unaitas savings and credit co-operative society limited ... … · iii. making accounting estimates...

2018 Annual Report & Financial Statements

Unaitas Savings and Credit Co-operative Society Limited - CS/6760Annual report and financial statementsFor the year ended 31 December 2018REPORT OF THE DIRECTORS

The directors submit their annual report together with the audited financial statements for the year ended 31 December 2018 which show the society's state of affairs.

Incorporation

The society is incorporated in Kenya under the Co-operative Societies Act, Cap 490 and is domiciledin Kenya. It was registered as a Sacco under the Sacco Societies Act with effect from 22 December 2011.

Principal activity

The principal activity of the society continues to be receiving savings from and provision of loansto its members.

Results 2018 2017Shs Shs

Profit before tax 458,397,545 352,375,921 Income tax expense (32,402,957) (14,338,575)

Profit for the year 425,994,588 338,037,346

Interest on members' deposits 148,310,210 152,606,934

Investment shares

The issued and paid up share capital of the society was increased during the year from 3,043,032,733 to Shs. 3,327,471,395Shs.

Dividends and interest

The directors have recommended payment of 8% (2017: 9%) as dividend on investment shares andpaid 4.5% (2017: 4.5%) interest on Sacco deposits.

Board of directors

The directors who held office during the year and to the date of this report are shown on page 1.

BY ORDER OF THE BOARD

Signature……………………………… date……………………2019

Secretary

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Unaitas Savings and Credit Co-operative Society Limited - CS/6760Annual report and financial statementsFor the year ended 31 December 2018STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Sacco Societies Act No. 14 of 2008 requires the directors to prepare financial statements for eachfinancial year which give a true and fair view of the state of affairs of the society as at the end of thefinancial year and of its profit or loss for that year. It also requires the directors to ensure that thesociety keeps proper accounting records that are sufficient to show and explain the transactions of thesociety; that disclose, with reasonable accuracy, the financial position of the society and that enablethem to prepare financial statements of the society that comply with the International FinancialReporting Standards and the requirements of the Sacco Societies Act. The directors are alsoresponsible for safeguarding the assets of the society and for taking reasonable steps for theprevention and detection of fraud and other irregularities.

The directors accept responsibility for the preparation and fair presentation of these financialstatements in accordance with the International Financial Reporting Standards and in the mannerrequired by the Sacco Societies Act. The also accept responsibility for:

i. Designing, implementing and maintaining such internal control as they determine is necessary toenable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error;

ii. Selecting and applying appropriate accounting policies; andiii. Making accounting estimates and judgements that are reasonable in the circumstances.

The directors are of the opinion that the financial statements give a true and fair view of the financial position of the society as at 31 December 2018 and of the society's financial performance and cashflows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Sacco Societies Act No. 14 of 2008.

In preparing these financial statements the directors have assessed the society's ability to continue asa going concern. Nothing has come to the attention of the directors to indicate that the society will notremain a going concern for at least the next twelve months from the date of this statement.

The directors acknowledge that the independent audit of the financial statements does not relieve themof their responsibilities.

So far as each of the directors is aware, there is no relevant audit information which the auditor isunaware of, and each of the directors has taken all the steps that ought to have been taken in order tobecome aware of any relevant audit information and to establish that the auditor is aware of thatinformation.

Approved by the board of directors on ___________________ 2019 and signed on its behalf by:

Chairman

Treasurer

Board member

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communication.

REPORT OF THE INDEPENDENT AUDITORTO THE MEMBERS OF UNAITAS SAVINGS AND CREDIT CO-OPERATIVE SOCIETY LIMITED (CONTINUED)

Auditor’s responsibilities for the audit of the financial statements (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those mattersthat were of most significance in the audit of the financial statements for the current period and aretherefore the key audit matters. We describe these matters in our auditor’s report unless law orregulation precludes public disclosure about the matter or when, in extremely rare circumstances, wedetermine that a matter should not be communicated in our report because the adverse consequencesof doing so would reasonably be expected to outweigh the public interest benefits of such

Certified Public AccountantsNairobi

CPA Chaudhry Mohamed Asif, Practicing certificate P/No. 2059Signing partner responsible for the independent audit

---------------------------------2019


Unaitas Savings and Credit Co-operative Society Limited - CS/6760Annual report and financial statementsFor the year ended 31 December 2018STATEMENT OF FINANCIAL POSITION

2018 2017Notes Shs Shs

ASSETSCash and bank balances 5 2,296,205,051 2,375,699,202 Receivables and prepayments 6 104,803,226 95,255,155 Tax recoverable 4 (b) - 6,861,743

Loans and advances to members 7 8,672,810,278 7,135,826,915

Financial assets 8 523,871,069 1,136,791,472

Inventories 9 24,161,474 10,897,327

Property and equipment 10 625,363,716 575,806,437

Intangible assets 11 628,855,096 507,191,976

Total assets 12,876,069,910 11,844,330,227

LIABILITIESOther payables 12 257,587,499 190,829,454

Current tax 4 (b) 20,803,118 -Retirement benefit obligation 13 2,482,549 28,323,734

Interest due to members 14 111,317,170 27,773,472 Member deposits 15 7,479,884,459 7,012,527,141

Deferred tax 16 12,456,043 13,346,863

As at 31 December

7,884,530,838 7,272,800,664

FINANCED BYInvestment shares 17 3,327,471,395 3,043,032,733

Statutory reserve 18 (i) 472,402,118 387,203,200

Fair value reserve 18 (ii) 152,291,097 280,923,905

Appropriation account 18 (iii) 725,842,293 499,588,708

Loan loss reserve 18 (iv) 47,334,457 86,908,071

Dividend account 266,197,712 273,872,946

4,991,539,072 4,571,529,563

Total liabilities and capital 12,876,069,910 11,844,330,227

The financial statements on pages 9 to 53 were approved and authorised for issue by the board of

directors on__________________________2019 and were signed on its behalf by:

CHAIRMAN

BOARD MEMBER

BOARD MEMBER

The notes on pages 14 to 53 form an integral part of these financial statements.

Report of the independent auditor - pages 5 to 8.

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