To: Mr Kifayatullah Hussain (investing partner) and Mr Aziz Saif (working partner)
Elegance Limit Gents Saloon, Rolla, Sharjah, United Arab Emirates
We have compiled the accompanying statement of financial position of Elegance Limit Gents Saloon (“the Establishment”) as at 31 December 2025, and the related income statement, revenue analysis, cost analysis, fixed-asset schedule and bank reconciliation for the year then ended, together with the notes and observations set out on the following pages.
The financial information has been compiled from the accounting records and the monthly management reports prepared and issued by Intellect Consulting for the period January to December 2025, and from the Abu Dhabi Commercial Bank current-account statement (account 13345907820001) covering 1 January 2025 to 31 December 2025, comprising 413 transactions.
This is a compilation and agreed-upon-procedures engagement. We arithmetically re-performed the income statement and the statement of financial position, agreed the reported revenue to the monthly sales report, agreed card settlements to the bank statement, verified the internal integrity of the bank statement, and re-cast the fixed-asset register against the depreciation charge for the year.
We did not perform an audit or a review in accordance with International Standards on Auditing, and accordingly we do not express an audit opinion or any assurance conclusion on the financial information. No physical verification of assets, third-party confirmation of loan balances, cash count, or test of controls over cash takings was carried out. The figures remain the responsibility of management.
Subject to the matters described below, the financial information is arithmetically consistent, the statement of financial position balances at AED 401,309.61 on both sides, and the reported revenue of AED 209,095 agrees in full to the monthly sales report.
This report is prepared solely for the information and internal use of the owners of Elegance Limit Gents Saloon and for submission of supporting schedules to their tax agent. It is not intended for, and should not be relied upon by, any bank, purchaser or other third party as an audited financial statement.
| Particulars | Note | AED | % of revenue |
|---|---|---|---|
| REVENUE | |||
| Card sales (POS) | 1 | 167,410.00 | 80.1% |
| Cash sales | 1, 7 | 41,655.00 | 19.9% |
| Product sales | 1 | 30.00 | 0.0% |
| Total revenue | 209,095.00 | 100.0% | |
| COST OF SERVICES | |||
| Barber commission (40% of eligible service revenue) | 2 | 42,438.00 | 20.3% |
| Credit-card acquirer commission (2%) | 2 | 3,703.39 | 1.8% |
| Fixed salary — service staff | 2 | 41,200.00 | 19.7% |
| Tips paid to barbers (card tips) | 2 | 2,311.00 | 1.1% |
| Total cost of services | 89,652.39 | 42.9% | |
| GROSS PROFIT | 119,442.61 | 57.1% | |
| OPERATING EXPENSES | |||
| Rent — saloon shop | 3 | 70,000.00 | 33.5% |
| Depreciation | 4 | 22,936.56 | 11.0% |
| Legal, trade licence & PRO | — | 20,317.18 | 9.7% |
| Water & electricity (SEWA) | — | 14,630.00 | 7.0% |
| Repairs & maintenance | — | 8,610.00 | 4.1% |
| Cosmetics & consumables | — | 4,793.64 | 2.3% |
| VAT expense | 5 | 3,500.00 | 1.7% |
| Marketing & promotion | — | 3,438.00 | 1.6% |
| Internet & telecom | — | 3,199.47 | 1.5% |
| Other operating expenses (9 items — detailed schedule follows) | — | 9,055.25 | 4.3% |
| Total operating expenses | 160,480.10 | 76.7% | |
| NET LOSS FOR THE YEAR | (41,037.48) | (19.6%) |
Depreciation of AED 22,936.56 is a non-cash charge. Excluding it, the Establishment’s operating cash result for FY2025 was a loss of AED 18,100.92, or approximately AED 1,508 per month. This is the figure relevant to how much cash the partners had to inject during the year; the AED 41,037.48 statutory loss is the figure relevant to the corporate-tax return.
| Measure | FY2024 | FY2025 | Change |
|---|---|---|---|
| Revenue | 145,946 | 209,095 | +43.3% |
| Net loss after depreciation | (91,638) | (41,037) | −55.2% |
| Loss reduction year on year | AED 50,601 improvement on a revenue increase of AED 63,149 | ||
FY2024 comparatives are taken from the 2024 management report and are shown for trend purposes only; they have not been re-performed as part of this engagement.
| Particulars | Note | AED |
|---|---|---|
| LIABILITIES | ||
| Current liabilities | ||
| Salary payable | 4,000.00 | |
| Barber commission payable | 1,970.00 | |
| Internet payable | 240.45 | |
| Total current liabilities | 6,210.45 | |
| Loans (non-current) | 8 | |
| Loan — Kifayatullah Hussain | 331,850.00 | |
| Loan — Aziz Saif | 53,249.16 | |
| Loan — Nurullah Husain | 10,000.00 | |
| Total loans | 395,099.16 | |
| TOTAL LIABILITIES | 401,309.61 | |
| ASSETS | ||
| Accumulated loss brought forward (1 Jan 2025) | 183,747.94 | |
| Loss for the year | 41,037.48 | |
| Accumulated loss carried forward | 9 | 224,785.42 |
| Fixed assets — net book value | 4 | 118,750.63 |
| Current assets | ||
| ADCB current account | 6 | 18,510.35 |
| Staff loans receivable | 10 | 22,280.93 |
| Rent deposit | 3 | 13,500.00 |
| Sundry debtors (card settlements in transit) | 6 | 1,707.00 |
| Cash in hand | 7 | 1,775.28 |
| Total current assets | 57,773.56 | |
| TOTAL ASSETS | 401,309.61 |
Balance check: total liabilities AED 401,309.61 = total assets AED 401,309.61. The statement balances exactly. The accumulated loss is presented on the asset side of the statement, following the format used consistently in the Establishment’s own management reports.
| Month | Revenue | Cost of services | Gross profit | GP % | Operating exp. | Net result |
|---|---|---|---|---|---|---|
| Jan 2025 | 11,450 | 4,861 | 6,589 | 57.5% | 10,287 | (3,699) |
| Feb 2025 | 12,955 | 5,567 | 7,388 | 57.0% | 10,427 | (3,039) |
| Mar 2025 | 22,245 | 10,092 | 12,153 | 54.6% | 14,028 | (1,875) |
| Apr 2025 | 12,735 | 5,309 | 7,426 | 58.3% | 11,611 | (4,185) |
| May 2025 | 15,760 | 6,613 | 9,147 | 58.0% | 14,546 | (5,399) |
| Jun 2025 | 17,230 | 7,280 | 9,950 | 57.7% | 11,087 | (1,137) |
| Jul 2025 | 17,695 | 7,499 | 10,196 | 57.6% | 16,576 | (6,380) |
| Aug 2025 | 18,040 | 7,677 | 10,363 | 57.4% | 21,673 | (11,311) |
| Sep 2025 | 19,275 | 8,259 | 11,016 | 57.2% | 13,076 | (2,060) |
| Oct 2025 | 20,535 | 8,771 | 11,764 | 57.3% | 11,785 | (21) |
| Nov 2025 | 20,915 | 8,986 | 11,929 | 57.0% | 11,378 | 551 |
| Dec 2025 | 20,260 | 8,738 | 11,522 | 56.9% | 14,005 | (2,483) |
| Total FY2025 | 209,095 | 89,652 | 119,443 | 57.1% | 160,480 | (41,037) |
| Month | Card sales | Cash sales | Product | Total | Cash % |
|---|---|---|---|---|---|
| Jan 2025 | 8,340 | 3,110 | — | 11,450 | 27.2% |
| Feb 2025 | 10,225 | 2,730 | — | 12,955 | 21.1% |
| Mar 2025 | 17,955 | 4,290 | — | 22,245 | 19.3% |
| Apr 2025 | 8,840 | 3,895 | — | 12,735 | 30.6% |
| May 2025 | 12,940 | 2,820 | — | 15,760 | 17.9% |
| Jun 2025 | 14,170 | 3,060 | — | 17,230 | 17.8% |
| Jul 2025 | 14,410 | 3,285 | — | 17,695 | 18.6% |
| Aug 2025 | 13,715 | 4,325 | — | 18,040 | 24.0% |
| Sep 2025 | 16,110 | 3,165 | — | 19,275 | 16.4% |
| Oct 2025 | 16,305 | 4,230 | — | 20,535 | 20.6% |
| Nov 2025 | 17,320 | 3,565 | 30 | 20,915 | 17.0% |
| Dec 2025 | 17,080 | 3,180 | — | 20,260 | 15.7% |
| Total | 167,410 | 41,655 | 30 | 209,095 | 19.9% |
The income statement on page 3 presents operating expenses in summarised form. This schedule sets out all nineteen expense accounts in full. Cost of services is shown in full on page 3 and is not repeated here.
| Particulars | AED | % of revenue |
|---|---|---|
| Rent — saloon shop 3 | 70,000.00 | 33.5% |
| Depreciation 4 | 22,936.56 | 11.0% |
| Legal, trade licence & PRO | 20,317.18 | 9.7% |
| Water & electricity (SEWA) | 14,630.00 | 7.0% |
| Repairs & maintenance | 8,452.00 | 4.0% |
| Purchases — cosmetics & consumables | 4,793.64 | 2.3% |
| VAT expense 5 | 3,500.00 | 1.7% |
| Marketing & promotion | 3,438.00 | 1.6% |
| Internet & telecom | 3,199.47 | 1.5% |
| Agency fee | 2,835.00 | 1.4% |
| Staff welfare | 2,108.50 | 1.0% |
| Insurance | 1,060.00 | 0.5% |
| Visa & immigration | 840.00 | 0.4% |
| Miscellaneous | 800.00 | 0.4% |
| Travel | 610.00 | 0.3% |
| WPS bank charges | 435.75 | 0.2% |
| Pest control | 360.00 | 0.2% |
| Maintenance | 158.00 | 0.1% |
| Stationery | 6.00 | 0.0% |
| Total operating expenses | 160,480.10 | 76.7% |
| Asset class | Cost | Accumulated depreciation | Net book value |
|---|---|---|---|
| Shop decors & fit-out | 84,007.00 | 23,311.93 | 60,695.07 |
| Furniture & fixtures | 38,582.00 | 10,706.37 | 27,875.63 |
| Design & concept | 13,000.00 | 6,630.00 | 6,370.00 |
| Sign boards | 11,445.00 | 3,176.02 | 8,268.98 |
| Miscellaneous capex | 10,678.00 | 1,624.75 | 9,053.25 |
| Lights | 3,888.14 | 1,626.84 | 2,261.30 |
| POS machine | 3,463.00 | 1,766.16 | 1,696.84 |
| Camera / CCTV | 2,250.00 | 624.30 | 1,625.70 |
| IT software | 1,470.00 | 749.76 | 720.24 |
| Fire extinguisher | 375.00 | 191.38 | 183.62 |
| Total | 169,158.14 | 50,407.51 | 118,750.63 |
Depreciation charged for the year: AED 22,936.56 (AED 1,911.38 per month, straight line). Lights were written down by AED 726.86 on 31 December 2025 for items retired during the year. Total capital expenditure since fit-out is AED 169,158.14; assets are 30% depreciated at the reporting date. No physical verification was performed.
Abu Dhabi Commercial Bank current account 13345907820001, in the name of ELEGANCE LIMIT GENTS SALOON, for the period 1 January 2025 to 31 December 2025.
| Particulars | Transactions | AED |
|---|---|---|
| Opening balance, 1 January 2025 | — | 13,832.93 |
| Add: total credits for the year | — | 175,452.44 |
| Less: total debits for the year | — | (171,320.96) |
| Closing balance per bank statement, 31 December 2025 | 413 | 17,964.41 |
Integrity test passed. Opening balance plus credits less debits reproduces the stated closing balance to the fils. The statement is arithmetically complete with no missing pages or gaps in the running balance across all 413 transactions.
| Source | Transactions | AED |
|---|---|---|
| Card settlements — Payment Hub (PHUB) | 166 | 72,299.54 |
| Card settlements — Magnati | 124 | 51,806.46 |
| Card settlements — Network International POS | 46 | 25,693.79 |
| Card settlements — Network International (NBAD MSP) | 30 | 15,652.65 |
| Total card settlements received | 366 | 165,452.44 |
| Loan received — Nurullah Husain | 1 | 10,000.00 |
| Total credits | 367 | 175,452.44 |
| Particulars | AED |
|---|---|
| Card sales recorded in the books for FY2025 | 167,410.00 |
| Card settlements actually received into ADCB | 165,452.44 |
| Difference | 1,957.56 |
| Less: sundry debtors at 31 December 2025 (settlements in transit) | (1,707.00) |
| Unexplained residual | 250.56 |
Result: card revenue substantially verified. 98.8% of recorded card revenue is independently traceable to money that actually arrived in the bank. The AED 1,957.56 difference is explained almost entirely by the AED 1,707.00 of late-December settlements recorded as sundry debtors and received in January 2026, leaving an immaterial residual of AED 250.56 (0.1% of card revenue). Card takings are, in our view, reliable.
The books record the ADCB balance at 31 December 2025 as AED 18,510.35. The bank statement closing balance is AED 17,964.41. The difference of AED 545.94 is not supported by any reconciling item we were able to identify and no bank reconciliation statement was prepared at the year end. Management should prepare a formal month-end bank reconciliation and either post the correcting entry or identify the unpresented item before the corporate-tax return is finalised.
Revenue is recognised when the service is performed. Total revenue of AED 209,095 agrees in full to the monthly sales report (card AED 167,410, cash AED 41,655, product AED 30). Revenue is stated gross; the 2% acquirer commission is charged separately to cost of services.
Barbers are paid an aggregate fixed salary of AED 3,433 per month plus 40% commission on eligible service revenue — AED 42,438 for the year, or 20.3% of turnover. The commission figure was restated during the year: the eleven-month report to November 2025 showed AED 46,982 against a final full-year figure of AED 42,438. The restatement reduced the reported loss and should be agreed to the barbers’ individual entitlement records.
Shop rent for the year was AED 70,000, settled by post-dated cheques (AED 38,500 of cheque clearings appear in the bank statement). A rent deposit of AED 13,500 is held by the landlord. The lease renewal falls due in August 2026 and is the largest single cost risk facing the Establishment. Subsequent event: Diqa Properties served notice on 18 July 2026 that the lease on Shop 3, plot 5176 expires 31 August 2026 and the new rent is AED 98,500 plus 5% VAT (AED 103,425), payable in four instalments, with a renewal fee of AED 2,500 plus VAT and a PRO charge of AED 210. Monthly rent rises from AED 5,833 to AED 8,619 — up 47.8%.
Fixed assets are stated at cost less accumulated depreciation, charged straight-line at AED 1,911.38 per month (AED 22,936.56 for the year). Gross cost AED 169,158.14; net book value AED 118,750.63.
A VAT expense of AED 3,500 was charged and settled in August 2025. Management should confirm with its tax agent whether this is a penalty, a period settlement or irrecoverable input tax, as the treatment affects deductibility for corporate tax.
See the reconciliation on the preceding page. An unexplained difference of AED 545.94 between the books and the bank statement remains open at the reporting date.
Cash takings of AED 41,655 (19.9% of turnover) were recorded during the year. We examined all 413 transactions on the ADCB statement and found no cash deposit whatsoever at any point in the twelve months. Cash in hand at 31 December 2025 was only AED 1,775.28.
Substantially the whole of the cash turnover was therefore spent directly out of the till without passing through the bank, supported only by the shop’s own manual records. Recorded card revenue is verifiable; recorded cash revenue is not. All cash takings should be banked intact and every expense paid from the bank account with immediate effect. Until that is done, no purchaser, lender or tax authority can be given assurance over 19.9% of reported turnover.
Loans of AED 395,099.16 are recorded from the books alone. None has been confirmed in writing by the lender. The Aziz Saif loan account in particular is disputed: the books show AED 53,249.16 at 31 December 2025, whereas Mr Aziz Saif’s own loan ledger supports a materially higher claim. The partners should agree and countersign the loan balances before any exit, sale or further injection is negotiated. The loans are interest-free, unsecured and have no fixed repayment date.
The Establishment has incurred losses in every year since opening in December 2023. Accumulated losses at 31 December 2025 stand at AED 224,785.42, and total liabilities of AED 401,309.61 exceed the net book value of tangible and current assets of AED 176,524.19 by AED 224,785.42. It continues to trade only because the partners fund the shortfall through interest-free loans. The financial information is prepared on a going-concern basis on the strength of that support, which has not been confirmed to us in writing.
Advances to staff of AED 22,280.93 are outstanding, recovered by monthly deduction from salary. Recoverability depends on continued employment; no provision has been made.
| Area | Verified to independent evidence? |
|---|---|
| Card revenue — AED 167,410 | Yes — 98.8% traced to bank settlements |
| Bank movements — 413 transactions | Yes — statement internally complete and arithmetically sound |
| Income statement and balance sheet arithmetic | Yes — re-performed; balances exactly |
| Fixed assets — AED 118,750.63 NBV | Schedule re-cast only; no physical verification |
| Cash revenue — AED 41,655 | No — never banked; no independent evidence exists |
| Related-party loans — AED 395,099.16 | No — unconfirmed by lenders; Aziz balance disputed |
| Closing bank balance | No — AED 545.94 difference unreconciled |
Declaration. This report has been compiled from records provided by management and by Intellect Consulting. It is not a statutory audit, contains no audit opinion, and confers no assurance. It is issued for the internal use of the owners of Elegance Limit Gents Saloon and for supporting their tax filing. Where this report identifies a matter as unverified, it should be treated as unverified.
Report date: 28 July 2026 · Reporting period:
1 January 2025 to 31 December 2025 · Currency: UAE Dirhams (AED)
Source files: Reports-2025 (1).xlsx (P&L, sales report, salary, fixed assets, ADCB statement),
Elegance Limit 2025 Report.xlsx (statement of financial position),
Elegance Monthly Report 2025.xlsx (monthly management reports and trial balance).