General information

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.

Sources of incomes and revenue

Float Commissions
Payroll management commissions
Electricity and token disbursement commission
Insurance business commission

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

Salaries and related costs

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

Property plant and equipment

All categories of property, plant and equipment are initially recorded at cost. Subsequent costs are
included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when its
probable that future economic benefits associated with the item will flow to the company and the cost of
the item can be measured reliably. All other repairs and maintenance costs are charged to the income
statement during the financial period in which they are incurred.

Depreciation and amortization

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.

Accounting for leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to the income statement
on a straight-line basis over the period of the lease.
Cash needs on monthly basis

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