Beta Audit - FInal Report Eng

Beta Sh.p.k.
Lipjan, Kosovo
Financial Statements Commented [P1]: Ndoshta fontin me ndryshue ma te madh

dhe ne mes faqe me u dukt
for the year ended 31 December 2016
and
Independent Auditors Report
1
Contents
Page
Independent auditors report 3
Statement of financial position 5
Statement of comprehensive income 6
Statement of changes in equity 7
Statement of cash flows 8
Notes to financial statements 9-24
2
Sejdi Kryeziu 15, kati 3
Lagjja Pejton
10 000 Prishtina, Kosovo
T: + 381 (0)38 906090

F: + 381 (0)38 906091
info@bakertillykosovo.com
www.bakertillykosovo.com
INDEPENDENT AUDITORS REPORT
For:Management of Beta Sh.p.k.
Opinion
We have audited financial statements of Beta Sh.p.k. (the Company), which comprises the statement of
financial position as at 31 December 2016, and the statement of comprehensive income, statement of
changes in equity and cash flow statement for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as at 31 December 2016, and its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards (IFRSs).
Basis Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in Kosovo, and we fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with IFRSs, and for such internal control as management determines 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, management is responsible for assessing the Companys ability to
continue as going concern, disclosing, as applicable, matters relating to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of 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 auditors 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 ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in 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 ISAs, we exercise professional judgment and maintain professional
skepticism throughout audit. We also:
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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 Companys internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of 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 Companys ability to continue as going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our
auditors 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 auditors report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
We communicate with those charged with governance 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.
Lulzim Berisha
Statutory Auditor
Baker Tilly Kosovo

Prishtina, Kosova
April 24, 2017 Commented [P2]: Data duhet te jet e Njejet me ate ne shqip
beso?
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Beta Sh.p.k.
Statement of financial position as at December 31, 2016
(amounts in Euro)
Notes As at As at
December 31, 2016 December 31, 2015
Assets
Non-current assets
Property, plant and equipment 4 2,908,700 2,838,472
Total non-current assets 2,908,700 2,838,472
Current assets
Inventories 5 1,121,437 2,080,020
Trade receivables and other receivables 6 4,800,435 3,238,578
Requests and prepayments 7 801,640 369,787
Cash and Cash Equivalents 8 11,281 28,928
Total current assets 6,734,794 5,717,314
Total assets 9,643,493 8,555,785
Liability and shareholders equity

Equity
Share capital 9 10,000 10,000
Retained earnings from previous years 1,688,622 1,625,661
Profit of the year 74,753 62,961
Total shareholders equity 1,773,375 1,698,622
Non-current liabilities
Borrowings- noncurrent portion 10 199,291 130,779
Total non-current liabilities 199,291 130,799
Current liabilities
Trade payables and other payables 11 167,278 1,322,846
Borrowings current portion 10 7,503,549 5,403,539
Total current liabilities 7,670,827 6,726,385
Total liability and shareholders equity 9,643,493 8,555,785
These financial statements were authorized, approved and signed on behalf of the management on March
10, 2017.
______________________
Shabi Drmaku
Chief Executive Officer Commented [P3]: Executive Director
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Beta Sh.p.k.
Statement of profit and loss and other comprehensive income for the year ended December 31,
2016
(amounts in Euro)
For the year ended 31 December 2016 2016 2015

Sales 12 24,071,959 17,348,887
Cost of sales 13 (23,041,492) (16,397,350)
Gross profit 1,030,467 951,537
Expenses
Personnel expenses 14 (253,608) (214,810)
General Operational and Administrative expenses 15 (162,646) (290,754)
Depreciation expenses 6 (177,330) (156,272)
Total Expenses (593,583) (661,836)
Profit before income tax expense 436,884 416,043
Financial expenses 16 (353,824) (346,086)
Profit before income tax expense 83,059 (56,385)
Aggregated Income according to taxes - 126,342 Commented [P4]: To taxes purposes
Profit tax after agitation 83,059 69,957
Income tax expense 17 (8,306) (6,996)
Total comprehensive income for the year 74,753 62,961
The accompanying notes from 1 to20of the financial statements form an integral part of these financial Commented [P5]: Harmonize me faqet me duket se eshte 24?
statements
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Beta Sh.p.k.
Statement of Changes in Equity for the year ended December 31, 2016
(amounts in Euro)
Share capital Retained Total

earnings
Balance as at January 1, 2015 10,000 1,625,661 1,635,661
Net profit for the year - 62,961 62,961

Other comprehensive income
Total comprehensive income 1,688,622 1,698,622
Payment of dividends - -
Balance as at December 31, 2015 10,000 1,688,622 1,698,622
Net profit for the year 74,753 74,753

Other comprehensive income - -
Total comprehensive income 1,763,375 1,773,375
Payment of dividends - -
Balance as at December 31, 2016 10,000 1,763,375 1,773,375
The accompanying notes from 1 to 20 of the financial statements form an integral part of these financial Commented [P6]: Njesoj si me lart?
statements
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Beta Sh.p.k.
Statement of cash flows for the year ended December 31, 2016
(amounts in Euro, unless otherwise stated)
Notes
Year ended Year ended
31 Decmeber 31 December
2016 2015
I. Cash flows from (used in) operating activities
Profit (loss) of the year 74,755 62,961
Adjustments for:
Depreciation 4 177,330 156,272
Increase/(decrease) in trade and other receivables 6,7 (1,993,711) (293,192)
Increase/(decrease) in trade and other payables 11 (1,155,568 684,707
Increase/(decrease) in inventory 5 958,583 (1,279,368)
Cash generated from operations (2,013,366) (731,580)
Net cash from (used in) operating activities (I) (1,938,611) (668,619)
II. Cash flows from (used in) investing activities

Purchases of property, plant and equipment 4 (295,974) 63,712
Other investments in PPE 4 48,416 -
Net cash from (used in) investing activities (II) (247,558) 63,712
III. Cash flows from (used in) financing activities

Bank loans 10 2,168,522 632,281
Withdrawals of profit - -
Net cash from (used in) financing activities (III) 2,168,522 632,281
IV. Net increase in cash and cash equivalents (I

(17,647) 27,374
+ II + III)
V. Cash and cash equivalents at the beginning of
8 28,928 1,554
the year/period
VI. Cash and cash equivalents at the end of the
8 11,281 28,928
year/period (IV + V)
The accompanying notes from 1 to 20 of the financial statements form an integral part of these financial
statements
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Beta Sh.p.k.
Notes to the financial statements for the year ended December 31, 2016
1. GENERAL
Beta Sh.pk" is a limited liability company registered in Kosovo with address St. Sadik Shala at Lipjan.
"Beta" SH.PK. Consists of the company and its wholly owned subsidiaries "" Beta Sh.pk ". The main
activity of" Beta Sh.pk "is Wholesale and Retail Trade in the domestic and foreign markets. The Director
and the Permanent Employee (Average 40 Employee) managed the daily operations of "Beta Sh.pk"
during 2016.
Fiscal No: 600089529

Certificate no of TVSH: 330025066
2. STANDARDS AND INTERPRETATIONS EFFECTIVE IN THE CURRENT PERIOD
In the current year, the Company has applied a number of amendments to IFRSs issued by the
International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period
that begins on or after 1 January 2016.
Amendments to IAS 1 Disclosure Initiative
The Company has applied these amendments for the first time in the current year. The amendments
clarify that and entity need not to provide a specific disclosure required by an IFRS if the information
resulting from that disclosure is not material, and give guidance on the bases of aggregating and
disaggregating information for disclosure purposes. However, the amendments reiterate that an entity
should consider providing additional disclosures when compliance with the specific requirement in IFRS
is insufficient to enable users of financial statements to understand the impact of particular transactions,
events and conditions on the entitys financial position and financial performance.
As regards the structure of the financial statements, the amendments provide examples of systematic
ordering or grouping of the notes.
The application of these amendments has not resulted in any impact on the financial performance or
financial position of the Company.
Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and

Amortization
The Company has applied these amendments for the first time in the current year. The amendments to
IAS 16 prohibit the entities from using a revenue-based depreciation method for items of property, plant
and equipment. The amendments to IAS 38 introduce a rebuttable presumption that revenue is not a
appropriate basis for amortization of an intangible asset. This presumption can only be rebutted in the
following two limited circumstances.
a) When the intangible asset is expressed as a measure of revenue; or

b) When it can be demonstrated that revenue and consumption of the economic benefits of the
intangible asset are highly correlated.
As the Company already uses the straight-line method for depreciation and amortization for its property,
plant and equipment, and intangible assets respectively, the application of these amendments has had no
impact on the Companys financial statements.
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Beta Sh.p.k.
STANDARDS AND INTERPRETATIONS EFFECTIVE IN THE CURRENT PERIOD

(continued)
Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants

The Company has applied these amendments for the first time in the current year. The amendments
define a bearer plant and require biological assets that meet the definition of a bearer plant to be
accounted for as a property, plant and equipment in accordance with IAS 16, instead of IAS 41. The
produce growing on bearer plants continues to be accounted for in accordance with IAS 41.
The application of these amendments has had no impact on the Companys financial statements as the
Company is not engaged in agriculture activities.
Annual Improvements to IFRS 2012-2014 Cycle

The Company has applied these amendments for the first time in current year. The Annual
Improvements to IFRS 2012-2014 Cycle include a number of amendments to various IFRSs, which are
summarized below.
The amendments to IFRS 5 introduce specific guidance in IFRS 5 for when entity reclassifies an asset (or
disposal) group) from held to sale to held to distribution to owners (or vice versa). The amendments
clarify that such a change should be considered as a continuation of the original plan of disposal and
hence requirements set out in IFRS 5 regarding the change of sale plan do not apply. The amendments
also clarifies the guidance for when held-for-distribution accounting is discontinued.
The amendments to IFRS 7 provide additional guidance to clarify whether a servicing contract is
continuing involvement in a transferred asset for the purpose of the disclosures required in relation to
transferred assets.
The amendments to IAS 19 clarify that the rate used to discount post-employment benefit obligations
should be determined to reference to market yields at the end of the reporting period on high quality
corporate bonds. The assessment of the depth of the market for high quality corporate bonds should be
at the currency level (i.e. the same currency as the benefits are to be paid). For currencies for which there
is no deep market in such high quality corporate bonds, the market yields at the end of the reporting
period on government bonds denominated in that currency should be used instead.
The application of these amendments has had no effect on the Companys financial statements.
3.1 Standards, amendments and interpretations to existing standards that are not yet effective
At the date of authorization of these financial statements, certain new standards, and amendments to
existing standards have been published by the IASB that are not yet effective, and have not been adopted
early by the Company. Information on those expected to be relevant to the Companys financial
statements is provided below.
Management anticipates that all relevant pronouncements will be adopted in the Companys accounting
policies for the first period beginning after the effective date of the pronouncement. New standards,
interpretations and amendments not either adopted or listed below are not expected to have a material
impact on the Companys financial statements.
IFRS 9 Financial Instruments

The new standard for financial instruments (IFRS 9) introduces extensive changes to IAS 39s guidance
on the classification and measurement of financial assets and introduces a new expected credit loss
model for the impairment of financial assets. IFRS 9 also provides new guidance on the application of
hedge accounting.
Management has started to assess the impact of IFRS 9 but is not yet in a position to provide quantified
information.
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Beta Sh.p.k.
IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018.
STANDARDS AND INTERPRETATIONS EFFECTIVE IN THE CURRENT PERIOD

(continued)
IFRS 15 Revenue from Contracts with Customers
IFRS 15 presents new requirements for the recognition of revenue, replacing IAS 18 Revenue, IAS 11
Construction Contracts, and several revenue-related Interpretations. The core principle of IFRS 15 is
that an entity should recognize revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services.
IFRS 15 is effective for annual reporting periods beginning on or after 1 January 2018.
IFRS 16 Leases
IFRS 16 will replace IAS 17 and three related Interpretations. IFRS 16 introduces a comprehensive model
for the identification of lease arrangements and accounting treatments for both lessors and lessees. IFRS
16 distinguishes leases and service contracts on the basis of whether an identified asset is controlled by a
customer. Distinctions of operating leases (off balance sheet) and finance leases (on balance sheet) are
removed for lessee accounting, and is replaced by a model where a right-of-use asset and corresponding
liability have to be recognized for all leases by lessees (i.e. all on balance sheet) except for short-term
leases and leases of low value assets.
IFRS 16 is effective from periods beginning on or after 1 January 2019. Management is yet to fully assess
the impact of the Standard and therefore is unable to provide quantified information.
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Beta Sh.p.k.
3. SIGNIFICANT ACCOUNTING POLICIES
3.1 Statement of compliance

The accompanying financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS).
3.2 Basis of preparation

These financial statements have been prepared under the historical cost convention. These financial
statements are presented in EURO (EUR), which is the Companys functional currency.
3.3 Property, plant and equipment
i. Recognition and measurement

Items of property and equipment are measured at cost less accumulated depreciation and any impairment
losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. When parts
of an item of property and equipment have different useful lives, they are accounted for as items (major
components) of property, plant and equipment. Gains and losses on disposal of an item of property and
equipment are determined by comparing the proceeds from disposal with the carrying amount of
property and equipment and are recognized net within other income or Loss from disposal of fixed
asset in the statement of comprehensive income.
ii. Subsequent costs

The cost of replacing part of an item of property and equipment is recognized in the carrying amount of
the item if it is probable that the future economic benefits embodied within the part will flow to the
Company and its cost can be measured reliably. The costs of the day-to-day servicing of property and
equipment are recognized in the statement of comprehensive income as incurred.
iii. Depreciation
Depreciation is charged to the statement of comprehensive income by using the straight line methodover
the estimated useful lives of each part of an item of property and equipment from the first day of the
month following the month of acquisition. Land is not depreciated.
The annual depreciation rates are as follows:

As at As at
Buildings 5% 5%
Machinery and equipment - production 10% 10%
Machinery and equipment - administration 20% 20%
Vehicles 20% 20%
Leasehold improvements Over the term of lease Over the term of lease
period or the useful life , period or the useful life ,
whichever is shorter whichever is shorter
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Beta Sh.p.k.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.4 Intangible assets

Intangible assets with finite useful lives are acquired separately are carried at cost less accumulated
amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over
their estimated useful lives. The estimated useful life and amortization method are reviewed at each
reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost less
accumulated impairment losses.
3.5 Inventories
Inventories are stated at the lower of cost and net realizable value. Cost comprises direct cost related with
inventories and those overhead costs that have been incurred in bringing the inventories to their present
location and conditions. Net realizable value (NRV) represents the estimated selling price for inventories
less all estimated costs of completion and costs necessary to make the sale.
The cost of inventories is calculated based on the average cost method. Appropriate allowance for write
downs is recognized in the profit and loss when there is objective evidence that the NRV is lower than
the cost.
3.6 Trade and other receivables

Trade receivables are stated at their cost less any impairment.
3.7 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and unrestricted cash held with banks or term deposits
with maturity of less than three months.
3.8 Trade and other payables

Liabilities for trade and other amounts payable are measured at cost which is the fair value of the
consideration to be paid in the future for goods and services received whether billed to the Company or
not.
3.9 Leasing
Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lease. All other leases are classified as operating leases.
Assets held under financial lease are initially recognized as assets of the Group at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The
corresponding liability to the lessor is included in the financial position as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are
recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which
case they are capitalized. Contingent rentals are recognized as expenses in the period in which are
incurred.
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Beta Sh.p.k.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.9 Leasing (continued)

Operating lease payments are recognized as an expense on a straight-line basis over the lease term,
except where another systematic basis is more representative of the time pattern in which economic
benefits from the leased asset are consumed. Contingent rentals arising under operating leases are
recognized as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are
recognized as liability. The aggregate benefit of incentives is recognized as a reduction of rental expense
on a straight-line basis, except where another systematic basis is more representative of the time pattern
in which economic benefits from the leased asset are consumed.
3.10 Borrowings
Borrowings are initially recognized at fair value. Subsequent to initial recognition, loans and borrowings
are stated at amortized cost and any difference between cost and redemption value is recognized in the
statement of comprehensive income over the period of the borrowings using the effective interest
method.
3.11 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amount
receivable for goods and services provided in the normal course of business, net of customer returns,
discounts and sales related taxes.
Revenue from sales of goods is recognized when all the following conditions are satisfied:
The Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;
The Company retains neither continuing managerial involvement to the degree usually associated
with the ownership nor effective control over the goods sold;
The amount of the revenue can be measured reliably;
It is probable that the economic benefits associated with the transaction will flow to the
Company; and
The costs incurred or to be incurred in respect of the transaction can be measured reliably.
3.12 Foreign currency transactions

Transactions in currencies other than the functional currency (foreign currencies) are recorded at the rates
of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary items
denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-
monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on monetary items, are included in the profit and loss of the period in which
they arise.
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Beta Sh.p.k.
3.13 Impairment of assets
Impairment of property plant and equipment and intangible assets

At each reporting date, the Company reviews the carrying amount of its assets, in order to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount
of the asset is reduced to its recoverable amount. An impairment loss is recognized immediately in profit
and loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss been recognized, unless the
relevant assets is carried at a revalued amount, in which case the reversal of the impairment loss is treated
as a revaluation increase.
Impairment of financial assets

Financial assets are considered to be impaired when there is objective evidence that, as a result of one or
more events that occurred after the initial recognition of the financial asset, the estimated future cash
flows of the asset have been affected. Objective evidence of the impairment of trade receivables includes
delayed or partial repayments of amounts due.
The amount of impairment loss recognized is the difference between the assets carrying amount and
present value of estimated future cash flows discounted at current market rate of return for a similar
financial asset.
In the case of trade receivables, the carrying amount is reduced through the use of an impairment
allowance. When a trade receivable is considered unrecoverable, it is written off against the impairment
allowance. Subsequent recovery of trade receivables written off are credited against the impairment
allowance.
3.14 Finance income and finance costs

Finance income comprises interest income on funds invested in bank deposits and foreign currency gains.
Interest income is recognized as it accrues, using the effective interest method.
Finance costs comprise interest expense on borrowings.
3.15 Employee benefits

The Company makes no provision for and has no obligation for employee pensions over and above the
contributions paid into the Kosova Pension Savings Trust.
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Beta Sh.p.k.
3.16 Contingencies and provisions

Contingent liabilities are not recognized in financial statements. They are disclosed unless the possibility
of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognized
in the financial statements but disclosed when an inflow of economic benefits is probable.
A provision is recognized if the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; and a reliable estimate can be made of the amount of the obligation.
3.17 Income tax

Taxation has been provided for in the financial statements in accordance with Kosovo tax legislation
currently in force, Law no. 05/L-029 On Corporate Income Tax.
The income tax charge in the income statement for the year comprises current tax and changes in
deferred tax. Current tax is calculated on the basis of the expected taxable profit for the year using the tax
rates in force at the balance sheet date. Taxable profit differs from profit as reported in the income
statement because it excludes items of income or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. Taxes other than income taxes are recorded
within operating expenses.
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax base used in the computation of taxable profit and are
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for
all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable
that taxable profits will be available against which deductible temporary differences can be utilized.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset realized. Deferred tax is charged or credited to profit or loss, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.
3.18 Critical judgments and key sources of estimation uncertainty

In the process of applying the Companys accounting policies, which are described above, management
has made no judgments that have significant effects on the amounts recognized in the financial
statements.
The key assumptions concerning the future, and other key sources of estimation uncertainty at the
balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of
assets and liabilities within the next financial year, are discussed below:
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Beta Sh.p.k.
3.18 Critical judgments and key sources of estimation uncertainty (continued)
Provision for impairment of receivables and write down of inventories

In normal course of business, the Company makes estimation for recovery and realization of receivables
and inventories. Based on this assessment, management records an appropriate provision for the
impairment of receivables and write down of inventories. Actual results may differ from estimates.
Useful life of property plant and equipment

Management of the Company reviews the estimated useful lives of property and equipment at the end of
each reporting period. During the current year, the management of the Company determined that the
useful lives of property and equipment have not changed.
3.19 Going concern

The financial statements have been prepared on a going concern basis, which assumes the realization of
assets and settlement of liabilities in the normal course of business. The directors have a reasonable
expectation that the company has adequate resources to continue in operational existence for the
foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the
annual financial statements. The company has considerable financial resources together with longterm
contracts with a number of customers and suppliers. Another indicator is that the sales of the company
have the increasing trends and as a consequence, the directors believe that the company is well placed to
manage its business risks successfully.
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Beta Sh.p.k.
Cost: Land and Road and Vehicles Equipment Total

Buildings Infrastructure Motor vehicles and furniture
As at January 1,2015 2,465,838 248,710 347,839 384,805 150,998 3,598,190

Addition during the year 9,732 - 35,320 19,304 5,702 70,058
Disposals during the year - - - - - -
As at December31,2015 2,475,570 248,710 383,159 404,109 156,700 3,668,248
As at January 1,2016 2,475,570 248,710 383,159 404,109 156,700 3,668,248

New Additions - - 3,380 282,582 10,012 295,974
Disposals - - - (14,466) - (14,466)
Re-evaluation (reclassification) (79,843) 118,846 (2,857) (69,761) (336) (33,950)
As at December31,2016 2,395,727 367,556 383,682 602,464 166,376 3,915,806
Accumulated Depreciation
As at January 1,2015 (234,513) (64,592) (48,561) (243,735) (80,086) (671,487)
Disposals - - - - - -
Depreciation of the year (42,576) (16,831) (36,255) (37,722) (24,905) (158,289)
As at December31,2015 (277,089) (81,423) (84,816) (281,457) (104,991) (829,776)
As at January 1,2016 (277,089) (81,423) (84,816) (281,457) (104,991) (829,776)

Disposals - - - - - -
Depreciation of the year (43,298) (16,831) (38,429) (49,973) (28,799) (177,330)
As at December 31,2016 (320,387) (98,254) (123,245) (331,430) (133,790) (1,007,106)

Net book value as at
As at December31,2015 2,198,481 167,287 298,343 122,652 51,709 2,838,472
As at December31,2016 2,075,340 269,302 260,437 271,034 32,586 2,908,700
18
Beta Sh.p.k.
5. INVENTORIES
Stocks are measured at the lower of cost and net realizable value. The cost of stocks is based on the
weighted average principle and includes all purchase costs, translation costs and other costs associated
with putting the stocks in the current country and conditions.
Net realizable value is the estimated selling price in the normal course of business, minus the estimated
completion costs and the estimated costs that are required for the sale.
Stocks on 31 December 2016 and on 31 December 2015 are presented in the table below:
As at December 31 2016 2015
Inventories 1,121,437 2,080,020
Total 1,121,437 2,080,020
6. TRADE RECEIVABLES AND OTHER RECEIVABLES

Fluidi Sh.p.k. 971,361 707,486
Frutex Sh.p.k. 43,331 247,892
Viva Fresh Store Ferizaj 3 66,332 143,723
Receivable and other accounts 3,719,411 2,139,478
Total 4,800,435 3,238,578
Most of the Accounts Receivable shown in the Statement of Financial Position are from the sale of sugar,
iron, fertilizers, etc from wholesale and retail sales by the affiliates of the Company.
7. REQUESTS AND OTHER PREPAYMENTS

Prepayment oftax (TVSH) 155,216 225,770
Other prepayments 646,424 144,017
Total 801,640 369,787
8. CASH AND CASH EQUIVALENTS

Cashat banks* 3,289 21,190
Cashon hand 7,992 7,738
Total 11,281 28,928
* The company operates with some of the banks operating in the country:
At 31 December 2016; NLB had 3,146 Euro, TEB 14 Euro and PCB 4 Euro and 125 Euro.
19
Beta Sh.p.k.
9. SHARE CAPITAL
Capital Balance on December 31, 2016, in the amount of 1,773,375 Euros, consists of the Founding
Capital in the amount of 10,000 Euros, the share with a nominal value of 100 / share. Total paid-in
capital, while the shares are not publicly tradable from the reserve capital in the amount of EUR
1,688,622 and the retained earnings in the amount of EUR 62,961.
10. BORROWINGS
As at December 31,2016 As at December 31,2015
Current portion
Loans with commercial banks 2,913,255 1,800,000
Overdraft and Credit Line 4,515,042 3,556,966
Current portion Leasing 75,252 46,573
Total short-term loans 7,503,549 5,403,539
Non-Current portion
Loans 165,847 -
Non-current portion Leasing 33,444 130,779
Total long-term loans 199,291 130,779
TOTAL 7,702,840 5,534,318
11. TRADE PAYABLES AND OTHER PAYABLES
As at Decmber 31 2016 2015

Auto Kacandolli 20,556 -
Toyota Tsusho Sugar TR.LTD. - 606,404
Borealis L.A.T. d.o.o. - 224,352
Kurum International - 103,720
Shega Trans Sha. 123 64,439
Fabrika Ulja Banat ad 2,968 55,441
VT. ZAV "Subotica" AD - 39,127
Consult RPS Limited - 36,612
Banxha NTP 10,640 27,010
Eko Pak D.O.O. 2,931 25,046
Hib Petrol Sh.p.k. 6,846 7,079
Sela Shped Ntsh. - 4,060
Other payables 123,213 129,557
Total 167,278 1,322,846
20
Beta Sh.p.k.
12. REVENUES
For the year ended December 31 2016 2015
Revenues from the sale 23,584,202 14,347,105
Other business revenues 445,040 2,998,096
Extraordinary revenues 42,717 3,686
Total Revenues 24,071,959 17,348,887
13.COST OF SALES
For the year ended December, 31 2016 2015
Cost of goods sold 23,041,492 16,397,350
Total 23,041,492 16,397,350
14.PAYROLL EXPENSES

Salaries 241,687 204,581
Pension Employer Contributions 11,921 10,229
Total 253,608 214,810
15. OPERATIONAL AND GENERAL ADMINISTRATIVE EXPENSES

Phytosanitary 160 -
Internet 1,552 2,117
Utilities 2,531 720
Marketing and representation 2,672 4,033
Repair and registration of vehicles 8,182 5,220
Freight Forwarders 139 40
Providing the facility 1,597 8,249
Property tax 6,379 6,472
Post and phone 8,656 9,108
Food for employees 4,761 2,740
Rent 10,322 176
Office expenses 5,389 2,039
Maintenance and repair 16,533 36,136
Port and projects - 73,536
Representation 1,530 2,870
Property insurance 1,695 4,650
Official tours of personnel 4,369 8,560
Attorney expenses, penalties 3,415 -
Other operative expenses 82,764 113,704
TOTAL 162,646 290,754
21
Beta Sh.p.k.
16. FINANCIAL CHARGES

Interest 338,377 309,934
Guarantees and Provisions 15,447 36,152
Total 353,824 346,086
17. INCOME TAX EXPENSES
As per Law no. 05/L-029 On corporate income tax, effective from January 1, 2010, income tax rate has
been at the level of 10% for corporate entities.
Year ended Year ended
Accounting profit for the year 83,059 69,957
Income tax expenses (10%) (8,306) (6,996)
18. FAIR VALUES AND RISK MANAGEMENT
a. Capital risk management

The Company manages its capital to ensure that the Company will be able to continue as a going concern
while maximizing the returns to the shareholder through the optimization of the debt and equity balance.
The capital structure of the Company consists of debt, which includes borrowings, and the equity
attributable to the equity holder, comprising issued capital and retained earnings.
b. Significant accounting policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition,
the basis of measurement and the basis on which income and expenses are recognized, in respect of each
class of financial asset, financial liability and equity instrument are disclosed in note 3 to the financial
statements.
c. Categories of financial instruments

As at the year end the Company has the following financial instruments.
As at As at
31 December 2016 31 December 2015
Financial Assets:
Receivables and other accounts 4,800,436 3,238,578
Cash and Cash Equivalents 11,281 28,928
Financial Liabilities:
Trade and other payables 167,278 1,322,846
Borrowings current portion 7,536,993 5,403,539
22
Beta Sh.p.k.
d. Financial risk management objectives

The Companys activities expose it to a variety of financial risks, including the credit risk and risks
associated with the effects of changes in foreign currency exchange rates and interest rates. The
Companys risk management focuses on the unpredictability of markets and seeks to minimize potential
adverse effects over the Companys business performance.
e. Market risk
Foreign currency risk
The Company operates internationally and is exposed to foreign exchange risk arising from various
currency exposures primarily with respect to US Dollars. The Company does not use any instruments to
hedge the foreign exchange risk. The Companys Treasury is responsible for maintaining adequate net
position in each currency and in total. Its operations are monitored daily by the Companys management.
The Company undertakes transactions in both Euro and foreign currencies. The Company has not
entered into any forward exchange or embedded derivative transactions during the year ended December
31, 2016 and 2015.
Interest rate risk

Interest rate risk is comprised of the risk that the value of a financial instrument will fluctuate due to
changes in market interest rates and the risk that the maturities of interest bearing assets differ from the
maturities of the interest bearing liabilities used to fund those assets. The length of time for which the rate
of interest is fixed on a financial instrument therefore indicates to what extent it is exposed to interest rate
risk.
Credit risk
The Company is subject to credit risk through its selling activities. In this respect, the credit risk for the
Company stems from the possibility that different counterparties might default on their contractual
obligations.
The amount of credit exposure in this regard is represented by the carrying amounts of the assets on the
balance sheet.
The carrying amount of financial assets recorded in the financial statements, which is net of impairment
losses, if any, represents the Companys maximum exposure to credit risk.
g. Liquidity risk
Liquidity risk arises in the general funding of the Companys activities and in the management of
positions. It includes both the risk of being unable to fund assets at appropriate maturity and rates and
the risk of being unable to liquidate an asset at a reasonable price and in an appropriate time frame to
meet the liability obligations.
At At
31 December 2016 31 December 2015
Inventory 1,121,437 2,080,020
Receivables and other accounts 4,800,436 3,238,578
Requests and other prepayments 801,640 369,787
Cash and Cash Equivalents 11,281 28,928
Total Current assets 6,734,794 5,717,314
Current liabilities
Trade and other payables 167,278 1,322,846
Borrowings current portion 7,503,549 5,403,539
Total Current liabilities 7,670,827 6,726,385
Space of Liquidity (936,033) (1,009,071)
23
Beta Sh.p.k.
h. Fair value of financial instruments

Management of the Company considers that the carrying amounts of financial assets and financial
liabilities recorded at cost or amortized cost in the financial statements approximate their fair values.
19. CONTENCIES AND COMMITMENTS

As of 31 December 2016 there are no contingent liabilities that require disclosure in the Company's
financial statements.
Judicial Issues
As of 31 December 2016 and 2015, the Company has no outstanding legal claims which are not
considered normal during the course of its business.
20. EVENTS AFTER THE REPORTING DATE

There are no events subsequent to the reporting date that require disclosure in the financial statements of
the Company.
24

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Beta Sh.p.k.

Financial Statements Commented [P1]: Ndoshta fontin me ndryshue ma te madh

T: + 381 (0)38 906090

INDEPENDENT AUDITORS REPORT

For:Management of Beta Sh.p.k.

Auditors Responsibilities for the Audit of Financial Statements

Baker Tilly Kosovo

Total assets 9,643,493 8,555,785

Liability and shareholders equity

Total liability and shareholders equity 9,643,493 8,555,785

For the year ended 31 December 2016 2016 2015

Profit before income tax expense 436,884 416,043

Financial expenses 16 (353,824) (346,086)

Profit before income tax expense 83,059 (56,385)

Aggregated Income according to taxes - 126,342 Commented [P4]: To taxes purposes

Profit tax after agitation 83,059 69,957

Income tax expense 17 (8,306) (6,996)

Total comprehensive income for the year 74,753 62,961

Share capital Retained Total

Balance as at January 1, 2015 10,000 1,625,661 1,635,661

Net profit for the year - 62,961 62,961

Net profit for the year 74,753 74,753

II. Cash flows from (used in) investing activities

III. Cash flows from (used in) financing activities

IV. Net increase in cash and cash equivalents (I

Fiscal No: 600089529

2. STANDARDS AND INTERPRETATIONS EFFECTIVE IN THE CURRENT PERIOD

Amendments to IAS 1 Disclosure Initiative

Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and

a) When the intangible asset is expressed as a measure of revenue; or

STANDARDS AND INTERPRETATIONS EFFECTIVE IN THE CURRENT PERIOD

Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants

Annual Improvements to IFRS 2012-2014 Cycle

IFRS 9 Financial Instruments

STANDARDS AND INTERPRETATIONS EFFECTIVE IN THE CURRENT PERIOD

IFRS 15 Revenue from Contracts with Customers

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Statement of compliance

3.2 Basis of preparation

3.3 Property, plant and equipment

i. Recognition and measurement

ii. Subsequent costs

The annual depreciation rates are as follows:

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.4 Intangible assets

3.6 Trade and other receivables

3.7 Cash and cash equivalents

3.8 Trade and other payables

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.9 Leasing (continued)

3.11 Revenue recognition

3.12 Foreign currency transactions

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.13 Impairment of assets

Impairment of property plant and equipment and intangible assets

Impairment of financial assets

3.14 Finance income and finance costs

Finance costs comprise interest expense on borrowings.

3.15 Employee benefits

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.16 Contingencies and provisions

3.17 Income tax

3.18 Critical judgments and key sources of estimation uncertainty