Financial Statements

DALTON
Enterprises Limited
Plot No. 415A Industrial Area, Lusaka - Zambia
LIST OF ACCOUNT BALANCES FOR THE YEAR ENDED

31ST DECEMBER 2023
(K’000) (K’000)
Turnover (Note 1) 8,150,395.00
Cost of Sales (Note 2) 7,205,911.00
Administration expenses 1,399848.00
Distribution expenses 1,200,000.00
Plant, property and equipment (Note 3) 53,000.00
Motor vehicles 200,000.00
Accumulated depreciation 1 Jan, 2023 Vehicles 20,000.00
Profit on disposal 2,000,000.00
NAPSA 12,076.22
Intangible assets (note 4) 200,000.00
Inventories 2,749,382.00
Trade receivables 1,999,000.00
Trade payables 800,000.00
Bank and cash 319,810.00
Ordinary share capital, K200 each 4,600,081
Accumulated profits as at 1 Jan, 2022 -
Taxation (Note 5) 48,526.38
Interest paid on loan 10,000.00
Interim dividends paid (Note 6) 172,923.40
TOTAL 15,570,476.00 15,570,476.00
Notes to the accounts

1. The breakdown of property, plant and equipment is as follows: The balance relate to a
combination of new assets after disposal was made.
2. The existing plant and property are to be depreciated at 10%, using the straight-line depreciation
methods. Depreciation on the new asset is required to be included at 3% per annum based on cost.
3. The loan interest paid reported in the above list represents half the total amount of interest payable
during the year.
4. Tax represents Value added taxes that were paid to ZRA.
Plot No. 415A, Industrial Area -

Lusaka
DALTON
Enterprises Limited
INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2023
(K’000).
Turnover (Note 1) 8,150,395
Cost of sales (Note 2) 7,205,911
Gross profit 944,484
Distribution expenses (Note 3) (1,200,000)
Administration expenses (1,399848)
Profit on disposal of assets 2,000,000.00
Profit before interest 344,636
Interest (10,000)
Profit before tax 334636
Income tax (Note 4) (48,526.38)
Profit after tax 286,109.62
Dividends (172,109.62)
Returned profit for the period 2022 -
Accumulated profit 114,000.00
Accumulated profit C/F 114,000.00
Notes to the income statement

1. The turnover figure includes sales of K6, 000,000.00 cash but the firm lends short-term clients who
would pay in less than a week.
2. Cost of sales includes purchases of sheet materials from China and shipping costs at various points of
the year, 2023.
3. Distribution expenses include incidental costs in terms of hiring to deliver to far-flung clients, as a
way of motivating them to be loyal to the business.
4. Income tax is hugely Value added taxes paid to ZRA during the year under review.

Lusaka
DALTON
Enterprises Limited
STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED
31ST DECEMBER 2023
(K’000) (K’000)
TANGIBLE NON CURRENT ASSETS.
Property, plant and equipment 53,000.00
Motor vehicles 902,508.00
955,508.00
CURRENT ASSETS
Inventories 2,749,382.00
Trade receivables 1,999,000.00
Bank and Cash 319,810.00
5,068,192.00
Total Assets 6,023,700.00
EQUITY AND LIABILITIES

Capital and reserves:
Ordinary shares @K200 each 5,099,700.00
Accumulated profits (Income statements). 114,000.00
NON-CURRENT LIABILITIES
Loans 10,000.00
CURRENT LIABILITIES
Trade payables 800,000.00
Total equity and liabilities 6,023,700.00
Notes to the Statement of Financial Position
1. Depreciation on vehicles is calculated at 10%, straight-line method.

2. Depreciation on other assets is calculated at 5%, reducing balance method.
3. Inventories value relate to the stock as at 31 December 2022, which became the opening
inventory in 2024.
4. Trade receivables value relates to the expected revenue from selected trusted customers.

Lusaka
DALTON
Enterprises Limited
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
31ST DECEMBER, 2023
K’000
Net cash flows from operating activities 114,000.00
Depreciation charge (Note 5) (90.250.8 Z+2.650) 92,900.8
Amortization of grant -
Loss on sale of tangible assets -
Profit on sale of non-current asset investments – 2,000,000.00
Increase in inventories (Note 6) -
Increase in receivables (Note 7) -
Cash generated from operating activities 2,206,900.8
Interest received -
Interest paid (10,000.00)
Dividends paid (172,923.40)
Tax paid (48,526.38)
Net cash flows from operating activities 1,975,451.02
CASH FLOWS FROM INVESTING ACTIVITIES
payments to acquire tangible assets (702,508)
Payments to acquire intangible assets -
Receipts from sales of non-current assets investments. 2,000,000.00
Net cash flows from investing activities. 727,056.98
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of share capital -
Government grant -
Long term loan 10,000.00
Net cash flows from financing activities 10,000.00
Increase in cash and cash equivalents as at 1 Jan 2022. -
Cash and cash equivalents as at 31 December, 2023 10,000.00

Lusaka
DALTON
Enterprises Limited
Notes to the cash flows
1. Depreciation comprises appropriate percentages of plants, property and equipment and vehicles
using straight line and reducing balance methods as per earlier notes.
2. On both note 6 and 7, the business was new and there was no reasonable calculation of the
increase and decrease in either payables or receivables.

Lusaka

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DALTON

LIST OF ACCOUNT BALANCES FOR THE YEAR ENDED

Notes to the accounts

Plot No. 415A, Industrial Area -

Notes to the income statement

Plot No. 415A, Industrial Area -

EQUITY AND LIABILITIES

Notes to the Statement of Financial Position

1. Depreciation on vehicles is calculated at 10%, straight-line method.

Plot No. 415A, Industrial Area -

Plot No. 415A, Industrial Area -

Plot No. 415A, Industrial Area -

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