of overdraft finance if any
3.2.Trade and Other Payable
Trade payable are obligation on the basis of normal credit term and do not bear interest. Trade
payable is carried in the normal value.
3.3.Inventory and goods in transit
Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components,
consumables and stock-in-trade are carried at the lower of cost and net realizable value.
However, materials and other items held for use in production of inventories are not written
down below cost if the finished goods in which they will be incorporated are expected to be sold
at or above cost. The comparison of cost and net realizable value is made on an item-by item
basis. In determining the cost of raw materials, packing materials, stock-in-trade, stores, spares,
components and consumables, weighted average cost method is used. Cost of inventory
comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax
authorities) and all other costs incurred in bringing the inventory to their present location and
condition.
3.4.Borrower cost
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the interest cost. Borrowing costs, if any,
directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalized, if any.
All other borrowing costs are expensed in the period in which they occur.
3.5.Translation of foreign currency
Transactions in foreign currencies during the year are converted into Ethiopian Birr at the
exchange rate ruling at the date of the transaction. Foreign currency monetary assets and
liabilities are translated at the exchange rates ruling at the balance sheet date.
3.3 Withholding Tax
This is account records amounts of customer owe to the tax authority on your behalf have not yet
paid.
3.4 Taxation
Current taxation is provided based on result for the year as shown in the financial statement
adjusted in accordance with the Ethiopian tax legislation. The tax liability is calculated on the
taxable profit at the currently in enacted tax rates. So the owner has paid tax by estimation of
product capacity.
4. Provisions
Provision are recognized when the owner has a present legal or constructive obligation as a result
of past event, it is probable that an outflow of resource embodying economic benefit will be
required to settle the obligation and reliable estimate of the amount can be made
4.1 Function and reporting currency
The financial statement is presented in Ethiopian Birr.
 NARDOS ABABA WOLDETENSAY
STATEMENT OF BALANCE SHEET
FOR YEAR ENDEED OF JULY 07,2023
1. ASSET 2023
Current Asset
Cash in hand 45,210.00
cash in bank balance 115,800.00
Account receivable 458,920.00
Inventory -
Total Current Asset 619,930.00
property, plant and Equipment
Residential building 3,300,000.00
Acc: depreciation Expense 165,000.00
Total Fixed Asset 3,135,000.00
TOTAL ASSET 3,754,930.00
2. LIABILTY
Current Liability
Business income Tax Payable 157,768.00
Total Current Liability 157,768.00
Trade and others payable -
Long Term Liability -
Total liability 157,768.00
3. CAPITAL
Beginning registered Capital 100,000.00
Retained Earning 3,497,162.00
Total Capital 3,597,162.00
TOTAL LIABILTY AND CAPITAL 3,754,930.00
 NARDOS ABABA WOLDETENSAY
STATEMENT OF PROFIT AND LOSSES
FOR YEAR ENDEED OF JULY 07,2023
1. REVENUE 2023
Income from Sales of logs, timber forestry, briquettes and
6,412,000.00
charcoal
Total Net Sales 6,412,000.00
Cost of goods sold
Beginning Inventory 489,020.00
Add: Purchase 3,982,220.00
Cost of merchandise available for sales 4,471,240.00
Less: Ending Inventory 458,920.00
Total Cost of goods sold 4,012,320.00
Gross Profit 2,399,680.00
OPERATING EXPENSE
Loading and unloading and Labor Expense 395,000.00
Printing and stationery 25,000.00
Salary Expense 182,000.00
Utility Expense 45,000.00
Depreciation Expense 175,000.00
TOTAL EXPENSE 822,000.00
Income Before Tax Payable 1,577,680.00
profit Tax Payable 157,768.00
Net income from business 1,419,912.00
 NARDOS ABABA WOLDETENSAY
STATEMENT OF CASH FLOW
FOR YEAR ENDEED OF JULY 07,2023
Operating activity 2023
Cash receipts from operating
Net profit Before taxation 1,577,680.00
Depreciation Expense 165,000.00
1,412,680.00
Inventory change -
Decreased ( increased trade & other payable -
Decreased ( increased trade & other receivable 458,920.00
Interest -
Other taxes paid 157,768.00
157,768.00
Net Cash Flow from Operations activity 1,570,448.00
Investing Activities
Acquisition of property, plant and Equipment -
Income from sales of logs, timber forestry, briquettes and
6,412,000.00
charcoal
Collection of principal on loans -
Cash paid for -
Purchase of logs, timber forestry, briquettes and charcoal 4,471,240.00
Making loans to other entities -
Purchase of investment securities -
Net Cash Flow from Investing Activities 1,940,760.00
Financing Activities
Proprietors additional investment (Earning) 3,497,162.00
Owner capital contribution from business 1,419,912.00
4,917,074.00
Cash paid for
Repurchase of stock (Inventory) -
Repayment of loans -
Withdrawal account
Net Cash Flow from Financing Activities 4,917,074.00
Increased in cash and cash Equivalent 115,800.00
Cash and cash Equivalent at beginning of the year 8,428,282.00
Cash and cash Equivalent at ending of the July 07,2023 115,800.00
 NARDOS ABABA WOLDETENSAY

RETAIL TRADE OF

LOGS, TIMBER FORESTRY, BRIQUETTES AND CHARCOAL

PROVISIONAL FINANCIAL STATEMENTS

FOR YEAR ENDEED OF JULY 07, 2024

 NOTE OF FINANCIAL STATEMENTS
5. ESTABLISHMENT

NARDOS ABABA WOLDETENSAY was established on 2/5/2011 E.C as a Retail trade of

logs, timber forestry, briquettes and charcoal, with a capital of ETB 100,000.00. The address of
the company is Addis Ababa city Addis Ketema Sub city 09 kebele, House No.new:572
6. SUMMARY OF SIGNIFICANT ACCOUNT & POLICES

The financial statement has been prepared in accordance with the owner reporting framework.

For reporting under the commercial code of Ethiopia, the balance sheet in theses financial
statement is represented by the statement of financial position and the profit and loss account is
presented in the statement of profit and loss.

6.1.Basis of preparation

The financial statements have been prepared on a historical cost basis accounting. The
preparation of financial statement is conformity with the owner reporting framework require the
use of certain critical accounting estimates.

It is also requires management to exercise judgment in the process of the applying the company
accounting policies. Areas involving in a higher degree of judgment or complexity or area where
assumption and estimation to the financial statement are disclosed.

6.2.Property Plant, and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is
charged in accordance with income tax proclamation 979/2016 for asset brought from previous
year on the straight line basis for office equipment the written down value of other asset, at the
following rate per annum.
Fixed Asset %
Motor Vehicles 15%
Office equipment 20%
Others asset 15%
2.3 Recognition of Income and Expense
Accrual basis of accounting adopted. Accrual basis accounting recognizes business revenue and
matching expenses when they are generated not when money actually changes hands. This
means companies record revenue when it is earned, not when the company collects the money.

7. Accounting Polices

The owner has recognised revenue when the amount of revenue can be reliably measured, it is
probable that the future economic benefit will follow to the company and when specific criteria
have been met for each of the company activity as described below.
Revenue is recognized as follow:
iii. Sales of goods
The sales of good are recognized in the period in which the company has delivered product and
rendering service to the customer, delivery does not occur until the customer has accepted the
products.
iv. Other income
All other income is recognized on the accrual basis on the service provided
7.1.Cash and cash equivalent

Cash in hand and cash on banks in current and deposit account are carried at cost. Cash and cash
equivalent are defined as cash in hand, cash at bank in current and deposit account and short term
finance readily convertible to known amount of cash and subject to insignificant risk of change
in value. For the purpose of cash flow statement, cash and cash equivalent consist of cash on
hand and at banks net of overdraft finance if any
7.2.Trade and Other Payable
Trade payable are obligation on the basis of normal credit term and do not bear interest. Trade
payable is carried in the normal value.
7.3.Inventory and goods in transit
Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components,
consumables and stock-in-trade are carried at the lower of cost and net realizable value.
However, materials and other items held for use in production of inventories are not written
down below cost if the finished goods in which they will be incorporated are expected to be sold
at or above cost. The comparison of cost and net realizable value is made on an item-by item
basis. In determining the cost of raw materials, packing materials, stock-in-trade, stores, spares,
components and consumables, weighted average cost method is used. Cost of inventory
comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax
authorities) and all other costs incurred in bringing the inventory to their present location and
condition.
7.4.Borrower cost
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the interest cost. Borrowing costs, if any,
directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalized, if any.
All other borrowing costs are expensed in the period in which they occur.
7.5.Translation of foreign currency
Transactions in foreign currencies during the year are converted into Ethiopian Birr at the
exchange rate ruling at the date of the transaction. Foreign currency monetary assets and
liabilities are translated at the exchange rates ruling at the balance sheet date.
3.3 Withholding Tax
This is account records amounts of customer owe to the tax authority on your behalf have not yet
paid.
3.5 Taxation
Current taxation is provided based on result for the year as shown in the financial statement
adjusted in accordance with the Ethiopian tax legislation. The tax liability is calculated on the
taxable profit at the currently in enacted tax rates. So the owner has paid tax by estimation of
product capacity.
8. Provisions
Provision are recognized when the owner has a present legal or constructive obligation as a result
of past event, it is probable that an outflow of resource embodying economic benefit will be
required to settle the obligation and reliable estimate of the amount can be made
4.2 Function and reporting currency
The financial statement is presented in Ethiopian Birr.
 NARDOS ABABA WOLDETENSAY
STATEMENT OF BALANCE SHEET
FOR THE ENDED YEAR JULY 07,2024
1. Asset 2024
Cash in bank balance 254,000.00
cash on hand 62,800.00
Inventory 87,500.00
Account Receivable 350,000.00
Total Current Asset 754,300.00
Property plant, and Equipment
Residential building 4,200,000.00
Acc: depreciation expense 210,000.00
Total fixed asset 3,990,000.00
Total Asset 4,744,300.00
2. Liability
Profit tax due 210,124.00
Note and others payable 524,800.00
Total Current Liability 734,924.00
Long Term Liability -
Total Liability 734,924.00
3.Capital
Beginning Capital registered 100,000.00
Retained Earning 3,909,376.00
Total Equity 4,009,376.00
Total Liability and Equity 4,744,300.00
 NARDOS ABABA WOLDETENSAY
STATEMENT OF PROFIT AND LOSSES
FOR THE ENDED YEAR JULY 07,2024
2024
1. REVENUE 2022
Income from Sales of logs, timber forestry, briquettes
7,860,000.00
and charcoal
Total Net Sales 7,860,000.00
Cost of good sold
Beginning Inventory 87,500.00
Add: Purchase 5,158,000.00
Cost of merchandise available for sales 5,245,500.00
Less: Ending Inventory 85,200.00
Total Cost of good sold 5,160,300.00
Gross Profit 2,699,700.00
OPERATING EXPENSE
Loading and unloading and Labor Expense 152,800.00
Printing and stationery 15,860.00
Salary Expense 182,000.00
Utility Expense 37,800.00
Depreciation Expense 210,000.00
TOTAL EXPENSE 598,460.00
Income Before Tax Payable 2,101,240.00
profit Tax Payable 210,124.00
Net income from business 1,891,116.00
 NARDOS ABABA WOLDETENSAY
STATEMENT OF CASH FLOW
FOR THE ENDED YEAR JULY 07,2024
2024
Cash receipts from operating
Net profit Before taxation 2,699,700.00
Depreciation Expense 210,000.00
2,489,700.00
Change in Inventory 87,500.00
Decreased ( increased trade & other receivable 350,000.00
Note and Others Payable 524,800.00
Other taxes paid 210,124.00
1,172,424.00
Net Cash Flow from Operations activity 3,662,124.00
Investing Activities
Acquisition of property, plant and Equipment
Income from sales of logs, timber forestry, briquettes and
7,860,000.00
charcoal
Collection of principal on loans -

Cash paid for -

Purchase of logs, timber, forestry and others 5,158,000.00
Making loans to other entities -
Purchase of investment securities -
Net Cash Flow from Investing Activities 2,702,000.00
Financing Activities
Proprietors additional investment (Earning) 3,909,376.00
Income from business contribution 1,891,116.00
5,800,492.00
Cash paid for
Repurchase of stock (Inventory)
Repayment of loans -
Withdrawal account -
Net Cash Flow from Financing Activities 5,800,492.00
Increased in cash and cash Equivalent 254,000.00
Cash and cash Equivalent at beginning of the year 12,164,616.00
Cash and cash Equivalent at ending of the year July 2024 254,000.00
 NARDOS ABABA WOLDETENSAY

RETAIL TRADE OF

LOGS, TIMBER FORESTRY, BRIQUETTES AND CHARCOAL

PROVISIONAL FINANCIAL STATEMENTS

FOR YEAR ENDEED OF JULY 07, 2025

 NOTE OF FINANCIAL STATEMENTS
9. ESTABLISHMENT

NARDOS ABABA WOLDETENSAY was established on 2/5/2011 E.C as a Retail trade of

logs, timber forestry, briquettes and charcoal, with a capital of ETB 100,000.00. The address of
the company is Addis Ababa city Addis Ketema Sub city 09 kebele, House No.new:572
10. SUMMARY OF SIGNIFICANT ACCOUNT & POLICES

The financial statement has been prepared in accordance with the owner reporting framework.

For reporting under the commercial code of Ethiopia, the balance sheet in theses financial
statement is represented by the statement of financial position and the profit and loss account is
presented in the statement of profit and loss.

10.1. Basis of preparation

The financial statements have been prepared on a historical cost basis accounting. The
preparation of financial statement is conformity with the owner reporting framework require the
use of certain critical accounting estimates.

It is also requires management to exercise judgment in the process of the applying the company
accounting policies. Areas involving in a higher degree of judgment or complexity or area where
assumption and estimation to the financial statement are disclosed.

10.2. Property Plant, and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is
charged in accordance with income tax proclamation 979/2016 for asset brought from previous
year on the straight line basis for office equipment the written down value of other asset, at the
following rate per annum.
Fixed Asset %
Motor Vehicles 15%
Office equipment 20%
Others asset 15%
2.3 Recognition of Income and Expense
Accrual basis of accounting adopted. Accrual basis accounting recognizes business revenue and
matching expenses when they are generated not when money actually changes hands. This
means companies record revenue when it is earned, not when the company collects the money.

11. Accounting Polices

The owner has recognised revenue when the amount of revenue can be reliably measured, it is
probable that the future economic benefit will follow to the company and when specific criteria
have been met for each of the company activity as described below.
Revenue is recognized as follow:
v. Sales of goods
The sales of good are recognized in the period in which the company has delivered product and
rendering service to the customer, delivery does not occur until the customer has accepted the
products.
vi. Other income
All other income is recognized on the accrual basis on the service provided
11.1. Cash and cash equivalent

Cash in hand and cash on banks in current and deposit account are carried at cost. Cash and cash
equivalent are defined as cash in hand, cash at bank in current and deposit account and short term
finance readily convertible to known amount of cash and subject to insignificant risk of change
in value. For the purpose of cash flow statement, cash and cash equivalent consist of cash on
hand and at banks net of overdraft finance if any
11.2. Trade and Other Payable
Trade payable are obligation on the basis of normal credit term and do not bear interest. Trade
payable is carried in the normal value.
11.3. Inventory and goods in transit
Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components,
consumables and stock-in-trade are carried at the lower of cost and net realizable value.
However, materials and other items held for use in production of inventories are not written
down below cost if the finished goods in which they will be incorporated are expected to be sold
at or above cost. The comparison of cost and net realizable value is made on an item-by item
basis. In determining the cost of raw materials, packing materials, stock-in-trade, stores, spares,
components and consumables, weighted average cost method is used. Cost of inventory
comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax
authorities) and all other costs incurred in bringing the inventory to their present location and
condition.
11.4. Borrower cost
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the interest cost. Borrowing costs, if any,
directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalized, if any.
All other borrowing costs are expensed in the period in which they occur.
11.5. Translation of foreign currency
Transactions in foreign currencies during the year are converted into Ethiopian Birr at the
exchange rate ruling at the date of the transaction. Foreign currency monetary assets and
liabilities are translated at the exchange rates ruling at the balance sheet date.
3.3 Withholding Tax
This is account records amounts of customer owe to the tax authority on your behalf have not yet
paid.
3.6 Taxation
Current taxation is provided based on result for the year as shown in the financial statement
adjusted in accordance with the Ethiopian tax legislation. The tax liability is calculated on the
taxable profit at the currently in enacted tax rates. So the owner has paid tax by estimation of
product capacity.
12. Provisions
Provision are recognized when the owner has a present legal or constructive obligation as a result
of past event, it is probable that an outflow of resource embodying economic benefit will be
required to settle the obligation and reliable estimate of the amount can be made
4.3 Function and reporting currency
The financial statement is presented in Ethiopian Birr.
 NARDOS ABABA WOLDETENSAY
STATEMENT OF BALANCE SHEET
FOR THE ENDED YEAR JULY 07,2025
1. ASSET 2025
Cash in bank balance 80,900.00
cash on hand 68,000.00
Account Receivable 352,000.00
Inventory 85,200.00
Total Current Asset 586,100.00
Property plant, and Equipment
Residential building 5,000,000.00
Acc: depreciation expense 250,000.00
Total fixed asset 4,750,000.00
Total Asset 5,336,100.00
2. LIABILITY
Note payable 128,000.00
profit Tax payable 283,756.04
Total Current Liability 411,756.04
Long Term Liability
Bank Loan -
Total Liability 411,756.04
3.CAPITAL
Beginning Capital registered 100,000.00
Retained Earning 4,824,343.96
Total Equity 4,924,343.96
TOTAL LIABILLITY AND CAPITAL 5,336,100.00
 NARDOS ABABA WOLDETENSAY
STATEMENT OF PROFIT AND LOSSES
FOR THE ENDED YEAR JULY 07,2025
1. REVENUE 2025
Income from Sales of logs, timber forestry, briquettes and
8,228,000.37
charcoal
Total Net Sales 8,228,000.37
Cost of good sold
Beginning Inventory 85,200.00
Add: Purchase 5,319,220.00
Cost of merchandise available for sales 5,404,420.00
Less: Ending Inventory 560,000.00
Total Cost of good sold 4,844,420.00
Gross Profit 3,383,580.37
OPERATING EXPENSE
Loading and unloading and Labor Expense 168,500.00
Printing and stationery 24,000.00
Depreciation expense 250,000.00
Salary Expense 64,000.00
Utility Expense 39,520.00
TOTAL EXPENSE 546,020.00
Income Before Tax Payable 2,837,560.37
profit Tax Payable 283,756.04
Net income from business 2,553,804.33
 NARDOS ABABA WOLDETENSAY
STATEMENT OF CASH FLOW
FOR THE ENDED YEAR JULY 07,2025
Operating Activity 2025
Net profit Before taxation 2,837,560.37
Depreciation Expense 250,000.00
2,587,560.37
Inventory 2,587,560.37
Decreased ( increased trade & other payable 128,000.00
Decreased ( increased trade & other receivable 352,000.00
Interest -
Other taxes paid 283,756.04
763,756.04
Net Cash Flow from Operations activity 3,351,316.40
Investing Activities
Acquisition of property, plant and Equipment -
Income from sales of logs, timber forestry, briquettes and
8,228,000.37
charcoal
Collection of principal on loans -
Cash paid for -
Purchase of logs, timber forestry, briquettes and charcoal 5,319,220.00
Making loans to other entities -
Purchase of investment securities -
Net Cash Flow from Investing Activities 2,908,780.37
Financing Activities
Proprietors additional investment (Earning) 4,824,343.96
Owner capital contribution 2,553,804.33
7,378,148.29
Cash paid for
Repurchase of stock (Inventory) -
Repayment of loans -
Withdrawal account -
Net Cash Flow from Financing Activities 7,378,148.29
Increased in cash and cash Equivalent 80,900.00
Cash and cash Equivalent at beginning of the year 13,638,245.06
Cash and cash Equivalent at ending of the year 80,900.00