Fakerish HOLDINGS LIMITED-INTERNAL AUDIT REPORT FOR OCTOBER, NOVEMBER AND DECEMBER 2019

FIMBO HOLDINGS LIMITED
MONTHLY INTERNAL AUDIT REPORT AND FINANCIAL

STATEMENTS
FOR THE MONTHS OF OCTOBER, NOVEMBER AND
DECEMBER 2019
Table of Contents
COMPANY INFORMATION....................................................................................................................2
DIRECTOR’S REPORT.............................................................................................................................3
STATEMENT OF DIRECTOR’S RESPONSIBILITIES............................................................................4
i
Fimbo Holdings Limited
Monthly internal audit report and financial statements
For the months of October, November and December 2019
INTERNAL AUDITOR’S MONTHLY REPORT TO THE MEMBERS OF FIMBO HOLDINGS

LIMITED....................................................................................................................................................5
REPORT ON THE FINANCIAL STATEMENTS.....................................................................................5
INCOME STATEMENT.............................................................................................................................7
STATEMENT OF FINANCIAL POSITION..............................................................................................8
STATEMENT OF CASH FLOWS.............................................................................................................9
Notes to the financial statements...............................................................................................................10
COMPANY INFORMATION
DIRECTOR Mr. Edward Moses*
Ugandan*
REGISTERED OFFICE Mutungo Near
ii
Mutungo Police Post

P.O Box 21614
Kampala, Uganda
INTERNAL AUDITOR Mr.Edson Wagido

Senior Accountant
Moap Uganda Limited
Plot 724/725 Mawanda Road
Theta Building, Room 151
Kamwokya
P.O Box 10954
Kampala-Uganda
BANKERS Equity Bank

Market street
P.O Box 10184
Kampala, Uganda
DIRECTOR’S REPORT
The director submits his report and the audited financial statements for the months of October,
November and December 2019 which discloses the state of affairs of Fimbo Holdings Limited
(“the Company”).
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PRINCIPAL ACTIVITIES
The principal activities of the company continued to be that of offering a full range of financial
services to a wide range of their clients.
The services include;
*Quick Loans
*Financial Advisory
*Asset Financing
*Asset and Property Management
*Renewable Energy Loan
*Real Estate Management
RESULTS
The results of the Company for the Months of October, November and December 2019 are set
out on page 7.
DIVIDENDS
The director recommends the payment of a dividend for the months of October, November and
December 2019.
DIRECTOR
The name of the director who holds office at the date of this report is shown on page 1.
INTERNAL AUDITOR
The Company’s internal auditor, Edson Wagido was employed on 17TH day of December 2018.
BY ORDER OF THE BOARD

…………………………………….
DIRECTOR
KAMPALA
………………….2019
STATEMENT OF DIRECTOR’S RESPONSIBILITIES
The Ugandan Companies Act 2012 requires the director to prepare financial statements for each
financial year which 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 and loss. It also requires the directors to ensure that the
company keeps proper accounting records which disclose, with reasonable accuracy, the
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financial position of the company. They are also responsible for safeguarding the assets of the
company.
The director is ultimately responsible for the Company’s internal controls. The director delegates
responsibility for internal control to management. Standards and systems of internal control are
designed and implemented by management to provide reasonable assurance as to the integrity
and reliability of the financial statements and to adequately safeguard, verify and maintain
accountability of the Company’s assets.
Appropriate accounting policies supported by reasonable and prudent judgments and estimates,
are applied on a consistent and going concern basis. These systems and controls include the
proper delegation of responsibilities within a clearly defined framework, effective accounting
procedures and adequate segregation of duties.
The director accepts responsibility for the monthly financial statements, which have been
prepared using appropriate accounting policies supported by reasonable and prudent judgments
and estimates, in conformity with International Financial Reporting Standards and the
requirements of the Ugandan Companies Act 2012. The director is 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 director further accepts 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 director to indicate that the Company will not remain a
going concern for at least the next twelve months from the date of these financial statements.
The financial statements were approved by the board of directors on……………………2019 and
signed on its behalf by:
………………………………………
DIRECTOR
INTERNAL AUDITOR’S MONTHLY REPORT TO THE MEMBERS OF FIMBO

HOLDINGS LIMITED
REPORT ON THE FINANCIAL STATEMENTS

I have audited the accompanying financial statements of Fimbo Holdings Limited set out on
pages 6 to 27, which comprise the statement of financial position for the months of October,
November and December 2019, the Income Statement for the months of October, November and
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December 2019 and the statement of cash flows for the months of October, November and
December 2019, and the summary of significant accounting policies and other explanatory notes.
1. Director’s responsibility for the financial statements

The director is responsible for the preparation and fair presentation of these financial
statements in accordance with International Financial Reporting Standards and the
requirements of the Uganda Companies Act 2012. This responsibility includes designing,
implementing and maintaining internal controls relevant to the preparation and fair
presentation of financial statements that are free from material misstatements, whether
due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
2. Auditor’s responsibility
The Auditor’s responsibility is to express an opinion on these financial statements based
on the audit. The audit was conducted in accordance with International Standards on
Auditing. These standards require that we comply with ethical requirements and plan and
perform an 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 depend on the auditor’s
judgment, including the assessment of risks of material misstatement of the financial
statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal controls relevant to the
entity’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 controls. An audit also
includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate for the
basis of our opinion.
3. Opinion
In my Opinion the accompanying financial statements give a true and fair view of the
state of the Company’s affairs as at 31st October 2019, 30th November 2019 and 31st
December 2019 and of its results and cash flows for the months of October 2019,
November 2019 and December 2019 in accordance with International Financial
Reporting Standards and the Ugandan Companies Act 2012.
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REPORT ON OTHER LEGAL REQUIREMENTS
As required by the Ugandan Companies Act 2012, I report to you, based on my internal
audit that,
i) I have obtained all the information and explanations which to the best of my
knowledge and belief were necessary for the purpose of my audit;
ii) In my opinion proper books of accounts have been kept by the Company, so far
appears from my examination of those books; and
iii) The Company’s statement of financial position and Income statement are in
agreement with the books of accounts.
……………………………………………….
Edson Wagido
Senior Accountant
Moap Uganda Limited
P.O Box 10954
Kampala-Uganda
……………………………………..2019
INCOME STATEMENT
FOR THE MONTHS OF OCTOBER, NOVEMBER AND DECEMBER 2019
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OCTOBER NOVEMBER DECEMBER

(Ushs) (Ushs) (Ushs)
PROFIT
Interest Income 8,791,384 9,370,098 9,770,425
Interest Expense 2,977,113 4,162,140 5,068,000
Net Interest Income 5,814,271 5,207,958 4,702,425
Loss allowances on client loans 0 0 0
Net interest income after loss allowances 5,814,271 5,207,958 4,702,425
Fee and commission income 0 0 0
Fee and commission expense (663,714) 0 0
Other Incomes recovered from bad debts - - -
Other Incomes recovered from Collateral
disposal - - -
Net fee and commission income (663,714) 0 0
Net trading income 44,801,918 47,716,989 51,499,627
Un recovered loans disbursed - - -
Net income from other financial instruments - - -
Net income from investments in associates - - -
Revenue 44,801,918 47,716,989 51,499,627
Gross Profit 5,150,557 5,207,958 4,702,425
Personnel expenses
Administrative and other expenses 2,495,700 3,251,191 3,324,605
Profit before tax 2,654,857 1,956,767 1,377,820
Income tax expense 0 0 500,000
Profit for the period after tax 2,654,857 1,956,767 877,820
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STATEMENT OF FINANCIAL POSITION

OCTOBER NOVEMBER DECEMBER
(Ushs) (Ushs) (Ushs)
ASSETS
Cash and cash equivalents 54,607,863 71,582,090 77,901,080
Financial assets held for trading
Loans and advances to banks
Loans and advances to clients (Net)
Office Supplies 326,500 0 0
Financial assets at Fair Value through P/L
Financial assets at Fair Value through OCI
Investments in associates
Intangible assets
Property, plant and equipment 2,272,000 2,272,000 2,272,000
Furniture and Fittings 6,100,000 6,100,000 6,100,000
Motorcycle 3,500,000 3,500,000 3,500,000
Pre-payments/ Advances 0 0 0
Deferred income tax assets
Current income tax assets
TOTAL ASSETS 66,806,363 83,454,090 89,773,080
EQUITY AND LIABILITIES
Liabilities
Trading liabilities
Deposits and current accounts from banks
Other Liabilities (Client securities) 14,151,506 11,497,323 18,895,260
Derivative financial liabilities
Provisions
Deferred tax liabilities
TOTAL LIABILITIES
Equity
Share Capital 50,000,000 70,000,000 70,000,000
Reserves and other components of equity
Retained earnings from previous periods
Net Profit for the reporting period 2,654,857 1,956,767 877,820
TOTAL EQUITY 52,654,857 71,956,766 70,877,820
TOTAL EQUITY AND LIABILITIES 66,806,363 83,454,090 89,773,080
These financial statements were authorized and approved for issue by the Board of Directors on
………………………………2019 and were signed on its behalf by:
………………………………………………………..
DIRECTOR
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STATEMENT OF CASH FLOWS

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Notes to the financial statements
1. General information
Fimbo Holdings Limited (“the Company”) is a private limited company incorporated in
the republic of Uganda under the Ugandan Companies Act 2012. The Company’s
registered office is:
Mutungo Near
Mutungo Police Post
P.O Box 21614
Kampala-Uganda
2. Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements
are set out below.
These policies have been consistently applied to all the years presented, unless otherwise
stated.
a) Basis of preparation
The financial statements are prepared in accordance with the International Financial
Reporting Standards (IFRS) and the requirements of the Ugandan Companies Act.
The measurement basis applied is the historical cost basis, except where otherwise
stated in the accounting policies below. The financial statements are presented in
Uganda Shillings (Ushs).
The preparation of financial statements in conformity with IFRS requires the use of
certain critical accounting estimates and assumptions. It also requires management to
exercise its judgment in the process of applying the Company’s accounting policies.
The areas involving a higher degree of judgment of complexity, or areas where
assumptions and estimates are significant to the financial statements are disclosed in
note 3.
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b) Changes in accounting policies
New standards, interpretations and amendments effective from January 2015
The company has not applied the following new and revised IFRSs that have been
issued but are not yet effective:
IFRS 9 Financial Instruments

IFRS 15 Revenue from Contracts with
Customers
Amendments to IFRS 11 Accounting for Acquisitions of
Interests in Joint Operations
Amendments to IAS 1 Disclosure Initiative
Amendments to IAS 16 and IAS 38 Clarifications of Acceptable
Methods of Depreciation and Amortisation
Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants
Amendments to IFR 10 and IAS 28 Sale or contribution of Assets
between an Investor and its Associate or joint venture
Amendments to IFRS 10, IFRS 12 Investments Entities: Applying the
Consolidation Exception
Amendments to IFRSs Annual Improvements to IFRSs
2012-2014 Cycle
1. Effective for annual periods beginning on or after 1 January 2016, with earlier
application permitted.
2. Effective for annual periods beginning on or after 1 January 2018, with earlier
application permitted.
Notes to the financial statements (continued)

b) Changes in accounting policies
New standards, interpretations and amendments effective from 1 January 2015
(continued)
IFRS 9 Financial Instruments

IFRS 9 issued in November 2009 introduced new requirements for the classification
and measurement of financial assets. IFRS 9was subsequently amended in October
2010 to include requirements for the classification and measurement of financial
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liabilities and for derecognition, and in November 2013 to include the new
requirements for general hedge accounting. Another revised version of IFRS 9 was
issued in July 2014 mainly to include a) impairment requirements for financial assets
and b) limited amendments to the classification and measurement requirements by
introducing a ‘fair value through other comprehensive income’ (FVTOCI)
measurement category for certain simple debt instruments.
Key requirements of IFRS 9:

 All recognized financial assets that are within the scope of IAS 39 Financial
Instruments: Recognition and Measurement are required to be subsequently
measured at amortized cost or fair value. Specifically, debt investments that
are held within a business model whose objective is to collect the contractual
cash flows, and that have contractual cash flows that are solely payments of
principal and interest on the principal outstanding are generally measured at
amortized cost at the end of subsequent accounting periods. Debt instruments
that are held within a business model whose objective is achieved both by
collecting contractual cash flows and selling financial assets, and that have
contractual terms of the financial asset rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding, are measured at FVTOCI. All other debt investments and equity
investments are measured at their fair value at the end of subsequent
accounting periods. In addition, under IFRS 9, entities may make an
irrevocable election to present subsequent changes in the fair value of an
equity investment (that is not held for trading) in other comprehensive
income, with only dividend income generally recognized in profit or loss.
 With regard to the measurement of financial liabilities designated as at fair

value through profit or loss, IFRS 9 requires that the amount of change in the
fair value of the financial liability that is attributable to changes in the credit
risk of that liability is presented in other comprehensive income, unless the
recognition of the effects of changes in the liability’s credit risk in other
comprehensive income would create or enlarge an accounting mismatch in
profit or loss. Changes in fair value attributable to a financial liability’s credit
risk are not subsequently reclassified to profit or loss. Under IAS 39, the
entire amount of the change in the fair value of the financial liability
designated as fair value through profit or loss is presented in profit or loss.
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 In relation to the impairment of financial assets, IFRS 9 requires an expected

credit loss model, as opposed to an incurred credit loss model under IAS 39.
The expected credit loss model requires an entity to account for expected
credit losses and changes in those expected credit losses at each reporting date
to reflect changes in credit risk since initial recognition. In other words, it is
no longer necessary for a credit event to have occurred before credit losses are
recognized.
 The new general hedge accounting requirements retain the three types of
hedge accounting mechanisms currently available in IAS 39. Under IFRS 9,
greater flexibility has been introduced to the types of transactions eligible for
hedge accounting, specifically broadening the types of instruments that
qualify for hedge instruments and the types of risk components of non-
financial items that are eligible for hedge accounting. In addition, the
effectiveness test has been overhauled and replaced with the principle of an
‘economic relationship’. Retrospective assessment of hedge effectiveness is
also no longer required. Enhanced disclosure requirements about an entity’s
risk management activities have also been introduced.
New standards, interpretations and amendments effective from 1

January 2015 (continued)
IFRS 9 Financial Instruments (continued)

The directors of the Company anticipate that the application of IFRS 9 in the
future may have a material impact on amounts reported in respect of the
company’s financial assets and financial liabilities. However, it is not
practicable to provide a reasonable estimate of the effect of IFRS 9 until the
company undertakes a detailed review.
IFRS 15 Revenue from Contracts with Customers
In May 2014, IFRS 15 was issued which establishes a single comprehensive

model for entities to use in accounting for revenue arising from contracts with
customers. IFRS 15 will supersede the current revenue recognition guidance
including IAS 18 Revenue, IAS 11 Construction Contracts and the related
Interpretations when it becomes effective.
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The core principle of IFRS 15 is that an entity should recognize revenue to

depict the transfer of promised goods and services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in
exchange for those goods and services. Specifically, the standard introduces a
5-step approach to revenue recognition:
Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the
contract
Step 5: Recognise revenue when (or as) the entity satisfies a performance
obligation
Under IFRS 15, an entity recognizes revenue when (or as) a performance
obligation is satisfied, i.e. when ‘control’ of the goods or services underlying
the particular performance obligation is transferred to the customer. Far more
prescriptive guidance has been added in IFRS 15 to deal with specific
scenarios.
Furthermore, extensive disclosures are required by IFRS 15.
The directors of the Company anticipate that the application of IFRS 15 in the
future may have a material impact on the amounts reported and disclosures
made in the Company’s financial statements. However, it is not applicable to
provide a reasonable estimate of the effect of IFRS 15 until the Company
performs a detailed review.
Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint

Operations
The amendments to IFRS 11 provide guidance on how to account for the
acquisition of a joint operation that constitutes a business as defined in IFRS 3
Business Combinations. Specifically, the amendments state that the relevant
principles on accounting for business combinations in IFRS 3 and other
standards (e.g. IAS 36 Impairment of Assets regarding impairment testing of a
cash generating unit to which goodwill on acquisition of a joint operation has
been allocated) should be applied. The same requirements should be applied
to the formation of a joint operation if and only if an existing business is
contributed to the joint operation by one of the parties that participate in the
joint operation.
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A joint operator is also required to disclose the relevant information required

by IFRS 3 and the other standards for business combinations. The
amendments to IFRS 11 apply prospectively for annual periods beginning on
or after 1 January 2016.
The director of the Company does not anticipate that the application of these
amendments to IFRS 11 will have a material impact on the company’s
financial statements.
Amendments to IAS 1 Disclosure Initiative
The amendments to IAS 1 give some guidance on how to apply the concept of
materiality in practice. The amendments to IAS 1 are effective for annual
periods beginning or after 1 January 2016.
The director of the company does not anticipate these amendments to IAS 1
will have material impact on the financial statements.
New standards, interpretation and amendments effective from 1 January

2015 (Continued)
Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods

of Depreciation and Amortisation
The amendments to IAS 16 prohibit 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
an 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.
The amendments apply prospectively for annual periods beginning on

after 1 January 2016. Currently, the company uses the straight-line method
xvi
for depreciation and amortization for its property, plant and equipment,
and intangible assets respectively. The director of the company believes
that the straight-line method is the most appropriate method to reflect the
consumption of economic benefits inherent in the respective assets and
accordingly, the director of the Company does not anticipate that the
application of these amendments to IAS 16 and IAS 38 will have a
material impact on the company’s financial statements.
Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants

The amendments to IAS 16 and IAS 41 define a bearer plant and require
biological assets that meet the definition of a bearer plant to be accounted
for as 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 director of the company does not anticipate that the application of
these amendments to IAS 16 and IAS 41 will have a material impact on
the company’s financial statements as the company is not engaged in
agricultural activities.
Amendments to IFRS 10 and IAS 28 Sale or contribution of Assets

between an Investor and its Associate or Joint venture
The amendments to IFRS 10 and IAS 28 deal with situations where there
is a sale or contribution of assets between an investor and its associate or
joint venture. Specifically, the amendments state that gains or losses
resulting from the loss of control of a subsidiary that does not contain a
business in a transaction with an associate or joint venture that is
accounted for using the equity method, are recognized in the parent’s
profit or loss only to the extent of the unrelated investor’s interests in that
associate or joint venture. Similarly, gains and losses resulting from the
measurement of investments retained in any former subsidiary (that has
become an) to fair value are associate or a joint venture that is accounted
for using the equity method to fair value are recognized in the former
parent’s profit or loss only to the extent of the unrelated investor; interests
in the new associate or joint venture.
The amendments should be applied prospectively to transactions occurring

in annual periods beginning on or after 1 January 2016. The director of the
company does not anticipate that the application of these amendments to
xvii
IFRS 10 and IAS 28 to have an impact on the company’s financial

statements in future periods should such transactions arise.
Amendments to IAS 19 Defined Benefit Plans: Employee

The amendments to IAS 19 clarify how an entity should account for
contributions made by employees or third parties to defined benefit plans,
based on whether those contributions are dependent on the number of
years of service provided by the employee.
For contributions that are independent of the number of years of service,

the entity may either recognize the contributions as a reduction in the
service cost in the period in which the related service is rendered, or to
attribute them to the employees’ periods of service using the projected unit
credit method; whereas for contributions that are dependent on the number
of years of service, the entity is required to attribute them to the
employees’ periods of service.
The director of the Company does not anticipate that the application of
these amendments to IAS 19 will have a significant impact on the
Company’s financial statements.
New standards, interpretation and amendments effective from 1

January 2015 (continued)
Annual Improvements to IFRSs 2012-2014 Cycle
The Annual Improvements to IFRSs 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 when an

entity reclassifies an asset (for disposal Company) from held for sale to
held for distributions 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
xviii
change of sale plan do not apply. The amendment 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 how an entity should account for
contributions made by employees or third parties to defined benefit plans,
based on whether those contributions are dependent on the number of
years of service provided by the employee. For contributions that are
independent of the number of years of service, the entity may either
recognize the contributions as a reduction in the service cost in the period
in which the related service is rendered, or to attribute them to the
employees’ periods of service using the projected unit credit method;
whereas for contributions that are dependent on the number of years of
service, the entity is required to attribute them to the employees’ periods
of service.
The director of the Company does not anticipate that the application of
these amendments will have a significant impact on the company’s
financial statements.
c) Revenue
Revenue is measured at the fair value of the consideration received or
receivable, and represents amounts receivable on service rendered, stated
at the net of rebates and discounts.
The Company recognizes revenue when the amount of revenue can be

reliably measured; it is probable that future economic benefits will flow to
the Company and when specific criteria have been met for each of the
Company’s activities.
xix
d) Translation of foreign currencies

Categories of financial assets and liabilities
Trade receivables
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less
provision for impairment. A provision for impairment of trade receivables
is established when there is objective evidence that the Company will not
be able to collect all amounts due according to the original terms of
receivables. The amount of the provision is the difference between the
asset’s carrying amount and the present value of estimated future cash
flows, discounted at the effective interest rate. The amount of provision is
recognized in the statement of profit or loss.
e) Financial instruments (continued)

Categories of financial assets
The classification depends on the purpose for which the investments were
acquired. Management determines the classification of its financial assets
on initial recognition.
i) Loans and advances

Loans and receivables are derivative financial assets with fixed or
determinable payments that are not quoted in an active market.
They arise when a Company provides money, goods and services
directly to the debtor with no intention of trading the receivable.
They are included in current assets where maturity is within twelve
months to the end of the reporting period or non-current assets for
maturities greater than twelve months.
ii) Trade receivables

Trade receivables are recognized when due, less an allowance for
uncollectible amounts. An estimate for doubtful debt is made when
collection of the full amount is no longer probable. Bad debts are
written off when identified.
xx
iii) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at
call with banks, other short-term highly liquid investments with
original maturities of 3 months or less, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in the
statement of financial position.
Categories of financial liabilities

i) Trade payables
Trade payables are recognized when due.
ii) Borrowings
Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement of
the liability for at least twelve months after end of reporting
period.
f) Equipment
All equipment is initially recorded at cost and thereafter stated at historical
cost less depreciation.
Historical cost comprises expenditure initially incurred to bring the asset

to its location and condition ready for its intended use.
Subsequent costs are included in the asset’s carrying amount or recognized

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 reliably measured. The carrying amount of the replaced
part is derecognized. All other repairs and maintenance are charged to the
statement of comprehensive income during the financial period in which
they are incurred.
Depreciation is calculated on the reducing balance basis to write down the

cost of each asset, to its residual value over its estimated useful life using
the following annual rates:
Rate%
Computers 30.0
Furniture and fittings 12.5
Office equipment 30.0
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The assets’ residual values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period. Where the carrying
amount of an asset is greater than its estimated recoverable amount, it is
written down immediately to its recoverable amount.
Gains and losses on disposal of equipment are determined by comparing

proceeds with the carrying amount and are included in the statement of
profit or loss.

g) Retirement benefit obligations
As per now, the Company and its employees do not qualify to contribute
to the National Social Security Fund (NSSF)
h) Comparatives
Where necessary, comparative figures have been adjusted to conform with
changes in presentation in the current period.
i) Impairment of assets
Assets that have an indefinite useful life are not subject to amortization
and are tested annually for impairment. Assets that are subject to
amortization are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the carrying
amount of the asset exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and value in
use. For the purpose of assessing impairment assets are grouped at the
lowest levels for which there are separately identifiable cash flows (cash
generating units).
j) Provisions
Provisions are recognized when the Company has a legal or constructive
obligation as a result of past events and it is probable that an outflow of
resources that can be reliably estimated will be required to settle the
obligation.
xxii
3. Critical accounting estimates and assumptions

Estimates and judgments are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
i) Critical accounting estimates and assumptions
Income taxes
Significant judgment is required in determining the Company’s 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 of these matters 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.
ii) Critical judgments in applying the Company’s accounting policies

In the process of applying the Company’s accounting policies, management has
made judgments in determining:
 Whether assets are impaired
 The useful lives of, or expected pattern of consumption of the future
economic benefits embodied depreciable assets;
 Provision for bad and doubtful debts
 The fair value of financial liabilities

4. Financial risk management
The Company’s activities expose it to a variety of financial risks including foreign
exchange risk, credit risk and liquidity risk
The Company’s overall risk management programme focuses on the unpredictability of

financial markets and seeks to minimize potential adverse effects on the Company’s
financial performance.
A description of the significant risk factors is given below together with the risk
management policies applicable.
xxiii
Principal financial instruments
The principal financial instruments used by the Company, from which financial
instrument risk arises are as follows.
a) Trade receivables
b) Cash and Bank
c) Trade and other payables
d) Borrowings
Market risk
i) Foreign exchange risk
The company is not exposed to foreign exchange risk since it transacts in only
Uganda Shillings.
ii) Price risk
The Company does not hold any financial instruments subject to price risk.
Credit risk
Credit risk arises from cash and cash equivalents with financial institutions as
well as credit exposures to customers including outstanding receivables and
committed transactions. Credit risk is the risk that a counterparty will default
on its contractual obligations resulting in financial loss to the Company.
Credit risk is managed by the finance department. The credit team is

responsible for managing and analyzing credit risk for each new client before
standard payment and delivery terms are offered. Credit risk arises from cash
at bank and short term deposits with banks, as well as trade and other
receivables.
The amount that best represents the company’s maximum exposure to credit
risk as at October 31st, 2019, November 30th, 2019 and December 31st, 2019 is
made up as follows:
Performing Past due Impaired Total
Ushs Ushs Ushs Ushs
st
October 31 , 2019
Trade and other receivables 2,977,113 - - 2,977,113
Cash and bank balances 51,630,750 - - 51,630,750
54,607,863 54,607,863
xxiv
November 30th, 2019

Trade and other receivables 4,162,140 - - 4,162,140
Cash and bank balances 67,419,950 - - 67,419,950
71,582,090 71,582,090
December 31st, 2019
Trade and other receivables 5,068,000 5,068,000
Cash and bank balances 72,833,080 72,833,080
77,901,080 77,901,080
4. Financial risk management (continued)
Liquidity risk
Liquidity risk is that risk that the Company will not be able to meet its
financial obligations as they fall due. Prudent liquidity risk management
includes maintaining sufficient cash balances, and the availability of funding
from an adequate amount of committed credit facilities.
The table below analyses the Company’s financial liabilities that will be
settled on a net basis analyzed into the relevant maturity groupings. The
amounts disclosed are the contractual undiscounted cash flows.
Liquidity risk
Less than Between Total
1 year 1 -2 years
Ushs Ushs Ushs
At October 31st, 2019
Financial assets
Trade and other receivables 2,977,113 - 2,977,113
Cash and Bank balances 51,630,750 - 51,630,750
54,607,863 54,607,863
Financial Liabilities
Other Liabilities (14,151,506) - (14,151,506)
Liquidity gap 40,456,357 40,456,357
xxv
Liquidity risk
Less than Between Total
1 year 1 -2 years
Ushs Ushs Ushs
At November 30th, 2019

Financial assets
71,582,090 71,582,090
Other Liabilities (11,497,323) - (11,497,323)
Liquidity gap 60,084,767 60,084,767
At December 31st, 2019

Financial assets
77,901,080 77,901,080
Other Liabilities (18,895,260) (18,895,260)
Liquidity gap 59,005,520 59,005,520
Capital risk management
The Company’s objectives when managing capital are:
-to safeguard the Company’s ability to continue as a going concern, so that it

can continue to provide returns for the shareholder and benefit for other
stakeholders, and
-to provide an adequate return to shareholders by pricing products and
services commensurately with the level of risk.
The Company sets the amount of capital in proportion to risk. The Company
manages the capital structure and makes adjustments to it in the light of
changes in economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the Company may
xxvi
adjust the amount of dividends paid to shareholders, return capital to

shareholders, issue new shares, or sell assets to reduce debt.
The Company monitors capital on the basis of the debt-to-adjusted capital

ratio. This ratio is calculated as net debt adjusted capital. Net debt is
calculated as total debt (as shown in the statement of financial position) less
cash and cash equivalents. Adjusted capital comprises all components of
equity (i.e. share capital, retained earnings, and proposed dividends)
Capital risk management
During the period under review, the Company did not have any external
borrowings for its operation.
Fair value estimation
The nominal value less estimated credit adjustments of trade receivables and
payables are assumed to approximate their fair values. The fair value of
financial liabilities for disclosure purposes is estimated by discounting the
future contractual cash flows at the current market interest rate that is
available to the Company.
5. Revenue
October November December
31st, 2019 30th, 2019 31st, 2019
Ushs Ushs Ushs
Interest Income 8,791,384 9,370,098 9,770,425
xxvii
6. Administrative expenses
License fees 0 0 554,600
Wages and salaries 750,000 750,000 750,000
Commission costs 30,000 489,191 339,455
Rent and Prepayments 400,000 400,000 200,000
Audit fees 450,000 150,000 300,000
Allowances 330,000 400,000 300,000
Telephone costs 0 0 23,000
Electricity 35,000 20,000 20,000
Advertisement and Marketing costs 95,000 120,000 0
Printing and stationery 0 0 102,500
Bank Charges 16,700 0 126,050
Transport costs 290,000 290,000 290,000
General Office expenses 499,000 632,000 319,000
2,495,700 3,251,191 3,324,605
7. Trade and other receivables
Trade receivables
(loans and advances to clients) 2,977,113 4,162,140 5,068,000
8. Cash and cash equivalents

Cash at bank 6,828,832 19,702,961 21,333,453
Cash in hand 44,801,918 47,716,989 51,499,627
51,630,750 67,419,950 72,833,080
For the purpose of the cash flow statement, the month end cash and cash equivalents
comprise the above.
9. Share capital
Authorized, issued and fully paid:
2,333.333 ordinary shares of Ushs 30,000 each UGX. 70,000,000
10. Deferred tax

Deferred tax is calculated, in full, on all temporary timing differences under the liability
method using a principal tax rate of 30%.
11. Events after the reporting period

There were no post balance sheet events affecting the financial statements of the
company as at……………………………………, 2019
xxviii
12. Contingent liabilities

The director is not aware of any contingent liabilities that accrued to the Company as at
December 31st, 2019.
IAS 30 — Disclosures in the Financial Statements of Banks and Similar Financial

Institutions
History of IAS 30
April 1987 Exposure Draft E29 Disclosures in Financial Statements of Banks

Exposure Draft E29 was modified and re-exposed as Exposure Draft E34 Disclo-
July 1989
sures in Financial Statements of Banks and Similar Financial Institutions
IAS 30 Disclosures in Financial Statements of Banks and Similar Financial In-
August 1990
stitutions
1 January 1991 Effective date of IAS 30 (1990)
1994 IAS 30 was reformatted
IAS 30 was amended by IAS 39 Financial Instruments: Recognition and Mea-
December 1998
surement, effective 1 January 2001
IAS 30 is superseded by IFRS 7 Financial Instruments: Disclosures effective
18 August 2005
1 January 2007
Related Interpretations
 None
Amendments under consideration by the IASB
 None
Summary of IAS 30
Objective of IAS 30
The objective of IAS 30 is to prescribe appropriate presentation and disclosure standards for
banks and similar financial institutions (hereafter called 'banks'), which supplement the require-
ments of other Standards. The intention is to provide users with appropriate information to assist
them in evaluating the financial position and performance of banks, and to enable them to obtain
a better understanding of the special characteristics of the operations of banks.
Presentation and disclosure
xxix
A bank's income statement should group income and expenses by nature. [IAS 30.9]
A bank's income statement or notes should report the following specific amounts: [IAS 30.10]
 interest income
 interest expense
 dividend income
 fee and commission income
 fee and commission expense
 net gains/losses from securities dealing
 net gains/losses from investment securities
 net gains/losses from foreign currency dealing
 other operating income
 loan losses
 general administrative expenses
 Other operating expenses.
A bank's balance sheet should group assets and liabilities by nature and list them in liquidity
sequence. [IAS 30.18] IAS 30.19 sets out the specific line items requiring disclosure.
IAS 30.13 and IAS 30.23 include guidelines for the limited circumstances in which income and
expense items or asset and liability items are offset.
A bank must disclose the fair values of each class of its financial assets and financial liabilities as
required by IAS 32 and IAS 39. [IAS 30.24]
xxx

Fakerish HOLDINGS LIMITED-INTERNAL AUDIT REPORT FOR OCTOBER, NOVEMBER AND DECEMBER 2019

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Fakerish HOLDINGS LIMITED-INTERNAL AUDIT REPORT FOR OCTOBER, NOVEMBER AND DECEMBER 2019

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FIMBO HOLDINGS LIMITED

MONTHLY INTERNAL AUDIT REPORT AND FINANCIAL

INTERNAL AUDITOR’S MONTHLY REPORT TO THE MEMBERS OF FIMBO HOLDINGS

REGISTERED OFFICE Mutungo Near

Mutungo Police Post

INTERNAL AUDITOR Mr.Edson Wagido

BANKERS Equity Bank

BY ORDER OF THE BOARD

STATEMENT OF DIRECTOR’S RESPONSIBILITIES

INTERNAL AUDITOR’S MONTHLY REPORT TO THE MEMBERS OF FIMBO

REPORT ON THE FINANCIAL STATEMENTS

1. Director’s responsibility for the financial statements

REPORT ON OTHER LEGAL REQUIREMENTS

OCTOBER NOVEMBER DECEMBER

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS

Notes to the financial statements

2. Summary of significant accounting policies

b) Changes in accounting policies

New standards, interpretations and amendments effective from January 2015

IFRS 9 Financial Instruments

Notes to the financial statements (continued)

IFRS 9 Financial Instruments

Key requirements of IFRS 9:

 With regard to the measurement of financial liabilities designated as at fair

 In relation to the impairment of financial assets, IFRS 9 requires an expected

Notes to the financial statements (continued)

New standards, interpretations and amendments effective from 1

IFRS 9 Financial Instruments (continued)

IFRS 15 Revenue from Contracts with Customers

In May 2014, IFRS 15 was issued which establishes a single comprehensive

The core principle of IFRS 15 is that an entity should recognize revenue to

Step 1: Identify the contract(s) with a customer

Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint

A joint operator is also required to disclose the relevant information required

Amendments to IAS 1 Disclosure Initiative

Notes to the financial statements (continued)

New standards, interpretation and amendments effective from 1 January

Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods

The amendments to IAS 16 prohibit entities from using a revenue-based

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

The amendments apply prospectively for annual periods beginning on

Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants

Amendments to IFRS 10 and IAS 28 Sale or contribution of Assets

The amendments should be applied prospectively to transactions occurring

IFRS 10 and IAS 28 to have an impact on the company’s financial

Amendments to IAS 19 Defined Benefit Plans: Employee

For contributions that are independent of the number of years of service,

Notes to the financial statements (continued)

New standards, interpretation and amendments effective from 1

Annual Improvements to IFRSs 2012-2014 Cycle

The Annual Improvements to IFRSs 2012-2014 Cycle include a number of

The amendments to IFRS 5 introduce specific guidance in IFRS 5 when an

The amendments to IFRS 7 provide additional guidance to clarify whether

The Company recognizes revenue when the amount of revenue can be

d) Translation of foreign currencies

Notes to the financial statements (continued)

e) Financial instruments (continued)

i) Loans and advances

ii) Trade receivables

iii) Cash and cash equivalents

Categories of financial liabilities

Historical cost comprises expenditure initially incurred to bring the asset