Professional Documents
Culture Documents
M-secure Limited is incorporated in Kenya under the Companies Act as a private limited liability
company, and is domiciled in Kenya.
The address of its registered office is:
…… House, Mombasa road
P.O Box 4 – 00100
NAIROBI
The company has a country wide network to handle distribution and selling of its products and services.
Revenue recognition
Revenues arising from the commissions are recognized in the period in which the company delivers
products to the customer, the customer has accepted the products and collectability of the related
receivables is reasonably assured.
Commission revenue is recognized as and when the float is received by the customer or when services
have been fully provided and the customers have been satisfied with the services provided
Labor costs are projected to be the m-security second largest expense, representing approximately 20% of
annual operating expenses during the Projection Period.
. During the Projection Period, these expenses are forecast based on anticipated operating levels, the
impact of ongoing initiatives to improve productivity, the terms of the negotiated employees contract and
Kenyan minimum wage laws
Depreciation is calculated using the straight line method to write down the cost of each asset to its
residual value over its estimated useful life, as follows:
Technological infrastructure 10 years
Leasehold improvements Life of lease
Equipment and motor vehicles 5 years
Capital work in progress, which represents additions to property, plant and equipment that have not yet
been brought into use, is not depreciated. Additions are transferred into the above depreciable asset
classes once they are brought into use
M-secure does not own any immovable properties and with regard to material plant and equipment, all
substantial installations and premises are secured by leases, agreements for lease or licenses;
Critical estimates are made by the directors in determining depreciation rates for property, Plant and
equipment
Provisions for bad and doubtful debts
Provision for bad debts will be provided after failure of the customer to pay and assessment of his ability
to settle the debt in future.
Dividends
Dividends on ordinary shares will be charged to equity in the period in which they are declared.
Proposed dividends will not accrued for until ratified in an the board of directors annual general
meeting.
General information
there is no material litigation or arbitration, prosecution or other civil or criminal legal action in
which M-secure ltd or its Directors as Directors of m-secure are involved which shall have a
material effect on the company business and operations
We expect that there will be no interruptions in the Company’s business which may have or will
have a significant effect on the company’s financial position
The financial statements in in the forecasts have been prepared in Kenya shillings only