ABYSSINA TRADING FZE

UAE

Company profile and Budget Report -2021

Business Profile and Budget Report

For

Abyssinia Trading FZE

2021
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

Index

ZAIN ENERGY FZE

INTRODUCTION

BACKGROUND TO THE PROBLEM

PROBLEM STATEMENT

THE VALUE-ADDING BUDGETING, FORECASTING

Scope of Budget Sheet

Company Information
Profit and Loss Statement
Notes to the Financial Statements
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

SHAREHOLDERS
Solomon Tsehay Belay

INVESTOR
Solomon Tsehay Belay

MANAGER
Solomon Tsehay Belay

BUSINESS ADDRESS

2 Hamriyah Free Zone, Sharjah UAE

OFFICE ADDRESS
Hamriyah Free Zone, Sharjah UAE

Sky Falcon Management Services

Certified Public Accountants, Dubai, UAE.
Phone: +971 43244524
Info@skyfalconmanagement.ae

INTRODUCTION
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

One of the key challenges facing companies today is the ability to plan and to predict operating
performance. An effective, timeous, and accurate budgeting, forecasting and financial planning
process offers organizations an opportunity to prepare for and be in position to succeed in a rapidly
changing business environment. Companies that can update plans and forecasts quickly are in a
better position to take advantage of opportunities and respond to threats.
Budgeting, forecasting, and variance analysis are management accounting tools that can help
organizations gain a more in depth understanding of the industry in which they operate. Over time,
the understanding is refined, and these tools can ultimately add value to the organizations’ strategic
decision-making process.
Achieving true value through the financial planning process is dependent on several factors,
namely:

• understanding of the industry-specific challenges and opportunities

• corporate culture of the organization regarding planning and budgeting
• the Organization ability to quickly change the scope of its assumptions as the business
environment changes.
• integration of all the functional areas of the organization in the planning process

BACKGROUND TO THE PROBLEM

For many years, Emport Export organizations have viewed budgeting and forecasting as mandatory
and time consuming. The traditional budgeting and forecasting processes are still the cornerstones
of the corporate financial planning process. In UAE today, companies still budget once a year, and
use this budget as the benchmark for judging monthly performance.
Even if the organization moves toward the flexible or rolling forecast approach, there are still
several factors that hinder the quality of the budgeting and forecasting processes. As a result,
planned data is not being used to its full potential. This information should add value to an
Organisations strategic decision-making process.

PROBLEM STATEMENT
As mentioned in the background to the problem, organizations view the traditional budgeting and
forecasting processes as mandatory, time consuming and provides little or no value to the
organization. This kind of attitude towards planning leads to a lack of buy-in from the various
functional areas. It is for this reason, and various others, that organizations are not using the
information generated through these processes to its full potential. The main problem is to assess
whether organisations are using their budgeting, forecasting and financial planning as a strategic
tool in the overall decision-making process.
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

ABOUT THE COMPANY

Abyssinia Trading FZE is an international company with offices in Sharjah UAE, established in Oct
2020, will began commercial operations in Dec 2021. Abyssinia Trading FZE is engaged in trading
of all kinds of Car (New and Used Car), export to African countries.
Abyssinia Trading FZE are specialized in providing high quality of product and, our Management
has excellent experience in similar organization.
Abyssinia Trading FZE uses a worldwide network of contracting for Car and Furniture Trading and
services, organized by well-trained staff to assure the highest quality of service to our customers.
Abyssinia Trading FZE specializes in international General trading and has an extended global
network serving most of the recognized participants in the industry. Private companies and
government agencies use its Inventory Management. Service to optimize the value of their Used
Car and furniture Products and stocks.

Used car & New Car Import and Export

Abyssinia Trading FZE. has formed strong partnerships with global market leaders in international
energy trading.
Abyssinia Trading FZE specializes in international energy trading and has an extended global
network serving most of the recognized participants in the industry. Private companies and
government agencies use its Import Export Management Service to optimize the value of their Car
and finished Furniture product stocks.

Key activities
Supply and trading of Used & New Cars
Furniture trading, matched by activity in the swaps market to counterbalance the price
volatility existing in markets.
Providing clients with hedging and price management solutions
Machinery and Spare Parts Trading
Import & export
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

OWNERS PERSONAL PROFILE

Professional Profile

Soloman Tsehay Belay holding Ethiopian passport, with significant professional experience
in similar field and the owner of some other companies details below:

October 2020 to date Abyssinia Trading FZE (founder)

Open a UAE based company to get a better chance of supplying varieties of items from
different sources from the world to Ethiopia
My vast experience in different business activities created a good chance to get customers in
Ethiopia, as Ethiopia is serving as the head office of African union and other international
institutions including the United Nation Economic commission for Africa and 130
Embassies plus a fast growing economy of the country for past 10 years it allows a good
market on import, UAE is the hub easy to get any product from the world and the distance
from UAE to Ethiopia is near which is allowing us to deliver items in a short period of time
both by sea and cargo.

20017-2020, YEMA furniture (share holder)

Contacting manufacturers domestic and abroad
Managing import permit and process purchasing
Facilitate transportation cargo and see
Check delivery and contacting suppliers in case any damage or missing
Follow up stock and sales with the finance and sells team
Arrange meetings when necessary with my partner
Searching market
Follow up available business customers

2012-2016, Solomon Tsehay Car Rent and Tour operator (founder and owner)
Searching market
Follow up available business customers
Arrange transportation and accommodation including camping
Assign the appropriate drivers cooking staff and cars
Contacting governmental and non-governmental offices to facilitate the trips to provide safe
and cost efficient trip for our company customers

2005-2011, Logistics Manager, FHI, Ethiopia

Managing country office plus regional office supplies chain management in cooperation
with regional and head office team.
Arranging travel plans and flight and hotel bookings for local and international staff
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

Educational Details

High school diploma 1996

Azezo Senior Secondary School
Amhara Regional Sate
Ethiopia 1997-2000

Diploma in Auto Mechanics from Addis Ababa Technical College.

2007-2011
Bachelor of Business Administration from Skim Manupal University

SHARE CAPITAL:
The authorized and issued capital of the company is 10000 divided into 100 shares of AED 10000
Per value.

Shareholder’s Percentage Holding AED

1. Soloman Tsehay Belay 100% 1000,000.00

Investor’s Percentage Holding AED

1. Soloman Tsehay Belay 100% 1000,000.00

 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

Budget Sheet
2022

Notes 2022
Current Assets
Cash on hand 100,000
Cash at bank 100,000
Term deposits 100,000

Accounts receivable 50,000

Non Current Assets

Warehouses (if prescribed property show at nil value) 00
Plant and equipment 100,000

Less accumulated depreciation 00

Total Assets 450,000

Current Liabilities
Creditors 00

Non-Current Liabilities
Loans 00

00
Net Assets

Members Funds
Balance at the beginning of the year 00
Surplus/(Loss) for the year

450,000
Accumulated Funds
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

Summary of Accounting Policies

The accounting policies adopted by the Association are stated to assist in a general understanding of
the financial statements. These policies have been consistently applied except as otherwise
indicated.
Reporting entity
The association is not a reporting entity because in the committee's opinion there are unlikely to
exist users who are unable to command the preparation of reports tailored to satisfy all of their
information needs, and these accounts are therefore "special purpose accounts" that have been
prepared solely to meet the requirements of the Constitution and the Associations Act.
Accounting policies
The financial report has been prepared under the historical cost conventions and does not take into
account changing money values except to the extent that they are reflected in the revaluation of
certain assets.
In order for the financial report to present fairly the state of affairs of the Association and the results
of the Association for the year, Australian Accounting Standards have been adopted to the extent
disclosed in this note.
Depreciation of property, plant, and equipment
Items of property, plant and equipment are depreciated over their estimated useful lives using the
straight-line method.
Income tax
The Association is of the opinion that it is/is not subject to VAT.
 ABYSSINA TRADING FZE
UAE

Company profile and Budget Report -2021

Planning challenges and process problems

For line-of-business managers, planning and budgeting can sometimes appear to be little more than
a periodic intrusion on their time, and one that produces minimal benefit. They can feel besieged
by demands for detailed information and under constant pressure to do more with less. As a result,
they often fall back on a strategy of overestimating budget requests, with the expectation that
budget allocations will fall short of their needs. But these inconveniences are minor compared to
the missed opportunities that can result from inflexible and static planning and forecasting,
particularly in times of economic volatility.

Rating Advisory
Advisory as of Dec 2021 This rating advisory is provided in relation to the rating of Abyssinia
Trading FZE. key rating sensitivity factors for the rating include:

· Growth and operating margin

· Capital expenditure plans and their funding
· Support extended to group companies or associates.
· Working capital management.

Credit Ratings has a policy of keeping its accepted ratings under constant and ongoing monitoring
and review. Accordingly, it seeks regular updates from companies on business and financial
performance. CR is yet to receive adequate information from
Abyssinia Trading FZE, to enable it to undertake a rating review.