FORTUNE ACCOUNTS - KERICHO

LENKO ENTERPRISES LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST

DECEMBER 2016
View Park Towers 17th Floor Box 13250-00100, Nairobi.

page 1 of 17
P.O. BOX 1-20400 BOMET
Financial Statements
For the year ended 30TH JUNE 2016
CONTENTS
PAGE
Company information 2
Report of the directors 3
Statement of directors' responsibilities 4
Report of the independent auditors 5
Financial statements:
Statement of Comprehensive Income
Statement of Financial Position 7
Statement of changes in equity 8
Cash flow statement 9
Notes to the financial statements 10 - 17
The following do not form an integral part of these financial statements
Schedule of expenditure Appendix I

Page 2 of 17
COMPANY INFORMATION
Directors KOSKEI KIPKOECH GEOFFREY

BECKY JEPKEMBOI BOIT
LEONARD KOSGEI
Company secretaries Commercial Registrars

Certified Public Secretaries
P.O. Box 49925 - 00100
Nairobi.
Registered office TILIL PLAZA - BOMET COUNTY

P.O. Box 1 - 20400
BOMET , KENYA
Independent auditors CPJ & Associates

Certified Public Accountants (K)
P.O. Box 13250-00100
Nairobi
Principal bankers CO-OP BANK

Page 3 of 17
REPORT OF THE DIRECTORS
The directors submit their report and the audited financial statements f
30th June, 2016
Incorporation
The company is incorporated in Kenya under the Companies Act and is domiciled in Kenya.
The address of the registered office is set out on page 2.
Principal activities
i. Businesses of power, renewable energy solar power and panels
ii. Suppliers of power generators, mechanical ventilation and air conditioning equipment
iii. Water drilling, supply and servicing of drilling equipments
iv. Electricity engineering work, plumbing, survey and electrifications
v. Hotel and lodging services, transport agents, insurance agents, store merchants
Results for the year

2016 2015
Shs Shs
Profit before tax 4,180 - (45)
Tax charge - -
Net profit for the year carried forward to retained earnings on page 8. 4,180 - (45)
Dividends
The directors do not recommend the declaration of a dividend for the year.
Directors
The directors who held office during the year are shown on page 2.
Independent auditors
CPJ & Associates, Certified Public Accountants, have expressed their willingness to continue
in office in accordance with Section 159(2) of the Kenyan Companies
By order of the Board
DIRECTOR
STATEMENT OF DIRECTORS' RESPONSIBILITIES ON THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30th JUNE 2016
The Companies Act requires the directors to prepare financial statements for each financial year that
give a true and fair view of the state of affairs of the company as at the end of the financial year and of
its profit or loss. It also requires the directors to ensure that the company keeps proper accounting records
that disclose, with reasonable accuracy, the financial position of the company. They are also responsible for
safeguarding the assets of the company.
The directors are responsible for the preparation and fair presentation of these financial statements in
accordance with International Financial Reporting Standards. Their responsibility includes: designing,
implementing and maintaining internal controls relevant to the preparation and fair presentation of financial
statements that are free from material mistatement, whether due to fraud or error, selecting and applying
appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.
The directors accept responsibility for the annual financial statements, which have been prepared using
appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity
with International Financial Reporting Standards and in the manner required by the Companies Act. The
directors are of the opinion that the financial statements give a true and fair view of the state of the financial
affairs of the company and of its operating results. The directors further accept responsibility for the
maintenance of accounting records that may be relied upon in the preparation of financial statements, as well
as adequate systems of internal financial control.
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.
Director . Director
2016 . 2016
Page 4 of 17
EMENTS
View Park Towers 17th Floor Box 13250-00100, Nairobi. Tel 020-3567 117 / 0705 567 117
Page 5 of 17
REPORT OF THE INDEPENDENT AUDITORS
TO THE MEMBERS OF MILYAN BUILDING CONTRACTORS
We have audited the financial statements of Lenko Enterprises Limited set out on pages 6 to 17 which comprise the statement of financial position as at 30 th
June 2016, the comprehensive statement of income position, statement of changes in equity and the cash flow statement for the year then ended, together with the
summary of significant accounting policies and other explanatory notes.
Directors' responsibility for the Financial Statements
The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards
and the requirements of the Kenyan Companies Act. This responsibility includes: designing, implementing and maintaining internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate
accounting policies, and making accounting estimates that are reasonable in the circumstances.
Auditor's Responsibility
Our responsibility is to express an independent opinion on these financial statements. We conducted our audit in accordance with International Standards on
Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depended
on our professional judgement, and including an assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In
making those risk assessments, we considered the internal controls relevant to the company's preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by directors, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit opinion.
Opinion
In our opinion, proper books of account have been kept and the financial statements which are in agreement therewith, give a true and fair view of the state of
financial affairs of the company as at 30th June 2016 and of its financial performance and cash flows for the year then ended in accordance with International
Financial Reporting Standards and the Kenyan Companies Act.
Report on Other Legal Requirements
As required by the Kenyan Companies Act we report to you, based on our audit, that
i) 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
ii) In our opinion proper books of account have been kept by the company, so far as appears from our
examination of those books and
iii) The company's balance sheet and profit and loss account are in agreement with the books of account.
CPJ & Associates

Certified Public Accountants
Date...2016
Page 6 of 17
STATEMENT OF COMPREHENSIVE INCOME
2016 2015
Revenue Notes Shs. Shs.
Turnover 1(b)&2 3,920,180 1,960,000
Cost of Sales 3,120,700 1,555,820
Gross profit 799,480 404,180
Direct operating expenses 3 (475,350) (237,675)
Administrative expenses (240,200) (125,500)
Other operating expenses (75,000) (37,500)
Operating profit 5 8,930 3,505
Finance costs 6 (4,750) (3,550)
Profit before tax 4,180 (45)
Tax 7 - -
Net Profit for the year 4,180 (45)
The notes on pages 10 to 17 form an integral part of these financial statements.

Page 7 of 17
STATEMENT OF FINANCIAL POSITION
2016 2015
Notes Shs. Shs.
Non-current assets
Property, plant and equipment 8 217,000 285,700
217,000 285,700
Current assets
Inventories and work in progress 9 175,000 100,500
Trade and other receivables 10 21,635 390,380
Cash and cash equivalents 11 1,020,000 950,500
1,216,635 1,441,380
1,433,635 1,727,080
EQUITY AND LIABILITIES
Capital and reserves
Share capital 12 500,000 500,000

Retained Earnings 4,135 (45)
504,135 499,955
Non-current liabilities
Borrowings 13 - -
Current liabilities
Trade and other payables 14 229,500 1,227,125
Loans Payable 13 700,000 -
929,500 1,227,125
Total liabilities 929,500 1,227,125
Total equity and liabilities 1,433,635 1,727,080
The financial statements on pages 6 to 17 were approved by the Board of Directors on

........2016 and were signed on its behalf by: ###
... Director .. Director

STATEMENT OF CHANGES IN EQUITY
Share Retained
Capital earnings
Shs. Shs.
At 1st January 2015 500,000 -
Net Profit (loss) for the year - (45)
At 31st December 2015 500,000 (45)
At 1st January 2016 500,000 (45)
Net profit for the year - 4,180
At 31st December 2016 500,000 4,135

Page 8 of 17
Total
Shs.
500,000
(45)
499,955
499,955
4,180
504,135
Page 9 of 17
CASH FLOW STATEMENT
2016 2015
Cash generated from operations Notes Shs. Shs.
Reconciliation of loss before tax to cash (used in)/generated
from operations
Profit before tax 4,180
### (45)
###
Adjustments for:
Depreciation on property, plant and equipment 8 65,100
### 65,371
Interest on borrowings 6 ###
- -
Loss on disposal of property and equipment ###
- -
Changes in working capital
Inventories (74,500)
### (100,500)
Trade and other receivables 368,745 (390,380)
Trade and other payables (997,625) 1,227,125
Cash generated from operations (634,100) 801,571

Tax paid - -
Net cash from operating activities (634,100) 801,571
Investing activities
Purchase of property and equipment 8 ###
- 148,929
Proceeds on disposal of property and equipment - -
Net cash (used in) investing activities - 148,929
Financing activities
Proceeds from borrowings 700,000
Interest on borrowings 6 - -
Net cashflow from financing activities 700,000 -
(Decrease) / Increase in cash and cash equivalents 65,900 950,500
Movement in cash and cash equivalents
At 1st January 11 950,500

### -
(Decrease) / Increase during the year 69,500 950,500
At 31st December 11 1,020,000
### 950,500

Page 10 of 17
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
The principal accounting policies adopted in the preparation of these financial statements
are set out below:
a) Statement of compliance and the basis of preparation
The financial statements are in compliance with International Financial Reporting Standards (IFRSs).
The financial statements are prepared on the historical cost basis (except for the revaluation of certain
non-current assets and financial instruments). They are presented in the functional currency, Kenya
Shillings, (Shs).
The preparation of financial statements in conformity with IFRS requires the use of estimates and
assumptions. It also requires management to exercise its judgment in the process of applying the
company's policies. The areas involving a higher degree of judgment or complexity, or where
assumptions and estimates are significant to the financial statements, are disclosed in note 16.
b) Revenue recognition
Sales of services are recognised in the period in which the services are rendered, by reference to
completion of the specific transaction assessed on the basis of the actual service provided as a
proportion of the total services provided.
c) Property, plant and equipment

All categories of property, plant and equipment are initially recorded at cost and are stated at historical
cost less depreciated.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the company and the cost can be measured reliably. All other repairs and maintenance are charged to
the profit and loss account during the financial period in which they are incurred.
Depreciation on assets is calculated on reducing balance method to write down their cost to their
residual values over their estimated useful lives using the following annual rates:
Rate %
Furniture and fittings 12.5
Motor vehicles 25
Computers and photocopiers 30
Intergible Assets 30
Plant and machinery 12.5
other costs attributed to bring the goods to that particular condition and location.
The cost of finished goods and work in progress comprises raw materials, direct labour, and other
direct costs and related production overheads, but excludes borrowing costs.
Net realisable value is the estimate of the selling price in the ordinary course of business, less the
cost of completion and selling expenses.
Page 11 of 17
NOTES TO THE FINANCIAL STATEMENTS (continued)
e) Receivables
Receivables are recognised initially at the fair value which is the original invoice amount and
subsequently at amortised cost using the effective cost method. A provision for impairment is
recognised in the profit and loss account in the year when the recovery of the amount due as per
the original terms is doubtful.
Receivables not collectible are written off against the related provision. Subsequent recoveries of
amounts previously written off are credited to the profit and loss account in the year of recovery.
f) Cash and cash equivalents
For the purpose of cash flow statement, cash and cash equivalent comprise cash in hand
and deposits held at call with banks.
g) Deferred tax
No deferred tax has been provided as it is considered immaterial.

2016 2015
2. Revenue Shs. Shs.
Sales 3,920,180 1,960,000
Total revenue 3,920,180 1,960,000
3. Other operating income

Loss on disposal of Propert & equipment - -
Other income - -
- -
4 Employee benefits expenses

The following items are included in the employee benefits expenses:
Salaries and wages 162,000 162,000
Staff welfare - -
162,000 162,000
The number of persons employed by the company at the year end:
Full time 3 3
Part time 17 17
20 20
Page 12 of 17
2016 2015
5 Operating profit Shs. Shs.
Operating loss is stated after charging
Auditors' remuneration 120,000 120,000
Depreciation on property, plant and equipment 65,100 65,371
Directors remuneration - -
Employee benefits expenses 162,000 162,000
6 Finance costs
Bank Overdraft Interest - -
7 Tax
a) Corporation tax
Current tax 1,254 (14)
Prior years adjustment - -
1,254 (14)
The tax on the company's profit before income tax differs from the
theoretical amount that would arise using the income tax rate as follows
Profit before tax 4,180 (45)
The calculated tax at rate of 30% (2015: 30%) 1,254 (14)
Tax effect of
Excess of depreciation over wear and tear allowances -### -
Losses not deductible for tax purposes - -
Expenses not deductible for tax purposes - -
Loss brought forward (45) -
Loss carried forward - -
1,209 (14)
b) Deferred tax
No provision has been made as there are no material temporary
timing differences.
c) Tax recoverable
At 1st January - -
Provision for the year - -
Paid during the year - -
At 31st December - -
8 Property, Plant and equipment

Intangible
Building Assets Total
Shs. Shs. Shs.
Cost:
At 1st January 2015 - 437,600 437,600
At 31st December 2015 - 437,600
### 437,600
At 1st January 2015 - 437,600 437,600
Additions - ###
- -
At 31st December 2015 - 437,600 437,600

Depreciation:
At 1st January 2015 - 155,229 155,229
Charge for the year - 65,371 65,371
At 31st December 2015 - 220,600

### 220,600
At 1st January 2016 - 220,600 220,600
Charge for the year - 65,100 65,100
At 31st December 2016 - 285,700 285,700

Net Book Value:
At 31st December 2015 - 285,700 285,700
At 31st December 2016 - 217,000 217,000
2016 2015
9 Inventories and work in progress Shs. Shs.
Inventories 175,000 100,500

Work in Progress - -
175,000 100,500
10 Trade and other receivables
Trade Receivables 21,635 390,380
Deposits, Prepayments and other receivables - -
21,635 390,380
Page 14 of 17
2016 2015
11 Cash and cash equivalents Shs. Shs.
Bank balance 1,020,000 950,500

Cash balance - -
Cash and bank balance 1,020,000 950,500
For the purpose of cash flow statement cash and cash equivalent comprise:
Cash and bank balance 1,020,000 950,500
Bank overdraft - -
1,020,000 950,500
12 Ordinary share capital

Authoried share capital:
10000 ordinary shares of shs. 100 each 100,000 100,000
Authorised, issued and fully paid share capital:

30 ordinary shares of shs. 100 each 3,000,000 3,000,000
13 Borrowings
Non-current
Shareholders loan (Note 15) - 69,269,531
- 69,269,531
Current
Bank overdraft - 24,819,298
- 24,819,298
- 94,088,829
The long term borrowings from shareholders is interest free with no set
repayment terms
The weighted average effective interest rates at the year end were;
Bank overdraft
14 Trade and other payables
Trade 25,987,946 21,093,994
Related Party Balances- (Note 15) - -
Payables and accruals 938,457 3,068,727
26,926,403 24,162,721
i) Due (to)/from related parties
Balance at 1st January - -
Amounts advanced during the year - -
Amounts received during the year - -
Balance at 31st December - -

Page 15 of 17
2016 2015
ii) Loan from related parties Shs Shs
Shareholders loan
Balance as at 1st January - -
Amounts received - -
Amounts paid - -
Balance at 31st December - -
The balances to/from related parties are interest free and have no specific dates of repayment.
16 Critical accounting judgments and key sources of estimation uncertainty
In the process of applying the accounting policies, the directors have made estimates and assumptions
that affect the reported amounts of assets and liabilities within the next financial year.
Estimates and judgments are continually evaluated and are based on historical experiences and other
factors, including experience of future events that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and fututre periods if the revision affects both current and future
period.
The key areas of judgment and sources of estimation uncertainty are set out below:
i) Property, plant and equipment - useful lives
Critical estimates are required in determining the depreciation rates for property, plant and equipment.
The directors determine these rates of depreciation based on their assessment of the useful lives of the
various items of property, plant and equipment.
ii) Income taxes
Significant estimates are required in determining the provision for income taxes. There are many
transactions and calculations for which the ultimate tax determination is uncertain during the ordinary
course of business. Where the final tax outcome is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred tax provisions in the period in
which such determination is made.
Page 16 of 17
16 Critical accounting judgments and key sources of estimation uncertainty (continued .)
iv) Provisions for doubtful debts

The directors review its debtors' portfolio regularly to assess the likelihood of impairment. This
requires an estimation of amounts that are irrecoverable.
v) Impairment losses
At each balance sheet date, the company reviews the carrying amounts of its tangible and intangible
assets to determine whether there are any indication that those assets have suffered an impairment
loss. If such indication exists the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss where it is not possible to estimate the recoverable amount of an
individual asset, the company estimates the recoverable amount of the asset.
Any impairment losses are recognised as an expense immediately where an impairment loss
subsequently reverses the carrying amount of the asset is increased to the revised amount of the
recoverable amount. A reversal of an impairment loss, other than that arising from goodwill, is
recognised as income immediately.
17 Risk management objectives and policies
Financial risk management
The company's activities expose it to a variety of financial risks to include market risk (including foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The company's overall risk
management programme focuses on the unpredictability of financial markets and changes in the business
environment and seeks to minimise the potential adverse effects of such risks on its performance by
setting acceptable levels of risk.
Risk management is carried out by the management under policies approved by the directors.
a) Market risk
i) Interest rate risk
The company's activities expose it to the financial risks of changes in interest rates. There has
change to the company's exposure to interest rate risks and the manner in which it manages and
been no measures the risk.
b) Credit risk
Credit risk arises from cash and cash equivalents, as well as credit exposure to customers, including
outstanding receivables.
If customers are independently rated, these ratings are used. Otherwise, if there is no independent
rating, management assesses the credit quality of the customer, taking into account their financial
position, past experience and other factors.
Page 17 of 17
17 Risk management objectives and policies (continued .)

Individual limits are set based on internal or external information in accordance with limits set by the
management. The utilisation of credit limits is regularly monitored. No credit limits were exceeded
during the reporting period, and management does not expect any losses from non-performance by
these counterparties.
c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents to meet
obligations as they fall due. The management ensures that adequate cash reserves are maintained
to pay off liabilities as they crystallise
Capital Risk management
The company manages its capital to ensure that it will be able to continue as a going concern while
maximizing the return to shareholders through the optimisation of the debt and equity balance. The
company's overall strategy remains unchanged from the previous year.
The capital structure of the entity consists of debt, which includes the borrowings disclosed, cash
and cash equivalents and equity comprising issued capital, reserves and retained earnings as disclosed
in notes. In order to maintain or adjust the capital structure, the company may adjust the amount
of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to
reduce debt.
18 Country of incorporation
The company is incorporated in Kenya under the Companies Act and is resident in Kenya.
19 Comparatives
Where necessary comparative figures have been adjusted to conform with change in presentation
in the current year
Appendix 1
For the year ended 31st December 2015
SCHEDULE OF EXPENDITURE
2015 2014
COST OF SALES Shs. Shs.
Opening inventories - 36,529,428

Purchases 15,923,788
Packaging materials
Depreciation on property, plant and equipment
Distribution and carriage
Electricity and water
Repairs and maintenance
Direct Salaries and wages
Closing inventories -
15,923,788 ### 24,823,706
ADMINISTRATIVE EXPENSES
Employment expenses
Salaries and wages 6,386,919
Staff welfare and medical 271,568
6,658,487 -
Other administrative expenses

Accountancy charges -
Advertisement 498,510
Audit fees 114,000
Bank charges and commissions 151,439
Cleaning expenses 133,373
Directors remuneration -
Donations, Fines & Penalties 1,511,064
Legal and professional fees 713,459
Miscellaneous 296,303
Postage and telephone 358,322
Printing and stationery 729,274
Electricity and water 83,581
Travelling expenses 550,564
Vehicle running expenses -
5,139,889 -
Total administrative expenses 11,798,376 -
OTHER OPERATING EXPENSES

Establishment:
Depreciation on property, plant and equipment 65,100
Insurance 1,256,538
Licences 42,500
Rent & Rates 3,045,203
Security 139,115
Repairs and maintenance 654,659
5,203,116 -
TAX COMPUTATION
YEAR OF INCOME-YEAR ENDED 31 DECEMBER 2015
PIN NO. P051357645K

FILE NO.
Kshs.
Profit before tax 4,180
Add: Depreciation on property, plant and equipment 65,100

Donations, Fines & Penalties 1,511,064
1,580,344
Less: Wear and Tear (329,824)

Gain on disposal of property, plant and equipment -
Taxable Profit for the year 1,250,520

Loss brought forward (22,062,233)
Loss brought forward to 2016 (20,811,713)
(6,243,514)
Wear and Tear Schedule

Class I Class II Class III ClassIV Total
Kshs Kshs Kshs Kshs Kshs
W.D.V. at 1 January 2015 1,379,334 409,148 - 9,995,134 11,783,616

Additions - 561,518 557,810 - 1,119,328
1,379,334 970,666 557,810

### 9,995,134 12,902,944
Wear & Tear (517,250) (291,200) (139,453) (1,249,392) (2,197,294)

W.D.V at 31st December 2015 862,084 679,466 418,358 8,745,742 10,705,650
Pinechem Kenya Limited
Journal Entries Appendix I
PROFIT & LOSS BALANCE SHEET

Debit Credit Debit Credit
JE Description Kshs Kshs Kshs Kshs
Skybrite Ltd
Rent & Rates
(Being rent paid by Pinechem on behalf of Skybrite)
1 Bank 0.00
Cerapack 0.00
( Being cash received from cerapack for expenses)
2 Purchases 0
CERA PACK 0
( Being purchases paid by Cerapack)
3 Cerapack 0.00
Bank 0.00
(Being Cash to cerapack for expenses)
4 Fuel & Oil 119,630.00

Director Account 119,630.00
(Being fuel expenses paid by Director)
5 Consultancy 7,000.00
Repair 300.00
Motor vehicle repair 23,800.00
Director acount 31,100.00
( Being expenses paid by director)
6 Equi[pment 300,000.00
Director account 300,000.00
Being equipment bought by director)
7 Sales receipt 0.00

Director 0.00
(Being sales received through director )
8 Cleaning cost 2,500.00

Donation 82,000.00
Clothing cost 5,000.00
Director accounts 89,500.00
(Being expenses ommitted and wrongly poted to director)
9 Bank 0.00
Cerapack 0.00
Being funding of cerapack throuh kcb)
10 Bank 0.00
Skybright 0.00
(Being cost met by pinechem)
11
Bank 3,000.00
Cerapack 3,000.00
(Being parking fee wrongly posted to Cerapack)
12 salary 55,084.00
Cerapack 55,084.00
(Salary misposting to cerapack instead of salary account/ ledger)
13 Purchases 3,600.00
Plant & equipment 3,600.00
( Being correction of eqiupment wrong posted to material purchased)
14 Share capital 81,000.00

Suspense accounts 81,000.00
(Being journal passsed to clear suspense account)
15 Retained earnings 3,323,742

Suspense accounts 3,323,742
(Being journal posted to clear suspense account)
16 Furniture & fittings-cost 682,382.59

Office equipment-cost 1,035,160.00
Computers-cost 124,100.00
Plant & Machinery-cost 19,215,887.80
Motor Vehicles-cost 11,336,773.00
Opening balance
32,394,303.39
(Being opening balances PPE ommitted from the TB)
17
Acc dep-Furniture & fittings 220,600.00
Acc dep-Office equipment 906,535.00
Acc dep-Computers 37,230.00
Acc dep-Plant & Machinery 15,930,838.34
Acc dep-Motor Vehicles 6,934,474.00
Suspense 24,029,677.34
( Being dep. Ommitted in Tb)
18 Stock as at 1/1/2013 1,422,358.70

suspense account 1,422,358.70
(Being opening stock ommitted)
19 Closing stock 31/12/2013 3,785,802.00

Purchases 3,785,802.00
(Being closing stock for the year)
20 dep-Furniture & fittings #REF!
dep-Office equipment #REF!
dep-Computers #REF!
dep-Plant & Machinery #REF!
dep-Motor Vehicles #REF!
Depreciation charge #REF!
( Being depreciation charge for the year)
21 Closing stock adjustment 983,739.02

Purchases 983,739.02
22 VAT recoverable 11,753,179.74

Suspense account 11,753,179.74
(Being VAT recoverable opening balance omitted)

PINECHEM KENYA LIMITED
TRIAL BALANCE
AS AT 31ST DECEMBER 2013
PINECHEM (K) LTD Trial Balance

TRIAL BALANCE AND ADJUSTMENTS As at 31 DECEMBER 2014
AS AT 31st DECEMBER 2014
Initial T.B Original TB Final T.B

Debit Credit DR CR
Bank Current Account(Barclays) 3,256,744 3,256,744

Bank Current Account(KCB) 0 0
Call deposit 0 0
Cash in hand/ 0 0
Cheque payments 0
cash collection account 0
Building 0 0
Plant/ Machinery Depreciation 0 0
Intangible 0 0
Office equipment-acc depreciation 0 0
Fixture and fittings-cost 490,994 490,994
Fixtures and fittings-Acc derpreciation 315,669 315,669
Motor vehicle-cost 1,271,248 1,271,248
Motor vehicle-Acc depreciation 713,438 713,438
Computers 1,415,674 1,415,674
Computers -Acc depr 854,156 854,156
Debtors Control Account 33,291,013 33,291,013
Debtors staff 0 40,000 0 40,000
Inventory 0 0
Deposits 0 0
Deferred Tax 4,192,244 4,192,244
Sales Tax Control Account 663,593 0 663,593
input tax-local purchases 0 0
input tax-imports 0 0
CERAPACK 0 0
Sky Brite Consumer Ltd 0 0
Share capital 3,000 0 3,000
Creditors Control Account 25,987,946 25,987,946
Accruals 274,864 274,864
staff salaries (net pay) 0
NHIF contribution 0 0
NSSF contribution 0 0
Pay As You Earn(PAYE) 0 0
Directors 0 0
Directors account 39,941,360 39,941,360
Corporation tax 0 0 0 0
Commissioner of Domestic taxes kbs levy 0 0
Ordinary Shares 0
Revenue reserve Profit and loss Account 28,996,531 28,996,531
Sales income 36,980,602 0 36,980,602
Other income 0
Cost of sales 0 0
Raw materials 0 0
Material Purchase 2,428,278 2,428,278
Material Imported 13,495,510 13,495,510
Artwork 0 0
Clearing & forwarding 0 0
Tenderimg & procurement cost 0
Packaging 0 0
Page 25 of 35
TRIAL BALANCE

Security expense 139,115 139,115
Carriage 0 0
Water Rates 18,314 18,314
Electricity 65,267 65,267
Repairs & Servicing-equipmnts 643,399 643,399
Office Machiine Maintenance-Plant & mach 0
Advertising 16,900 16,900
Provision of Audit fees 114,000 114,000
Accountancy charges 0
Promotion & marketing 481,610 481,610
wages-casual 25,433 25,433
staff salaries 6,327,686 6,327,686
PAYE Contribution 0 0
NSSF contribution 33,800 33,800
NHIF contribution 0 0
Nssf Company Contribution 0 0
Staff training 119,700 119,700
Staff expenses 151,868 151,868
Clothing cost 0
staff welfare 0 0
Kitchenette Expense/office expenses 0 0
Directors Remuneration 0 0
Sales Commissions 0 0
Insurance 383,311 383,311
Vehicle Insurance 873,228 873,228
Transport-local 0 0
Fuel &Oil 0 0
Ful- Motor Expenses-DISTRIBUTION 0 0
Repairs & Servicing-M. Vehicles 0 0
Kitchen sundries 0 0
Miscellaneous Expenes 196,439 196,439
Bussiness entertainment 99,864 99,864
Travelling 550,564 550,564
Office Machiine Maintenance-Plant & mach 11,260 11,260
Printing 729,274 729,274
Office stationery 0 0
Photocopy 0 0
Postage & Carriage 279,752 279,752
Telephone 78,570 78,570
Internet 0 0
Legal fees 0 0
Subscriptions 0
Consultancy 713,459 713,459
Fines &Penalties 0
Cleaning 133,373 133,373
Rent 3,045,203 3,045,203
Repairs & Maintenance 0 0
Faxmail/telex/telegram 0 0
Repairs & Renewals 0 0
Bank Interest Paid 0 0
Bank charges 151,439 151,439
Loan interest 0 0
Depreciation 0 0
Donation 1,511,064 1,511,064
Licences 42,500 42,500
Licences 0 0
Discounts-sales 0 0
Fuel-Generator 0 0
Taxes, alevies & duties 0 0
Loss /Gain on sale of m/vehicle 0 0
Excise duty 0 0
Kenya Power & Lighting 0 0
write offs 0 0 0
TOTAL 105,774,627 105,774,628
### 105,774,627 105,774,628
Page 26 of 35
TRIAL BALANCE

0 (0)
Page 27 of 35
Journal Entries Appendix I
PROFIT & LOSS BALANCE SHEET

Debit Credit Debit Credit
JE Description Kshs Kshs Kshs Kshs
1 Fixtures and fittings-Acc derpreciation 7,721

Motor vehicle-Acc depreciation 587,500
Plant/ Machinery Depreciation 1,081,195
Office equipment-acc depreciation 56,178
Computers -Acc depr 118,062
Debtors Control Account 675,891
Revenue reserve Profit and loss Account 260,534
Debtors staff 0
Corporate tax 586,597
Directors account 2,852,610
(Being correction of opening balances)
2 Computers 12,966
Motor vehicle-cost 78,124
input tax-local purchases 91,090
(Being correction of assets purchased but not fully capitalised)
3 input tax-imports 22,183,001

input tax-local purchases 22,183,001
(Being merging the ledger as one)
3 Cash in hand/ 602,000

Sky Brite Consumer Ltd 602,000
(Being writing off of petty cash against Skybrite)
4 Pay As You Earn(PAYE) 41,831

PAYE Contribution 41,831
Accruals-NSSF contribution 5,200
NSSF contribution 13,900
Nssf Company Contribution 8,700
Accruals-NHIF contribution 7,660
(Correction of paid statutory deduction misposted)
PAYE Contribution 490,161

Rent 452,400
Bank Current Account(KCB) 37,761
(Being correction of mispostings)
(Being Statutory deduction accrued)
NHIF contribution 5,800

NSSF contribution 800
Directors account 6,600
(Correction of paid statutory deduction understated)
5 Wages-casual
NHIF contribution 14,100
Pay As You Earn(PAYE) 45,548
(Being Statutory deduction accrued)
6 Accruals 28,288
Material Imported 28,288
(Transfer of excise & kbs levy to correct a/c)
7 Electricity 106,850
Directors Accounts 115,408
Repairs & Servicing-equipmnts 6,442
Kenya Power & Lighting 15,000
(Correction of misposted expenses)
10 Corporation tax 1,173,824

Taxes, alevies & duties 997,325
Commissioner of Domestic taxes kbs levy 176,499
(Correction of misposted payments)
Taxes, alevies & duties 170,000

Bank Current Account(KCB) 170,000
(Reversal - keyed twice)
Kitchenette Expense/office expenses 9,805

9 Repairs & Servicing-equipmnts 5,680
Material Purchase 13,739
Directors Accounts 29,224
11 Material Purchase 665,000

Electricity 635,000
Accruals 30,000
12 Taxes, alevies & duties 193,701

Commissioner of taxes Excise duty 193,701
13 Carriage 447,453
Material Imported 447,453
(Correction of misposted transactions)
14 Ful- Motor Expenses-DISTRIBUTION 12,100
Material Purchase 9,000
Carriage 30,100
Fuel-Generator 27,000
15 Travelling 30,550
Transport-local 30,550
16 Kitchenette Expense/office expenses 12,542

staff welfare 12,542
Promotion & marketing 500
Sales Commissions 500
17 Donation 143,600
wages-casual 48,500
Directors account 95,100
18 Inventory 16,841,215
Cost of sales 16,841,215
(Year 2015 closing stock provision)
19 Cost of sales 13,515,807

Inventory 13,515,807
(Year 2014 closing stock expensed
Accruals 48,175
Provision of Audit fees 48,175
Provision of Audit fees 75,000

Accruals 75,000
Directors Remuneration 1,618,244

wages-casual 1,815,256
staff salaries 3,433,500
Fuel &Oil 1,567,924

Miscellaneous Expenes 27,964
Travelling 288,922
Directors account 1,884,810
20,813,229 23,726,351 44,694,520 41,642,198

MOTOR VEHICLE SCHEDULE
Costs Additions Disposals Costs D E PR E C IAT I O N NBV NBV

REG NO - MAKE Shs Shs Shs Shs Shs Charge for On Shs Shs Shs
01.01.13 31.12.12 01.01.12 the year disposal 31.12.12 31.12.12 31.12.11
KAQ 704B - P/up - - - - -
KAM - Isuzu P/up - - - - -
KAT 366K - - - - -
KAT 303K 3,707,173 3,707,173 - - 3,707,173 3,707,173
KBQ 487R Canter 2,350,000 - - 2,350,000 1,175,000 587,500 1,762,500 587,500 1,175,000
New Vehicle - 1,066,126 - 1,066,126 266,532 266,532 799,595 -
6,057,173 1,066,126 - 7,123,299 1,175,000 854,032 - 2,029,032 5,094,268 4,882,173

TAX COMPUTATION
YEAR OF INCOME-YEAR ENDED 31 DECEMBER 2015
PIN NO. P051103015Z

FILE NO.
Kshs.
Taxable profit for the period (20,811,713)
Tax thereon @ 30% (6,243,513.8)
Tax liability
Yr 2015 Principal Amount under/(over) Date due
Paid paid
Final (6,243,514) 65,000 (6,308,514) 4/30/2016
Add: Late payment penalty (1,261,753)
Tax liability (7,570,267) 6/30/2016
Yr 2016 Amount Date due

Paid
1st Installment Not yet paid (1,716,966) 0 (1,716,966) 4/20/2016
2nd Installment Not yet paid (1,716,966) 0 (1,716,966) 6/20/2016
3rd Installment (1,716,966) 0 (1,716,966) 9/18/2016
4th Installment (1,716,966) 0 (1,716,966) 12/18/2016
Total Installment payable (6,867,865) 0 (6,867,865)

SALARIES
Month Gross Pay Casual Paye Nssf Nhif Advances Dedctions Payroll
Jan 347,001 0 54,375 1,800 3,120 24,000 0 263,706

Feb 364,650 0 58,705 1,800 3,120 34,000 2,000 265,025
Mar 365,700 0 58,862 1,800 3,120 39,000 0 262,918
Apr 358,500 0 58,862 1,800 3,120 34,000 3,320 257,398
May 341,225 0 57,434 1,600 2,800 29,000 700 249,691
Jun 320,100 0 55,142 1,600 2,480 23,000 0 237,878
Jul 323,850 0 56,005 1,600 2,480 23,000 0 240,765
Aug 256,225 0 41,969 1,400 2,140 30,300 0 180,416
Sep 239,600 0 39,868 1,400 1,980 23,000 0 173,352
Oct 243,500 0 41,831 1,000 1,860 20,000 0 178,809
Nov 243,500 0 41,831 1,000 1,860 0 0 198,809
Dec 243,500 0 41,831 1,000 1,860 0 4,400 194,409
3,647,351 0 606,715 17,800 29,940 279,300 10,420 2,703,176
Payroll 6,386,919
Diff 2,739,568
Ledger Difference
193,101 70,605
364,650 (99,625)
218,800 44,118
204,600 52,798
346,700 (97,009)
166,200 71,678
169,950 70,815
512,450 (332,034)
250,194 (76,842)
272,352 (93,543)
359,062 (160,253)
421,856 (227,447)
3,479,915 (776,739)
CORPORATE TAX
TAX COMPUTATION SELF ASSESMENT
AS AT JUNE 30TH 2016
2016
Shs.
Turnover 3,920,180
Cost of Sales 3,120,700
Net Profit for the year Err:522
Add back Disallowables
Depreciation 65,100
Less : Allowables (65,100)
Taxable income 4,180

Loss b/fwd from previous yr (45)
NET TAXABLE INCOME 4,135
The calculated tax at rate of 30% (2015: 30%) 1,240.50
Tax NET SURPLUS AFTER TAX ###

2,895
2015
Shs.
1,960,000
1,555,820
Err:522
65,371
(65,371)
(45)
-
0.00

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LENKO ENTERPRISES LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST

View Park Towers 17th Floor Box 13250-00100, Nairobi.

Report of the directors 3

Statement of directors' responsibilities 4

Report of the independent auditors 5

Statement of Comprehensive Income

Statement of Financial Position 7

Statement of changes in equity 8

Cash flow statement 9

Notes to the financial statements 10 - 17

The following do not form an integral part of these financial statements

Schedule of expenditure Appendix I

Directors KOSKEI KIPKOECH GEOFFREY

Company secretaries Commercial Registrars

Registered office TILIL PLAZA - BOMET COUNTY

Independent auditors CPJ & Associates

Principal bankers CO-OP BANK

Results for the year

By order of the Board

STATEMENT OF DIRECTORS' RESPONSIBILITIES ON THE FINANCIAL STATEMENTS

CPJ & Associates

Turnover 1(b)&2 3,920,180 1,960,000

Cost of Sales 3,120,700 1,555,820

Gross profit 799,480 404,180

Direct operating expenses 3 (475,350) (237,675)

Administrative expenses (240,200) (125,500)

Other operating expenses (75,000) (37,500)

Operating profit 5 8,930 3,505

Finance costs 6 (4,750) (3,550)

Profit before tax 4,180 (45)

Net Profit for the year 4,180 (45)

The notes on pages 10 to 17 form an integral part of these financial statements.

Capital and reserves

Share capital 12 500,000 500,000

Total equity and liabilities 1,433,635 1,727,080

The financial statements on pages 6 to 17 were approved by the Board of Directors on

... Director .. Director

Net Profit (loss) for the year - (45)

At 31st December 2015 500,000 (45)

At 1st January 2016 500,000 (45)

Net profit for the year - 4,180

At 31st December 2016 500,000 4,135

The notes on pages 10 to 17 form an integral part of these financial statements.

Cash generated from operations (634,100) 801,571

Movement in cash and cash equivalents

At 1st January 11 950,500

The notes on pages 10 to 17 form an integral part of these financial statements.

c) Property, plant and equipment

f) Cash and cash equivalents

No deferred tax has been provided as it is considered immaterial.

Sales 3,920,180 1,960,000

Total revenue 3,920,180 1,960,000

3. Other operating income

4 Employee benefits expenses

Bank Overdraft Interest - -

8 Property, Plant and equipment

At 31st December 2015 - 437,600 437,600

At 31st December 2015 - 220,600

At 31st December 2016 - 285,700 285,700

Inventories 175,000 100,500

Bank balance 1,020,000 950,500