CS NO 10728 ZOGHORI Sacco Society Ltd

ZOGHORI Sacco Society Ltd

Auditor:

Ministry of Agriculture, Livestock, Fisheries & Co-operatives,

Sate Department for Co-operatives,

Audit Services,

P.0.Box 40811 - 00100

Nairobi

CS NO 10728

Annual Report & Financial Statements

For the Year Ended 31st December, 2020

Contents Page

Society Information 1

Report of the Management Committee 2

Statistical Information 3

Statement of the Management Committee’s

Responsibilities 4

Report of the Independent Auditor 5

Financial Statements:

Income Statement 6

Balance Sheet 7

Statement of Changes in Equity 8

Cash Flow Statement 9

Notes 10-17

CS NO 10728 ZOGHORI Sacco Society Ltd

Table of Contents

Society Information

Management and Supervisory Committee Members:

Management Committee Members:

Chairman Danson Mwalukware Josai

Vice Chairman Davis Mwachofi

Hon. Secretary Brian Mwakesi Lewela

Treasurer Edward Maganga Mwandoto

Member Angus Mwaiseghe Disii

Member Mary Chughu Mwanyota

Member Sophy Sanguli Patrick

Member Catherine Mwalukware Chola

Member Basil Tangai Ngoma

Supervisory Committee Members:

Chairman William Ngereza Mwatela

Secretary Eunice Mbala Mwalimo

Member Annah Masagho Tangai

Registered Office:

TILU BILU BUILDING,

1st Floor, Next to NO MANENO PLAZA,

OPPOSITE GPO/HUDUMA CENTRE, MOMBASA

DIGO RD

P.O. Box 86838,

Mombasa

80100

Principal Bankers:

Co-operative Bank of Kenya,

Nkurumah Road Branch

KCB

Kenyatta Avenue Branch

Auditor:

Ministry of Agriculture, Livestock, Fisheries & Co-operatives,

Sate Department for Co-operatives,P.0.Box 40811 - 00100

Nairobi

Page 1

Report of the Management Committee

Incorporation

Principal Activity

Results 31.12.2020 31.12.2019

Kshs Kshs

Surplus (Deficit) Before Tax 2,228,966.00 2,226,192.00

Income Tax Expense (289,394.00) (573,722.00)

Net Surplus (Deficit) After Tax 1,939,572.00 1,652,470.00

Dividends (1,120,096.00) (983,656.00)

Transfer to SRF (387,915.00) (330,494.00)

Honororium (110,000.00) (110,000.00)

Retained Surplus for the Year 321,561.00 228,320.00

Interest on Members' Deposits @ 3.0% 3,267,326.00 4,402,514.00

Dividends on Members Shares KES 1.00 per Share 1,120,096.00 983,656.00

Total 4,387,422.00 5,386,170.00

Dividend / Interest on Members’ Deposits

Management Committee

Auditors

By order of the Management Committee

Signature……………………………… Date: 17th March, 2021

Secretary

The Management Committee submit their annual report together with the audited financial

statements for the year ended 31st December, 2020.

The society is incorporated in Kenya under the Co-operative Societies Act, Cap 490 and is

domiciled in Kenya.

The principal activity of the society continued to be receiving savings from and provision of loans

to its members.

The Management Committee recommends payment of interest on members’ deposits and

dividend on shares @ 3.0% and KES 1.00 per share respectively (2019 @ 4.5% and KES 1.00 )

The Management Committee who served during the year and to the date of this report is as

listed on page 1.

The Co-operative Audit Services have expressed their willingness to continue in the office, under

the terms of section 25(4) of the Co-operative Societies Act, No. 12 of 1997 as Amended in 2004.

Page 2

Statistical Information As At 31st December, 2020

Membership 31.12.2020 31.12.2019

Active 2877 2566

Dormant 474 241

3351 2807

Financial Kshs Kshs

Share Capital 22,401,915.00 19,673,120.00

Members’ Deposits 108,910,868.00 96,849,717.00

Statutory Reserve 1,285,867.00 897,952.00

Revenue Reserve 1,810,548.00 1,491,287.00

Entrance Fees 548,200.00 373,000.00

Loans to Members 94,293,645.00 89,600,375.00

Investments 16,946,500.00 26,575,676.00

Other Non-Current Assets 18,817,539.00 3,407,838.00

Current Assets 17,107,426.00 13,257,727.00

Current Liabilities 12,755,912.00 13,464,181.00

Interest Income 11,815,990.00 10,513,632.00

Total Revenue 13,191,736.00 12,875,206.00

Earnings Per Share - -

Key Ratios: (%)

Liquidity Ratio (15%) 1.34 0.98

Liquid Assets/Total Deposits & Longterm Liabilities 0.05 0.06

Total Expenses / Total Revenue 0.53 0.56

Interest to Members/Total Revenue 0.33 0.42

Capital Adequacy Ratio (%)

Core Capital/Total Assets 0.15 0.15

Core Capital/Total Deposits 0.21 0.20

Institutional Capital/Total Assets 0.17 0.17

Interest Rate on Member’s Deposits 0.030 0.045

Dividend Rate on Members Share Capital (KES) 1.00 1.00

Page 3

Statement of Management Committee Responsibilities SACCOs Act, No. 14 of 2008 requires the Management Committee to prepare financial statements for each year, which give a true and fair view of the state of affairs of the society as at the end of the financial year and of its operating results for that year in accordance with IFRS. It also requires the Management Committee to ensure that the society keeps proper accounting records, which disclose with reasonable accuracy at any time the financial position of the society. They are also responsible for safeguarding the assets of the society and ensuring that the business of the society has been conducted in accordance with its objectives, by-laws and any other resolutions made at the society’s general meeting. The Management Committee accepts responsibility for the annual 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 in the manner required by the SACCO Society’s Act No. 14 of 2008. The Management Committee is of the opinion that the financial statements give a true and fair view of the state of the financial affaires of the society and of its operating results in accordance with the IFRS. The Management Committee further accepts 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 Management Committee to indicate that the Society will not remain a going concern for at least twelve months from the date of this statement. Approved by the Management Committee on 17TH March, 2021 and signed on its behalf by: ………………………………….. Chairman Signature ………………………………….. Committee Member Signature ………………………………….. Committee Member Signature

Report of the Independent Auditor to the Members of ZOGHORI Savings & Credit Co-operative Society Ltd We have audited the accompanying financial statements of ZOGHORI Savings & Credit Co-operative Society Ltd set out on pages 6 to 17 which comprise of the statement of financial position as at 31st December, 2020 and the statement of comprehensive income, statement of changes in owner’s equity and statement of cash flows for the year then, ended and a summary of significant accounting policies and other explanatory notes.

The Management Committee Responsibility for Financial Statements The Management Committee is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of the Kenyan Sacco’s Societies Act. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. The Kenyan Sacco’s Societies Act also requires the Management Committee to ensure that the society maintains proper books of accounts, which are in agreement with the balance sheet and comprehensive income statement.

Auditor’s Responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards Auditing. Those standards require that we comply with ethical requirements and plan and perform the 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 misstatements, whether due to fraud or error. In making those risk assessments the auditor considers the internal control relevant to the Society’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 society’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management Committee, 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 a basis for our audit opinion.

Opinion In our opinion, subject to making sufficient provisions as envisaged by IFRS 9 for the loan balance carrying amount to be fairly represented, the financial statements give a true and fair view of the state of the Society’s affairs as at 31st December, 2020 the results of its operations and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Kenyan Sacco Societies Act.

Report on Other Legal Requirements As required by the Kenyan Sacco Societies Act, we report to you that the financial statements are in agreement with the books of account kept by the Society and that, based on our audit, nothing has come to our attention that causes us to believe that the Society’s business has not been conducted: a) in accordance with the provisions of the Co-operative Societies Act and Rules, b) in accordance with the Co-operative Societies objectives, by-laws and any other resolutions made by the

Society at a general meeting

FOR AND ON BEHALF OF AUDIT SERVICES, MINISTRY OF AGRICULTURE, LIVESTOCK, FISHERIES & CO-OPERATIVES, STATE DEPARTMENT FOR CO-OPERATIVES

OMUNYASIA MAKOKHA COUNTY DIRECTOR OF CO-OPERATIVE AUDIT MOMBASA COUNTY DATE………………………………………….

CS NO 10728 - Zoghori Savings & Credit Co-operative Society Ltd

Statement of Comprehensive Income


Notes 31.12.2020 31.12.2019

Revenue: Kshs Kshs

Interest from Members Loans 2 11,815,990.00 10,513,632.00

Other Interest Income 3 1,674,047.00 1,236,953.00

Interest Expenses 4 (3,321,591.00) (4,402,514.00)

Net Interest Income 10,168,446.00 7,348,071.00

Other Operating Income 5 1,375,746.00 2,361,574.00

Other Gains/(Losses) (151,031.00)

Administrative Expenses 6 (2,979,345.00) (2,375,316.00)

Financial Expenses 7 (903,360.00) (405,748.00)

Personnel Expenses 8 (3,740,624.00) (3,324,500.00)

Governance Expenses 9 (830,866.00) (953,497.00)

Other Operating Expenses 10 (710,000.00) (424,392.00)

Total Expenses (9,164,195.00) (7,483,453.00)

Net Operating Surplus/(Deficit)

Before Income Tax 2,228,966.00 2,226,192.00

Income Tax Expense 18 (289,394.00) (573,722.00)

Net Surplus/ (Deficit) for the Year 1,939,572.00 1,652,470.00

20 % Transfer to Statutory Reserve Fund (387,915.00) (330,494.00)

Surplus for the Year Available for Distribution 1,551,657.00 1,321,976.00

Dividend on Shares (1,120,096.00) (983,656.00)

Honororium (110,000.00) (110,000.00)

Retained Surplus for the Year 321,561.00 228,320.00

Page 6


Statement of Financial Position As At 31st December, 2020

Notes 31.12.2020 31.12.2019

Assets Kshs Kshs

Cash and Cash Equivalent 11 5,098,542.00 5,561,951.00

Prepayments & Sundry Recievables 12 9,354,211.00 3,146,278.00

Inventory 13 2,654,673.00 4,549,498.00

Loans to Members 14 94,293,645.00 89,600,375.00

Financial Assets 15 16,946,500.00 26,575,676.00

Non-Current Assets 16 18,817,539.00 3,407,838.00

Total Assets 147,165,110.00 132,841,616.00

Liabilities

Members' Deposits 17 108,910,868.00 96,849,717.00

Income Tax Payable 18 68,383.00 353,426.00

Interest on Members' Deposits 19 5,912,965.00 6,867,073.00

Trade & Other Payables 20 6,774,564.00 6,243,682.00

Total Liabilities 121,666,780.00 110,313,898.00

Shareholders’ Fund

Share Capital 21 22,401,915.00 19,673,120.00

Reserves 22 3,096,415.00 2,854,598.00

Total Shareholders’ Fund 25,498,330.00 22,527,718.00

Total Liabilities and Shareholders’ Fund 147,165,110.00 132,841,616.00

- -

Chairman …………………...…...……………..

Board Member …..……………………...……………

Board Member …..………………...…………………

The financial statements on pages 6-17 were authorized for issue by the Management

Committee on 17th March, 2021 and signed on its behalf by:

Page 7

Kshs Kshs Kshs Kshs Kshs

As at 1st January 2019 16,269,330.00 567,458.00 206,447.00 1,055,146.00 18,098,381.00

Prior year Adjustments: - - - - -

Tax Overprovision W/Back - - 207,821.00 207,821.00

As Restated at 01.01.2019 16,269,330.00 567,458.00 206,447.00 1,262,967.00 18,306,202.00

Fair Value Gain on Financial Assets - - 473,609.00 - 473,609.00

Fair Value Loss on Financial Assets - - (214,697.00) - (214,697.00)

Surplus for The Year - - - 2,226,192.00 2,226,192.00

Tax - - - (573,722.00) (573,722.00)

Transfers - 330,494.00 - (330,494.00) -

Dividends - - - (983,656.00) (983,656.00)

Honororium - - - (110,000.00) (110,000.00)

Contributions Received 3,403,790.00 - - - 3,403,790.00

As at 31st December 2019 19,673,120.00 897,952.00 465,359.00 1,491,287.00 22,527,718.00

Changes in Equity in 01.01.2020 Kshs Kshs Kshs Kshs

As at 1st January 2020 19,673,120.00 897,952.00 465,359.00 1,491,287.00 22,527,718.00

Prior year Adjustments: - - - - -

Prior year Audit Fee Underprovision W/Off - - (2,300.00) (2,300.00)

As Restated at 01.01.2020 19,673,120.00 897,952.00 465,359.00 1,488,987.00 22,525,418.00

Fair Value Gain on Financial Assets - - 140,623.00 - 140,623.00

Fair Value Loss on Financial Assets - - (605,982.00) - (605,982.00)

Surplus for The Year - - - 2,228,966.00 2,228,966.00

Tax - - - (289,394.00) (289,394.00)

Transfers - 387,915.00 - (387,915.00) -

Dividends - - - (1,120,096.00) (1,120,096.00)

Honororium - - - (110,000.00) (110,000.00)

Contributions Received 2,728,795.00 - - - 2,728,795.00

As at 31st December 2020 22,401,915.00 1,285,867.00 - 1,810,548.00 25,498,330.00


Statement of Changes in Owners Equity


Share Capital Statutory

Reserves

Revaluation

Reserves

Revenue

Reserves Total

Page 8


Cash-Flow Statement As At 31st December, 2020

Cash flow from Operating Activities 31.12.2020 31.12.2019

Kshs Kshs

Interest Receipts 13,490,037.00 11,750,585.00

Interest Payments (5,341,530.00) (3,491,882.00)

Other Receipts 3,179,625.00 3,684,707.00

Payments to Employees/Management Committee & Suppliers (10,367,304.00) (8,566,303.00)

960,828.00 3,377,107.00

Increase/Decrease in Operating Assets

Loans to Members (77,663,017.00) (84,088,790.00)

Loans to Members Repaid 72,669,747.00 66,889,426.00

Trade & Other Recievables (6,207,933.00) (532,098.00)

Increase in Inventory 1,894,825.00 1,868,656.00

(9,306,378.00) (15,862,806.00)

Increase/Decrease in Operating Liabilities

Deposits from Members 22,621,426.00 21,371,040.00

Deposits from Members Refunded (10,560,275.00) (6,968,448.00)

Trade & Accrued Expenses:Audit Fees Paid (42,800.00) (40,500.00)

Trade & Other Payables 238,513.00 1,708,556.00

Net Cash from Operating Activities before Income Taxes 12,256,864.00 16,070,648.00

Honororium Paid (110,000.00) (110,000.00)

Income Tax Paid (574,437.00) (387,719.00)

Net Cash from Operating Activities A 3,336,877.00 3,197,230.00

Cash flow from Investing Activities

Purchase of Property & Equipment (15,668,471.00) (957,016.00)

Proceeds on Dispaosal of Plant & Equipment - -

Investment Income - -

Purchase of Intangible Assets - -

Purchase of Investment Securities 9,139,390.00 (5,540,782.00)

Sale of Investment Securities - -

Member Entrance Fees - -

Other Incomes - -

Interest Received - -

Dividends Received - -

Net Cash from Investing Activities B (6,529,081.00) (6,497,798.00)

Cash flow from Financing Activities

Share Capital Contributions 2,728,795.00 3,403,790.00

Loan Borrowed - -

Dividends Paid - -

Net Cash from Financing Activities C 2,728,795.00 3,403,790.00

Net Increase/(Decrease) in Cash & Cash Equivalent (A+B+C) (463,409.00) 103,222.00

Cash & Cash Equivalent At The Beginning of The Year 5,561,951.00 5,458,729.00

Cash & Cash Equivalent At The End of The Year 5,098,542.00 5,561,951.00

Page 9


Notes & Observation on the Accounts for the Year Ended 31.12.2020

1. Accounting Policies

(a) Accounting Convention

(b) Accounting Period

(c) Significant changes in the current reporting period (IFRS9)

(d) Interest on Members Loans

(e) Statutory Reserve Fund

(f) Restated

2. Interest Income - Kshs. 11,815,990.00 31.12.2020 31.12.2019

Kshs Kshs

Interest on Members Loans 10,710,208.00 9,966,473.00

Interest on Advance (Zoghori Investment) 175,000.00 214,582.00

Interest on Mobile Loans 930,782.00 332,577.00

Total 11,815,990.00 10,513,632.00

3. Other Interest Income - Kshs. 1,674,047.00 31.12.2020 31.12.2019

Kshs Kshs

Interest on Savings Acs (Gross) ####### 40,690.00 27,110.00

Interest on CIC Money Market Fund (Gross) 954,138.00 1,093,654.00

Interest on Britam Investments (Gross) 627,064.00 116,189.00

Interest from KUSCCO Housing Fund 52,155.00 -

Total 1,674,047.00 1,236,953.00

4. Interest Expense - Kshs. 3,321,591.00 31.12.2020 31.12.2019

Kshs Kshs

Interest on Members Deposits @ 3.0% 3,267,326.00 4,358,237.00

Interest on Members Withdarwable Savings Scheme 19,332.00 18,905.00

Interest on Members Childrens Savings Acs 34,023.00 25,153.00

Interest on Members Youth Savings ACS 910.00 219.00

Total 3,321,591.00 4,402,514.00

These notes form part and parcel of the accounts and therefore should be read inconjuntion therewith.

The Society's financial statements are prepared under the historical cost convention method.

The Society prepares its books of accounts for a period of twelve months covering 1st January to 31st

December annually.

The SACCO classifies its financial assets as at amortised cost as they the following criteria:

(i) the asset is held within a business model whose objective is to collect the contractual cash flows, and

(ii) the contractual terms give rise to cash flows that are solely payments of principal and interest.

The SACCO loans which are its core asset are secured through guarantorship for default and insurance

against permanent disability or death of borrower.

The SACCO has yet to adopt a model to provide for loan loss provision as per the requirements

of IFRS 9. To the extent of this ommission the accounting for the SACCO debtors do not comply

with IFRS 9.

The loans and advances to members are charged interest as per the terms and conditions for each

product. The rate is either on a reducing balance or flat rate payable at the end of each month.

Transfers are made to the Statutory Reserve Fund at the rate of 20% of the Net surplus after taxation in

accordance with section 47 of the Co-operative Societies' Act.

Prior year balances have been restated or reclassified for purposes of comparison.

Page 10

Notes Cont

5. Other Operating Income - Kshs. 1,375,746.00 31.12.2020 31.12.2019

Kshs Kshs

Dividend Income (Net) ###### 17,244.00 121,408.00

Sale of Bylaws to Members 152,400.00 110,100.00

Sale of Policies to Members 51,300.00 36,900.00

Sale of Loan Form to Members 199,150.00 232,050.00

Sale of T-Shirts/Caps to Members 5,500.00 -

Share Transfer Fees 5,500.00 3,500.00

Sale of Membership Cards 53,400.00 39,500.00

Account Activation Fees 50,000.00 49,395.00

Members Entrance Fees 548,200.00 373,000.00

Members Registration (WSS) 800.00 800.00

Members Registration (Childrens AC) 4,200.00 5,400.00

Members Registration (Youth AC) 400.00 2,900.00

Members Registration (BBF) 7,500.00 25,800.00

Tender Fees 6,000.00 -

Ledgers Transaction Fees 116,500.00 49,500.00

Courier Bags 100.00 250.00

Jiko Commission 29,930.00 17,142.00

Trading Income 5(a) 127,622.00 1,293,929.00

Total 1,375,746.00 2,361,574.00

5(a). TRADING, PROFIT & LOSS AC FOR THE YEAR ENDED 31.12.2020

Notes 31.12.2020 31.12.2019

Income Kshs. Kshs.

Co op kwa Jirani Agency Commission 31,825.00 37,582.00

M-Pesa Commission 45,429.00 -

Bank Charge Fees 480.00 5,880.00

AGM Donation(Sponsorship) - 90,000.00

Motor Vehicles Fees - 41,000.00

Sale of T-Shirts to Members - 8,800.00

Voi Plot Income 1,846,557.00 2,433,800.00

Photocopy Income 7,210.00 -

Total Income 1,931,501.00 2,617,062.00

Less: Administrative Expenses

Salaries & Wages 612,198.00 291,585.00

Bonus/Overtime/Gifts 19,643.00 26,000.00

Committee Allowances 95,600.00 131,000.00

Meeting Expenses 110,730.00 29,700.00

Travelling & Subsistences 376,691.00 410,500.00

Publicity & Marketing Expenses 204,287.00 30,800.00

Public Relations 60,020.00 30,400.00

Trade Licence 99,900.00 92,042.00

Agency Fees 47,040.00 15,000.00

Technical System Development 56,800.00 62,670.00

Member T-Shirts - 22,736.00

Printing Marketing Stickers/Cards 9,060.00 10,200.00

Innovation Hub 23,850.00 -

Printing Membership Booklet - 85,000.00

Postage & Telephone 88,060.00 85,500.00

Total Expendinture 1,803,879.00 1,323,133.00

Profit From Investment Activity 127,622.00 1,293,929.00

Page 11

Notes Cont

6. Administration Expenses - Kshs. 2,979,345.00 31.12.2020 31.12.2019

Kshs Kshs

Publicity & Marketing Expenses 503,402.00 343,664.00

Public Relations Expenses 27,629.00 15,740.00

Strategic Planning Expenses - 71,280.00

Consultation Expenses - 19,500.00

Printing & Stationery 106,994.00 77,283.00

Postage & Telephone 282,542.00 250,417.00

Office Rent 1,059,000.00 929,000.00

Water & Electricity Expenses 98,351.00 69,713.00

Repairs & Maintainance 71,415.00 26,490.00

Technical System Development 144,000.00 120,000.00

Website Expenses 20,000.00 21,569.00

Accountancy & Bookkeeping Expenses 30,000.00 30,000.00

Office Utilities Expenses 172,273.00 105,372.00

Debt Collection Expenses (Lofteer) 37,042.00 1,933.00

Mobile App Expenses 384,697.00 118,991.00

Bad Debt Written off - 133,664.00

Audit Reimbursements 3,000.00 2,000.00

Audit Fees 35,000.00 35,000.00

Supervisory Fees 3,500.00 3,500.00

Recoverable Expenses 500.00 200.00

Total 2,979,345.00 2,375,316.00

7. Financial Expenses - Kshs. 903,360.00 31.12.2020 31.12.2019

Kshs Kshs

Bank Charges 155,954.00 175,739.00

Insurance Premium 188,636.00 30,426.00

Depreciation/Amortisation Expense 258,770.00 199,583.00

Loan Loss Provision 300,000.00 -

Total 903,360.00 405,748.00

8. Personnel Expenses - Kshs. 3,740,624.00 31.12.2020 31.12.2019

Kshs Kshs

Salaries & Wages 3,311,580.00 2,930,355.00

NSSF Employer Contributions 103,680.00 93,474.00

End of Year Party Expenses 100,000.00 39,350.00

Staff Welfare Expenses 19,863.00 18,266.00

Travelling & Subsistance Expenses 74,796.00 83,800.00

Education, Training & Recruitment 126,300.00 154,850.00

NITA 4,405.00 4,405.00

Total 3,740,624.00 3,324,500.00

Page 12

Notes Cont

9.Governance Expenses - Kshs. 830,866.00 31.12.2020 31.12.2019

Kshs Kshs

General Meeting Expenses 24,000.00 376,737.00

Committee Sitting Allowance 153,000.00 300,000.00

Committee Meeting Expenses 91,730.00 50,960.00

Committee Education & Training 168,506.00 110,900.00

Member Education & Training 173,630.00 114,900.00

Travelling & Subsistance Expenses 220,000.00 -

Total 830,866.00 953,497.00

10. Other Expenses - Kshs. 710,000.00 31.12.2020 31.12.2019

Kshs Kshs

KUSCCO Affiliation - 12,000.00

KUSCCO Housing Scheme Registration 10,000.00 5,000.00

Ushirika Day Celebrations - 105,530.00

Corporate Social Responsibility Expenses 700,000.00 301,862.00

Total 710,000.00 424,392.00

11. Cash & Cash Equivalents - Kshs. 5,098,542.00 31.12.2020 31.12.2019

Kshs Kshs

Co-operative Bank Current AC 1,674,549.00 1,058,596.00

Co-operative Bank Savings AC 400,845.00 1,730,788.00

Co-operative Bank SRF Savings AC 930,443.00 559,258.00

Co-operative Staff Loan Commitee AC 554,038.00 134,528.00

KCB Bank Savings AC 497,016.00 1,238,731.00

Co-op Kwa Jirani POS Current AC 370,000.00 280,000.00

Co-op Kwa Jirani POS Commission AC 18,482.00 220,711.00

Paybill AC 5,860.00 220,249.00

M-Pesa Bulk Holding Float 151,309.00 76,090.00

M-Pesa Float 450,000.00 -

Cash in Hand 46,000.00 43,000.00

Total 5,098,542.00 5,561,951.00

Cash in Hand

Main Petty Cash 30,000.00 30,000.00

Petty Cash Voi 5,000.00 5,000.00

Petty Cash Wundanyi 5,000.00 5,000.00

Petty Cash Mwatate 3,000.00 3,000.00

Petty Cash Taveta 3,000.00 -

Total 46,000.00 43,000.00

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Notes Cont

12. Trade & Other Receivables - Kshs. 9,354,211.00 31.12.2020 31.12.2019

Kshs Kshs

Rent Deposit 227,000.00 173,000.00

Rent Prepaid 71,850.00 -

Metropol CRB Deposits 20,000.00 20,000.00

Safaricom Paybill Deposits 5,000.00 5,000.00

Airtel Paybill Deposits 1,500.00 1,500.00

Electricity Deposits 2,500.00 2,500.00

Voi Plots Debtors 200,000.00 200,000.00

Kingdom Security Trading AC 1,713.00 583.00

Safaricom Fibre Internet Deposits 11,499.00 11,499.00

KUSCCO Housing Deposit Fund 3,442,155.00 295,000.00

Zoghori Foundation - 66,200.00

Zoghori Investment Advances 5,370,994.00 2,370,996.00

Balance C/F 9,354,211.00 3,146,278.00

13. Inventory - Kshs. 2,654,673.00 31.12.2020 31.12.2019

Kshs Kshs

Land availabe for Sale 2,654,673.00 4,549,498.00

Balance C/F 2,654,673.00 4,549,498.00

14. Loans to Members - Kshs. 94,293,645.00 31.12.2020 31.12.2019

Kshs Kshs

Balance B/F 89,600,375.00 72,401,011.00

Granted During the Year 77,663,017.00 84,088,790.00

Repaid During the Year (72,669,747.00) (66,889,426.00)

Balance C/F 94,593,645.00 89,600,375.00

Provision for Loan Loss (300,000.00) -

Balance C/F 94,293,645.00 89,600,375.00

15. Investments - Kshs. 16,946,500.00 No. of 31.12.2020 31.12.2019

Quoted shares Shares Kshs Kshs

Kengen (Ord shares @ KES 2.50) 56,000 263,760.00 320,320.00

Eveready Ltd (Ord shares @ KES 1.00) 22,000 26,400.00 24,200.00

Total Kenya Ltd (Ord shares @ KES 5.00) 10,500 252,000.00 288,750.00

Safaricom Ltd (Ord shares @ KES 2.00) 20,000 685,000.00 ### -

Nairobi Securities Exchange (Ord shares @ KES 4.00) 27,467 224,131.00 339,217.00

Sasini (Ord shares @ KES 1.00) 1,500 29,250.00 25,350.00

KCB Ltd (Ord shares @ KES 10.00) 20,000 762,000.00 ### 354,240.00

CIC Insurance Group Ltd (Ord shares @ KES 1.00) 5,000 10,650.00 13,400.00

Co-operative Bank of Kenya Ltd (Ord shares @ KES 1.00) 13,239 165,488.00 216,458.00

KPLC Ltd (Ord shares @ KES 0.05) 3,475 5,942.00 9,765.00

Equity Bank (Ord shares @ KES 0.05) 20,000 731,000.00 ### 963,000.00

Kenya Airways (Ord shares @ KES 5.00) 5,350 20,491.00 10,968.00

Sub Total 3,176,112.00 2,565,668.00

Unquoted shares

Zoghori Investment Ltd (Ord shares @ KES 100.00) 6,909,200.00 6,909,200.00

Shares in Kuscco Ltd (Ord shares @ KES 100.00) 82,660.00 82,660.00

FEP SACCO Ltd (Ord shares @ KES 20.00) 674,200.00 674,200.00

Mwasima Mbuwa SHG (Ord shares @ KES 100.00) 82,500.00 82,500.00

CIC Investments (Money Market) 4,715,586.00 10,261,448.00

BRITAM Investments (BAAM Cash Management Services) 1,056,242.00 6,000,000.00

KUSCCO Housing Co-operative Society Shares 250,000.00 -

Sub Total 13,770,388.00 24,010,008.00

Totals 16,946,500.00 26,575,676.00

Management proposes a write off for Mwasima Mbuwa investment since it cannot guarantee its viability.

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Notes Cont

16. Non Current Assets - Kshs. 18,817,539.00

KES KES KES KES KES KES KES

Cost As At 01/01/2020 2,687,454.00 717,067.00 332,680.00 444,392.00 173,830.00 - 4,355,423.00

Additions For Year 15,211,231.00 223,785.00 - 91,415.00 36,490.00 105,550.00 15,668,471.00

Disposals - - - - - - -

Total Cost BF 17,898,685.00 940,852.00 332,680.00 535,807.00 210,320.00 105,550.00 20,023,894.00

Dep'n/Rate 0.000 0.300 0.300 0.125 0.125 0.250

Acc Dep'n 01/01/2020 - 456,999.00 254,413.00 142,503.00 93,670.00 - 947,585.00

Acc Dep'n on Disposals - - - - - - -

Acc Dep'n Net of Disposals - 456,999.00 254,413.00 142,503.00 93,670.00 - 947,585.00

Total Cost Net of Disposals 17,898,685.00 483,853.00 78,267.00 393,304.00 116,650.00 105,550.00 19,076,309.00

Dep'n for the Year - 145,156.00 23,481.00 49,163.00 14,582.00 26,388.00 258,770.00

Acc Dep'n on B/D - 602,155.00 277,894.00 191,666.00 108,252.00 26,388.00 1,206,355.00

Balance As At 31/12/2020 17,898,685.00 338,697.00 54,786.00 344,141.00 102,068.00 79,162.00 18,817,539.00

Balance As At 31/12/2019 2,687,454.00 260,068.00 78,267.00 301,889.00 80,160.00 - 3,407,838.00

Motor Cycle TOTALS

Additions for land and buildings includes Mwatate project cost of Ksh. 14,011,131 built on Mwatate Block 1 (Plot 4888) and

Mondambogho Block 1 reserved for future SACCO use of Ksh 1,200,100.

Narration Land

Computers

&

Accessories

Computers

Software

Furniture &

Fittings

Office

Equipment

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Notes Cont

17. Members’ Deposits - Kshs. 108,910,868.00 31.12.2020 31.12.2019

Kshs Kshs

At the start of the Year 96,849,717.00 82,447,125.00

Contribution during the Year 22,621,426.00 21,371,040.00

Refunds During the Year (10,560,275.00) (6,968,448.00)

Balance C/F 108,910,868.00 96,849,717.00

18. Income Tax Payable - Kshs. 68,383.00 31.12.2020 31.12.2019

Kshs Kshs

At the start of the Year 353,426.00 375,244.00

Charge for the Year 289,394.00 573,722.00

Prior Year Adjustment - (207,821.00)

Payment in the Year (574,437.00) (387,719.00)

Tax Payable 68,383.00 353,426.00

Charge for the Year

Reported Profit Before Tax(Other Income) 127,622.00 1,293,929.00

50% of Interest Income(Gross) 837,024.00 618,477.00

Total Taxable Income 964,646.00 1,912,406.00

Tax @ 30% 289,394.00 573,722.00

W/Tax Paid at Source - -

Charge for the Year 289,394.00 573,722.00

Note: Rates used for depreciation are the same as applicable rates for Wear & Tear

19. Interest on Members Deposits - Kshs. 5,912,965.00 31.12.2020 31.12.2019

Kshs Kshs

Balance b/f 6,867,073.00 5,017,062.00

Provision for the year (Interest on Deposits)@ 3.0% 3,267,326.00 4,358,237.00

Provision for the year (Dividend on Shares) 1,120,096.00 983,656.00

Payments During the Year (5,341,530.00) (3,491,882.00)

Balance C/F 5,912,965.00 6,867,073.00

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Notes Cont

20. Creditors & Accruals - Kshs. 6,774,564.00 31.12.2020 31.12.2019

Kshs Kshs

Audit & Supervision Fees 38,700.00 38,700.00

Other Payables 3,000.00 2,000.00

Honororium 110,000.00 110,000.00

Interest on Withdrawable Savings Scheme (WSS) 19,332.00 18,905.00

Interest on Children Savings Scheme (CSS) 34,023.00 25,153.00

Interest on Youth Savings Scheme (YSS) 910.00 219.00

Miscellaneous Deposits 685,085.00 567,975.00

Withdrawable Savings Scheme (WSS) 386,629.00 378,089.00

Children Savings Scheme (CSS) 680,450.00 503,062.00

Youth Savings Scheme (YSS) 18,195.00 4,373.00

Co-oerative Alliance of Kenya 19,595.00 21,745.00

Benevolent Fund 86,230.00 53,480.00

Voi Plots Members Funds 2,487,115.00 2,502,148.00

Member Development Fund 1,804,600.00 1,804,600.00

Provision for Bad Debts - 146,083.00

Provision CSR Fund 400,000.00 -

BPTTC 700.00 -

Lofteer Administration Fees - 26,250.00

Staff Welfare Kitty - 40,900.00

Balance C/F 6,774,564.00 6,243,682.00

21. Share Capital @ Ksh. 20.00 Par Value - Kshs. 22,401,915.00 31.12.2020 31.12.2019

Kshs Kshs

At the start of the year 19,673,120.00 16,269,330.00

Additional during the year 2,728,795.00 3,403,790.00

Total 22,401,915.00 19,673,120.00

22. Reserves - Kshs. 3,096,415.00 31.12.2020 31.12.2019

Kshs Kshs

Statutory Reserve Fund 1,285,867.00 897,952.00

Revaluation Reserves - 465,359.00

Revenue Reserve 1,810,548.00 1,491,287.00

Total 3,096,415.00 2,854,598.00

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CS NO 10728 ZOGHORI Sacco Society Ltd

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Transcript of CS NO 10728 ZOGHORI Sacco Society Ltd