Elegance Limit Gents Saloon

July 2026 — Restated

Validated Against the Bank

The Fixed Monthly Cost Base

Profit & Loss — Jan to Jul 2026

Trend

Cumulative Position

Findings

• 1 — July is a loss, not a AED 17,157 profit. The earlier draft reported a 90.7% margin. Adding staff cost, card commission and the regular overheads turns it into a loss of AED 1,112.62 — a swing of AED 18,269.62, and the first losing month of 2026 after six at an average of 17.0%. The restated figure is now checked against the bank: see Section 2.
• 2 — The SEWA bill is what tipped it. AED 1,687.00 against a Jan–Jun booked average of AED 495.67 — electricity alone is AED 1,530.41, the summer air-conditioning load in Rolla. Without it July would have shown roughly AED 1,098.88. Expect August and September to carry the same weight; budget for it.
• 3 — "Credit sales" are almost certainly card settlements, not receivables. July's split is 82.4% "credit"; the accountant's Jan–Jun books show 83.6% card. Accounts receivable stood at zero on 30 Jun. The July draft's warning to "collect receivables before disbursing cash" is therefore misplaced — that money arrives in ADCB within days, and the 2% card commission (AED 311.60) had not been deducted.
• 4 — The cash-box shortfall is structural, not a July accident. Cash takings run at only 16.6% of revenue while cash-paid wages are far larger, so the box can never fund the cash half of payroll on its own. Route more of the pay through WPS or draw from ADCB — do not wait on "collections".
• 5 — Only 3 SEWA bills have been posted in seven months. Jan 630, May 2,344, and now Jun/Jul 1,687.00. 4 of the seven months carry no electricity cost at all — but the meter ran in every one of them. On the 665.86/month average that is roughly AED 2,663 of cost missing from the year to date, and it would wipe out a large part of the 20,224.17 reported. Pull the full SEWA statement for account 020000002712 and post every bill.
• 6 — The FY2025 corporate tax return does not agree to the books. Return ref 230011049847 (TRN 104712401900001, Elegance Limit Gents Saloon), filed 20 Jul 2026 for the year ended 31 Dec 2025, declares a net profit of AED 6,204. The accountant's FY2025 books show a net loss of AED 41,037.48 — a difference of AED 47,241. Revenue agrees exactly (209,095, and 145,946 for the prior year), so the gap is entirely in costs. The return also reports total liabilities of only AED 6,000 and "other equity" of AED 397,091, meaning the partner loans (Kifayatullah 331,850, Nurullah 10,000, Aziz ~53,249) were filed as equity, not debt. Net corporate tax position is AED 0 either way — the shop is far below the AED 375,000 threshold — so there is no tax to pay. But a real FY2025 loss was filed as a profit, which forfeits the tax loss that could otherwise have been carried forward, and the return will not reconcile to the books if the FTA asks. Worth correcting by voluntary disclosure.
• 7 — The filing fee is 1,050, not 525 — and it is a fee, not tax. The return shows Net Corporate Tax Position AED 0, so nothing was payable to the FTA. What was paid is AED 1,050.00, debited 17 July as TRF TO LEAF ASSOCIATES ACCO SERVICES EST. The same firm charged 1,050 in September 2025. The 525 first booked was half the true fee, and the correction is the difference between a July loss of AED 62.62 and AED 1,112.62.
• 8 — July's miscellaneous expense is AED 415, up from nil. "taf" AED 400 is classified to Miscellaneous per instruction, with "SCI 880.9.8" AED 15. That one line is 0.7× the size of the month's loss — a AED 400 item with no description is worth a name in the ledger before it recurs.
• 9 — The source workbook's P&L total column is wrong. It stops at five months (106,675 against the true 125,440). Anyone reading that sheet without checking the trial balance will understate the year by AED 18,765.
• 10 — The rent renewal is no longer a risk. It is a number. Diqa Properties served notice on 18 July 2026: the lease on Shop 3, plot 5176 expires 31 August 2026 and the new rent is AED 98,500 + 5% VAT = 103,425, in four instalments, plus a 2,500 renewal fee, 125 VAT and a 210 PRO charge — 2,835 one-off. Monthly rent goes from 5,833.33 to 8,618.75, up 47.8%. The fixed operating base moves 8,458.38 → 11,243.80 and break-even moves 16,263 → 21,619 a month. July turned over 18,915 — 2,704 below the new line. On current volumes the shop is structurally loss-making from September. Either the rent comes down, revenue rises about 14%, or the cost base is cut. Also check whether the 13,500 deposit must be topped up to the new rent.
• 11 — The company bank pays almost nothing. July had three debits: the Preeti visa pass-through, the 1,050 filing fee and the 6,898.08 loan repayment. Rent, salary, commission, SEWA, internet, licence, cosmetics, cleaning and repairs — about AED 18,700 — were settled from the counter cash box, from Aziz personally, or in August. That is why the account rose 7,306.41 in a losing month, and it is the mechanism by which the Aziz loan account keeps reopening after being cleared to zero in May.
• 12 — July payroll was settled 8 to 10 days late. The WPS file for July was submitted on 2 August; the commission balances (Azeem 1,792, Sakeel 774) were paid on 10 August, after two chased reminders and a MOHRE WPS notice on 2 August for establishment 2032632. The June round ran the same way — balances paid 11 July. Recurring, and a MOHRE exposure if it ever slips past the window.
• 13 — Feb to Jun commission is booked net of the loan recovery; Jan and Jul are gross. On the agreed model — 40% of sales, of which 4,000 is fixed salary — commission should be 40% of revenue less 4,000. Jan (4,930) and Jul (3,566) follow it exactly. February through June each come to exactly AED 1,000 less: the 500-per-barber loan withholding has been netted off the cost instead of reducing the loan asset. A loan repayment is a balance-sheet recovery, not a saving. On consistent treatment those five months carry AED 5,000 more cost, the seven-month profit falls to AED 15,224.17, and staff loans at 31 July fall to 23,390.93. Not restated here — it needs the accountant's confirmation first, because it is possible the recoveries were posted elsewhere.
• 14 — Four smaller breaks the chat exposes in Jan–Jun. (a) May SEWA is booked at 2,344.00; Musab reported paying 753 + 1,391 = 2,144 on 4 May — a 200 gap, and neither figure matches the 743 and 993 bills advised for those periods. (b) June carries no internet (240) and no WPS charge (~37), and March carries no pest control (50), though all three ran — about 327 of known recurring cost missing, on top of the SEWA gap in Finding 5. (c) Internet is 240.45 in the bank and in Musab's messages, 240.00 in the books — 3.15 over seven months. (d) The 1,000 booked to Staff Welfare in April is the Eid night-permission fee (21 Apr) — a government charge, not staff welfare. No profit effect; wrong account.
• 15 — AED 7,055 passed through the company account for a third party. In on 13 July from Waseem A Hussain Palekar, out the same day to Tahleel Documents Clearing for Preeti Verma's visa. Netted to nil and kept out of the P&L, but it is the shop's bank account clearing someone else's cost — and the 2025 staff visas of 6,055 each were expensed to the shop. Decide which treatment stands before the next hire lands.

Basis of Preparation

• Jan–Jun 2026 is taken from the accountant's workbook Elegance Monthly Report 2026.xlsx (Manoj, Intellect Consulting), using the trial balance totals at 30 Jun 2026 rather than the stale P&L total column.
• July 2026 is reconstructed from the handwritten shop ledger and recast onto the same chart of accounts. Revenue AED 18,915, expenses recorded AED 1,758.00 (of which AED 105.00 tips reclassified to direct cost).
• Staff pay follows the agreed model: each barber earns 40% of his own sales, of which AED 2,000 is a fixed salary. July: Azeem sales 10,730 → 4,292; Sakeel sales 8,185 → 3,274; total AED 7,566. AED 500 is withheld from each for loan repayment — a balance-sheet recovery, not a cost, so it does not change profit.
• Costs added to July that the shop book does not carry: rent 5,833.33, trade licence 1,544.94, SEWA 1,687.00, internet 240.00, WPS 36.75, corporate tax filing fee 1,050.00, plus card commission 311.60. Total AED 10,703.62.
• July is validated against the bank. ADCB account 13345907820001, consolidated statement for 01–31/07/2026, received 10 August 2026: opening 30,092.43, closing 37,398.84, three debits and 31 card settlements. Card sales, barber commission, fixed salary, WPS charges, the filing fee and the director loan repayment are each traced to it or to a payment receipt. Two figures were corrected as a result — the filing fee (525 → 1,050) and WPS charges (37.25 → 36.75). Everything else held.
• Basis is a payment-date convention, not strict cash accounting. Section 2 shows that most of July's cost never went through the company account in July — it was met from the counter cash box, from Aziz personally, or settled in August (WPS on 2 Aug, commission balances on 10 Aug). Costs are recognised in the month they relate to, on the same convention the accountant already applies to Jan–Jun.
• Rent from 1 September 2026 is taken from the Diqa Properties renewal notice dated 18 July 2026 for Shop 3, plot 5176: AED 98,500 plus 5% VAT, four instalments, renewal fee 2,500 + 125 VAT and a 210 PRO charge. Modelled inclusive of VAT at 8,618.75 per month.
• SEWA is the actual bill for account 020000002712, period 4 Jun – 2 Jul 2026, due 21 Jul 2026, total AED 1,687.00. Charged to July on the payment-date convention the books already use. The stated components sum to exactly 1,687.00, which is the figure used; a quoted 1,678.00 would reduce July's loss by AED 9.00.
• No depreciation is charged in 2026 in the underlying books. Figures are cash profit before depreciation unless stated; the depreciation memo in Section 5 shows the effect.
• Card/cash split for Jan–Jun (104,810 / 20,630) comes from the trial balance and is available in total only, not by month.
• Source documents for the July validation, all from the Elegance bank & expenses WhatsApp record exported 10 Aug 2026: ADCB consolidated statement 01–31/07/2026 (ref 192510280); WPS SIF receipt 1301092002209633 (JUL 2026, 2 employees); ADCB payment copies DOM2026081013702181 (Sakeel 774.00) and DOM2026081013704211 (Azeem 1,792.00), both 10 Aug; DOM2026080211412141 (WPS 2,036.75, 2 Aug); DOM2026071305897411 (Tahleel, 13 Jul); Diqa Properties renewal notice for plot 5176 Shop 3, 18 Jul; FTA submission confirmation ref 230011049847, 20 Jul; Zoho expense report ER-00282 Elegance loan by Aziz 2025, 53 lines to 31 Jul; and the signed internal report stamped by Musab Kifayatulla Firfire, 18 Jul.
• Cash basis on a payment-date convention, prepared from a handwritten notebook, an accountant's management pack and the bank statement. Not an audited financial statement.