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 Opening Transactions Closing

(CR ) Balances 2009-2010 Balances

FIXED ASSETS :

Land and Building A 1,546,500.00 46,970.00 1,593,470.00

Machinery and Equipment A 946,790.00 213,490.00 1,160,280.00
Furniture and Fixtures A 87,256.00 9,780.00 97,036.00
Motors Vehicles A 346,580.00 78,500.00 425,080.00
Computers/ Software A 62,589.00 2,790.00 65,379.00
others A 46,780.00 5,890.00 52,670.00

ACCOUNTS RECEIVABLES/ PRE-PAYMENTS :

Trade Receivables A 3,458,920.00 857,894.00 4,316,814.00

Other Receivables A 235,790.00 (46,795.00) 188,995.00
Employees' Balance A 48,975.00 (22,123.00) 26,852.00
Pre-paid Insurances A 56,879.00 (23,579.00) 33,300.00
Other Pre-payments A 22,568.00 (12,579.00) 9,989.00

INVENTORIES :

Machineries and Equipment A 5,789,425.00 1,868,054.00 7,657,479.00

Replacement Parts / Equipment A 925,780.00 126,578.00 1,052,358.00
Other Products/ Consumables A 325,789.00 12,579.00 338,368.00

CASH AND BANK BALANCES :

Cash in hand A 26,785.00 11,792.00 38,577.00

Balances in Banks A 1,278,950.00 324,795.00 1,603,745.00
15,206,356.00 3,454,036.00 18,660,392.00
ACCUMULATED DEPRECIATION:

On Land and Building L (526,790.00) (386,625.00) (913,415.00)

On Machinery and Equipment L (287,589.00) (236,698.00) (524,287.00)
On Furniture and Fixtures L (42,578.00) (16,586.00) (59,164.00)
On Motors Vehicles L (189,500.00) (86,500.00) (276,000.00)
On Computers/ Software L (31,295.00) (16,586.00) (47,881.00)
On others L (10,890.00) (11,780.00) (22,670.00)

ACCOUNTS PAYABLES & CREDIT BALANCES:

Trade Accounts payables L (1,325,478.00) 32,579.00 (1,292,899.00)

Other Payables L (522,164.00) 152,793.00 (369,371.00)
Employees' End- of Service Benefits L (327,325.00) (87,546.00) (414,871.00)
Accrued Expenses L (223,625.00) (51,793.00) (275,418.00)

BANK LOANS AND OVERDRAFTS L (3,789,750.00) (246,789.00) (4,036,539.00)

CAPITAL AND EQUITY:

Paid up Capital L (5,000,000.00) (5,000,000.00)

Compulsory Reserve L (785,500.00) (785,500.00)
Retained Earnings L (2,143,872.00) (2,143,872.00)
(15,206,356.00) (955,531.00) (16,161,887.00)

SALES :

Machineries & Equipment I (22,302,569.11) (22,302,569.11)

Replacement Parts & Equipment I (6,230,029.47) (6,230,029.47)
Other Products and Consumables I (1,780,008.42) (1,780,008.42)
Sales Discount E 645,800.00 645,800.00

COST OF SALE:

Machineries & Equipment C 17,349,997.20 17,349,997.20

Replacement Parts & Equipment C 4,943,035.40 4,943,035.40
Other Products and Consumables C 1,476,284.40 1,476,284.40
Purchase Discount I (490,808.00) (490,808.00)

EXPENSES:

Salaries & Wages E 1,365,423.00 1,365,423.00

House Allowances E 225,318.00 225,318.00
Transport Allowances E 76,576.00 76,576.00
Air Tickets E 56,946.00 56,946.00
Leave Pay E 212,456.00 212,456.00
Overtime Pay E 21,750.00 21,750.00
Other Allowances E 45,645.00 45,645.00
Employees End of Service Benefits E 87,546.00 87,546.00
Printing & Stationery E 31,256.00 31,256.00
Electricity & Water E 65,879.00 65,879.00
Fuel and Power E 24,789.00 24,789.00
Repair / Maintenance & Renovations E 82,764.00 82,764.00
Communication Expenses E 37,456.00 37,456.00
Advertisement & Publicity E 126,578.00 126,578.00
Products Promotion E 43,257.00 43,257.00
Travelling Expenses & Airfare E 23,456.00 23,456.00
Entertainment E 13,457.00 13,457.00
Bank Charges E 18,654.00 18,654.00
Bank Interest E 543,456.00 543,456.00
Depreciation E 754,775.00 754,775.00
Other expenses E 32,356.00 32,356.00

NET MARGIN FOR THE YEAR R (2,498,505.00)

NOTES:

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 1
Lease rights 1

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

TOTAL ASSETS

LIABILITIES AND SHAREHILDERS' FUNDS

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

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

Total liabilities

Equity
Share capital 8
Statutory reserve 9
Revaluation Reserve
Retained earnings

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 10

Selling and Promotional Costs
Administration expenses 11
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

AL MASHREQ TRADING CO. WLL

NOTES TO FINANCIAL STATEMENTS
For the year to 31-Mar-10

1 PROPERTY, PLANT AND EQUIPMENT

LAND AND MACHINARY/ FURNITURE/

BUILDING EQUIPMENT FIXTURES
QRS QRS QRS

COST:
At 1st April 2009 1,546,500.00 946,790.00 87,256.00
Additions for the period 46,970.00 213,490.00 9,780.00

At 31 March 2010 1,593,470.00 1,160,280.00 97,036.00

DEPRECIATION :
At 1st
Charges for the period
On disposal
At 30 June 09
 NET BOOK VALUE
At 30 June 09

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
0 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 COMPUTER/ OTHERS TOTAL

VEHICLES SOFTWARE
QRS QRS QRS QRS

346,580.00 62,589.00 46,780.00 3,036,495.00

78,500.00 2,790.00 5,890.00 357,420.00

425,080.00 65,379.00 52,670.00 3,393,915.00

30/6/2009