AL MASHREQ TRADING AND CONTRACTING CO.

SUMMARY TRIAL BALANCE AS ON 31/3/2010

( From 1st April-2009 to 31 March-2010 )

General Ledger Accounts Descriptions

DR (CR )

Opening Balances

Transactions 2009-2010

Closing Balances

FIXED ASSETS : Land and Building Machinery and Equipment Furniture and Fixtures Motors Vehicles Computers/ Software others ACCOUNTS RECEIVABLES/ PRE-PAYMENTS : Trade Receivables Other Receivables Employees' Balance Pre-paid Insurances Other Pre-payments INVENTORIES : Machineries and Equipment Replacement Parts / Equipment Other Products/ Consumables CASH AND BANK BALANCES : Cash in hand Balances in Banks ACCUMULATED DEPRECIATION: On Land and Building On Machinery and Equipment On Furniture and Fixtures On Motors Vehicles On Computers/ Software On others L L L L L L (526,790.00) (287,589.00) (42,578.00) (189,500.00) (31,295.00) (10,890.00) (386,625.00) (236,698.00) (16,586.00) (86,500.00) (16,586.00) (11,780.00) (913,415.00) (524,287.00) (59,164.00) (276,000.00) (47,881.00) (22,670.00) A A 26,785.00 1,278,950.00 15,206,356.00 11,792.00 324,795.00 3,454,036.00 38,577.00 1,603,745.00 18,660,392.00 A A A 5,789,425.00 925,780.00 325,789.00 1,868,054.00 126,578.00 12,579.00 7,657,479.00 1,052,358.00 338,368.00 A A A A A 3,458,920.00 235,790.00 48,975.00 56,879.00 22,568.00 857,894.00 (46,795.00) (22,123.00) (23,579.00) (12,579.00) 4,316,814.00 188,995.00 26,852.00 33,300.00 9,989.00 A A A A A A 1,546,500.00 946,790.00 87,256.00 346,580.00 62,589.00 46,780.00 46,970.00 213,490.00 9,780.00 78,500.00 2,790.00 5,890.00 1,593,470.00 1,160,280.00 97,036.00 425,080.00 65,379.00 52,670.00

ACCOUNTS PAYABLES & CREDIT BALANCES: Trade Accounts payables Other Payables Employees' End- of Service Benefits Accrued Expenses BANK LOANS AND OVERDRAFTS L L L L L (1,325,478.00) (522,164.00) (327,325.00) (223,625.00) (3,789,750.00) 32,579.00 152,793.00 (87,546.00) (51,793.00) (246,789.00) (1,292,899.00) (369,371.00) (414,871.00) (275,418.00) (4,036,539.00)

CAPITAL AND EQUITY: Paid up Capital Compulsory Reserve Retained Earnings L L L (5,000,000.00) (785,500.00) (2,143,872.00) (15,206,356.00) (5,000,000.00) (785,500.00) (2,143,872.00) (16,161,887.00)

(955,531.00)

SALES : Machineries & Equipment Replacement Parts & Equipment Other Products and Consumables Sales Discount COST OF SALE: Machineries & Equipment Replacement Parts & Equipment Other Products and Consumables Purchase Discount EXPENSES: Salaries & Wages House Allowances Transport Allowances Air Tickets Leave Pay Overtime Pay Other Allowances Employees End of Service Benefits Printing & Stationery Electricity & Water Fuel and Power Repair / Maintenance & Renovations E E E E E E E E E E E E 1,365,423.00 225,318.00 76,576.00 56,946.00 212,456.00 21,750.00 45,645.00 87,546.00 31,256.00 65,879.00 24,789.00 82,764.00 1,365,423.00 225,318.00 76,576.00 56,946.00 212,456.00 21,750.00 45,645.00 87,546.00 31,256.00 65,879.00 24,789.00 82,764.00 C C C I 17,349,997.20 4,943,035.40 1,476,284.40 (490,808.00) 17,349,997.20 4,943,035.40 1,476,284.40 (490,808.00) I I I E (22,302,569.11) (6,230,029.47) (1,780,008.42) 645,800.00 (22,302,569.11) (6,230,029.47) (1,780,008.42) 645,800.00

Communication Expenses Advertisement & Publicity Products Promotion Travelling Expenses & Airfare Entertainment Bank Charges Bank Interest Depreciation Other expenses NET MARGIN FOR THE YEAR NOTES:

E E E E E E E E E R

37,456.00 126,578.00 43,257.00 23,456.00 13,457.00 18,654.00 543,456.00 754,775.00 32,356.00

37,456.00 126,578.00 43,257.00 23,456.00 13,457.00 18,654.00 543,456.00 754,775.00 32,356.00

(2,498,505.00)

1. 25% of the current Net Margin to be transferred to Compulsory Reserve. 2. The balance of the Net Margin to be transferred to Retained Earnings, 3. A= ASSETS, L= LIABILITIES, C= COST OF GOODS SOLD, E= EXPENSES & R= RETAINED EARNINGS, I= INCOME. 4. Purchase Discount to be deducted from COST OF SALES and Sales Discount from SALES.

AL MASHREQ TRADING CO. WLL

BALANCE SHEET At 31 March 2010
NOTE

ASSETS Non-current assets:

Property, plant and equipment Lease rights 1 1

Current assets
Inventories Accounts receivable and prepayments Bank balances and cash 2 3 4

TOTAL ASSETS LIABILITIES AND SHAREHILDERS' FUNDS Current liabilities:

Accounts payable and accruals Bank overdrafts Notes payable Interest bearing Loans 5 4 6 7

Non-current liabilities:
Interest bearing Loans Employees' end of service benefits 7

Total liabilities Equity

Share capital Statutory reserve Revaluation Reserve Retained earnings 8 9

TOTAL LIABILITIES AND SHAREHOLDERS' FUND

The attached notes 1 to 11 form part of these financial statements

AL MASHREQ TRADING CO. WLL

INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE , 2009 NOTE SALES & REVENUE Cost of sales GROSS PROFIT Other operating income Selling and Promotional Costs Administration expenses Amortization of leased Land Finance cost Profit/ ( Loss) on sale of fixed assets Gain on exchange NET PROFIT FOR THE PERIOD The attached notes 1 to 11 form part of these financial statements 11 10

AL MASHREQ TRADING CO. WLL

NOTES TO FINANCIAL STATEMENTS For the year to 3031-Mar-10 June -2009
1 PROPERTY, PLANT AND EQUIPMENT LAND AND

BUILDING
QRS COST: At 1st April 2009 Additions for the period At 31 March 2010 DEPRECIATION : At 1st Charges for the period On disposal At 30 June 09 NET BOOK VALUE At 30 June 09

MACHINARY/ EQUIPMENT
QRS

FURNITURE/
FIXTURES QRS

1,546,500.00 46,970.00 1,593,470.00

946,790.00 213,490.00 1,160,280.00

87,256.00 9,780.00
97,036.00

AL MASHREQ TRADING CO. WLL

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE , 2009 INVENTORIES 2 Equipment Replacement parts Goods in transit Provision for slow moving items

ACCOUNTS RECEIVABLE AND PREPAYMENTS 3 Trade accounts and notes receivable Amounts due from related parties Other receivables/ debit balances Advances to suppliers Prepaid expenses BANK BALANCES AND CASH 4

Bank balances and cash Bank overdrafts

ACCOUNTS PAYABLE AND ACCRUALS 5

Trade accounts payable Amounts due to related parties Accrued expenses Advances from Customers Other payable/ credit balances

NOTES PAYABLE 6

Notes payable Less: current obligation

Non current obligation

AL MASHREQ TRADING CO. WLL

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE , 2009 BANK TERM LOANS 7 Bank Term Loans Less: current obligation Non current obligation

SHARE CAPITAL 8

Capital at the beginning of the period Additional paid in capital

STATUTORY RESERVE 9 Banalce at 1 June

Transfer for the year Balance at the end of the period

OTHER OPERATING INCOME 10 Interest on instalment credit sales Rental income Other income

GENERAL AND ADMINISTRATION EXPENSES 11

Staff costs Rent Printing and stationery Promotion & Entertainment Travelling/ Training Repairs and maintenace Insurance Electricity , water and fuel charges Communication expenses Professional charges

Provision for doubtful debts Provision for dead stock Miscellaneous expenses Bank charges Depreciation Total Qrs.

31.3.2010

30/6/2009

MOTOR VEHICLES QRS

COMPUTER/ SOFTWARE
QRS

OTHERS
QRS

TOTAL QRS

346,580.00 78,500.00
425,080.00

62,589.00 2,790.00
65,379.00

46,780.00 5,890.00
52,670.00

3,036,495.00 357,420.00 3,393,915.00

30/6/2009