Yuopta Fs 2022

YUOPTA COMPANY LIMITED
DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

FOR YEAR ENDED 31 DECEMBER 2022
DIRECTORS’ REPORT FOR THE FINANCIAL

YEAR ENDED 31 DECEMBER 2022
TABLE OF CONTENTS
PAGE
Company information 2
Directors’ report 3–6
Statement of directors’ responsibilities 7
Declaration of the head of accounting 8
Report of the independent auditors 9 – 11
Financial statements:
Statement of financial position 12
Statement of Profit or Loss and other comprehensive income 13
Statement of cash flows 14
Statement of changes in equity 15
Notes to the financial statements 16 – 22
YUOPTA COMPANY LIMITED,

Auditor’s report 2022
1

KEY INFORMATION
REGISTERED OFFICE AND PRINCIPAL PLACE

KINONDONI, VICTORIA,
P.O.BOX 4050
DAR ES SALAAM,
TANZANIA
BANKERS
Bank Name: TCB BANK
Account Name: YUOPTA COMPANY LIMITED
Account Number: 180207000087
Branch: UBUNGO
Bank Name: AKIBA BANK

Account Name: YUOPTA COMPANY LIMITED
Account Number: 11000935184
Branch: UBUNGO
ACCOUNTANTS AND TAX CONSULTANTS

Navidee Financial Consultants
P.o.Box 13686 Dar es salaam, Tanzania.
Green Acres House, Victoria, New bagamoyo road
Cell: +255 (0) 719363754/ +255 (0) 764217988
Email: boazcharlz@gmail.com / navidee.co.tz@gmail.com
AUDITORS
Sibe Financial Services
P. O. Box 62951
Dar es Salaam,
Tanzania.
The Directors presents this report and the audited financial statements of YUOPTA COMPANY
LIMITED for the Period ended 31STDecember, 2022 which disclose the state of affairs of the
company.

2

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED DECEMBER 2022
1. INTRODUCTION
The directors hereby submit their annual report together with the audited financial statements
for the year ended 31 December 2022. The financial statements are on pages which disclose
the state of affairs of the Company as at that date.
2. INCORPORATION
The Company is incorporated in Tanzania under the Companies Act, 2002 as a private limited
liability Company and whose shares are not publicly traded.
3. PRINCIPAL ACTIVITIES
The company’s principal activities are Supply of industrial diesel oil, spare parts, and
mechanical maintenance.
4. COMPOSITION OF THE BOARD OF DIRECTORS

The directors of the Company who held office during the year and to the date of this report,
except where otherwise stated were:
Name Nationality Position
1. Yusuph Wema Tanzanian Director

2. Optati Massawe Tanzanian Director
5. DIRECTORS’ INTEREST IN THE COMPANY

The directors had the following interests in the shares of the company at the beginning of,
during and at the end of the year.
6. DIRECTORS’ EMOLUMENTS
During the year, the Company did not pay director’s fee.

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7. CORPORATE GOVERNANCE
The Directors are committed to the principles of good corporate governance and recognise the
need to conduct the business in accordance with generally accepted best practice. In so doing
the Directors therefore confirm that:
 The Board of Directors met regularly throughout the year;
 They retain full and effective control over the Company and monitor executive
management;
 There are management committees in place for critical functions such as quality
management, marketing and strategic planning;
 There are regular reviews of financial and operational results;
 The Board accepts and exercises responsibility for strategic and policy decisions, the
approval of budgets and the monitoring of performance; and
 They bring skills and experience from their own spheres of business to complement the
professional experience and skills of management team.
8. POLITICAL AND CHARITABLE DONATIONS

The Company did not make charitable and political donations during the year.
9. MANAGEMENT OF THE COMPANY

The Company is under the supervision of the Managing Director and the day to day
management is entrusted to the key management team of the company.
The organization structure of the company comprises of the following departments:

 Finance
 Operations
10. RISK MANAGEMENT AND INTERNAL CONTROL

The Board accepts final responsibility for the risk management and internal control systems of
the Company. It is the task of management to ensure that adequate internal financial and
operational control systems are developed and maintained on an ongoing basis in order to
provide reasonable assurance regarding:
 The effectiveness and efficiency of operations;
 The safeguarding of the Company’s assets;
 Compliance with applicable laws and regulations;
 The reliability of accounting records;
 Business sustainability under normal as well as adverse conditions; and
 Responsible behaviours towards all stakeholders.
The efficiency of any internal control system is dependent on the strict observance of
prescribed measures. The Board of Directors assessed the internal control systems throughout

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the financial year ended 31 December 2022 and is of the opinion that they met accepted
criteria.
11. RESULT AND PERFORMANCE FOR THE YEAR

The results for the year are set out on page 11 and are summarized as follows:
Description 2022
Note(s) TZS
Profit before tax 9,529,121
Tax credit / (expense) 2,858,736
Total comprehensive loss for the year 6,670,385
12. SOLVENCY EVALUATION

The Company’s state of affairs as at 31 December 2022 is set out on page 10 of these financial
statements. The Directors have reviewed the performance and the financial position of the
company and on the basis of this review, the Directors are satisfied that the Company will
remain a solvent going concern within the meaning ascribed by the IFRS for SME’s and
Companies Act, 2002 of the laws of Tanzania. The financial statements have been prepared on
a going concern basis which assumes that the Company will continue in operational existence
for the foreseeable future.
13. DIVIDENDS
The directors do not recommend the payment of dividends in respect of the year ended 31
December 2022.
14. GENDER PARITY

Gender equity was observed during the year 2022.
15. EMPLOYEES’ WELFARE
Management and Employees' Relationship

Management and employees’ relationship continued to be good. There were no unresolved
complaints by employees at the end of the year.
The Company is equal opportunity employer. It gives equal access to employment

opportunities and ensures that the best available person is appointed to any given position free
from discrimination of any kind and without regard to factors like gender, marital status, tribes,
religion and disability which does not impair ability to discharge duties.

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Benefits
The Company provides the following benefits to its employees:
(a) Refunding medical expenses incurred by staff and their immediate family members
(b) Contributing to pensions fund
Health and Safety

As an industry, the Company has taken rigorous steps to improve the working environment in
light of health and safety issues which might affect its employees, and has taken such steps as
provision of safety gear, and training on best safety practices.
Financial Assistance to employees

Financial assistances are available to all confirmed employees in accordance with the
company policy.
16. RELATED PARTY TRANSACTIONS

There were no related party transactions for the year 2022.
17. CORPORATE SOCIAL RESPONSIBILITY

The Company has a strong commitment to the communities around the company and aim to
address issues of prime local concern such as education, health, infrastructure development,
environment protection and water supply programs among others. The Company also provides
support in the form of sponsorship, staff volunteering and other resources such as the sharing
of professional skills and expertise or the use of equipment and premises. Corporate social
responsibility is firmly embedded in our mission, values and behaviors in the whole company
and the region at large.
18. AUDITORS
Sibe Financial Services were appointed auditors for the year 2022 and have expressed their
willingness to continue in office; will be proposed for re-appointment in the next Annual
General Meeting.
Approved by the board of directors on JUNE 2023 and signed on its behalf by:
_______________________________
Director

6

STATEMENT OF DIRECTOR’S RESPONSIBLITIES
The Companies Act, 2002 requires the directors to prepare financial statements for
each financial period that give a true and fair view of the state of affairs of the
Company as at the end of the financial period and of the profit or loss. It also
requires the directors to ensure that the Company keeps proper accounting records
that disclose, with reasonable accuracy, the financial position of the Company. The
directors are also responsible for safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and detection of fraud, errors and
other irregularities.
The directors accept responsibility for the annual financial statements, which have
been prepared using appropriate accounting policies supported by reasonable and
prudent judgment and estimates, in conformity with International Financial
Reporting Standards for Small and Medium Enterprise (IFRS for SME’s) and the
requirements of the Companies Act, 2002. 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 its operating results.
The directors further accept 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 directors to indicate that the Company will
not remain a going concern for at least the next twelve months from the date of this
statement
_______________________________
Director

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Declaration of the head of Finance for YUOPTA COMPANY

LIMITED
The National Board of Accountants and Auditors (NBAA), according to the power
conferred under the Auditors and Accountants (Registration) Act. No 33 of 1972, as
amended by Act no 2 of 1995, requires financial statements to be accompanied with a
declaration issued by the Head of Finance/Accounting responsible for the preparation of
financial statements of the entity concerned.
It is the duty of professional Accountant to assist the Board of Directors / Governing Body
/ Management to discharge the responsibility of preparing financial statements of an entity
showing true and fair view of the entity’s position and performance in accordance with
applicable International Accounting standards and statutory financial reporting
requirements. Full legal responsibility for the preparation of financial statements rests with
the board of YUOPTA COMPANY LIMITED/ Governing Body as under Directors
Responsibility statement
I Vitalis bosha being the outsourced financial consultant of YUOPTA COMPANY
LIMITED Hereby, acknowledge my responsibility of ensuring that Financial Statements
for the year ended 31 December 2022 have been prepared in compliance with applicable
Accounting Standards and Statutory Requirements.
I thus confirm that the Financial Statements give a true and fair view position of the
Organization as on that date and that they have been prepared based on properly
maintained financial records.
Signed by:
Signature: …………
Position: Financial consultant
NBAA Membership No: ACPA 3923

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P. O. Box 62951 Dar es Salaam, Tanzania, Uzuri road, near white Inn Sinza, Kinondoni district Tel: + 255 222 451
392 Mobile: 0787 098 233, 0758 844 597 E-mail: sibefinancialservices@raha.com, kingunzatz@hotmail.com
BOARD OF DIRECTORS,
DAR ES SALAAM.
Dear Chairperson,
REF: INDEPENDENT AUDITORS’ REPORT
We have audited the accompanying financial statements of YUOPTA COMPANY

LIMITED, which comprise the statement of financial position as at 31st December
2022, the statement of profit or loss and other comprehensive income, statement of
changes in equity and statement of cash flows for the year then ended, and a
summary of significant accounting policies and other explanatory notes.
Basis for opinion
We have conducted our audit in accordance with International Standards on

Auditing (ISAs) and such other audit procedures we considered necessary in the
circumstances. Our responsibility is to express an independent opinion on the
financial statements based on the audit. The standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable
assurance about 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 the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditors consider the internal controls relevant to the
financial institution'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 financial
institution's internal control. 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.
Independence
We are independent of the company in accordance with the National Board of

Accounts and Auditors code of ethics is consistent with international ethical
standards Board for Accountants’ code of Ethics for Professional Accountants
(IESBA Code), together with other ethical requirements that are relevant to our
audit of the financial statements in Tanzania. We have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained was sufficient and appropriate
to provide a basis of our audit opinion.
The directors are responsible for the other information and report of directors.
Our opinion on the financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to

read the other information and in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated. If based on the work
we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude there is material misstatement of this other
information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of management and those charged with Governance for the

financial statements
The Directors of YUOPTA COMPANY LIMITED, are responsible for the preparation
presentation of these financial statements that give a true and fair view of in
accordance with International Financial Reporting Standards and the requirements
of the companies ACT, 2002, and for such internal controls as directors determine
are necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statement the directors are responsible for selecting and
applying appropriate accounting policies and making accounting estimates that are
reasonable in the circumstances and assessing the company’s ability to continue
as going concern, disclosing, as applicable, the matters related to going concern
and using the going concern basis of accounting unless the directors either intend
to liquidate the company or to cease operations or have no realistic alternative but
to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Company’s
financial statements as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the Group and
Company financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 Group’s and the
Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the

reasonableness of accounting estimates and related disclosures made by the
directors.
 Conclude on the appropriateness of the directors’ use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial

statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of

the entities or business activities within the Group to express an opinion on
financial statements. We are responsible for the direction, supervision and
performance of the company audit. We remain responsible for our audit opinion.
We communicate with directors regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
Report on Other Legal Requirements
This report, including the opinion, has been prepared for, and only for, the
company’s members as a body in accordance with the Companies Act, CAP 212 Act
No.12 of 2002 and for no other purposes.
As required by the Companies Act, CAP 212,Act No.12 of 2002,we are also required
to report to you if, in our opinion, the Directors’ Report is not consistent with the
financial statements, if the Company has not kept proper accounting records, if the
financial statements are not in agreement with the accounting records, if we have
not received all the information and explanations we require for our audit, or if
information specified by law regarding directors ‘remuneration and transactions
with the Company is not disclosed .In respect of the foregoing requirements, we
have no matter to report.
Certified by:
Benard King’unza
ACPA-PP-1946
Audit Partner

STATEMENT OF FINANCIAL POSITION AS AT 31STDECEMBER, 2022
DESCRIPTIONS NOTE 2022 2021

TZS TZS
ASSETS
NON CURRENT ASSETS (NET)

Property and equipments 2 38,235,366 36,197,388
Total non current assets 38,235,366 36,197,388
CURRENT ASSETS
Trade Receivables & Other pre payments 100,350,810 -
Credit tax 3 2,238,318 1,947,054
Cash & cash equivalent 1,007,649 132,330
Total current assets 103,596,777 2,079,384
TOTAL ASSETS 141,832,143 38,276,772
EQUITY & LIABILITIES:
EQUITY:
Authorized Share Capital 200,000,000 200,000,000
Paid up Share capital 20,000,000 20,000,000
Retained profit 4 20,665,476 13,995,091
Total equity 40,665,476 33,995,091
LIABILITIES:
Non curent liabilities:
Bank Loan 99,666,667 -
Current liabilities:
Trade payable & Accruals 1,500,000 4,281,681
Total liabilities 101,166,667 4,281,681
TOTAL EQUITY & LIABILITIES 141,832,143 38,276,772
NOTES 1 TO 6 FORM PART OF THESE ACCOUNTS
_______________________________
Director

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31ST DECEMBER 2022.
DESCRIPTIONS NOTE 2022 2021
TZS TZS
Turnover 765,724,921 391,940,000

Less: Purchases of furnace oils and other mechanical accessories 717,892,000 365,680,020
Gross Income 47,832,921 26,259,980
Total Income 47,832,921 26,259,980
Expenses:
Administration expenses 5 19,277,980 20,203,120
Finance charges 6 15,658,798 545,523
Depreciation 2 3,367,022 2,604,492
Total expenses 38,303,800 23,353,135
Profit before tax 9,529,121 2,906,845
Income tax 2,858,736 872,053
Profit after tax 6,670,385 2,034,791
_______________________________
Director

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STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31STDECEMBER, 2022
DESCRIPTIONS 2022 2021

TZS TZS
CASH FLOW FROM OPERATING ACTIVITIES:
Profit/(loss) before taxation 9,529,121 2,906,845
Adjustment for non cash items;
Depreciation 3,367,022 2,604,492
Result before working capital changes 12,896,143 5,511,337

Changes in Trade receivables (100,350,810) 751,200
Changes in Trade Payables (2,781,681) (7,772,319)
Cash generated from operations (90,236,348) (1,509,782)
Provisional corporate tax (3,150,000) (900,000)
Net cashflow from operating activities (93,386,348) (2,409,782)
CASH FLOW FROM INVESTING ACTIVITIES:

Fixed assets acquisition/construction (5,405,000) -
Net cash used in investing activities (5,405,000) -
CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from issue of shares -
Loan proceeds 138,000,000 -
Loan repayments (38,333,333) -
Net cash used in financing activities 99,666,667 -
Net increase/(decrease) in cash and Equivalents 875,319 (2,409,782)

Cash and Equivalents at the beginning of the year 132,330 2,542,112
Cash and Equivalents balance at end of the year 1,007,649 132,330
_______________________________
Director

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STATEMENT OF CHANGE EQUITY FOR THE YEAR ENDED 31 ST DECEMBER, 2022.
DESCRIPTION Share capital Retained profit Total equity
01/01/2021 20,000,000 11,960,300 31,960,300

Profit for the period - 2,034,791 2,034,791
Dividends paid - - -
31/12/2021 20,000,000 13,995,091 33,995,091
01/01/2022 20,000,000 13,995,091 33,995,091

Profit for the period - 6,670,385 6,670,385
Dividends paid - - -
31/12/2022 20,000,000 20,665,476 40,665,476
_______________________________
Director
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NOTES TO THE ACCOUNTS

1. i) CORPORATE INFORMATION
The financial statements of YUOPTA COMPANY LIMITED for the year ended 31 December
2022 were authorized for issue in accordance with a resolution of the directors. The Company
is a limited company incorporated and domiciled in Tanzania. The Company was incorporated
in 2016. Details of the Company information are disclosed on page 2.
Operation of the Company
The principal activities of the Company are described under directors’ report on page 3.
ii) BASIS OF PREPARATION

The financial statements have been prepared on a historical cost basis, for certain financial
instruments that have been measured at fair value. The financial statements are presented in
Tanzanian Shillings (TZS).
Statement of compliance
The financial statements of the Company have been prepared in accordance with International
Financial Reporting Standards (IFRS) for SMEs as issued by the International Accounting
Standards Board (IASB) and the Companies Act, 2002.
Impact of Standards and Interpretations
The directors anticipate that the adoption of new Standards, Amendments and Interpretations
resulting from the International Accounting Standards Board (IASB)’s improvements to IFRS
issued 2022 will have no material impact on the financial statements of the company. The
IASB’s annual improvements process deals with non-urgent, minor amendments to standards.
iii) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Revenue recognition
Revenue is recognized in accordance with IFRS 15 which establishes a comprehensive
framework for determining whether, how much and when revenue is recognised. It replaced
IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. Under IFRS 15,
revenue is recognised when a customer obtains control of the goods or services. Determining
the timing of the transfer of control – at a point in time or over time – requires judgement.
The Company has adopted IFRS 15 using the cumulative effect method (without practical
expedients). Accordingly, the information presented for 2017 has not been restated - i.e. it is
presented, as previously reported, under IAS 18 and related interpretations. Additionally, the
disclosure requirements in IFRS 15 have not generally been applied to comparative
information. There are no material changes in revenue recognised under IFRS 15 as such the
revenue that would have been recognised if the Company had continued with IAS 18 is same as
revenue recognised under IFRS 15.
b) Foreign currencies
The transactions in foreign currencies during the year are converted into Tanzania Shillings (the
functional currency), at the rates ruling at the transaction dates. At the end of each reporting
period, monetary items denominated in foreign currencies are translated at the rates prevailing
at that date. Non-monetary items carried at fair value that are denominated in foreign currencies
are retranslated at the rates prevailing at the date when the fair value was determined. Non-
monetary items that are measured in terms of historical cost in a foreign currency are not
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retranslated.
The resulting differences from conversion and translation are dealt with in profit or loss in the
year in which they arise except for;
 Exchange differences on foreign currency borrowings relating to assets under construction
for future productive use, which are included in the cost of those assets when they are
regarded as an adjustment to interest costs on those foreign currency borrowings;
 Exchange differences on transactions entered into in order to hedge certain foreign currency
risks; and
 Exchange differences on monetary items receivables from or payable to a foreign operation
for which settlement is neither planned nor likely to occur (therefore forming part of the net
investment in the foreign operation), which are recognized initially in other comprehensive
income and reclassified from equity to profit or loss on repayment of the monetary items.
Translation differences on non-monetary financial assets and liabilities such as equities
held at fair value through profit or loss are recognised in profit or loss as part of the fair
value gain or loss. Translation differences on non-monetary financial assets, such as
equities classified as available for sale, are included in other comprehensive income.
c) Cash and cash equivalents

Cash and short-term deposits in the statement of financial position comprise cash at banks and
on hand and short term deposits with an original maturity of three months or less.
d) Property, plant and equipment

Recognition
Property, plant and equipment is capitalized if it is held for use in delivering services or for
administrative purposes, it is probable that future economic benefits will flow to or service
potential will be supplied to the company, it is expected to be used for more than one financial
year and the cost of the item can be measured reliably.
Valuation
All property, plant and equipment are measured initially at cost, representing the cost directly
attributable to acquiring or constructing the asset and bringing it to the location and condition
necessary for it to be capable of operating in the manner intended by management. All assets
are measured subsequently using the historical cost model.
Depreciation
Depreciation is charged for the period the asset is in use as follows:
 Computer and Accessories 37.5%
 Building 5%
 Tools& Equipment 12.5%
 Furniture and Fittings 12.5%
e) Financial instruments
Financial assets and financial liabilities are recognised when the company becomes a party to
the contractual provisions of the instrument. Management determines all classification of
financial assets at initial recognition.

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Financial assets
Financial assets are initially recognised at fair value plus transaction costs at all financial assets
not carried at fair value through profit or loss. Financial assets carried at fair value through
profit or losses are initially recognised at fair value and the transaction costs are expensed in
profit or loss.
The company’s financial assets which comprise cash and bank balances and trade and other
receivables fall into the following category;
Loans and receivables

Financial assets with fixed or determinable payments that are not quoted in an active market,
such assets are classified as current assets where maturities are within 12 months of the date of
this report. All assets with maturities greater than 12 months after the date of this report are
classified as non-current assets. Subsequent to initial recognition, they are carried at amortised
cost using the effective interest method. Changes in the carrying amount are recognised in
profit or loss.
Purchases and sales of financial assets are recognised on the trade date i.e. the date on which
the company commits to purchase or sell the asset.
Financial assets are derecognised when the rights to receive flows from the investment have
expired or have been transferred and the company has transferred substantially all risks and
rewards of ownership. Loans and receivables are carried at amortized costs using the effective
interest method.
Financial assets is impaired if its carrying amount is greater than its estimated recoverable
amount. Impairment of financial assets is recognised in profit or loss under administrative
expenses when there is objective evidence that the company will not be able to collect all
amounts due per the original terms of the contract. Significant financial difficulties of the
issuer, probability that the issuer will enter bankruptcy or financial reorganisation, default in
payments and a prolonged decline in fair value of the asset are considered indicators that the
assets is impaired.
The amount of the impairment loss is calculated at the difference between the assets carrying
amount and the present values of expected future cash flows, discounted at the financial
instruments’ effective interest rate.
Subsequent recoveries of amounts previously written off/impaired are credited to profit or loss
statement of changes in equity in the year in which they occur.
Gains and losses on disposal of assets whose changes in fair value were initially recognised in
profit or loss determined by reference to their carrying amount and are taken into account in
determining operating profit/loss. On disposal of assets whose changes in fair value were
initially recognised in equity, the gains/losses are recognised in the reserves, where the fair
values were initially recognised. Any resultant surplus/deficit after the transfer of the
gains/losses are transferred to retained earnings.

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Management classifies financial assets as follows;

Cash in hand and balances with financial institutions and trade and other receivables are
classified as loans and receivables and are carried at amortised cost.
Financial Liabilities
The company’s financial liabilities which include borrowings, current tax and trade and other
payables fall into the following category:
Other Financial Liabilities: These include borrowings, trade and other payables and current
tax. These are initially measured at fair value and subsequently measured at amortised cost,
using the effective interest rate methods.
Any difference between the proceeds (net of transaction costs) and the redemption value is
recognised as interest expense in profit or loss under finance costs.
All financial liabilities are derecognised when, and only when, the company’s obligations are
discharged, cancelled or expired.
 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount presented in the statement
of financial position when there is a legally enforceable right to offset the amounts and
there is an intention to settle on a net basis, or realise the asset andsettle the ability
simultaneously.
f) Finance cost
Finance Income comprises interest income on funds invested (including available for sale
financial assets) dividend income, gains on the disposal of available for sale financial assets,
changes in the fair value of financial assets at fair value through profits or loss, and gains on
hedging instruments that are recognised in profit or loss. Interest income is recognised as it
accrues in profit or loss, using the effective interest method. Dividend income is recognised in
profit or loss on the date that the company’s right to receive payments is established which in
the case of quoted securities is the ex-dividend date.
Finance costs comprise interest expense on borrowings, unwinding of the discount on

provisions, dividends on preference shares classified as liabilities changes in the fair values of
financial assets at fair value through profit or loss impairment losses recognised on financial
assets and losses on hedging instruments that are recognised in profit or loss.
g) Taxes
The tax expense for the year comprises current and deferred tax. Tax is recognized in profit or
loss, except to the extent that it relates to items recognized in equity in which case, the tax is
also recognized in equity.
Current Tax
Current tax is provided on the results for the year, adjusted in accordance with tax legislation.
Deferred tax
Deferred tax is provided using the liability method for all temporary timing differences arising
between the tax bases of assets and liabilities and their carrying values for financial reporting
purposes. Currently enacted tax rates are used to determine deferred tax. Deferred tax assets

19

are recognized only to the extent that it is probable that future taxable profits will be available
against which temporary timing differences can be utilized.
h) Risk management
The major risks arising from the Company’s financial instruments are foreign currency risk,
liquidity risk, credit risk and interest rate risk. The board reviews and agrees policies for
managing each of these risks which are summarized below.
Foreign exchange risk
The Company has transactional currency exposures which arise from customer deposits and
payments in currencies other than the Company’s functional currency. Approximately 90% of
the Company’s receipts and 20% of the Company’s payments are denominated in currency
other than the functional currency of the Company. The nature of the company’s operations is
such that the time lag between receiving from a customer and discharging the obligation with
respect to the contracts is minimized such that the impact of exchange rates on the contract
prices is minimized.
Credit risk
The Company trades with only recognized, creditworthy third parties. It is a Company’s policy
that all customers who wish to trade on credit terms are subject to credit verification
procedures. In addition, receivables balances are monitored on an ongoing basis with the result
that the Company’s exposure to bad debts is not significant.
Liquidity risk
The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool,
which considers the maturity of both accounts receivables, held to maturity financial assets and
projected cash flows from operations. The Company’s objective is to maintain a balance to
allow continuity of operations, as the policy of the Company is to raise funds entirely from its
operation.
i) Provisions
A provision is recognised if, as a result of a past event, the company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will require to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessment of the time value of money and, where appropriate, the risks specific to the liability.
j) Comparatives
Where necessary, comparatives figures have been adjusted to conform to changes in
presentation in the current year.
k) Presentation Currency
These financial statements are presented in Tanzania Shillings (TZS)
COVID 19 ASSESSMENTS
COVID 19 pandemic affects Tanzania since March 2022.The management has done assessment on
the pandemic and has taken all necessary steps to continue operating, including social distancing,
wearing masks, washing hands, using sanitizers and adhere to all rules given by the ministry of
health. Apart from additional costs in additional equipment to fight pandemic, there is no major
impact to the business operations unless total lockdown occurs.
20

NOTE 2: NON-CURRENT ASSETS

DESCRITIONS Building Computer & Accessories Tools & Equipment Furniture & fittings TOTAL
RATE 5% 37.5% 12.5% 12.5% -
CLASS VI I III III -
COST - - - - -
01/01/2022 18,500,000 1,750,000 30,680,000 3,250,000 54,180,000
Addition - 1,750,000 1,345,000 2,310,000 5,405,000
Disposal - - - - -
31/12/2022 18,500,000 3,500,000 32,025,000 5,560,000 59,585,000
ACC. DEPR
01/01/2022 - 1,583,107 14,816,459 1,583,046 17,982,612
Charge for the year 925,000 718,835 2,151,068 497,119 3,367,022
31/12/2022 925,000 2,301,942 16,967,527 2,080,165 21,349,634
NBV
31/12/2021 18,500,000 166,893 15,863,541 1,666,954 36,197,388
31/12/2022 17,575,000 1,198,058 15,057,473 3,479,835 38,235,366
NOTE 3: TAXATION
DESCRIPTION 2022 2021
TZS TZS
Profit before tax 9,529,121 2,906,845
Add: depreciation 3,367,022 2,604,492
Adjusted income 12,896,143 5,511,337
Less: wear & tear (3,367,022) (2,604,492)
Taxable income 9,529,121 2,906,845
Corporate tax 2,858,736 872,053
Add: tax payable (recoverable) b/f (1,947,054) (1,919,108)
Total tax payable 911,682 (1,047,054)
Provisional corporate tax (3,150,000) (900,000)
Tax payable/(recoverable) b/f (2,238,318) (1,947,054)
NOTE 4: RETAINED PROFIT

TZS TZS
Balance b/f 13,995,091 11,960,300
profit for the year 6,670,385 2,034,791
Total 20,665,476 13,995,091
Balance c/f 20,665,476 13,995,091

21

NOTE 5: OPERATING EXPENSES

DESCRIPTIONS 2022 2021
TZS TZS
Office Rent 720,000 720,000
Utilities 4,556,430 4,534,290
Directors Salaries 6,000,000 6,000,000
Business license fees 675,000 675,000
Fuel storage repairs & maintenance 3,553,900 5,432,890
Accounting fees 1,000,000 -
Loading & offloading charges 1,754,100 2,267,900
Repairs & maintenance 328,700 123,400
Stamp duty 14,400 14,400
Telephone, postage & fax 675,450 435,240
Sub Total 19,277,980 20,203,120
NOTE 6: FINANCE COSTS

TZS TZS
Bank charges 1,016,100 -
Interest on loan 10,375,189 -
loan application fees 200,000 -
Loan administration fees 2,758,510 -
Loan documentation fees 550,000 -
Loan insurance premium 759,000 -
Total 15,658,798 -

22

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YUOPTA COMPANY LIMITED

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

DIRECTORS’ REPORT FOR THE FINANCIAL

Directors’ report 3–6

Statement of directors’ responsibilities 7

Declaration of the head of accounting 8

Report of the independent auditors 9 – 11

Statement of financial position 12

Statement of Profit or Loss and other comprehensive income 13

Statement of cash flows 14

Statement of changes in equity 15

Notes to the financial statements 16 – 22

YUOPTA COMPANY LIMITED,

DIRECTORS’ REPORT FOR THE FINANCIAL

REGISTERED OFFICE AND PRINCIPAL PLACE

Bank Name: AKIBA BANK

ACCOUNTANTS AND TAX CONSULTANTS

YUOPTA COMPANY LIMITED,

DIRECTORS’ REPORT FOR THE FINANCIAL

REPORT OF THE DIRECTORS

4. COMPOSITION OF THE BOARD OF DIRECTORS

Name Nationality Position

1. Yusuph Wema Tanzanian Director

5. DIRECTORS’ INTEREST IN THE COMPANY

YUOPTA COMPANY LIMITED,

DIRECTORS’ REPORT FOR THE FINANCIAL

8. POLITICAL AND CHARITABLE DONATIONS

9. MANAGEMENT OF THE COMPANY

The organization structure of the company comprises of the following departments:

10. RISK MANAGEMENT AND INTERNAL CONTROL

YUOPTA COMPANY LIMITED,

DIRECTORS’ REPORT FOR THE FINANCIAL

11. RESULT AND PERFORMANCE FOR THE YEAR

12. SOLVENCY EVALUATION

14. GENDER PARITY

15. EMPLOYEES’ WELFARE

Management and Employees' Relationship

The Company is equal opportunity employer. It gives equal access to employment

YUOPTA COMPANY LIMITED,

DIRECTORS’ REPORT FOR THE FINANCIAL

Health and Safety

Financial Assistance to employees

16. RELATED PARTY TRANSACTIONS

17. CORPORATE SOCIAL RESPONSIBILITY

YUOPTA COMPANY LIMITED,

DIRECTORS’ REPORT FOR THE FINANCIAL

STATEMENT OF DIRECTOR’S RESPONSIBLITIES

The directors further accept responsibility for the maintenance of accounting

YUOPTA COMPANY LIMITED,

DIRECTORS’ REPORT FOR THE FINANCIAL

Declaration of the head of Finance for YUOPTA COMPANY

YUOPTA COMPANY LIMITED,

REF: INDEPENDENT AUDITORS’ REPORT

We have audited the accompanying financial statements of YUOPTA COMPANY

Basis for opinion

We have conducted our audit in accordance with International Standards on

We are independent of the company in accordance with the National Board of

In connection with our audit of the financial statements, our responsibility is to

Responsibilities of management and those charged with Governance for the