Annual Report &

Financial Statements

ALBA CONSTRUCTION CO. LIMITED

31st December 2020

EMK and Associates CPA

ALBA CONSTRUCTION CO. LIMITED

Report & Financial Statements

For the year ended 31st December 2020

Table of Contents Page

Company Information 1

Report of Directors 2

Report of the Auditors 3

Statement of Directors Responsibilities 4

Profit and loss Account 5

Balance Sheet 6

Statement of changes in equity 7

Cash flow statements 8

Notes to the financial statements 9-10

ALBA CONSTRUCTION CO. LIMITED

Report & Financial Statements

For the year ended 31st December 2020

Company Information

Board of Directors : Doreen Karimi Gatobu

Company Secretary : Eric Kinoti Mbogori

P. O. Box 50248-00100
Nairobi

Cooperative Bank of Kenya

Bankers : Upperhill
Nairobi

Auditors : EMK and Associates,

Certified Public Accountants (K)
Lotus House, 2nd Floor
Chiromo lane - Westlands
P. O. Box 50248
00100-Nairobi

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ALBA CONSTRUCTION CO. LIMITED

Report & Financial Statements

For the year ended 31st December 2020

The directors have pleasure in presenting their report together with the audited financial
statements of the company for the year ended 31st December 2019
1. Principal activity:
The company operates a online shop selling food supplements and related services

2. Results for the year:

The results for the year are shown on page 5.

3. Dividends:
The directors do not recommend the declaration of divided for the period then ended

4. Directorate:
The directors who held the offices during the year are shown on page one of this report:-
The directors continue in office in accordance with the company’s Memorandum and Articles
of Association.

5. Auditors:
During the year, Messrs. EMK & Associates were appointed as the company auditors and have
expressed their willingness to continue in office and do so in accordance with section 159 (2)
of the companies Act 2015

BY ORDER OF THE BOARD

Director

Date………………………………….

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ALBA CONSTRUCTION CO. LIMITED
Report of the Auditors
To the Members of Alba Construction Co. Limited

We have audited the financial statements set out on pages 5 to 11 which comprises the statement of
comprehensive income, statement of financial position, changes in equity, cashflow statements for the year
then ended, and a summary of significant accounting policies and other explanatory notes.

Respective responsibilities of the directors and the independent auditors.

The directors are responsible for the preparation and fair presentation of these financial statements in
accordance with International Financial Reporting Standards and the requirements of the Kenya Companies
Act. This responsibility includes designing, implementing and maintaining internal control relevant to the
preparation and presentation of financial statements that are free from material misstatement whether due
to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates
that are reasonable in the circumstances. The Kenyan Companies Act also requires the directors to ensure
that the company maintains proper books of accounts which are in agreement with the balance sheet and
profit and loss account.

Auditors Responsibility

Our responsibility is to express an independent opinion on these financial statements based on our audit in
accordance with International Audit Standards. These standards require that we plan and perform our audit
to obtain reasonable assurances that the accounts 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 our professional judgment, including the
assessments. We considered the internal controls relevant to the company’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in
circumstances , but not for the purpose of expressing an opinion on the company’s internal controls. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the directors as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide basis for our
audit opinion.
Opinion:
In our opinion proper books of accounts have been kept and the financial statements give a true and fair
view of the state of the company’s financial affairs as at 31st December 2019 and of the results of its
operations and its cash flow for the year then ended and comply with the International Financial Reporting
Standards (IFRS) and the Kenyan Companies Act.

EMK & Associates

Certified Public Accountants (K)
Lotus House- 2nd Floor
Chiromo Lane- Westlands
P.O.Box 50248 – 00100

Date………………………………

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ALBA CONSTRUCTION CO. LIMITED

Report & Financial Statements

For the year ended 31st December 2020

Statement of Director’s Responsibilities

The Companies Act requires the directors 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 operating results for that year. It also requires
the directors to ensure the company keeps proper accounting records, which disclose,
with reasonable accuracy, the financial position of the company. They are also
responsible for safe guarding the assets of the company.

The directors accept responsibility for the 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 Companies Act. The directors are of the opinion
that the financial statements give a true and fair view of the state of the financial affairs
of the company and of its operating results. The directors further accept responsibility
for the maintenance of accounting records, which may be relied upon in the preparation
of financial statements, as well as adequate systems of internal financial control.

Nothing has come to the attention of the directors to indicate the company will not
remain a going concern for at least the next twelve months from the date of this
statement.

……………………………… ………………………
Director Director

………………………………… …………………………
Date Date

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ALBA CONSTRUCTION CO. LIMITED
Income Statement
for the year ended 31st December 2020

Notes 2020 2019

Kshs Kshs
Income
Sales Appendix 1 14,549,422 1,361,835
14,549,422 1,361,835

Expenditure
Employment - -
Establishment 1,053,535 399,190
Administration 1,311,857 1,106,315
Financial 547,126 10,640
2,912,518 1,516,145
Net Profit /(Loss) before tax 11,636,904 (154,311)
Taxation 3,491,071 -
Net profit/(loss) after tax 8,145,833 (154,311)

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ALBA CONSTRUCTION CO. LIMITED
Statement Of Financial Position
As at 31st December 2020

Notes 2020 2019

Assets Kshs Kshs
Non current assets
Property, plant and equipment 4 1,452,589 68,253

Current Assets
Debtors and prepayments 5 4,537,600 3,070
Stock 7,359,870 6,548,761
Bank Balance 452,997 133,431
Deferred Tax Asset - -
12,350,467 6,685,263
Total Assets 13,803,056 6,753,515

Equity and liabilities

Capital and Reserves
Share capital 7 100,000 100,000
Revenue reserves 7,991,522 (154,311)
8,091,522 (54,311)

Non Current Liabilities

Loan 1,365,875 1,675,675
Directors current account 779,588 5,057,151
2,145,463 6,732,826
Current Liabilities
Creditors 75,000 75,000
Tax payable 8 3,491,071 -
3,566,071 75,000

Total Equity and Liabilities 13,803,056 6,753,515

The financial statements were approved on .................................................... and signed on

behalf of the directos by:-

Director…………………………………….. Director………………………………………..

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ALBA CONSTRUCTION CO. LIMITED
Statement of Changes in Equity
for the year ended 31st December 2020

Revenue
Share Capital Reserve Total

Kshs Kshs Kshs

Year ended 31/12/19
As at 1st Jan 2019 - - -
Net profit after tax 100,000 (154,311) (54,311)
As at 31st Dec 2019 100,000 (154,311) (54,311)

Year ended 31/12/19

As at 1st Jan 2019 100,000 (154,311) (54,311)
Net profit after tax - 8,145,833 8,145,833
As at 31st Dec 2019 100,000 7,991,522 8,091,522

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ALBA CONSTRUCTION CO. LIMITED
Cash flow statement
For the year ended 31st December 2020

2020 2019
Kshs Kshs
Cash flow from operating activities
Profit/(loss) before taxation 11,636,904 (154,311)
Adjustment for:
Depreciation 221,163 22,751
11,858,067 (131,560)

Operating profit(loss) before working capital changes

working adjustments:-
Decrease/(increase) in debtors (4,534,530) (3,070)
Decrease/(increase) in stock (811,109) (6,548,761)
(Decrease)/increase in creditors - 75,000
(Decrease)/increase in directors current account (4,277,563) 5,057,151
(9,623,201) (1,419,680)
Tax paid - -
2,234,866 (1,551,240)

Cashflow from investing activities

Purchase of fixed assets (1,605,500) (91,004)
Sale of fixed assets - -
(1,605,500) (91,004)
Cashflow from financing activities
Share Capital - 100,000
Loan (309,800) 1,675,675
(309,800) 1,775,675
Net cash inflow/(outflow) 319,566 133,431
Cash and Cash equivalent
At the beginning of the year 133,431 -
Net cash inflow/(outflow) 319,566 133,431
at the end of the year 452,997 133,431

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ALBA CONSTRUCTION CO. LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements are set
out below:-
(a) Basis of Accounting
The financial statements are prepared in accordance with International Financial Reporting
Standards (IFRS) for SMEs. The financial statements are presented in Kenya shillings (Kshs) and
prepared in accordance with the measurements bases prescribed by IFRS.

The preparation of financial statements in conformity with IFRS requires the use of estimates and
assumptions. It also requires management to exercise its judgment in the process of applying the
company’s policies. The areas involving a higher degree of judgment or complexity or where
assumptions are significant to the financial statements are disclosed.
(b) Revenue Recognition:
Sales of goods are recognized in the period in which the company delivers products to the customers
have accepted the products and collectibles of the related receivables are reasonably assured.

Revenue represents the fair view of the consideration received and receivable for the sale of goods
and services and is stated net of VAT, rebates and discounts.

(c) Property, plant and equipment:

All categories of property, plant and equipment are recorded at historical costs less depreciation.
Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as
appropriate only when its probable that future economic benefits associated with the item will flow
can be measured reliability.

Depreciation is calculated using the straight line method to write down their costs to their residual
values over their estimated useful lives using the following annual rates.
Computer and Computer Equipment 30%
Gains and losses on disposal of property, plant and equipment are determined by reference to
their carrying amount and are taken into account in determining the operating profit.

(d) Receivables
Receivables are recognized initially at cost. A provision for impairment is recognized in the profit
and loss account in the year when the recovery of the amount due per the original terms is doubtful.
The provision is based on the difference between the carrying amount and the expected cash flows.

(e) Income taxes

Current income tax is the amount of income tax payable on profit for the year determined in
accordance with the Kenyan Income Tax Act.

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 ALBA CONSTRUCTION CO. LIMITED
Notes to the Financial Statements
for the year ended 31st December 2020

2020 2019
2 Profit/loss before tax stated after charging Kshs Kshs
Depreciation 221,163 22,751
Audit fee 75,000 75,000
Directors remuneration

3 Taxation
Charge for the year 3,491,071 -
Under provision in previous year - -
3,491,071

Computer and Office Total

4 Non Current Assets equipment Equipment

Cost/valuation
At 01/01/2020 91,004 - 91,004
Additions - 1,605,500 1,605,500
Disposals - - -
At 31/12/2020 91,004 1,605,500 1,696,504

Depreciation
At 01/01/2020 22,751 - 22,751
charge for the period 20,476 200,688 221,163
Disposals - - -
At 31/12/2020 43,227 200,688 243,915

Net book Value

At 31/12/2020 47,777 1,404,813 1,452,589

At 31/12/2019 68,253 - 68,253

5 Receivables and prepayments

2019 2018
Kshs Kshs
4,537,600
4,537,600

6 Accruals and Payables

Trade and other payables are recognized and accrued when incurred.

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ALBA CONSTRUCTION CO. LIMITED
Detailed Income Statement
for the year ended 31st December 2020

2020 2019
Kshs Kshs
Income
Sales 17,987,239 9,215,793
Exchange gain - -
17,987,239 215,793
Cost Of Sales
Opening stock 6,548,761 -
Purchases 4,427,692 5,415,896
10,976,453 5,415,896
Less:
Marketing and testing products 178,766 13,177
Closing stock 7,359,870 6,548,761
COGS 3,437,817 - 1,146,042
Gross profit 14,549,422 1,361,835

Establishment expenses
Preoperational Expenses - 74,331
Repairs and maintence 657,324 -
Website and Internet 56,000 147,655
Licences 52,500 83,260
Rent and rates 66,548 71,194
Depreciation 221,163 22,751
1,053,535 399,190
Administrative expenses
Advertisement 342,876 137,640
Telephone,Postage and Courier 245,119 211,559
Printing and stationery 36,543 44,288
Travelling Expenses 438,712 -
Computer expenses 43,566 56,299
Sales Promotion 106,541 481,529
Audit fee 75,000 75,000
Other legal and professional expenses 23,500 100,000
1,311,857 1,106,315
Financial expenses
Bank charges and interest 547,126 10,640
Interest on loan - -
Exchange Loss - -
547,126 10,640
Total operating expenses 2,912,518 1,516,145
Net profit(loss)before tax 11,636,904 (154,311)
Taxation - -
Net profit/(loss) after tax 11,636,904 (154,311)