The following information relates to Maendeleo Ltds operation for the year ended 31 December 2018.

	Sh 000	Sh 000
Turnover		1,948,000
Cost of goods sold		-562,000
Gross profit		1,386,000
Foreign exchange gain		14,840
Goods transferred to a branch		3,000
Insurance recovery for stolen motor vehicle		968
Proceeds from sale of factory extension		4,690
		1,409,498
Less: Expenses
Directors emoluments and staff cost	16,890.00
Pension contribution for staff	4,200.00
Staff recruitment cost	1,148.00
Purchase of furniture	420.00
Penalties on overdue VAT	164.00
Impairment loss of factory extension	150.00
Mortgage interest	364.00
Goodwill written off	162.00
Loan interet	1,286.00
Depreciation	1,480.00
General office expenses	1,348.00
	27,612.00
Net profit		1,381,886

Additional information

1. Directors emoluments include fine of sh.4,840,000 paid for a director who was involved in a corrupt deal
2. The capital allowances were agreed with the tax authority to be sh.2,500,000,000
3. Cost of goods sold includes purchases of sh.174,000,000 inclusive of value added tax at rate of 16%.
4. 15% of General office expenses relate to payments in connection with directors private residences.
5. Directors emoluments and staff cost includes

	Kshs.000
Leave benefits Pension contributions Termination costs Provision for staff leave accruals	720 1,460 2,860 4,920
School fees for the chairmans children Entertainment allowance (used on clients) Travelling costs for a newly recruited expatriate director	1,200 1,800 600

Compute Maendeleo Ltd.s taxable profit or loss for the year ended 31 December 2018